A recent announcement of an economic alliance between China and Russia inspired the President to slap down nearly $100 billion in additional tariffs against China Thursday night. Trump also accused China, who just yesterday announced $50 billion in tariffs against America on soybeans and aircraft, of taking retaliatory action to undermine the economy.
• Trump previously announced $50 billion in Chinese tariffs, but wasn’t attempting to specifically punish the country. Instead, he believes tariffs will aid him in his effort to reduce offshore outsourcing, driving business back home.
• China, for the most part, has expressed extreme displeasure at the sudden remarkably high tariffs. Leaders have repeatedly indicated that they will take measures of their own in response if put under pressure. The most recent of these “measures” seems to be a tenuous economic alliance between China and Russia.
• Thursday night’s controversial $100 billion tariff addition might be surprising, but it wasn’t entirely expected. It remains a milestone in what is quickly becoming one of the most serious trade wars since the Great Depression.
• The additional tariffs are not currently implemented; instead, the White House will begin the process by investigating where the tariffs should be placed and on which products. All we know so far is that Trump sent at least one message to White House experts suggesting that they should work up “…a plan to protect our farmers and agricultural interests.”
• The POTUS’s statement on the issue didn’t mince words, instead choosing to get straight to the heart of the matter. “China’s illicit trade practices — ignored for years by Washington — have destroyed thousands of American factories and millions of American jobs.”
• Economic adviser Larry Kudlow agrees with the President’s decision to enact additional tariffs. “At the end of the day, China’s unfair and illegal trading actions are damaging to economic growth, for the U.S., for China and for the rest of the world.”
•That said, not everyone agrees – including some of Trump’s most staunch supporters. Sen. Ben Sasse, R-Neb., called the move “nuts” and suggested it would do more to punish American workers and industry than China. There is some merit to this thought process because many, many American industries rely on Chinese-source products to thrive. Whether or not it’s the “trade war” everyone claims it to be is up for discussion.