Read more at https://www.channelnewsasia.com/news/world/donald-trump-additional-100-billion-tariffs-china-10109702
06 Apr 2018 07:03AM (Updated: 06 Apr 2018 07:15AM)
Ricky Lim ·
Ricky Lim ·
Singapore
Trump is entering deeper and deeper into a trade war, and further he is getting deeper and deeper into big trouble that will cause US Economy to plummet.
(1) Trump announce a mammoth US$1.5 trillion government spendings.
But US is already inheriting a total US$21.5 trillion public debt.
US will face a big burden to finance the debt interest they have to pay plus the huge debt they will have to repay.
(2) Trump levy a tariff on aluminimum and steel. Then Trump announce a $50 billion trade war with China. Just heard that Trump is going to announce another $100 billion tariff on China for retaliating.
Now Trump by starting a trade war - will means US trade will be taken a big hit.
Trade income will fall, personal income will fall, US trade business will take a hit especially agricultural sector - and more people will face job losses and US conumers will pay a much higher prices in many products --- and US Economy will take a great hit.
With Trump facing a large budget deficit, he will not be able to get income to finance the $1.5 trillion spendings - unless he pay a huge interest due to the big risk that borrowers have to bear.
In addition, with Trump fight on global trade - more Countries will move away from trading with US - and Trump will start losing his trade income --- and this will make Trump government coffer all the more worst.
Trump is triggering a financial crisis in US - after he trigger global trade crisis.
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Ricky Lim ·
Singapore
Trump by escalating, intensifying and making the trade war big - will means accelerating and covering a big US consumer groups on the impact of trade war.
If Trump fail in the trade war, he will fall very quickly and the backlash on Trump will be ferocious.
Like · Reply · 1m
Singapore
Trump is entering deeper and deeper into a trade war, and further he is getting deeper and deeper into big trouble that will cause US Economy to plummet.
(1) Trump announce a mammoth US$1.5 trillion government spendings.
But US is already inheriting a total US$21.5 trillion public debt.
US will face a big burden to finance the debt interest they have to pay plus the huge debt they will have to repay.
(2) Trump levy a tariff on aluminimum and steel. Then Trump announce a $50 billion trade war with China. Just heard that Trump is going to announce another $100 billion tariff on China for retaliating.
Now Trump by starting a trade war - will means US trade will be taken a big hit.
Trade income will fall, personal income will fall, US trade business will take a hit especially agricultural sector - and more people will face job losses and US conumers will pay a much higher prices in many products --- and US Economy will take a great hit.
With Trump facing a large budget deficit, he will not be able to get income to finance the $1.5 trillion spendings - unless he pay a huge interest due to the big risk that borrowers have to bear.
In addition, with Trump fight on global trade - more Countries will move away from trading with US - and Trump will start losing his trade income --- and this will make Trump government coffer all the more worst.
Trump is triggering a financial crisis in US - after he trigger global trade crisis.
Like · Reply · 1m
Ricky Lim ·
Singapore
Trump by escalating, intensifying and making the trade war big - will means accelerating and covering a big US consumer groups on the impact of trade war.
If Trump fail in the trade war, he will fall very quickly and the backlash on Trump will be ferocious.
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Ricky Lim ·
Posted on :-
05 Apr 2018 09:55PM (Updated: 05 Apr 2018 10:05PM)
Ricky Lim ·
Singapore
In Washington, US administration officials continued to seek to allay market fears of a trade war, and expressed a willingness to negotiate a resolution with China.
"There is a process here. There's going to be some back and forth, but there's also some negotiations," White House National Economic Council Director Larry Kudlow said. "I think we are going to get a deal over a period of time," he said in an interview with Fox Business Network.
"Within 24 hours of the US publishing its list, China drew its sword, and with the same strength and to the same scale, counterattacked quickly, fiercely and with determination," the paper said in a commentary on Thursday.
"The confidence to know that will win the trade war comes from the scale of consumer market," the paper said, noting that China's market potential is incomparable to other economies.
--
This is an indication that "Trump is blinking first".
Trump will not be getting support from his lawmakers and US business group - and Trump has a very tight deadline ---- the November Congressional mid-term election.
If Trump don't get a quick result ---- Trump will lose big - and may eventually lose his Presidency.
China has withholding power, and its business group and political group - throw the whole weight into this trade war started by Trump.
If China can hold it out ----- Trump will lose and LOSE BIG!
Thus Trump's downside is very high !
05 Apr 2018 09:55PM (Updated: 05 Apr 2018 10:05PM)
Ricky Lim ·
Singapore
In Washington, US administration officials continued to seek to allay market fears of a trade war, and expressed a willingness to negotiate a resolution with China.
"There is a process here. There's going to be some back and forth, but there's also some negotiations," White House National Economic Council Director Larry Kudlow said. "I think we are going to get a deal over a period of time," he said in an interview with Fox Business Network.
"Within 24 hours of the US publishing its list, China drew its sword, and with the same strength and to the same scale, counterattacked quickly, fiercely and with determination," the paper said in a commentary on Thursday.
"The confidence to know that will win the trade war comes from the scale of consumer market," the paper said, noting that China's market potential is incomparable to other economies.
--
This is an indication that "Trump is blinking first".
Trump will not be getting support from his lawmakers and US business group - and Trump has a very tight deadline ---- the November Congressional mid-term election.
If Trump don't get a quick result ---- Trump will lose big - and may eventually lose his Presidency.
China has withholding power, and its business group and political group - throw the whole weight into this trade war started by Trump.
If China can hold it out ----- Trump will lose and LOSE BIG!
Thus Trump's downside is very high !
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Ricky Lim ·
China on the other hand has the following advantages :-
(1) China has huge savings and huge reserves - versus Trump-led US with huge public debt of $21.5 trillion.
Trump will have problem fundings his government spendings of $1.5 trillion.
(2) China can trade with other World market in which China is actively forging multi-lateral trade deal with - where Asia Pacific is booming, growing big market - while Trump forge global trade war with the World (cancel TPP plus others and many are starting to move away from Trump).
By doing so, China are still finance by trade income - whereas Trump trade income is shrinking. Moreover, Trump trade war is hurting US exporters as their prices are going up and become uncompetitive.
(3) China has no political baggage, as it does not need to fight election.
Trump has the mid-term Congressional election in November.
China can afford to fight a long-drawn trade war with Trump.
Trump's hands are tie --- he only got up to Novemner - a very short timing for him to win this trade war.
(4) China business group and people are supporting the China Government - that are trigger by Trump ---- where Trump is consider offensive, aggressive and a big bully.
All favor are stack on China in this trade war.
Trump on the other hand, does not have the backing of his own lawmakers who are badly hurt by this bruising trade war that will lose their upcoming election (time is not on their side). Also US business groups are lobbying against Trump - as they will be badly hurt by the retaliatory measures undertaken by China.
(1) China has huge savings and huge reserves - versus Trump-led US with huge public debt of $21.5 trillion.
Trump will have problem fundings his government spendings of $1.5 trillion.
(2) China can trade with other World market in which China is actively forging multi-lateral trade deal with - where Asia Pacific is booming, growing big market - while Trump forge global trade war with the World (cancel TPP plus others and many are starting to move away from Trump).
By doing so, China are still finance by trade income - whereas Trump trade income is shrinking. Moreover, Trump trade war is hurting US exporters as their prices are going up and become uncompetitive.
(3) China has no political baggage, as it does not need to fight election.
Trump has the mid-term Congressional election in November.
China can afford to fight a long-drawn trade war with Trump.
Trump's hands are tie --- he only got up to Novemner - a very short timing for him to win this trade war.
(4) China business group and people are supporting the China Government - that are trigger by Trump ---- where Trump is consider offensive, aggressive and a big bully.
All favor are stack on China in this trade war.
Trump on the other hand, does not have the backing of his own lawmakers who are badly hurt by this bruising trade war that will lose their upcoming election (time is not on their side). Also US business groups are lobbying against Trump - as they will be badly hurt by the retaliatory measures undertaken by China.
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Ricky Lim ·
And Trump wild firings --- are hurting US firms in China - 37% of them.
HURTING US FIRMS
US firms are also involved in production chains - 37 per cent of US imports from China are intermediate products used by American firms to make themselves more competitive.
Putting tariffs on intermediate products is shooting oneself in the foot. The list of targeted products posted by the United States includes some intermediates, such as aircraft propellers.
Many of the targeted products are consumer goods such as televisions and dishwashers. When a large country such as the United States imposes tariffs, the pain is shared between consumers who pay higher prices and producing firms abroad who have to absorb lower profit margins.
---
See whether US business and consumers will get back at Trump - for destroying their business, their jobs, and hurting their pockets having to buy US goods at much higher prices.
HURTING US FIRMS
US firms are also involved in production chains - 37 per cent of US imports from China are intermediate products used by American firms to make themselves more competitive.
Putting tariffs on intermediate products is shooting oneself in the foot. The list of targeted products posted by the United States includes some intermediates, such as aircraft propellers.
Many of the targeted products are consumer goods such as televisions and dishwashers. When a large country such as the United States imposes tariffs, the pain is shared between consumers who pay higher prices and producing firms abroad who have to absorb lower profit margins.
---
See whether US business and consumers will get back at Trump - for destroying their business, their jobs, and hurting their pockets having to buy US goods at much higher prices.
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Ricky Lim ·
In this World, there are only 1 Country and 1 Bloc that can punish Trump.
(1) China
(2) EU
Trump pick both to fight --- big Fool !
(1) China
(2) EU
Trump pick both to fight --- big Fool !
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Hyun Sun Shin ·
Gorden Chang of Fox News is correct to say, if you had a massive trade surpluses, in a trade war you will have more to loose than to gain.
Ricky Lim ·
37% are US companies in China exporting back to US.
You think China will lose more or US themselves backfire and will lose more?
You think trade is so simple?
Trump attempting to mess up the market and the trade - did not know that he actually backfire alot on his US companies that setup companies all over the world - and it backfire on them.
Trade are so tightly knitted that any wild attempt to balance trade by brute force - bring about unintended consequences - and most analyst compute that US will stand to lose more in this trade war - that Trump so foolishly trigger.
Trump try to play god - but it will backfire on him.
You think China will lose more or US themselves backfire and will lose more?
You think trade is so simple?
Trump attempting to mess up the market and the trade - did not know that he actually backfire alot on his US companies that setup companies all over the world - and it backfire on them.
Trade are so tightly knitted that any wild attempt to balance trade by brute force - bring about unintended consequences - and most analyst compute that US will stand to lose more in this trade war - that Trump so foolishly trigger.
Trump try to play god - but it will backfire on him.
Like · Reply · 1m · Edited
Ricky Lim ·
Trump fail to understand Economics --- of what is "market mechanism".
And market mechanism cannot be intervened by brute forces - it will cause market inefficiency, price inefficiency and it distort allocation of market resources.
Trump is trying to play State intervention - which is the Communism of Planned Economy - where the whole World is moving out.
By doing so, Trump will shoot himself badly --- and cause alot of harm to its US businessess and consumers --- with collateral damages to the World.
BTW, did Trump even attend any "Basic Economic" classes?
And market mechanism cannot be intervened by brute forces - it will cause market inefficiency, price inefficiency and it distort allocation of market resources.
Trump is trying to play State intervention - which is the Communism of Planned Economy - where the whole World is moving out.
By doing so, Trump will shoot himself badly --- and cause alot of harm to its US businessess and consumers --- with collateral damages to the World.
BTW, did Trump even attend any "Basic Economic" classes?
Like · Reply · 1m
Ricky Lim ·
Ricky Lim ·
Eg. Trump try to force other Countries to buy from US where its prices is higher than other Countries ---- do you think they will be so cuckoo cuckoo to buy from Trump?
Of course people will source from other suppliers that offer better prices with equally good quality.
You think Trump by pointing the gun at other Countries must buy from him?
Of course people will get turn off - and buy from other Countries rather than from anything that do with Trump - who give the image of a BIG BULLY.
Of course people will source from other suppliers that offer better prices with equally good quality.
You think Trump by pointing the gun at other Countries must buy from him?
Of course people will get turn off - and buy from other Countries rather than from anything that do with Trump - who give the image of a BIG BULLY.
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