China has now passed the U.S, becoming the world's largest retail market and a lot of Americans are pissed. But instead of blaming the elites who have caused this to happen, most seem to be picking sides making this a political issue. Politics always gets in the way of common sense.
The U.S has been in bed with China for decades and President after President has overlooked the possibility of China surpassing the U.S.
Trump is the only President to even pretend to be putting America first but it is too little too late.
“China is amid the final stages of an economic maturation that precludes the ultra-high growth rates of years past, regardless of politics and policies. Its potential growth rates for consumption and retail sales are still higher than what the U.S. and other major markets will see in pandemic-ravaged 2020. That leaves China in a position to reclaim some degree of standout performance once the pandemic subsides,” eMarketer said.
With all the talk about an impending recession, no one wants to hear about a trade war with China, no one except the President of the United States. Trump made it clear that the trade wars will not end anytime soon. Despite the recession talks and damn near every economic forecaster saying there are obvious warning signs of a recession Trump has doubled down on his trade war with China, bragging that China has had it's worse year in financially in 24 years.
Trump would tell reporters that China has been ripping America off for far foo long and somebody had to take them on. Trump spoke about himself in a heroic manner as if he was David taking on Goliath. The important part of all of this is Trump feels a 2-month recession is something he willing to allow for the greater good which is bringing down China.
A recession is very tricky and falling into one can be dangerous for many reasons.
To assume that the recession will only last for 2-months gives us all a little bit of a peek inside of the mind of Trump.
Over 5,000 US products coming in to China may be hit with a 25% import tax.
This is a significant increase from what use to be 10% tax on these incoming products.
The increase will have an impact on foods such as frozen vegetables & cooking oil.
Also, appliances & clothing will be hit by this tax increase.
Trump is threatening another tax increase which has China prepared to put ban on rare earth minerals.
China has released a document blaming the US for a breakdown in trade talks.
According to Bloomberg, China has accused Trump of making unreasonable demands. Morgan Stanley has voiced concerns that a global recession is imminent if Trump were to impose 25% tariffs on Chinese exports.
The problem is by the time Trump realizes he is making a huge mistake, he may not even be in office. The trade wars and economical impact will be passed on to the next President if Trump loses the 2020 election. Of course, Trump supporters will brag about how great the economy was under Trump and never understand the downside of Trumps time in office. Thus the cycle will continue.
Victor J Morrow