Do you believe President Trump will impose 25% tariffs on all Chinese made products and, if so, will it help the USA?

All those people who say a trade war is bad is only seeing half of the picture.

Yes, a trade war is bad for both the Chinese and American economy in the short run.

Is it better than doing nothing? Absolutely!

New world orders are re-organised via trade wars (and real wars). China has grown tremendously over the last 30 years. Its economy went from 5% of the american’s to 2/3 of the American’s. A giant has emerged. A new world order is needed. And new world order emerges through trade wars (or real wars). This is inevitable.

Somebody come and demand your cheese. You fight, you may still lose 1/3 of your chees. if you don’t fight, they will take 100% of your cheese.

And, all those people who say Americans are paying the tariffs are also seeing (or telling) only half of the picture. In reality, the tariff is shared by both the Chinese and American. Here is how it works:

Let’s say we put 25% tariffs on a $100 goods. The American importer is going to go talk with the Chinese exporter: “Hey, Pal, this price is ridiculous. My customers is going to stop buying from me. 

You either have to absorb a good portion of the tariff or I am going to have to go with another guy in Vietnam or another Chinese supplier who is willing got eat more of the tariffs”.

After much negotiation, and depending on the market condition of the particular product, the Chinese exporter will have to lower the price to shoulder 50% ~100% of the tariff in the form of reduce profit.

Let’s say they decide to go 50/50. Since the half paid by American importers is paying back to America, and the half shouldered by the Chinese exporter is coming from China. You can say that America as a whole actually does receive tariffs payment by Chinese exporters.

Well…. for all those people complaining about a trade war, either propose something really constructive, or just stop misleading!

Booking.com