Our stable genius’ easy-to-win trade wars are really paying off!
The LATimes tells us with their usual understatement:
“The Trump administration’s abrupt Chinese tariff hike Friday raises strong doubts on whether the world’s two largest economies can reach a deal to quell their escalating trade war in the coming weeks.”
And just to reinforce the abruptness of it, the hike went from 10% to 25%. So that $200B Amero boatload of crap bound for Walmart is now going to cost Americans $250B Ameros.
China has announced new tariffs on $60B Ameros of American goods. Nice knowing you, Farmers. Lots’a luck, Possum Hollar. (UPDATE: “China could say, let’s go after Chuck Grassley’s state or Mitch McConnell’s in those areas. That could hurt the president.” –Stephanie Ruhle h/t: Crooks and Liars)
Comrade Stupid, the Pride of Wharton School of Economics, tells us that China is paying that money directly into the US Treasury, which now is about a $250B Amero lie.
Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S….
— Donald J. Trump (@realDonaldTrump) May 10, 2019
Amazingly, Fox News actually called him out on it: Chris Wallace on Fox News Sunday asked Larry Kudlow, Comrade Stupid’s economic adviser, if it’s U.S. businesses and consumers who pay tariffs on China:
“Yes, I don’t disagree with that. Again, both sides will suffer on this.”
We now turn our attention to Tiger Beat on the Potomac (thanks Charlie!) morning email thingie (emboldening is theirs):
WALL STREET IS HAVING a bit of a freakout over President DONALD TRUMP’S trade war. Over the last few days, banks and their research arms have sent a flurry of analyses of the president’s trade policy. Most are warning about dire consequences.
— GOLDMAN SACHS: “New evidence on the effects of the 2018 tariff rounds from two detailed academic studies points to larger effects on U.S. consumer prices than we had previously estimated, for two reasons. First, the costs of U.S. tariffs have fallen entirely on U.S. businesses and households, with no clear reduction in the prices charged by Chinese exporters. Second, the effects of the tariffs have spilled over noticeably to the prices charged by U.S. producers competing with tariff-affected goods.”
— BANK OF AMERICA/MERRILL LYNCH is calling this “BLUE COLLAR BLUES”: “The manufacturing sector has been slowing since the peak of last summer. The pattern is reminiscent of 2011 and 2015. Manufacturers have expressed concerns about trade tensions, with nearly 59% reporting that the tariffs have led to an increase in the price of goods produced. Increasing tariffs would be kicking a sector when it is already down. On the other hand, a quick resolution with China would help provide stability.”
Axios morning email thingie, not to be outdone by their former colleagues, tells us (the Axios disease continues with odd emboldening and enigmatic use of bullets):
Axios AM reader Kevin Rudd, the former Australian prime minister, sends Axios’ Jonathan Swan this dispatch on the trade war, from Beijing:
- “This morning’s papers … are quite hardline.”
- Rudd calls the latest Chinese stipulations “a reasonably firm ‘screw you.'”
Between the lines, from Sinocism’s Bill Bishop: The Chinese are digging in, with official media over the weekend making it clear what China won’t agree to.”
“Now that that’s been done officially, it’ll be hard for Chinese officials to walk back, even if they wanted to.”
So we got all that working for us.