Trump Retaliates with Tariffs on All Goods from China, Much at 30%

-edited

In a major escalation of the trade war, Trump lashed out at China.

Market Reaction (Before the Above Tweets)

  • S&P 500: Down 75 Points, -2.6%
  • Nasdaq 100: Down 242 Points, -3.2%
  • DOW: Down 623 Points, -2.4%

Looking for Whom to Blame?

I can help.

This may be related to Seth Moulton, "whoever that may be".

There is no other rational explanation.

I almost forgot: "Thank you for your attention."

Mike "Mish" Shedlock

Comments (99)
No. 1-20
2banana
2banana

Well then.

Game On!!!

China doesn't know what to do. They keep expecting an historical weak obama-bush-clinton president to apologize and bend America over (again).

Support for the HK riots. Food riots coming to mainland China. Sell so many weapons to Taiwan until the island is about to tip over.

An economy that can't feed itself, is export driven and must have 7%+ growth rates/year in order to keep its population busy and not plunge into turmoil.

AWC
AWC

Might be, that a Country with 2.3 million active duty troops in its military, is capable of “Foraging “ for necessary food sources? And, considering our military successes in Afghanistan, Iraq and other backward entities, a shooting war with China should be as easy to win as a trade war, no?

Aaaal
Aaaal

And Trump-in-the-box will cancel tariffs next week. Damn flip-flopper in chief.

jay2mic0
jay2mic0

I wonder where China would be, if the failed USA Congress knew how to balance Uncle Sam's checkbook. Due to the past and present Administration and Congress' inability to balance the budget, we the USA have to rely on China to float our debt. Currently, China holds $1.1125 TRILLION of Uncle Sam's debt.

So, how much of the American worker's payroll federal tax withholdings goes to support China (interest payment on the debt holdings) with the administration and congress' blessing?

Casual_Observer
Casual_Observer

Trump is trying to jawbone the markets down in hopes of them going up next year. He actually needs a recession now a recovery next year but I'm starting to forecast that once a recession does happen, there will be no recovery.

Sechel
Sechel

Trump saw Mexico blink and come to the table. His mistake is thinking China is Mexico. He never expected it to go this far and doesn't know how to back down. Now its ego.

For us of course we're along for the ride. Trump plays high stakes. Sometimes he wins like getting the Apprentice and sometimes he loses like with his casinos , the airline and his football attempt. The problem is the stakes are high and while Trump may be OK the country can greatly suffer from a miscalculation. Anyone who is honest has to admit that Trump does not bat 1000

Sechel
Sechel

maybe its a cliche at this point but its still worth repeating. insanity has been described as repeating an action and expecting a different result. Trump has raised tariffs now on China and the only result is a slowing U.S. economy, higher prices paid by U.S. consumers and supply channel disruption. It has not resulted in a trade deal or an improvement in our GDP, trade deficit or standard of living. Trump seems stuck in a feedback loop incapable of introspection reflection and reevaluating a seemingly failed strategy.

Mish
Mish

Editor

Curious Cat is correct about this: "Do not to underestimate the Chinese communists orderly determination in this matter, or any other for all of that."

FromBrussels
FromBrussels

Trump may be a weird unpredictable fella and all those tariffs and measures probably come too late but he absolutely right nevertheless ! Developed nations should never have allowed China to disrupt and destroy their economies with mostly inferior subsidized products, China s exponential growth in recent decades has delivered NOTHING positive apart from some selfish short term, short sighted benefits for big corporations. On top of that China 's 1,2 billion materialism craving people are driving the final nail in the earth's coffin... But hey, China is not to blame, WE are for allowing a intrinsically nefast situation to run out of hand ! In the meantime, China with OUR money has become a strong military power, so we better watch out what we do, a 1,2 billion( and ruthlessly ticking) nation might become very desperate and dangerous.... I d say the EU should impose tariffs too but what to expect from a clueless, spineless, worthless institute run by ditto clowns?

Freebees2me
Freebees2me

The fact is: who else would 'kick-the-box' but this guy.... He has balls of steel (American-made!)...

Can anyone really expect a trading partner with a far better deal than we have would cave easily? For our Chinese friends (i.e., the few Communist Party members who really run over a billion people), this is a manhood issue (e.g., Hong Kong).

China is very long-term (e.g., 100 year plan); USA is very short-term (next election; next quarterly earnings release).....

We need to stay strong.....

In the eternal struggle between good and evil, good always wins...

Let's just hope we're 'good'.....

thimk
thimk

absurd tweet , i am embarrassed .

Freebees2me
Freebees2me

FromBrussels said: ..."China is not to blame, WE are for allowing a intrinsically nefast situation to run out of hand ! In the meantime, China with OUR money has become a strong military power,"..

Amen to that, Brother... We have Feed the Beast (i.e., Dragon) and they intend to eat us all.....

(Hope it's cooler in Brussels - great city, great people....)

njbr
njbr

Several comments:

First--the issue of IP theft and China's unfairness has been a topic for decades. The businesses whose bottom line would be most affected by the theft have continued to do business there--again, for decades. Tell me again what a serious deal this is....

Second-- I seem to remember the Chosen One and his family arranged to have their stuff manufactured in China over the decades. Tell me again that where we are at is because of his passion for fair trade and labor practices, instead of spiraling down in a trade war because the Chosen One doesn't want to lose face in an over-personalized conflict that he thought was easy to win...

Third--seems to me we are battling to push manufacturing labor to even cheaper suppliers and not back to the US. Are there people out there that believe that this will significantly expand US employment? And I am highly suspicious of those rapidly moved plants--is it just the final packaging operations being moved from China, while the equipment and main labor still in China? Who is funding these "new" plants?

shamrock
shamrock

When the socialists agree with your trade policy, you may not be doing it right.

lol
lol

1000% tariffs on all Chinese,Mexican,VC,Indian junk,pay off the deficit,build the wall,help our vets,give every citizen a (handout)bonus check and have change left over.…..everybody wins!

njbr
njbr

The simple math of the trade war:

Exports to US are 4% of China's GDP--a country that has 6 to 7% GDP growth in slow years.

What percent of US voters depend on cheap imports or sales to China?

What percent of China voters depend on imports from US or sales to US?

Trick question, you say, what China voters?

Herkie
Herkie

I am pretty sure we all know where this is headed, most of us, including me knew the first time we heard the word tariff that it was going to end with a total embargo of all trade with China. This is going to devastate at least half the nation, you know those people that can't find $400 in the event of an emergency. The other half will be hurt but manage to get through it. As a disabled vet on a fixed income all I had to do is take one look at that orange face and his history of ranting his way to bankruptcy court over and over to know I was not going to like his "presidency."

The photo at CNBC is so perfect, he looks like a petulant brat that just set the cat on fire because it licked his ice cream cone. Poor Xi, he though he could deal with Trump, all that is left for he and China now is all the little nuclear options, currency wars, dumping US Treasuries, maybe sinking a few of our subs and destroyers.

You simply cannot make shit up that is dire enough to convey the image of what a failure this nation is having allowed this POS to become president.

That said, I would still vote for him before I vote for Sanders. :)

dodo
dodo

Food riots in china? Well before that happens, south korea hong kong and much of southeast asia would have serious food shortages when the chinese decide to stop exporting cabbages and greens. Too much cnn can turn even a half-thinking ape into an armchair strategist.

Casual_Observer
Casual_Observer

Economic powers act of 1977 invoked.

Sechel
Sechel

What I find incredible is not the idiocy of Trump's handling of the tariffs but of the continued silence of Mitch McConnell and the Senate.