Trump has now threatened to put a tariff on every single Dollar’s worth of goods we import from China, ratcheting up the Trade War talk to unprecedented levels. Of course, we’re still at just $50Bn and Trump never followed through with his threat to add $200Bn before doubling down to $505Bn but he is still the President of the United States and you can’t totally ignore the things he says – no matter how much you wish you could.
As you can see from this WSJ chart, despite all the bluster, not much has actually happened so far but thank God for that as just the $50Bn that’s already been enacted is causing disruptions in Corporate Earnings and Economic Outlook – there’s no question in rational people’s minds that actually enacting $250Bn worth of tariffs, let alone $505Bn, would be devastating for the Global Economy and yes, deplorables, the Global Economy INCLUDES America!
Tariffs are a TAX on the American people and the real reason your President wants to put a 25% tax on $505Bn worth of Chinese Imports is that it will generate another $126.25Bn that he can use to give more tax breaks to his family and friends and it will allow his budget committee to project collecting $1.26 TRILLION in revenues over the next decade, which he can then use to either claim he has brought down the deficit or use to offset more military spending, etc.
And who pays this tax? Attention Wal Mart shoppers – it’s YOU! Who do you think is the consumer of Chinese goods. $505Bn happens to be the exact annual sales of Wal Mart and, if I had a TV show, I would challenge people coming out of Wal Mart to find something they’ve bought that didn’t come from China. Of course there are plenty of things but you’d be very surprised how much is Chinese as well as, of course, the Dollar Stores, phones, etc.
So a tariff is just a fancy word for a tax on American consumers, especilly the poor ones who can least afford it and no, they will not switch to “lower-priced” American goods because we don’t even have factories that make 90% of the stuff China ships to us and all a tariff…