United States President Donald Trump said on Thursday that the U.S. is prepared to place additional tariffs on Chinese goods equalling more than $100 billion. Many fear that Trump’s statements can only serve to exacerbate an already tenuous situation with Beijing that could end in an all-out trade war.
President Trump expressed that he was responding to what he considers to be “unfair retaliation” from China after Beijing released a statement on Wednesday detailing $50 billion in tariffs to be placed on American imports into China. The move by the Chinese government was in direct response to $50 billion dollars in tariffs on Chinese goods announced by the Trump administration the day before.
Trump went on to express disappointment at the fact that instead of choosing to ‘remedy its misconduct,’ the Chinese government instead chose to take measures that would cause harm to American farmers and manufacturing companies.
The doubling down by Trump comes on the heels of an attempt by his advisors to calm fears of a looming trade war between the world’s two largest economic powers by characterizing the tariff threats made by both nations to be simply the beginning of negotiations.
Financial analysts believe the move by Trump to be a dangerous ploy on the part of the president aiming to back China down and cause Beijing to become compliant with changes America wants to see in regards to Chinese business practices.
The announcement made by Trump drew immediate criticism from politicians, retailers, and manufacturers representing states that depend on agriculture to fuel their economies.
In a surprising political move, the network supported by the highly influential Koch brothers expressed worry about President Donald Trump’s tariff plan. Billionaires Charles and David Koch own Koch Industries, one of the largest and most politically influential corporations in the world. Historically, the corporation has used its economic standing to exert power on the conservative side of the political spectrum, donating massive amounts of money to campaigns and initiatives which support their interests.
One crucial part of the Koch brothers’ empire is the advisement group Americans for Prosperity. On Friday, the group’s President, Tim Phillips, took a stand against Trump’s tariff policies. Phillips expressed his concern that promoting an ideal of protectionism is not good for the country. This will end up hurting American industries because other countries will fight back with their own tariffs. In the end, this will be an additional tax for Amerian consumers on many popular products they demand.
This stance against the tariffs is a direct departure from the support the Koch network bestowed on the Trump administration for its controversial tax cuts that were announced last December and implemented early this year. Following the tax cuts, Americans for Prosperity has continued to drum up support for the measures and stand by the President’s plan for economic growth. However, there is growing concern from the Koch network that the latest in tariff plans will escalate the trade war with China and eventually cancel out all of the economic benefits gained by the tax cut.
Stansberry Research is independent of any political affiliation and is acknowledged to report on the economy according to the truth rather than political biases. Owned by Frank Porter Stansberry, they were founded in 1999 and have proved beyond anyone’s imagination that they are a politically unbiased opinion. They have tackled issues of controversy such as Obama’s administration bailing out the banks, the automotive industry bailout, the economic collapse of the European Union, as well as many others.
Stansberry Research is now taking the time to inform on the negative impact that President Donald Trump’s most recent decisions are having on the economy. In their paper Fleet Street Letter, which comes out monthly, they are advising American citizens to purchase any long-lasting items now. This is due to the fact that the deficit has risen exponentially and they are looking at elation increase the value of the dollar. This means companies will hike up their prices to make the same profit margins.
In addition to this problem, Stansberry Research is affirming that the common goods made of steel and aluminum will also be increasing in prices. Things such as canned goods, soda, and even vehicles, will rise by at least 10% to 20% in cost. This is because President Donald Trump is increasing tariffs on the steel industry. He hopes this will convince people to bring jobs to America. Unfortunately, this will only cause them to make prices go up and further weaken the American citizen.
Lastly, Stansberry Research reported in their newsletter True Well that a trade war is looming and everyone will suffer. In an effort to stop the United States from bullying other countries the European Union has threatened to impose their own tariffs on the United States of America. This will harm the most profitable exports we have.
Ultimately, Stansberry Research is telling Americans that the dollar will lose value, that the price of common goods will increase, and layoffs are going to happen on a mass scale (http://thedailyrecord.com/2018/01/15/gary-d-anderson-stansberry-research/). All in all, this is a recipe for disaster. Let us hope that Trump changes course.