China’s Annual Trade Surplus With U.S. Hits Record Despite Trump’s Tariff Offensive

Discussion in 'Politics' started by Dont Taz Me Bro, Jan 14, 2019.

  1. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    History has shown repeatedly and most economists agree that tariffs don't work. When will the president figure it out?

     
  2. BlackFlag
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    BlackFlag BANNED

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    4D chess. Trade wars are good and easy to win.
     
  3. mikegriffith1
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    mikegriffith1 Mike Griffith

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    What???!!! If tariffs don't work, then how does China have such a massive trade surplus?! How did America become an economic powerhouse during the decades when we enacted a huge protective tariff wall to protect our industries?

    The reason our trade deficit with China is growing is that we need many more, and higher, tariffs on China and a number of other nations. Trump has taken some good first steps, but he has not imposed the kinds of tariffs that we need to reduce the trade imbalance.

    Given that China is our biggest creditor, the creditor from whom we are still borrowing tons of money, Trump probably feels he can't impose all the tariffs he'd like to impose. This is one of the problems that results from being too deeply in debt.

    http://miketgriffith.com/files/caseforhightariffs.pdf
     
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  4. Toro
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    Toro Diamond Member

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    Tariffs don't work. They're taxes, and distort economic activity to the negative.

    However, the reason why the trade deficit soared was because of buying ahead of tariffs being imposed.
     
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  5. kyzr
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    kyzr Gold Member

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    OMG, the trade agreements with China are still being negotiated, hopefully before the tariffs kick in.
    At least the Trump team is going to bat for the US workers. Remember when Obama said "those jobs are not coming back."
     
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  6. task0778
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    task0778 Gold Member Gold Supporting Member Supporting Member

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    You tell me, what does work? Or do you think the status quo is hunky-dory? Nothing else has worked over the past 40 years or so.
     
  7. Toro
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    Toro Diamond Member

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    There is no correlation between tariffs and growth. India and Brazil have had high tariffs for decades and have had much slower growth than China.

    People advocating for tariffs because they think trade deficits or surpluses are inherently bad or good have little understanding of economics.

    America spends more than it saves. To finance this gap, we need to run a trade deficit. Foreign capital comes in to the country finance this gap. That capital must then be used to buy foreign goods. It's simple math. To solve this problem, we could have a recession, which would either reduce our demand for foreign goods or increase our savings. Economics 101.
     
  8. BlackFlag
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    BlackFlag BANNED

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    Remember how the TPP was a massive deal negotiated with multiple countries to take on China and curb their trade imbalance? But nvm Trump killing that and ballooning the trade deficit while taxing you and me with tariffs is way better.
     
  9. Toro
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    Toro Diamond Member

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    Big trade deficits began under Ronald Reagan.

    Does this mean the economy sucked under Reagan?
     
  10. BlackFlag
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    BlackFlag BANNED

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    Trump sheep really don't want to talk about this one
     

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