The economic strategies in a trade war

[_MeDotOrg]

"Trade wars are easy to win", tweets the President. Watching this unfold, there is a lot of strategy and nuance on the Chinese side.

People who know more about economics feel free to jump in, but superficially the playing field seems to favor the United States. We have a massive trade imbalance, where we import far more than we export. If the response is tit for tat they will block all American imports long before we block all Chinese imports.

However the Chinese have far more control over a state run economy. China will look for new suppliers of soy beans. There could be hardships, but China has a President for life. Their propaganda machine will make the sacrifices noble. The most interesting thing so far is the Chinese selection of products upon which to raise tariffs. China is also a major creditor of the U.S. They are going to hurt a lot of farmers in the Republican Plain states, states where Trump desperately needs to hold on to his base in the coming midterms.

So in the trade wars, the Chinese have fewer missiles to fire, but by pinpointing exactly where they will land so that they damage the President not only economically but politically, the Chinese can help redress the imbalance of influence they initially appear to have. As a strategy game, it's fascinating,

[_DoubtingThomas]

Trump clearly doesn't know what he is doing

[_Markk]

It is interesting...and I think we will come out ahead if we don't quit, at least I hope so.

We have a project starting in which we are to replace the existing shake roof with new cedar shingles. I called the supplier for a quote, and was told that there is a "hold" on all orders, in that Canada is going to spike up prices on soft woods to combat the upcoming Tariff war.

Trump is correct that we are getting the short end of the deal in Trade, there is no argument there. It is far to early to just say he is over his head though.

My take is that trade, like many of the other issues we are facing as a country, has just been ignored at best, or skewed for personal gain at worse... by our past leaders.

Right or wrong, whether you like Trump, hate him, or are on the fence...he is moving forward as he said he would, and is dealing with issues that have been ignored for far too long.

A tariff war will take patience, which I doubt we have as a country.

[_Themis]

We have a project starting in which we are to replace the existing shake roof with new cedar shingles. I called the supplier for a quote, and was told that there is a "hold" on all orders, in that Canada is going to spike up prices on soft woods to combat the upcoming Tariff war.

Could you elaborate. It doesn't make sense that Canada is going to spike up prices. They have increased duties the US imposed but will most likely lose again at the WTO.

[_Themis]

Trump is correct that we are getting the short end of the deal in Trade, there is no argument there.

LOL Of course their is a lot of argument there. Certainly there are trade issues, China being one of them, but other countries also have issues with US protections on many products. The US has benefited a lot from trade, and not really getting the short end of the stick. You act like Americans from both parties have been too stupid to make good trades deals until Trump, but now because of Trump the US will be on the outside looking in on the TPP that is going to go ahead without them. Wonder why they all think trade is a good idea. Also, the TPP was a trade deal meant to counter China. That country you complain doesn't play by the rules.

[_MissTish]

I'm a bit confused by that post of Markk's as well.

I produce goods overseas that we sell in the US, and can't reconcile how Canadian manufacturers increasing prices on goods with a heavy tariff benefits those manufacturers in any sense.

[_schreech]

Trump is correct that we are getting the short end of the deal in Trade, there is no argument there. It is far to early to just say he is over his head though.

In your own words, please explain what you mean when you say "we are getting the short end of the deal in Trade". Im guessing you don't really know what you mean when you say that and I just wanted to confirm you were just parroting something you heard our nacho cheese infused halfwit of a president say but feel free to prove me wrong.

[_MissTish]

Trump is correct that we are getting the short end of the deal in Trade, there is no argument there.

LOL Of course their is a lot of argument there. Certainly there are trade issues, China being one of them, but other countries also have issues with US protections on many products. The US has benefited a lot from trade, and not really getting the short end of the stick. You act like Americans from both parties have been too stupid to make good trades deals until Trump, but now because of Trump the US will be on the outside looking in on the TPP that is going to go ahead without them. Wonder why they all think trade is a good idea. Also, the TPP was a trade deal meant to counter China. That country you complain doesn't play by the rules.

And speaking of the TPP

Trump Asked Top Aides to Review Whether to Rejoin TPP, Senator Says

https://www.bloomberg.com/amp/news/arti ... ssion=true

[_Xenophon]

And speaking of the TPP

Trump Asked Top Aides to Review Whether to Rejoin TPP, Senator Says

https://www.bloomberg.com/amp/news/arti ... ssion=true

Maybe that plan to counter China's influence without causing a trade war wasn't so bad after all. You couldn't make this stuff up if you tried.

[_Res Ipsa]

And speaking of the TPP

Trump Asked Top Aides to Review Whether to Rejoin TPP, Senator Says

https://www.bloomberg.com/amp/news/arti ... ssion=true

There's nothing like studying after the test.