Tag Archives: US trade war

When US President Donald Trump boasted that trade wars are "easy to win" in March 2018, it was convenient to dismiss the remark as a rhetorical flourish. Yet it is now clear that Trump meant it, because he genuinely believes the bizarre and anachronistic macroeconomic theories underlying his approach.... When even Robert Barro is against you.Interestingly, Professor Barro reiterates that imports are an economic benefit in the sense of increasing a nation's real wealth, and that trade is...

Smoot-Hawley redux?  Tariffs and trade wars have knock-on effects. It's impossible to tell that this point where this is all leading, but one thing is sure, the status quo ante is dead. What will emerge is uncertain. The presumption in the US that things will get better. This is yet to be determined and it isn't possible to  know from the data. In addition, the policy is in constant flux.  As a result, expectations are becoming more and more subject to "animal spirits," and less and...

For the first time since March 2008, PBOC fixed the yuan weaker than 7 per USD.... Zero Hedge China Fixes Yuan Weaker Than 7 For First Time In Over 11 Years Tyler DurdenSee also at ZHRay Dalio Tells Investors 'Bet On China' As The Next Global Empire

“I think the expectation is that this is going to escalate and get worse rather than coming to a place of agreement or just going away,” said Putri Pascualy, managing director at investment firm PAAMCO Prisma. “The risk in the market is political and political risk for investors is very difficult to handicap.”…. Politico Trump’s China battle heads into the danger zone Doug Palmer

Basically, what he’s trying to do is blame China and blame foreigners for the fact that a lot of Americans are really hurting. They’re not doing better. They’re not earning enough to break even. They’re going further into debt. But Trump is really saying that it’s not our fault. It’s China’s fault. Don’t blame the financial mismanagement. Don’t blame the corporations. Blame China. He pretends that they’ll pay instead of Americans. But when you levy a tariff, import prices are going to go...

A new quarterly report from logistics company DHL, measured global air and sea cargo trade volumes between March and June, found trade data continues to deteriorate in the US and China as there is still no resolution to end the trade war, reported South China Morning Post(SCMP). Chinese imports were "losing significant momentum," the report stated, indicating the epicenter of the slowdown was situated in basic raw materials, capital equipment and machinery, and consumer fashion goods. The...

Crack open an iPhone and you’ll begin to see why President Donald Trump’s ongoing trade war with China doesn’t make sense. On paper, imports of the popular smartphone and other goods from China look like a big loss to the U.S. The president certainly thinks so and has often cited the massive U.S.-China bilateral trade deficit – US$420 billion in 2018 – as a reason to fight his trade war. When an iPhone X arrives in the U.S., it adds about $370 – its factory cost – to the deficit. All...

File under "stuff you can't make up."Zero HedgePublishers Warn Trade War Could Lead To Bible Shortages, "Think Of The Children"Tyler Durden

David P. Goldman puts some numbers on it.Asia TimesWashington is wrong about China’s economy David P. Goldman puts some numbers on it.See alsoGold, Goats 'n GunsWhat’s the Plan Mr. Tariff Man? Tom Luongo See also Tom DispatchTomgram: Michael Klare, Fighting the Next War, Not the LastSee alsoNEONew US Ambassador to Uzbekistan – You Just don’t Wanna Know Martin BergerSee alsoThe Vineyard of the SakerSpecial China SITREP & Analysis Larchmonter445See alsoFortuneChina Is Creating A...

No surprise, actually. Same policy as toward China requiring "reform" allowing the US to compete equally in their domestic markets. India and China have no intention of allowing foreign entities control the commanding heights of their economies through "investment." It's a national security issue, just as the US approaches this domestically itself. This is basic to neoliberal globalization that effectively colonized the rest of the world. Nothing new here, either. It is typical of empires....