Mr. Trump wants President Xi to cry uncle and sign a trade deal that would give Mr. Trump the power to change Chinese laws. But Xi and the Communist Party knew a confrontation with the United States would develop. But they didn’t know when the two countries would battle for global trade domination. The Chinese will hurt the U.S. economy in several ways, according to the New York Times.
China’s exports to the U.S. fell 12 percent in the first six months of 2019. U.S. exports to China fell 19 percent, according to the Commerce Department. Trade between the U.S. and China during the first half of 2019 totaled $271 billion. Thanks to Trump’s tariffs Mexico is America’s top trading partner, according to Fox Business News.
According to Commerce Department reports, Trump’s tariffs on Chinese products did not level the import-export playing field. U.S. consumers depend on Chinese merchandise to function on a daily basis. More than 60 percent of all footwear and more than 50 percent of all apparel comes from China. Plus, all the toys, electronics, TVs and other daily necessities bought by American consumers come from China. Mr. Trump’s additional tariffs will make all those products more expensive. But Mr. Trump still claims China pays for the tariffs.
The Chinese plan to retaliate if Trump follows through with his threat to add an additional 10 percent duty on all Chinese products. The stock market had a negative reaction to the new tariffs when the news hit the press. And according to several hedge fund managers, the drop in stock value’s is just the beginning of a major asset devaluation and a 2008-type recession.
But it’s not just Trump’s tariffs that will continue to erode the economy Trump likes to brag about. Mr. Trump’s tax cut adds more than $1 trillion to the national debt every year. His quest to destroy Iran also plays a role in increasing debt. Plus, Trump signed a bill that will raise the debt ceiling by $320 billion over the next two years.
Government economists claim Trump’s economic decisions will hurt the consumer sector of the economy. That sector of the economy is strong, but the tariffs and sanctions continue to create enough consumer and investor uncertainty, they will destroy what’s left of Gross Domestic Product growth in 2019, according to U.S. economists. But Mr. Trump continues to tell his voter base his tariffs and his trade war will make China beg for mercy. But Chinese scholars say that won’t happen.