President Trump and President Xi Jinping of China in Beijing last November.CreditDoug Mills/The New York Times
“Presidents Donald Trump and Xi Jinping are a bit alike, and that presents a danger to the global order.
The American and Chinese leaders are both impetuous, authoritarian and overconfident nationalists, and each appears to underestimate the other side’s capacity to inflict pain. This dangerous symmetry leaves the two sides hurtling toward each other.
The 10 percent tariffs already imposed in the trade war are scheduled to rise to 25 percent in January, but there’s also a broader confrontation emerging.
Trump and Xi may well be able to reach a cease-fire in their trade war when they meet for the Group of 20 in two weeks. Even if a deal is reached, though, it may be only a temporary respite that doesn’t alter the dynamic of two great nations increasingly on a collision course.”
“With the arrival in Beijing this week of America’s top trade negotiators, you might think that the U.S. and China are about to enter high-level talks to avoid a trade war and that this is a story for the business pages. Think again. This is one for the history books.
Five days of meetings in Beijing with Chinese, U.S. and European government officials and business leaders made it crystal clear to me that what’s going on right now is nothing less than a struggle to redefine the rules governing the economic and power relations of the world’s oldest and newest superpowers — America and China. This is not a trade tiff.
“This is a defining moment for U.S.-China relations,” said Ruan Zongze, executive vice president of the Chinese Foreign Ministry’s research institute. “This is about a lot more than trade and tariffs. This is about the future.”
In one corner stand President Trump and his team of China trade hard-liners, whose instinct is basically right: This is a fight worth having now, before it is too late, before China gets too big.”
“President Trump said he would impose about $60 billion worth of annual tariffs on Chinese imports on Thursday as the White House moved to punish China for what it says is a pattern of co-opting American technology and trade secrets and robbing companies of jobs and billions of dollars in revenue.
“The word that I want to use is reciprocal,” Mr. Trump said in announcing the tariffs in the Diplomatic Room of the White House. “If they charge us, we charge them the same thing.”
The China tariffs are his strongest trade action yet against a country he has branded an “economic enemy.” They fulfill one of his core campaign pledges, to demand more reciprocal deals with trading partners around the world.
But coupled with the administration’s decision to exempt the European Union, South Korea, Brazil, Canada, and Mexico from the tariffs on cheap metals, the action demonstrates how much Mr. Trump’s nationalist trade agenda is really targeted at a single country: China.”
“The tariffs, which the United States trade representative will publish within 15 days, will target 1,300 lines of Chinese goods — everything from shoes and clothing to electronics, administration officials said.” I understood the the argument for steel and aluminum, but what is the argument for these other 1,298 products? All the mainstream economists that I learn from, say that tariffs are toxic. The Chinese are famous for their intelligence, work ethic and pride. If they feel insulted, and have lost face, they will be forced to retaliate. Can Boeing stay on top without one of their biggest customers? Or did their stock price just drop almost 4% for no reason?
A five or ten percent tariff on just Chinese steel and aluminum might have been a more prudent test of the waters. Rejoining the TPP asap, would probably do more for the US economy and economic defense, than the steel tariff. The Chinese play like a people at war with the West, and they probably are, since they still have a score to settle over the bombardment and destruction of the Spring Palace, and its mulitude of treasure buildings and libraries, in the 1840’s, during the ugly opium war. The civilization that invented, paper, writing, gunpowder, history and literature, should be courted with carots as well as with sticks.
David Lindsay Jr. is the author of “The Tay Son Rebellion, Historical Fiction of Eighteenth-century Vietnam,” and blogs at here and InconvenientNewsWorldwide.wordpress.com
Thomas Friedman is great in this column. He writes that China is a big problem, but the Trump steel tariff hurts our allies and not China. Then:
“So what would a smart American president do? First, he’d sign the Trans-Pacific Partnership trade accord. TPP eliminated as many as 18,000 tariffs on U.S. exports with the most dynamic economies in the Pacific and created a 12-nation trading bloc headed by the U.S. and focused on protecting what we do best — high-value-added manufacturing and intellectual property. Alas, Trump tore it up without reading it — one of the stupidest foreign policy acts ever.We Brexited Asia! China was not in TPP. It was a coalition built, in part, to pressure Beijing into fairer market access, by our rules. Trump just gave it up for free.
Once a smart president restored participation in TPP, he’d start secret trade talks with the Chinese — no need for anyone to lose face — and tell Beijing: “Since you like your trade rules so much, we’re going to copy them for your companies operating in America: 25 percent tariffs on your cars, and your tech companies that open here have to joint venture and share intellectual property with a U.S. partner — and store all their data on U.S. servers.” “
SANTIAGO, Chile — A trade pact originally conceived by the United States to counter China’s growing economic might in Asia now has a new target: President Trump’s embrace of protectionism.
A group of 11 nations — including major United States allies like Japan, Canada and Australia — signed a broad trade deal on Thursday that challenges Mr. Trump’s view of trade as a zero-sum game filled with winners and losers.
Covering 500 million people on either side of the Pacific Ocean, the pact represents a new vision for global trade as the United States threatens to impose steel and aluminum tariffs on even its closest friends and neighbors.
Mr. Trump withdrew the United States from an earlier version of the agreement, then known as the Trans-Pacific Partnership, a year ago as one of his first acts in office. It will undeniably be weaker without the participation of the world’s biggest economy, but the resuscitated deal serves as a powerful sign of how countries that have previously counted on American leadership are now forging ahead without it.
“Only free trade will contribute to inclusive growth of the world economy,” Taro Kono, Japan’s foreign minister, told a group of ministers from Southeast Asian countries in Tokyo on Thursday. “Protectionism isn’t a solution.”
“While American beef farmers will have to pay 38.5 percent tariffs in Japan, for example, members like Australia, New Zealand and Canada will not.”
I’m sure that most in the beef industry voted for Trump. Well guess what, More expensive steel is going to mean your costs are going up and the tariffs mean your income is going down. America First? Much more of this and it will be America Last.
WASHINGTON — President Trump is arriving at the World Economic Forum in Davos, Switzerland, to explain his “America First” approach at a moment when the world is moving ahead with a trade agenda that no longer revolves around the United States. The world marked a turning point in global trade on Tuesday, when 11 countries agreed to join the Trans-Pacific Partnership, announcing they had finalized the pact and expected to sign a deal on March 8 in Chile. It was a remarkable moment for a beleaguered agreemen
“America First” is a tag line not unlike “Make America Great Again”. They both appeal to our base instincts and are effective in stirring our faux “American Pride”, but that’s as far as they go. Questions need to be asked. What do we want to be first and great at; healthcare, coal production, number of millionaires, people in poverty, a healthy economy, number of nuclear warheads, deaths by gun violence, having the most stuff, …..? Do we have to be great or can we get along being respected, fair, and truthful? First and great mean very different things to many different people. Can one be truly great when so many are left behind? Ask the questions. Give truthful answers. That would be great.
“Today, the United States and most developed countries have few tariffs, but some remain. The United States, for example, protects the domestic sugar market from lower-priced global suppliers and imposes tariffs on imported shoes, while Japan has steep surcharges on agricultural products including rice, beef and dairy. The pact was an effort to create a Pacific Rim free-trade zone.
Environmental, Labor and Intellectual Property Standards
United States negotiators stressed that the Pacific agreement sought to level the playing field by imposing rigorous labor and environmental standards on trading partners, and supervision of intellectual property rights.”