Tornado Alley (PROG)

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As Trump Tariffs Hit, The U.S. Is Losing The China Trade War — Big Time

"Speaking of the American economy...
HOW TRUMP'S TARIFFS ON MEXICO ARE TAKING JOBS FROM U.S. WORKERS
[...]
Instead, Mid Continent’s factory has doubled in size since Deacero’s purchase. The company, facing fewer restrictions on
steel exports after the North American Free Trade Agreement, shipped steel into Missouri, willing to pay skilled workers more
to take advantage of cheaper energy costs in the United States and a location that allowed swift delivery to U.S. customers."

That last sentence reminds us there is more than one reason (say company tax) why companies operate in the U.S.A.

JED GRAHAM
7/05/2018

The major trade news this week is President Trump's decision whether to hit China with new tariffs starting Friday. Those headlines — about whether the Trump tariffs aimed at China are on or off — will be huge for the stock market.

If they're on, then the U.S. will be at the outset of a technological cold war with Beijing .. https://www.investors.com/news/us-china-trade-war-donald-trump/ .. from which there may be no turning back. If they're off, then Wall Street will heave a sigh of relief, knowing that Trump's trade threats will prove to be mostly bark, not bite.

The stock market rally is under pressure, largely due to Trump trade war fears. The S&P 500 index rose solidly Thursday, reclaiming its 50-day moving average. The Dow Jones rallied to just above its 200-day line.

Yet a weightier headline for the future of world trade and U.S. economic leadership already hit on Sunday: "World's Biggest Trading Bloc a Step Closer After Tokyo Meeting." China took another step toward forming a 16-nation trade zone with Japan and India .. https://www.bloomberg.com/news/articles/2018-07-01/world-s-biggest-trading-bloc-a-step-closer-after-tokyo-meeting , covering one-third of the world economy.

China Fills Void Amid Trump Trade Retreat

China is moving into the vacuum left after Trump's rejection of the 12-nation Trans-Pacific Partnership forged by President Obama to ensure lasting U.S. influence in the Far East.

"As protectionism concerns increase globally, it's important that the Asian region flies the flag of free trade," Japanese trade minister Hiroshige Seko said at a news conference, playing up potential for a year-end agreement.

Instead of major U.S. trading partners uniting against China, the U.S. is drawing fire from all sides for Trump tariffs. China is widely seen as the prime culprit in global steel overcapacity that spurred Trump's 25% steel tariff. Yet China has been a minor steel exporter to the U.S., so Trump picked a fight with Japan, the EU, Mexico and Canada.

While Japan remains wary of China, Trump's metal tariffs and abandonment of the TPP have Tokyo focused on tighter links with Beijing.

This spring, Trump briefly toyed with rejoining the TPP .. https://www.investors.com/news/economy/china-trade-war-trump-puts-tpp-before-tariffs/ , having scrapped the deal four days after taking office. That was a clear signal Trump follows his gut instincts at the cost of any strategic approach to trade policy.

Trump Eyes Short-Term Win In Long China Trade War

Trump is trying to use America's big trade deficit as leverage to secure an easy trade-war win. But any win against China will be short term and do little to narrow its $375 billion trade surplus with the U.S. and alter its systematic push to gain access to the intellectual property of U.S. firms.

Before negotiations hit a wall, Trump largely declared victory in late May, when China offered to boost U.S. purchases by $70 billion. Trump touted the emerging deal as a big win for American farmers. The loser wouldn't be China, but other countries that supply it.

No question, stocks will rally if such a deal reemerges to avert a China trade war. But China will have given up little, while the U.S. will have ceded a lot

https://www.investors.com/news/economy/trump-losing-china-trade-war-tariffs-friday/

See also:

For Americans, Trump’s tariffs on imports could be costly
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=128186223

White House civil war breaks out over trade
[...]
According to more than half a dozen people inside the White House or dealing with it, the bitter fight has set a hardline
group including senior adviser Steve Bannon .. http://www.cnbc.com/stephen-bannon/ .. and Trump trade adviser Peter Navarro
against a faction led by Gary Cohn, the former Goldman Sachs executive who leads Mr Trump's National Economic Council.

Trump and Trade and Zombies
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139460038

5 Times Trump's Favorite Economic Advisor Has Been Spectacularly Wrong About the Economy
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139293620

Why the Trump Administration is Confused about Trade Deficits and Economic Growth
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139501034

Trump continues to misrepresent the China trade deficit.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139793233

A Quisling and His Enablers
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141581336

TRUMP SAYS HE'S "SURPRISED" HARLEY-DAVIDSON IS MOVING WORK OVERSEAS AFTER TARIFFS TAKE EFFECT
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141794398