OK, Ronald. I read through your post, and I understand your view. But I still don't know that it has been as well thought out as maybe they think it has. China is now waging a tariff
WAR, and they could turn around and say the same thing, "We don't need you either." Most of what they buy from us a food commodities, which I'm guessing the Trump Administration assumes the Chinese simply cannot do without. But what if they play hardball and go into greater alliance with Ukraine and/ or the Russians for food commodities, while if necessary telling their populace to simply tighten their belts, and that it's all Trump's fault. That makes them all hate us even more, and become even more resolute.
Let me comment on the news of the day here.
WASHINGTON, April 4 (Reuters) - U.S. President Donald Trump on Friday said China "played it wrong" after Beijing retaliated against new U.S. tariffs, unveiling countermeasures that included additional duties of 34% on U.S. goods.
"China played it wrong, they panicked - the one thing they cannot afford to do!," Trump wrote in all caps in post on his social media platform.
Ok, that Trump would say "China played it wrong," suggests he wasn't planning on them doing what they did, and he interpreted it as "panicking." What if wasn't panicking but a rather ticked off deliberate move because they are not up for being bullied?
That appears to be their response, and they may not be bluffing.
China’s Ministry of Commerce urged the U.S. to “immediately cancel” its unilateral tariff measures and vowed to take “resolute counter-measures” to safeguard its own rights and interests, after U.S. President Donald Trump announced what analysts described as the steepest tariff hikes in a century.
The Chinese official described the Trump administration’s decision to impose reciprocal tariffs as a “typical unilateral bullying practice,” adding that many countries have expressed “strong dissatisfaction and clear opposition.”
Most countries don't exactly know what to do yet, but Canada has also followed suit, and the general response so far has simply been to start raising prices, which will further undermine their own economies and affect the global economy.
Various countries are still deciding how to respond (or not), and companies have begun adjusting to the new reality — largely by raising prices. Some countries responded with new tariffs of their own: Canada announced new duties on certain vehicles imported from the US, and China announced that it will impose countermeasures against the US starting April 10, including a 34% tariff on US goods.
And here is a statement that had me concerned as well, and why I started the thread:
"This is the single biggest trade action of our lifetime," Kelly Ann Shaw, a trade lawyer and former White House trade adviser during Trump's first term, told Reuters. Shaw added that while she expected the tariffs to evolve through negotiations, the new policy is "a pretty seismic and significant shift in the way that we trade with every country on earth."
It could still work, but this is a MAJOR gamble. What if the nations don't back down, and they all start renegotiating with one another to stick it to us? Like a lot of the other moves Trump is making, this is playing hardball in the extreme, but he is playing with the entire world economy right now, and it's pretty darned amazing, LoL.