US President Donald Trump maintains that trade wars are good and easy to win.
On the good side, he intends to use some of the billions of dollars in tariffs the US is collecting on Chinese imports to send US food aid to impoverished nations.
On the easy to win side, Trump says the US is ‘right where we want to be with China’. Trump stated it was Beijing who ‘broke the deal with us’. But when they attempted to renegotiate Trump put his foot down.
And while the rest of the world is holding their breath, Trump is positive the US will be triumphant.
Trump’s Twitter blow shocks China
Following a sudden Twitter announcement from the US President threatening to hike tariffs, tensions escalated on Friday as the plan was cemented — placing tariffs on US$200 billion (AU$286 billion) worth of Chinese goods, Reuters reports.
Trump again took to Twitter on Sunday to announce the next round of changes to the US policy with China. One which includes using some of the tariff benefits to help feed starving people across the planet.
‘We will be taking in Tens of Billions of Dollars in Tariffs from China. Buyers of product can make it themselves in the USA (ideal), or buy it from non-Tariffed countries.
‘We will then spend (match or better) the money that China may no longer be spending with our Great Patriot Farmers (Agriculture), which is a small percentage of total Tariffs received, and distribute the food to starving people in nations around the world!’
Not just the Chinse feeling the tariff sting
While Trump insists that China is bearing some 75% of the tariff burden, not all economists agree with the US President.
They cite bicycles and pet supplies among other products costing more in the US due to the trade war.
Of course, in a nation long struggling to stoke inflation that may also be going according to Trump’s plans.
In the meantime, both sides claim that ongoing trade negotiations continue to be fruitful. With citizens in both nations paying more for numerous items and China’s economy slowing dangerously, a ‘great new deal’ may be just over the horizon.