Trump to Intensify Trade War in Vain as Early as Next Week


SCMP says in its report “Donald Trump to back tariffs on US$200 billion in Chinese imports ‘as early as next week’” today that due to success in dealing with trade disputes with Mexico, trade hawks prevail now in White House so that Trump believes heightening pressure on China may bring China down to its knees.

He is committing the same mistake of underestimating China when the US fought China in Korean War. Now the US is powerful enough to bully Mexico but it could not bully China. China defeated the US when the US was the strongest and most advanced in the world while China was among the poorest and most backward nations in the world. However, now Chinese economy is as strong as or stronger than the US that is heavily in debt.

Trump is even ignorant that one can begin a war but to end a war he must overwhelm his enemy or obtain his enemy’s consent to end the war. Now, Trump simply lacks the strength to overwhelm China. Nor can he be sure of China’s consent to end the war, even less on his terms. What if he cannot fight on but China would not stop fighting as China is winning the war by 2020? He even may not be reelected!

I feel sorry for Trump and, therefore, for the US. Why is the US unable to elect a wiser president? Trump is wise enough to be a successful businessman but the art to govern a nation is entirely different from that in running a business.

Comment by Chan Kai Yee on SCMP’s report, full text of which can be viewed at https://www.scmp.com/news/china/article/2162107/trump-back-tariffs-us200-billion-chinese-imports-early-next-week.


5 Comments on “Trump to Intensify Trade War in Vain as Early as Next Week”

  1. Steve says:

    This is Trump’s irresistible hegemonic impulse to restore America’s leadership as the greatest hegemon nation on planet earth. This Scoundrel is thinking to himself that his ‘America 1st’ will be his greatest legacy when he leaves the White house. His belief of reducing US treasury debts and destroying other nations economy is by imposing trade tariff terrorism.

    If American businesses and importers cannot replace Chinese goods from other international sources, it’s practically impossible for US congress to approve tariffs on the $200 billion Chinese goods. If it does China’s response will be huge.

    Will September 2018 be the ignition dooms-month sending businesses into bankruptcies, high unemployment and stock market crash.? US trade budget deficit extended from $75 billion in June to $77 billion in July and predicted to extend further in August. China’s massive trade surpluses remain at $28 billion plus in June and July and predicted another massive surplus in August.

    US importers are importing extra loads of Chinese container goods to reduce the impact of Trump trade tariff terrorism. August should be a very good month for China trade surplus.

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  2. Allen Lau says:

    Despite tariffs on aluminum and steel and $35 billion of Chinese goods, U.S. trade deficit widens in July to highest level in five month (this after another high in June).

    “The trade gap in goods… rose 6.3% to $72.2 billion from a revised $67.9 billion in June, the government said Tuesday.”

    Demand for imported goods is strong. Trump’s tax cut stimulus is working against his tariffs. If he wants growth, then the demand has to be strong. The great market manipulator has run into a dilemma.

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    • Allen Lau says:

      Tariff clearly is not the solution.

      Increasing the tariffs will slow demand, but it will certainly drive the economy into recession. China is the low cost producer and the US cannot produce the same goods for 25% more (if it already has the workers and infrastructure) i.e. Chinese goods may still be competitive with the tariffs.

      Tariffs raise prices/cost to those consumers/businesses who can afford it but many won’t survive. At this rate, US trade deficit will hit $840 billion a year and recession will follow.

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      • Steve says:

        It has already been estimated that under Trump presidency, US budget deficit will increase another One trillion dollars by 2019.

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  3. Why is the US unable to elect a wiser president?
    The answer is because the American Empire is on the wane and like all Empires before it, will come to an end. That is why one potus after another since Clinton are useless idiots. Trump is now acting like a Mafia boss, trying to extract “protection money” from his “allies” as well as threatening “lesser” nations to buy more from the US. Why? Because the US is deeply in debt, it is running out of money, even though its top 1 % keeps getting filthy richer and richer by the minute!
    The only question is how much of the world will this Empire bring down along with it in her death throes.

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