They promised it would be the end of the world.
When President Trump announced aluminum and steel tariffs, and then followed up with another $50 billion in tariffs on goods from China, he said all he really wanted was fair trade, to close the $300 billion trade gap with the Chinese and save/create jobs here in the United States. After all, this president campaigned on a promise to correct the US’ global trade imbalance, particularly with China, and to revitalize US manufacturing.
But the media went wild, the mainstream media said the President’s tariff move would raise prices, hinder America’s economic growth, jeopardize jobs, burden taxpayers, launch a trade war, and destabilize the system of global trade.
As with any action this president takes, the media told us that thanks to the tariffs the country was headed for a disaster of biblical proportions, you know Old Testament, real wrath of God type stuff– fire and brimstone coming down from the skies! rivers and seas boiling! Forty years of darkness! Earthquakes, volcanoes…The dead rising from the grave…human sacrifice, dogs, and cats living together, NY Jets winning the Super Bowl… mass hysteria.
While the above scenario almost happened in the movie “Ghostbusters” President Trump’s tariff threats are having a more positive effect. China is negotiating with the US on ways to remove some of the laws that are unfair to US business.
The negotiations are still ongoing but per the Wall Street Journal
China and the U.S. have quietly started negotiating to improve U.S. access to Chinese markets, after a week filled with harsh words from both sides over Washington’s threat to use tariffs to address trade imbalances, people with knowledge of the matter said.
The talks, which cover wide areas including financial services and manufacturing, are being led by Liu He, China’s economic czar in Beijing, and U.S. Treasury Secretary Steven Mnuchin and U.S. trade representative Robert Lighthizer in Washington.
Privately, Liu and Mnuchin exchanged letters in the past week on further opening China’s financial services sector and cutting Chinese tariffs on imported cars, according to the Financial Times.
China has a 25 percent tariff on U.S. cars and is now discussing lowering that tariff. China has offered to buy more semiconductors from the United States by diverting some purchases from South Korea and Taiwan, to help cut China’s trade surplus with the U.S., CNBC confirmed on Monday. And Chinese officials are also rushing to finalize new regulations by May that will allow foreign financial groups to take majority stakes in its securities firms…