President Trump’s tariffs on China likely to be 7 times larger than steel, aluminum import duties

“President Trump’s steel and aluminum tariffs that sent financial markets into a tizzy last month amounted to $9 billion a year — even before he started handing out exemptions to Mexico, Canada and potentially other trading partners,” Jed Graham reports for Investor’s Business Daily. “That was pretty small potatoes compared with the broadside he is reportedly getting set to unleash on China as soon as Friday.”

“Trump is preparing to slap $60 billion worth of tariffs on imports from China — twice as much as his advisors proposed and nearly seven times as much as the steel and aluminum tariffs,” Graham reports. “As Trump prepares to direct relatively heavy economic fire toward China, trade groups representing Walmart, Apple, Best Buy and other retailers warned that tariffs would raise prices for American consumers, whether or not tariffs prove effective in shrinking the trade deficit. Under Armour, Nike and other shoe companies echoed similar concerns.”

“In some respects, taking on China in this way makes more sense than via steel and aluminum tariffs. While China is the biggest source of global steel overcapacity, it represents only about 2% of U.S. steel imports,” Graham reports. “It’s looking likely that Trump will be engaging in trade-related skirmishes — and U.S. companies will be at risk of collateral damage — on multiple fronts.”

Read more in the full article here.

MacDailyNews Note: In the fifth edition its “Worst Innovation Mercantilists” report, ITIF documents the world’s most egregious examples of innovation mercantilist policies that were proposed, drafted, or implemented in 2017. The report finds China among the year’s worst offenders. This is the fifth consecutive year China has earned a place on the list, a dubious distinction that it alone has achieved.

When countries impose protectionist policies in high-value, high-tech sectors, they damage the entire global innovation system. The United States must lead by taking action against them. The Trump administration has taken steps in the right direction by increasing pressure against China. But in the absence of a concerted effort by an international coalition, innovation mercantilism will put the broader global trading system at systemic risk. — ITIF Trade Policy Analyst Nigel Cory

Read ITIF’s “The Worst Innovation Mercantilist Policies of 2017” report in full here.

SEE ALSO:
Former Apple CEO weighs in on President Trump’s tariffs – March 14, 2018
President Trump eyes tariffs on up to $60 billion Chinese goods; tech and telecoms targeted – March 14, 2018
With President Trump’s tariffs, tech investors in Apple, other stocks are now in the crosshairs of trade war – March 12, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Apple and other tech firms caught in crossfire as U.S.-China trade war looms – March 7, 2018
Apple Macs caught up in President Trump’s aluminum tariff plan – March 2, 2018

75 Comments

    1. From 1789 until 1913, the US federal government was financed primarily by tariffs. This had two wonderful results:
      • Limited the size of the federal government.
      • Protected American labor and markets.

      ….then the Federal Reserve fraud came along with its whore sister, the Federal Income Tax.

          1. Shutting down the FR would be cool, and individual US states need their own State Banks. There’s a push for CA to create one. The motive is to help pot merchants.

          2. I frequently enjoy your comments and commentary, but dissolving the Fed sounds like abject silliness. Anticipating dissolution….if that’s what you really think, then your credibility just fell precipitously.

            1. The Constitution specifically designates Congress as responsible for the coinage of money, not a cabal of international bankers who charge interest on the fruit of American labor.

              start here:

            2. further research:
              • JFK’s United States Note of June 1963.
              • Lincoln’s “Greenback” Notes of 1861.
              • Andrew Jackson’s battle against national banks.
              • Thomas Jefferson’s comments on the danger of national banks.

      1. Except, First Cut Then Paste, tariffs accomplished neither small government nor worker protection.

        You seem to long for the day when the United States looked, acted, and smelled like the worst asian sweat shop nation of today. You and your hero Trump don’t give a shit about the political pawns that he pretends to. It’s all about enriching oligarchs like Mercer and Trump’s russian buddies to be revealed soon.

        1. “Firsty” Citizen X? We know who is clueless here.

          I know it is your right to change your avatar (screen names) several times a day. And you are also right it is “untrackable” as most felons practice to get away without detection.

          Denial coming in 3… 2… 1…

          1. Seems like the only reason to change a screen name on this site is when you expose the RWNJs lies to the light of day.

            Nice try though. Keep up your obsession. It gives your life meaning. Otherwise, you are just a syncophant.

          2. I see you tried to tell a story the other day snot goeb. Nice try.

            Should I tell you about videoing Queen Latifah on the stage in TJ. Or chatting with Ice (mother fuckin) T and telling him that rap would be assimilated by white people….like everything else?

            You will never be as accomplished as me. Yeah, keep being buttwipes butt boy. Keep obsessing about my alleged down votes. Keep proving you are the idiot you strive to be.

            1. Yes you are banned, Citizen X.

              Yes you are banned, Citizen X.

              Yes you are running felon.

              Yes you are as despicable, potty mouth, deluded with your own grandeur and pathetic as ever.

              And yes, I could not care less your opinion on ANYTHING …

          3. Wow! The right wing politicrap on MDN is even worse than it was a year ago. You have to be joking, Fwhatever – you actually want the U.S. to revert to using tariffs to finance the U.S. federal government? You really are a deconstructionist, aren’t you?! This comes from the same person who loves increases in defense spending and borrowing more money on top of an already large deficit and huge debt to finance ill-advised tax cuts for the rich and corporations.

            Wow…just wow. Tariffs…

          4. The America First dittoheads will blame everyone else when the pain of a trade war hits. Just like every depression that occurred before. No nation can exist in a vacuum l, especially when clinging to 19th century economic concepts.

            1. “The America First dittoheads will blame everyone else when the pain of a trade war hits.“

              Can’t say I agree. But I do know something needs to be done to right this wrong going back decades. It’s a start to a long neglected problem. So, we shall see.

              Remember, Trump is the ultimate PIVOT president with unconventional methods. Case in point the LIVE UNSCRIPTED (Democrats never do this) broadcast of the Florida school shooting free wheeling WH discussion that was simply REMARKABLE to watch.

              By contrast, Hillary could not even show up at a friendly channel (CNN) presidential debate without questions in advance. Sheesh.

              The president’s ALL TOO REAL exchange for a refreshing change and hope that raw honesty influences the trade dealings and beyond …

        1. Exactly right. This is the first President to attempt to balance a stacked deck, unlike the clueless presidents the last 16 years, and all he gets is grief. Good God how we forget reality …

          1. The problem is, this POTUS is incapable of developing and expressing a coherent set of policies and priorities. He bounces around like a drop of water on a hot skillet.

            First, it was the Wall and immigration.

            Then it was health care – the best ever healthcare covering everyone for far less cost.

            Then it was infrastructure. Then immigration. Then football players kneeling during the national anthem. Kneeling is apparently only approved at church and during paid trysts with porn starts. Then it was tax reform, because he had to find some way to pay back wealthy Republican donors for their “support.” Meanwhile, he kicked off the immigration again by announcing the end of DACA and expecting Congress to magically fix it. Mixed in with all this is a @$#%storm of tweets denying everything under the sun, lying about facts that are readily verifiable, refusing to admit when he is lying, etc. And all the while, poor billionaire Trump is being “persecuted” by a “witch hunt” perpetrated by Democrats and Mueller, even while the corruption becomes increasingly apparent and perpetrators are admitting guilt for serious crimes. Meanwhile, Trump is nominating incompetent and/or inexperienced people for important positions while getting rid of people who actually know how to do the job, but are not willing to suck up to Trump’s ego. Then you have the big security clearance issue with compromised people, such as Kushner, having access to the most sensitive U.S. intelligence on a daily basis.

            And this whole freaking mess is built on top of an egomaniac billionaire who admires dictators, believes in nepotism and loyalty pledges above the Constitution itself, and personally declared that the POTUS cannot have a conflict of interest.

            Trump occasionally has a decent idea. But it only lasts until someone feeds him something different – minutes, hours, sometimes day or two. He is as fickle as the wind. I don’t think that Trump is all bad – I just see him for what he is…a person totally unfit to be POTUS by temperament, training, or intellect.

            Give me a POTUS with substance. Someone who reads and understands history. Someone who carefully considers dissenting opinions and the consequences of decisions and actions. Someone who cares more about the country than himself/herself.

            1. Well I guess when you compare his strategy to Obama’s, where the talking points were put out weeks or months early like foreplay for the media to fondle and see how wise a move it would be if the government would do such a thing, then after the obligatory (wet)discussion where it is all but accepted as common sense what the Administration/Dem Party wanted to do all along then lo and behold Obama would cum in and climax the left by announcing whatever the hell passed as “common sense reform” that week for a problem creating the need to be solved by whatever new piece of shit law they wanted.

              Yeah, I don’t miss that manipulative asshole one bit.

              I’d much rather hear directly “Here’s the fucking problem, here’s the fucking solution, let’s fucking do it”

            2. Your indictment of the sycophant media is one of the best I have read.

              Some regular posters here disagree a liberal, Democrat biased media, even exists. That pops the cork on my bottle. It is so obvious and how blind can one be?

              Your last graf of problem solving expletives drew a belly laugh and exactly what we need. Get down to earth, solve the problems and blow up the politically correct doublespeak FOREVER …

            3. Towertone: you are so easily manipulated. Trump is all about tweeting and fucking (19 harassment suits and counting, with the guilty party on tape admitting it) but the question remains: who is going to benefit in the long term from Trump’s erratic and ill advised sabre rattling?

              You don’t “win” trade negotiations by declaring an extreme position and then belligerently telling the other side he is unfair. Successful trade has to benefit both parties, which is a concept the extreme right seems to have forgotten.

            4. “The problem is, this POTUS is incapable of developing and expressing a coherent set of policies and priorities. He bounces around like a drop of water on a hot skillet.”

              Wrong. He has probably done more than any president in his first year in history. The man has substance and not the style that you are overly concerned about judging by your post. But that never matters when it comes to results.

              “First, it was the Wall and immigration.” Then it was this, blah, blah, blah.

              What you are purposely not mentioning is all the onerous government shackle regulations he repealed that unleashed the robust economic engine and boosted Wall St. confidence leading to SEVERAL economic records in a short period of time. Democrats, the rulers of regulation and tax funded government programs rarely have a clue. They solve NOTHING.

              “Then it was tax reform, because he had to find some way to pay back wealthy Republican donors for their “support.” “

              Roughly 90% of Americans got a tax break. That would be AVERAGE citizens, Melvin. Mine is hundreds of dollars a month. Roughly 5% of Americans are “wealthy” and less than that are Republican. There are “wealthy” Democratic donors out there as well in case you haven’t noticed.

              “Meanwhile, he kicked off the immigration again by announcing the end of DACA and expecting Congress to magically fix it.”

              Campaign issue “immigration” is at the top of the list on many voter’s minds from both parties, so good for him. Congress had decades to “magically fix it” from BOTH parties in control. They DID NOTHING. The president needs our support to ‘git er done!

              “And all the while, poor billionaire Trump is being “persecuted” by a “witch hunt” perpetrated by Democrats and Mueller”

              Whoa camel, I says whoooaaa camel! Your snarky mocking aside, I agree with you. 👍🏻

              “Trump occasionally has a decent idea. But it only lasts until someone feeds him something different – minutes, hours, sometimes day or two.”

              More broad brush opinion with zero SPECIFIC examples. But you are right on one thing, he has tons of great ideas. Getting them accomplished against the entrenched beltway swamp and deep state is not easy, particularly when you don’t have the gushing sycophant MSM on your side that Obama enjoyed daily. Instead, we have the 24/7 Trump take down channels of CNN and MSNBC. Imagine if the media gave positive Trump coverage of the impacts on the economy, hmmm? The media and beltway swamp is a remarkable NEGATIVE reality the president has EXPOSED for all to see and no going back.

              “I don’t think that Trump is all bad – I just see him for what he is…a person totally unfit to be POTUS by temperament, training, or intellect.”

              Right, he is trying to do the RIGHT thing. I agree with one out of three descriptions. His “temperament” at times is too rough and tumble NY street style hit back for me and I cringe too many times. He needs to handle adversity more respectfully and responsibly.

              Now, I disagree with political “training”. While I don’t know of professional political training per se, I do know business training tops the list. Certainly not the lawyer representatives, minus average citizens, that dominate and control Congress.

              That said, government is after all, the largest business in the world with a few differences. They don’t have to be concerned about turning a profit every quarter, they don’t have to be concerned about getting sued, they don’t have to be concerned about stock price and most important — they don’t have to be concerned about running deficits.

              Second, I also disagree about “intellect.” You don’t turn a one million dollar family loan into billions with skyscrapers, hotels, other businesses and golf courses all over the world to this day. Dumb people do not produce beautiful families and successful offspring. He is smarter than the average bear and dumb as a fox. You just don’t see it. Or maybe you do and just won’t admit it.

              “Give me a POTUS with substance. Someone who reads and understands history. Someone who carefully considers dissenting opinions and the consequences of decisions and actions. Someone who cares more about the country than himself/herself.”

              His renegotiating of trade, immigration, tax policies, deregulation, approving energy pipelines and energy exploration, bringing jobs back, et al. — shows he cares more about “the country” than any president since Reagan and JFK before him.

              Most importantly, much like Ron and John, Trump IS the people’s president …

        2. Short end of the stick????

          Americans have oursourced their democracy to corporate executives who deliver you cheap disposable chinese plastic and YOU KEEP BUYING IT. If you don’t like imported goods, STOP BUYING IPHONES. Write letters to Cook demanding that he build your must-have gadgets in the US of A!

          Until you are willing to do that, and work at a wage structure that your corporate overlords deem adequate, you will have to continue to suffer a never ending wave of imports. You may have to start buying Buicks instead of imported Toyota and Kia and Hyundai cars that have taken over the roads.

          Also, you must grow all your own food. No more fresh fruit and vegetables from South America in the winter. Trumpists say that is evil. You better learn to grow your own damn bananas, Trumpanzees.

          Let’s not forget that Wall Street, which owns the Swamp in DC, including the few remaining Trump advisors, made themselves rich by ensuring their companies privatized all market gains while socializing all losses, externalities, social&ecological destruction, etc to the government. You pay to pave all the roads, big semis carrying imported stuff are free to destroy them while guzzling discounted imported fuel from Saudi and Iraqi wells guarded by, guess who: the military that you pay to protect you against people who would bomb innocent people in Austin. Don’t you want to watch more fantasy supercomic movies and video games to distract you from the fact that the infrastructure in America is crumbling since Corporate America won’t upgrade their domestic factories nor pay the same tax rate as citizens to maintain the infrastructure?

          The federal debt grows, the billionaire class gets obscenely richer, and you are complaining because Trump has made the meek hardworking Chinaman a scapegoat for the situation. Nobody made corporate America sell out to communist China. The right wing corporatists did it of their own free will. Don’t blame the lowly labor classes in 3rd world countries for working their asses off to hir Walmart price demands. Blame Walmart. Blame Apple. Blame the companies who outsource and hoard the profits. FOLLOW THE MONEY. Apple sits on more of it than any other company in the world.

          1. Until our government takes back unfair trade agreements that allow other countries to export here while guarding their own imports then it doesn’t matter how much we want to buy American the companies here can’t compete.

            I knew as soon as I read “The right wing corporatists did it of their own free will” you were a simpleton.

          2. Get real. If people stop buying iPhones, which are at least designed in the U.S. and bring substantial profits to a U.S. company, then what are they supposed to buy? *All* phones are manufactured outside the U.S. and the majority of cell phone components are produced outside the U.S. So, you should have just said, “stop buying cell phones” (and a bunch of other products while you are at it).

            I applaud the idea of voting with your dollar. But the shift towards domestic manufacturing and insourcing will take decades, just as it took decades for the manufacturing and jobs to flow out to other countries since the 1970s.

            It is easy to make ridiculous blanket statements that oversimplify problems and offer invalid “solutions.” Why don’t you try working a little harder at more fully understanding the issues and the potential consequences of various approaches? Then convince your POTUS to do the same.

      2. This argument has been used by people on both the left and the right, but disregards the fact that the economic realities of 2018 for both the USA and the world are far different than over 100 years ago. I am no fan of the Federal Reserve, either, but this is not how to handle things.

        We need to enact a Value Added Tax which can protect the US economy from dumping without violating our existing trade deals with other countries or trading blocs. This is precisely how most other countries handle it. Enacting huge tariffs is unwise for the US and the world economy.

        Here is a snapshot of how the EU does it with the example of Germany.
        http://www.cfe-eutax.org/taxation/VAT-taxation/germany

        1. Can’t side with you on this. Value Added Taxes raise every step of production cost by taxing them instead of the final sale. It complicates the tax code and is burdensome to small businesses.

          We are not the same type of economy as Europe, so what works there will not necessarily work here.

          A more simplified tax code, even if rates were slightly higher, would save businesses a ton of money on accounting and paperwork alone, not to mention the space needed to store all that crap for at least 7 years.

          1. What Germany does is charge VAT on domestic and imported stuff, but rebates the tax on favored industries that need protection from dumping without violating tariff restrictions negotiated in various trade deals. It is a loophole.
            As to the burden, VAT taxes are used widely outside the US and in the age of big data keeping up would not be that hard. I am all for lessening the burden on small business, but a VAT tax is simple math.
            The VAT would not be a new tax, but a replacement for the corporate income tax.

      1. They call it Stormy Monday
        But Tuesday’s just as bad
        They call it it Stormy monday
        But tuesday’s Just as bad
        Lord, and wednesday’s Worse
        And thursdays all so bad

        1. In other words, revise the Constitution to suit our values? Fine, I suppose. Millenials can do the same when they take over. Is that pretty much the idea? Bah. I don’t have much truck with them, but disenfranchisement is a slippery slope. Young people may not know jack shit according to our lights, but they can see their own future and will vote to protect it. Instead of taking away a constitutional right, use persuasion or trickery instead. That is the American Way..

  1. Shot across the bow to everyone with the steel and aluminum, adjust trajectory, bam right on China. Definitely going to be some Apple impact here. So this a trade war? It’s OK if it is, I’ve got lots of popcorn.

    1. Trump’s Ready, Fire, Aim is going to have some unusual consequences.

      GMC/Chevy and Dodge trucks made in Mexico and sold in the US and Cadillac/Buick and Chevy SUVs made in China could see a huge price spikes while Toyota, Nissan and Honda trucks made in the US are not, for example.

      Your iPhone is made in China- assembled from parts sourced around the world. The same is true for iPads, Macs, Apple TVs, HomePods, etc.

      1. Consequences indeed, and you’ve just pointed out a few items, cars and iphones. It might get to the point of countries deciding it’s not worth to deal with Apple’s home nation what so ever. Apparently it’s starting to happen with several South American countries. Nothing helps solidify people than a common enemy, a common threat and since Hitler is no longer around….

            1. Besides, Trump lacks Hitler’s transcendent rhetorical gifts. Also, as has been reported, some of Trump’s best friends are Jewish ( the same was said of Obama), but Hitler saw in them only treachery. Hitler wore a moustache to disguise his plainness, whereas Trump is naturally handsome. There are of course many other differences, all trivial. The only really important distinction is how many people suffered, or will suffer, under their respective regimes.

  2. This is all a red herring. China, United States, blah, blah, blah. The Corporate world structure transcends countries. Political leaders are beholden to its financial and social needs evidenced here in US by massive tax cuts and bank deregulation. While Trump et al play with billions, the Corporate game plays with trillions. And in the end, it’s nothing more than a game with a few winners and many losers.

  3. So everyone here pushing for no tariffs is smarter than Elon Musk?

    “China puts a 25% tariff on USA cars going to China. We currently put a 2.5% tariff on China cars coming here.”

    So you all think that is fair? NO. Trump is doing what SHOULD have been done decades ago when China first upped their tariffs. But our globalist controlled government was not working for we the people.

    1. Quite many people here think like teenagers. Fair? That is profoundly naïve. This isn’t middle school. This is global trade. Fairness doesn’t apply. In trade (whether domestic or global), what matters is the bottom line.

      One main thing that nobody seems to understand here: tariffs NEVER have positive benefits for those who they intend to protect. The unintended consequences literally always end up costing much more than the protection that tariffs are supposed to provide.

      China is paying dearly for the tariffs they have on foreign imports. They aren’t really protecting anyone; they are simply artificially inflating prices of a specific product, which of course affects pricing of many other, unrelated products. When a truck is more expensive than it should be, food will be more expensive, because the farmer that brings that food must spend more to buy that truck, and the money has to come from somewhere.

      Let us not forget all the subsidies that US already has in place, and that severely skew the markets around the globe, affecting everyone. Subsidies aren’t much different than tariffs; the government artificially intervenes in an open and free market, putting the finger on the scale, depressing the market value for a certain product (for example, fossil fuel) by giving the producer of such product a subsidy, so that this producer can get an unfair advantage over a competitor (for example, renewable fuel producer). America spends close to $100 billion (with a B) in subsidies to various industries: food (over $50B), fossil fuel (over $10B), ethanol ($20B), housing ($15B), export, etc. Experts agree that vast majority of these subsidies only help the industries that are receiving them, but are detrimental to the overall population. It doesn’t take an expert to understand how interfering with markets with artificial barriers the only goal of which is to favour one participant in the market at the expense of a competitor cannot be beneficial to the overall population.

      Tariffs will accomplish nothing. Other than perhaps a few thousand new jobs for steel workers in western Pennsylvania, the rest of America will pay the price, and that will include tens of thousands of jobs lost because of the prohibitively expensive steel that put them out of business.

      Tariffs never work. History has proven this. They haven’t worked in the 19th century, they haven’t worked in the 20th century, and they sure as heck won’t work in the 21st.

      I cannot believe intelligent people actually think this is a good idea.

      1. “Tariffs will accomplish nothing.”

        “Tariffs never work.”

        Well, well, Mr. Intelligent, exactly what does work?

        Obvious there is a problem with trade. And equally obvious is you have ZERO solutions to make the world a better place.

        Simply another tedious post to dump on Trump, got it …

    2. I totally agree with direct tariff mirroring. However this is not at all what the Trump administration has been proposing. Trump wants economic retaliation and the authoritarian power to carve exemptions for his friends. That is the recipe for economic disaster at best. America needs a long term game plan, preferably with upgraded infrastructure in place BEFORE dismantling the world trade system that has made wall st. and US investors filthy rich.

      Why do you believe Musk has your best interests in mind when he makes vague economic assertions? Is he first in line to get special exemptions from der führer Trump?

    3. Well said.

      And the biggest sellouts are?

      Clinton: NAFTA.

      Gore: Carbon credits.

      Obama: Paris Climate Accord and TTP.

      President Trump rightly STOPPED the bleeding … 🇺🇸

  4. Lets let other countries rape and pillage us with their trade. We can’t sell ours there, but they can sell theirs here. Fuck them, It takes some pulling the rug out to get the Chinese and Asians to deal and to negotiate. You ALWAYS go in wanting more, then whittle it down. Its about time we stop getting dry ass fucked by our trading partners. But of course the leftist here like the ass fucking, so they just whine about Trump being an idiot. and they gladly guide the cock in their ass thinking they are so smart. (by half)

      1. You’ll notice that MacDailyNews is not banning you for using four-letter words (even in quotes), the way it once did. MacDailyNews isn’t getting more tolerant, just adhering to the analytics that determine its income, deriving from page views of its lively political commentary. We’ve finally arrived at the economic inflection point where you, botvinnik, are creating more marginal income than what was previously lost due to Sean’s puritanical denunciations. — it’s all about money, you understand, and always has been. We are all being played like puppets by higher forces, marketing savants that know our minds better than we do. Free will does exist, but is laughingly easy to subvert. For proof, witness all human history.

        1. oh, sure okay…except I always use a gravé or an umlaut over a u in “fúck” to negate any “naughty word” algorithms within Disqus.

          you forgot that part.

          1. Smarter than the average bear. 👍🏻 Always one step ahead of them, just like President Trump, well done. Fun to watch the media and Democrats are clueless to see it and constantly trip over themselves …

Leave a Reply to tweaker Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.