Tag: China trade deal

Guest Post by Paul Craig Roberts

The first thing to understand is that it is not a trade deal.  It is Trump backing off his tariffs when he discovered that the tarrifs fall on US goods and American consumers, not on China.  Trump is covering his retraction by calling it a trade deal.  China’s part of the deal is to agree to purchase the US goods that it already intended to purchase.

Continue reading “Remarks on the US/China “Trade Deal””

Guest Post by Jim Kunstler

A 25 percent tariff on Chinese goods coming into the USA. That’ll git her done, all right — if you mean pulling the plug on America’s holographic economy. For about thirty years this is how it worked: China sent a massive volume of finished goods to us and we paid them with a massive volume of US Treasury bonds at ever-lower interest rates. A great deal for us while it lasted. Or so it seemed. Eventually, China caught onto the swindle and began liquidating its US bond holdings to buy gold and other real goods like African mining rights and farmland, Iranian oil, and port facilities in strategic corners of the world.

Continue reading “Going South”

Via ZeroHedge

So much for months and months of constant leaks, headlines, tweets, and press reports that US-China trade talks are going great, and are imminent amid an ocean of “optimism” (meant solely to sucker in amateurs into the most obvious bull headfake since 1987).

Just after noon on Sunday, President Trump tweeted that 10% tariffs paid by China on $200 billion in goods will rise to 25% on Friday, and that – contrary to what he himself and his chief economist, Larry Kudlow has said for months, talks on a trade deal have been going too slowly.

And, just to underscore his point, Trump also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”

Continue reading “Trade Deal Dead: Trump Says 10% China Tariff Rising To 25% On Friday, Another $325BN In Goods To Be Taxed”