DONALD TRUMP’S TRADE WARS: A LOSE, LOSE PROPOSITION

Every single step in trump’s war on trade will have a profound, lasting, negative effect on America.

Just one example…Trump is embargoing the sale of high-tec to China: computer chips, robotics, A.I.  China’s response?  Their government is investing billions of dollars in I.T.  Funding start-ups, providing infrastructure.  In a very short period of time, not only will American firms lose out on sales to China, but Chinese firms will sell as good, and maybe better and cheaper chips to countries who were once America’s customers.

Trump is playing a dangerous game of playing off China verses North Korea.  He needs China’s support in negotiating with Kim, but must now placate extremists in his own party and his base that he is going after China as he promised.  And he isn’t nearly smart enough to pull that off.

It is Trump’s win/lose thinking that distorts his reality.  He did so well in business where he cheated workers, banks, contractors, suppliers, out of money and labor that he believes that same thinking will carry the day in world trade.

In fact, his narrow (some would say non-existent) thinking spells doom for America.

Trump’s ridiculous use of the “national security card,” – arguing that it is necessary to control the importation of aluminum and  steel because those components affect our national security, makes America a laughing stock throughout the world.

Trump is willing to undermine the “rules based system of trade” that all countries have relied on since GATT was initiated in 1947.

On June 5, hot-rolled steel cost $329 per ton more in America than in Western Europe.  The gap for aluminum was $290.

Tariffs work like a tax, leading to more expensive bridges, pipelines, cars, beer cans, etc.

Now, America’s trading partners are fighting back.  Soon, if nothing is done to muzzle mad dog Trump, motorcycles and other products will see tariffs placed upon them.

It has been estimated that for every job gained in U.S. steel and aluminum production, due to tariffs on foreign imports, 16 jobs will be lost elsewhere in the economy.

By the covenants of the General Agreement on Tariffs and Trade (GATT) in 1947, which in turn set the foundations and framework for the establishment of the World Trade Organization (WTO) in 1995, a rule-based multilateral trading system that seeks to provide transparency, stability and predictability in international trade.

In part, the agreement states, “Any country that has imports taxed without specifics reason, can retaliate without waiting for a ruling by the WTO.”  That is the Pandora’s Box that Trump has opened up.

Some have pessimistically asked, “Is this the beginning of the end of the international trading system?”

Others, more optimistic, have said, “This is the beginning of the defense of the International trade system.”

Trump thinks that other leaders think like he does.  However, other heads of state are not degenerate, low-life, blood-sucking, morons like Donald Trump.

Trump feels that it is not enough to win a contract or complete a project; others must suffer as a consequence.  The true mark of a sociopath.

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