Trump Eyes Another $267 Billion in Tariffs (And He's Foolish Enough to Do It)

As Trump ponders $200 billion in tariff threats, he eyes another $267 billion on top of that.

Please consider Trump says has tariffs ready for further $267 billion worth of Chinese imports.

> U.S. President Donald Trump said on Friday that he has tariffs ready to go on a further $267 billion worth of Chinese imports, as the world awaits his decision on imposing levies on $200 billion worth of the Asian nations goods.

> The $200 billion we are talking about could take place very soon depending on what happens with them. To a certain extent its going to be up to China, Trump said. And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want. That changes the equation.

If you hate to say and do things that are foolish, the simple solution is to not say and do those things.

Tariffs are a direct tax on consumers and businesses. A handful of protected businesses gain a little, a mountain of others lose.

This is not winning.

Also consider Canada, the Petroyuan Thesis, and Balance of Trade Issues in Pictures

Mike "Mish" Shedlock

Comments
No. 1-7
Escierto
Escierto

You gotta laugh. Every time Trump talks about new tariffs, the USD rockets higher just as it did today. This not only destroys the value of emerging markets currencies making their exports to America cheaper, it destroys US exporters by making their goods even more expensive. Trump is going to preside over the highest US trade deficits in history and every thing he does will make them worse.

AlexSpencer
AlexSpencer

To make up for 500 billion deficits not enough tax is being collected. 10%Tariffs on about 5 trillion of imports will be needed or income tax revenues need to be increased or a 500 billion cut in spending. Which option will prevail ?

Webej
Webej

Yes, and just wait a few years till the fracking miracle turns into a depletion bust.

Kinuachdrach
Kinuachdrach

Does no-one here live in the real world?

It is self-evident that huge trade imbalances are unsustainable. That means they are going to come to an end some day, one way or another. How do you get the exporting countries which have benefitted from past stupid US policies to take constructive action to help remedy the imbalance -- preferably by increasing their imports?

It has traditionally been easier for the Chinese to buy off the likes of Hillary Clinton than to take steps to facilitate balanced global trade. But the resulting trade imbalance is still unsustainable.

Threats of tariffs are one of the ways of persuading the Chinese that donations to the Clinton Foundation will no longer buy them more time. Free traders should be applauding the threat of tariffs as a way to bring China to the negotiating table. Because if the trade imbalance is not addressed now, the inevitable eventual future collapse in world trade is going to be much more damaging to all parties.

Realist
Realist

Free traders should be applauding the threat of tariffs... Apparently it is you who does not live in the real world. Why is Trump thearening Canada with tariffs when the US has been running a trade surplus with Canada for the last 33 years as Mish pointed out.