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The Trade Wars Are About To Begin: America holds the best hand with Trump at the helm. If only our media helped

A little background: Fast clip – Trump tells Joe Rogan he is serious about ending income taxes completely in America and replacing with tariffs.

Listen to a convo on China’s response to Trump’s tariff proposal, and the impact of tariffs….  MUCH more below


Briefing Doc: China’s Response to US Tariffs & Reassessing the Impact of Trump’s Tariffs

This briefing doc examines two key narratives surrounding trade and tariffs, focusing on:

  1. China’s Reaction to US Trade Policy: Examining China’s policy shift towards domestic production, particularly in the semiconductor industry, as a response to US tariffs and sanctions.
  2. Reassessing the Economic Impact of Trump’s Tariffs: Critiquing a study from the New York Fed that attributes significant economic harm to Trump’s tariffs, arguing that the study’s methodology is flawed and overlooks the broader economic context.

China’s Domestic Production Push

  • Source: Tom’s Hardware article by Jowi Morales

Key Points:

  • Retaliatory Price Advantage: In response to proposed US tariffs, China is offering a 20% price advantage to domestically produced goods in government procurement, aiming to counter US competitiveness.
  • Focus on Chip Manufacturing: This policy, coupled with calls from major Chinese industry associations, signifies a concerted effort to boost domestic chip production and reduce reliance on US companies like Intel and Nvidia.
  • Motivated by US Sanctions: China’s push for self-sufficiency in chip manufacturing is fueled by expanding US sanctions, which are perceived as a threat to the reliability of American chip products.
  • Quote: “U.S. chip products are no longer safe and reliable, and China’s industry will have to purchase American chips cautiously.” – China Semiconductor Industry Association

“I WILL ABOLISH INCOME TAXES” We already know getting rid of income taxes would benefit all of us. But how will President Trump‘s tariffs work?

Implications:

  • Increased competition for US chipmakers in the Chinese market.
  • Potential acceleration of China’s technological development in the semiconductor sector.
  • Heightened trade tensions between the US and China.

Challenging the Narrative of Tariff-Induced Harm

  • Source: Breitbart article by John Carney titled “The Fed’s Flawed Math on Trump’s Tariffs”

Key Points:

  • Disputing the Fed’s Findings: The article challenges a New York Fed study that attributes trillions of dollars in economic harm and “welfare loss” to Trump’s tariffs, pointing to positive economic indicators during his presidency (pre-pandemic).
  • Methodological Critique: The article argues that the Fed study’s focus on short-term stock market volatility within a 10-day window following tariff announcements is misleading and ignores the market’s subsequent recovery.
  • Alternative Analysis: Expanding the analysis window reveals stock market gains within 15-60 days post-tariff announcements, suggesting market adaptation rather than lasting damage.
  • Broader Economic Context: The article highlights other factors influencing the economy during the period, including Federal Reserve policy and global growth fears, which are not adequately considered in the Fed study.
  • Quote: “If tariffs inflicted lasting harm or ‘welfare loss,’ where’s the evidence?”

MUST-WATCH: Steve Bannon Highlights The Messages President Trump‘s Tariffs Send To Foreign Nations

Arguments for Tariffs:

  • Addressing Trade Imbalances: The article posits that tariffs were necessary to address the imbalance in US-China trade and protect American workers and industries.
  • Forced Negotiations: Tariffs are presented as a tool that brought China to the negotiating table and signaled a shift in US trade policy towards a more assertive stance.

Conclusion:

While the first source highlights China’s proactive response to US trade policies, the second source challenges the prevailing narrative of economic damage caused by Trump’s tariffs. It argues that focusing solely on short-term market volatility paints an incomplete picture and that a more nuanced analysis reveals a story of economic resilience and adaptation. This divergence in perspectives underscores the complex and multifaceted nature of global trade dynamics and the need for careful consideration of both short-term impacts and long-term consequences.

Fox News Peter Doocy reports that Canadian Prime Minister Justin Trudeau told Trump the new 25% tariff would “k-ll the Canadian economy” and Trump joked to him that if Canada can’t survive without ripping off the U.S. to the tune of $100 billion a year then maybe Canada should become the 51st state and Trudeau can be the Governor.

TRUMP: “I spoke the other day to the new President of Mexico. Very nice woman” “But she said: ‘Why are you doing this to me?’ I said ‘I’m not. I’m just putting a lot of tariffs on because you’re allowing criminals to pour into our country, & we cannot allow that anymore’ “

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