Tariffs, Tariffs and More Tariffs!
As History has repeatedly proven, one trade tariff begets another, then another - until you;ve got a full-blown trade war. No one ever wins, and consumers always get screwed. - Mark McKinnon
Tariffs that save jobs in the steel industry mean higher steel prices, which in turn means fewer sales of American steel products around the world and losses of far more jobs than are saved. - Thomas Sowell
Why Tariffs?
The quotes above are reflections on the results of implementing tariffs. However, I learned early on from listening to Donald Trump, Peter Navarro, Kevin O'Leary, and the Secretary of the Treasury, Scott Bessent, that this implementation of tariffs was different.
What many pundits missed or ignored was the fact that this use of tariffs was not going to be used traditionally as a punishment for competing with our manufacturing. As the plan unfolded, it became clear that President Trump was using tariffs as a tool to herd the world's production into the US sphere of influence. The US trade deficit is astronomical and driving us towards bankruptcy. Other countries have been taxing us through exorbitant tariffs for years. This represents a good portion of our 37 trillion dollar debt.
President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025, in Washington, D.C. Chip Somodevilla/Getty
We Have a Huge Trade Imbalance.
We have seen many countries falling in line with Trump's plan. The EU, Britain, India, Japan, Italy, France, South Korea, and Vietnam are key players. Some 70-plus countries are in line to lower tariffs and work with the US.
All but Vietnam are coming onboard, and China is worried. They have placed a high tariff on US goods because Donald Trump hit China with a 145% tariff on most of the Chinese products. China has placed a 125% tariff on US goods.
Remember that the US imports way more than the Chinese allow of US-manufactured products into their country.
Kevin O'Leary
The Chineese Are Exporters; They Sell More Than The Buy
The Chinese are sellers. They sell lots more to the US than they allow into their country from the US. China needs the US to be buyers.
If thie current trade situation is not stopped, China will be in serious financial difficulty. Their plans for world domination will be crippled and their people will start to suffer. Workers will lose jobs, plants will close, and life will become unbearable in China.
The regime must make a decision. Is it time to play nice with the US, or will they dig in their heels and fight the US? What would be their tactic if they can not pay workers and their military? Will General Secretary Xi Jinping risk a rebellion? Donald Trump is the master of The Art of the Deal. I can't wait to see how this plays out.
President Trump is putting pressure on all the counties we trde with. Many are making deals because the US is the largest consumer in the world. It is only a matter of time before the Chineese come to the table and try to bargin. My hope is that we will come out with an "America First" deal that is fair. It will take vigilence to keep the Chinese from cheating.