It appears that Trump's customs wars against American trading partners are intended to isolate China as a major competitor and to clearly separate them from the remainder of the countries which, unlike China, have shown a willingness to negociate duties. Around 75 countries have already reported a willingness to negociate the level of duties and trade with Trump, which is why Trump shifted the imposition of duties by 90 days, reducing the fresh duties to 10%. On the another hand, the drum continues to rise the level of reciprocal customs between China, which increased customs duties on US imports to 125%, and Trump, which increased customs duties on Chinese imports to 145%! At the same time, he announced that if Communist China expressed its willingness to negotiate, these duties would be importantly reduced. The opinion of the “Wedding” Islander: “The Chinese are holding fast.”.. On the wider front, it can be observed that a globalist green formation in consequence to expanding protests of patriotic forces “Brutally” matures in his fear of losing power and influence by changing his colour to brown, as can be seen besides in Poland and among the EU elite
Trump understands that globalisation primarily serves American and global oligarchs simultaneously harming average Americans by taking distant their jobs, civic subjectivity, individual dignity, directing them towards a government pot, which destroys the Republican strategy and builds totalitarianism. many commentators criticise Trump's rapidity and violentness of revolutionary moves, not knowing that if voters do not announcement the affirmative consequences of his attempts, in 2 years the chance to heal America (elections to Congress) will disappear.
Trump surprises, in fact, on behalf of the average American, he takes up the fight against the world's globalistic oligarchy, which may end differently. It is no secret that mainly American companies in pursuit of profit and improvement of the concept of globalisation have applied capital and modern technologies to communist China. It was they who helped China get back on its feet and become a planet power at the same time leading to the deindustrialization of America. Trump stated that China's permanent surplus in trade with the US leads to generous financing of an ambitious Chinese arms program on land, water and space.
Of course, the Chinese are a very hardworking and entrepreneurial nation with large collective traditions and rich history. present it is an empire managed by the strong hand of the leader of the communist organization with large capital and complete censorship, nationalism, militarism and deficiency of civilian liberties with an infamous strategy of social credibility (the book definition of fascism). There's a pattern, like the famous “Great construction of socialism” In the Soviets, he besides built American capital and technology, the same 1 he created for Ford Detroit. The problem is that both russian Russia and now China felt strong adequate to compete for planet domination.
There was a situation in which large corporations, which made their profits first on the local market, went after more profit to Asia, becoming global corporations manufacturing their product with inexpensive labour to sale it more costly on the absorbent American market. Trump did not change his views in contrast to many politicians and commentators. Even in 1988, in the Oprah Winfrey program, young Trump stressed the request to level the tariffs in exchange with China. China was not the only 1 who benefited from the old customs system. Take Germany, whose cars exported to the US are 2.5% of the customs duties, and the US cars imported to Germany are about 50% of the work (including VAT), is that fair competition?
It should be added that China, to this day the world's largest maker of goods has the position “Developer” countries that are not subject to the restrictions imposed by EU and US countries! erstwhile the US and the EU are subject to stricter green policies to reduce CO2, China opens fresh coal mines all week, akin to India, etc... China's largest trading partner is the Southeast Asian countries, the EU and the USA.
No logic at all! Built with western capital and technology, China's power was besides created by mass theft of American and Western technology, the PRC sends about 300,000 students to the best American universities and universities annually. Prosperita of China depends on the ability to sale manufactured goods mainly to the US and the EU, already their companies are bankrupt, and this is just the beginning...
Protecting its marketplace with advanced duties China in trade with the US only in 2024 has around $300 billion surplus. In a akin situation is Mexico with a surplus of $172 billion. Trump blames Chinese leaders for sending together Mexican drug cartels of deadly fentanyl, which kills about 100,000 mostly young Americans annually. America is the largest consumer of Chinese products, including medical (80% from China!). China is eager to negociate bilateral agreements, which are subsequently not respected by protecting its market. Imagine that tiny 5 million Ireland buys more American products than China from 1.3 billion people!
As a consequence of Trump's maneuvers, global stock exchanges are raging by giving investors a headache. Within 24 hours, Trump's biggest victims of the customs war were the richest people, Mark Zuckerberg (Meta, FB) lost $18 billion, Jeff Bezos (Amazon) lost $16 billion, or even associated with Trump (DAGE) Elon Musk lost $11 billion. Trump lowers the stock marketplace level to send the frightened investors to buy government bonds to the Fed lower interest rates. This is what Trump needs to pay the state debt with lower interest rate faster. Is that gonna work? His popularity from the start of the customs war increased by 4% to 53%. It is crucial for Trump that the economy can make at lower borrowing costs. Trump thus plays the function of Robin Hood in the transfer of funds to little earners. However, the transition period can be very hard not only for Americans...
In retaliation for Trump's attempts to compensate for duties and let for a tightly protected Chinese marketplace for American products The Chinese declared they would not step down and rise their duties to 125%. At the same time, they started selling American debt (tax bonds). The most American debt was purchased by Japan, about $1bln (USD trillion), China about $759 billion, England about $350 billion, OPEC countries about $230 billion and Brazil about $220 billion. From the revived sale of U.S. stock on the stock exchange (a drop of respective percent!), the sale of taxation vouchers and the disposal of the dollar and a crucial increase in gold prices can be expected to be the most reliable in this turmoil. As far as gold is concerned, the most gold resources in the planet have the USA 8,133 tons, Germany 3,351 tons, Italy 2,451 tons, France 2,437 tons and China 2,279 tons. Poland is in a good 10th place (behind Japan and the Netherlands) with 448 tons of gold.
Things in China itself are besides not well, the homeless and the unemployed are arriving, the main cities are very modern, but the village smells like the 19th century, protests are increasing. Commentators point to the ageing and extinction of the population (previous single-child policy). In the last 4 years China has shifted funds (about $2 trillion) from housing to building factories producing cars, phones, fertilizers, everything to export. In the automotive manufacture China is ahead of Germany (in Wolfsburg) in the category of the largest mill (BYD company) after the construction of 2 even larger factories.
Chinese exports increased by 13% in 2023 and by 17% in 2024 and accounted for 20% of GDP. In America the value of exports is decreasing and amounts to around 11% of GDP (in 2012 it was 13.6%). In 2024 US exports to China fell by 3% (consisting of $144 billion), with Chinese imports to the US $440 billion. China's aggressive expansion had already encountered resistance, in Brazil last year increased duties for Chinese metallic and fibre wire. EU besides increased duties for Chinese electrical cars up to 45.3% protecting their own marketplace from flooding. The velocity of reaction here matters, in Thailand Chinese imports destroyed the native manufacture by 50%!
Big companies in awe effort to adapt to change. Swedish Volvo wants to build a mill in South Carolina, and nipponese Honda resigns from a mill in Mexico and builds a 2025 Civic mill in Indiana. The American Apple besides wants to avoid customs and wants to decision its iPhone production to India after 20 years of production in China.
Trump is trying to halt the slow progressive fall of America, whose debt is already approaching $37 trillion (USD trillion) with an yearly fiscal deficit of $1.7 trillion (USD trillion) and will shortly scope 130% of American GDP. Trump, like Reagan, if he fights, he chooses, prefers economical war, not “hot”. Will a dollar fall if Trump loses? It's not due to the fact that there's an alternate to planet trade.
California, 2025/04/12
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