TRUMP's TRADE WAR.

TRUMP's TRADE WAR.

Get Ready for  commodities and goods prices to soar . President Trump's master plan latest round of tariffs     ($200billion) is sure enough to effect American goods with the "made in China" label . While I thought that the tariffs were about "Chinese goods" & NOPE ! . Its going hurt American companies who take their manufacturing plants to China for almost cheap labor , so it could be repackaged , shipped to the United States . While beating on President Trump these days is becoming the "norm" . We should reflect a little what President Obama did in 2009 .  Is it possible that what Trump's tariffs are politically motivated ? ( **)>>same as Obama's see reports )  President Obama slapped a stiff 35% tariff on Chinese tires in 2009 after American companies complained about unfair competition. They said China was flooding America with tires at low prices making it tough for U.S. companies to compete. The Obama administration has filed numerous unfair trade cases and won several tariff judgments against China in recent years.  The consumer goods affected represents a dramatic increase form the previous round of tariffs, according to a breakdown of a previous version of the list of goods affected. (1)>>Jack Ma, China’s second-richest man and the founder of the Alibaba multinational conglomerate has said. But he warned Mr Trump while he might win the battle, he would “lose the war”, stressing Washington's protectionist stance would result in Chinese businesses refocusing on other countries at the expense of the US. But what about the Stock Market ?  Stock prices suffered for months amid investors' worries about higher interest rates and President Donald Trump's trade war with China and others.While some analysts say the rest of the world remains complacent about how disruptive a trade war could get between the two biggest economies - with their deep and long production supply chain - the accusation could not be leveled at investors in Chinese markets, which have been hemorrhaging.It’s getting harder to shield consumers from higher import taxes. This latest round of tariffs, which going into effect on Sep. 24, will hit $42 billion worth of consumer goods, according to Bank of America/Merrill Lynch estimates.While people could see and feel the pain that resulted from U.S. trade policy overall, they are now not clear on what is to be gained from the tariffs Trump is imposing on imports from Canada, the European Union, China and other trading partners. A tariff is a tax, and tax increases are usually not popular. Here is the BIGGER question with the new revived summits between Russia , China and EU the Trump tariffs may backfire putting the United States into economic isolation . 

NOTES AND COMMENTS: 

( **)>>same as Obama's. The new tariffs, which will start out at a rate of 10% and could increase to 25% by the end of the year, will affect a far greater cross section of consumer goods than the previous round. 23% of the imports targeted are consumer goods, according to the Peterson Institute for International Economics, and include everyday items like furniture ($11 billion), chair seats ($10 billion) and computers ($8 billion). Apple INC for example productes products made in China for American consumers , just think what a 25 % hike on consumer taxes will be like.(1)>>Jack Ma.  Jack Ma, the recently departed chairman of Chinese retail giant Alibaba, said Wednesday that President Donald Trump's trade war with China will scuttle the company's pledge to bring 1 million jobs to the US.  Ma has previously been critical of the protectionist moves from the Trump administration and said Wednesday that trade should not be used as a weapon, but rather as a way to bring peace between countries. The Alibaba executive's comments come the day after the trade war escalated further. On Monday, Trump announced a 10 percent tariff on another $200 billion worth of Chinese goods. On Tuesday, Beijing came back with tariffs on another $60 billion worth of US goods.Given the relative lack of talks between the two sides, the likelihood of the trade war subsiding anytime soon is slim. Alibaba's original promise was predicated on the idea that by giving US small businesses more access to the Chinese market through Alibaba, the platform could help job growth in America.