Posts

President Trump Has China Hanging Over a Massive Tariff Cliff

/0 Comments/in , /by

In some ways, this is the perfect issue for President Trump to drive liberals insane. It presents another opportunity for Democrats to get ahead of their skis since they have horrendous leadership, helmed by the likes of Jasmine Crockett, Chuck Schumer, and Hakeem Jeffries, aka Temu Obama. It’s another chance for the liberal media to debase themselves. President Trump knows the political situation and the realities here. He knows his base. It’s why he’s not caving, though his enemies are presenting his 90-day pause as such, but it’s actually the opposite. He has China firmly hanging over a massive tariff cliff.

The fact is that dozens of countries have voiced their willingness to re-negotiate trade deals, including South Korea and Vietnam, the latter of which is underreported and critical. Vietnam is a huge trading partner, but the markets might stabilize if the media reports on that accurately. Instead, it’s this incessant panic porn factory that’s kept chiefly everyone scared.

Yet, Trump has the support of the people: a YouGov survey found that well over a supermajority of Americans support tariffs to protect American markets exploited by unfair free trade deals. A similar number of Americans support beefing up and having a strong manufacturing base in America. Yet, when we have a president who sets into motion a policy to reset these trade dynamics, the media and the fat cat Democrats lose their minds. It’s why the White House pushed a catchy phrase: don’t be a ‘Panican.’ (Read more from “President Trump Has China Hanging Over a Massive Tariff Cliff” HERE)

Amazon CEO Warns Americans Cheap Prices of Everyday Goods Could Be a Thing of the Past

/0 Comments/in , /by

Amazon CEO Andy Jassy gave a warning to wallet-wary Americans in the wake of President Trump’s tariff agenda — saying the everything site many have come to rely on may have to up prices on common items.

Jassy issued an equivocating warning to Amazon customers that the world’s most popular online retailer is facing challenges from the Trump administration’s tariff push, stating in an interview with CNBC’s Andrew Ross Sorkin on “Squawk Box” on Thursday that the levies could create “macro issues” that hit the average Joe square in the budget.

“I’m guessing that sellers will pass that cost on,” Jassy said of the cost of tariffs. “And I understand why, I mean, depending on which country you’re in, you don’t have 50% extra margin that you can play with.”

“I’m guessing that sellers will pass that cost on,” Jassy said of the cost of tariffs. “And I understand why, I mean, depending on which country you’re in, you don’t have 50% extra margin that you can play with.”

“It’s so early right now, but we haven’t seen any change in consumer behavior in a meaningful way yet,” Jassy said. (Read more from “Amazon CEO Warns Americans Cheap Prices of Everyday Goods Could Be a Thing of the Past” HERE)

Bessent Had the Perfect Response to China Raising Tariffs on U.S. Goods

/0 Comments/in , , /by

China said it is raising tariffs on U.S. imports from 34 percent to 84 percent starting Thursday, an announcement that came hours after President Trump’s tariffs went into effect.

“If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” the Ministry of Commerce wrote in a document, reports USA Today.

The latest tariffs on the U.S.’s trading partners includes a 104 percent tax on Chinese goods. . .

Treasury Secretary Scott Bessent called the escalation a “loser” for China.

“I think it’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system,” he said. “And I can tell you that this escalation is a loser for them.”

(Read more from “Bessent Had the Perfect Response to China Raising Tariffs on U.S. Goods” HERE)

Why Comparing Trump’s Tariffs To The Smoot-Hawley Act Is Dishonest

/0 Comments/in , /by

Trump’s tariffs are not designed to encourage Americans to borrow money and maximize their consumption. Nor are they designed to encourage participation in speculative stock market or real estate bubbles. America’s free trade policies encouraged such excesses after the end of the Cold War, and we can’t stand a repeat of the folly. While his critics wrongly invoke the Smoot-Hawley tariff failures of 1930, Trump’s emerging tariff policies, particularly if combined with the appropriate monetary policy, will have much better results and Make America Great Again.

As Trump’s tariffs are implemented, they will generate revenue for the federal government and encourage investment in atrophied as well as cutting-edge sectors of the American economy. In addition, they will increase the quantity and quality of jobs available for Americans as a whole, will persuade (and are already persuading) our trading partners to adopt fairer and less predatory trading regimes, will arrest a possible slide into recession, and will get our economy moving toward our long-term growth potential of 3 percent (or more) GDP growth per year.

President Trump says “tariff” is one of his favorite words, and historical evidence indicates tariffs work. They worked for the Chinese this century, they worked for the Japanese after World War II, and they worked for the U.S. and Germany in the late 19th century. Back then, American and German growth rates and economic vibrancy radically outstripped the growth rates and economic vibrancy of a free-trading Britain, which, after abandoning its early 19th-century tariffs, adopted the free trade nostrums of David Ricardo and slipped into decline.

One of the few instances when tariffs failed was during the Smoot-Hawley tariff episode at the beginning of the Great Depression. But there are special circumstances surrounding the imposition of the Smoot-Hawley tariffs that the free-traders hesitate to mention. When the United States raised the Smoot-Hawley tariffs, the U.S. was the world’s greatest creditor, and by raising the tariffs, we prevented others from selling us things so they could make money and pay us back. When they didn’t pay us back, it collapsed the global financial system and helped usher in the Great Depression.

Obviously, today the circumstances are reversed. The United States is now the world’s largest debtor. If we can’t pay back our debts, the global financial system will collapse, which would be disastrous for the entire world. (Read more from “Why Comparing Trump’s Tariffs To The Smoot-Hawley Act Is Dishonest” HERE)

Dramatic Selloff Of U.S. Bonds Hits, Investors Worried About U.S. Economy

/0 Comments/in , /by

On Wednesday, in an apparent response to the latest tariff increase by President Donald Trump on China to 104%, the yield – or interest rate – on the benchmark 10-year U.S. Treasury bond rose again, possibly spurring a cut in interest rates by the Federal Reserve.

“The exodus from longer-dated US Treasuries accelerated, fueling the biggest selloff since 2020 in what are supposed to be the world’s safest assets,” Yahoo Finance reported. U.S. Bonds are backed by the government, and the U.S. economy has been the strongest in the world for decades, so investors think the government will not default on them, making them a safe proposition. But they become less valuable as inflation rises, and some investors have been voicing concern that inflation may well result if President Trump’s tariffs are too harsh and are left in place.

On Monday, JP Morgan Chase CEO Jamie Dimon warned of inflationary pressure, saying, “Whatever you think of the legitimate reasons for the newly announced tariffs — and, of course, there are some — or the long-term effect, good or bad, there are likely to be important short-term effects. We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases for domestic products. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

“This is a fire sale of Treasuries,” Calvin Yeoh of Blue Edge Advisors said. “I haven’t seen moves or volatility of this size since the chaos of the pandemic.” (Read more from “Dramatic Selloff Of U.S. Bonds Hits, Investors Worried About U.S. Economy” HERE)

House Dem More Supportive Of Trump Tariffs Than Many Republicans

/0 Comments/in , /by

One of the biggest Congressional champions of President Donald Trump’s tariff policy hails from the Democratic Party.

Democratic Rep. Jared Golden of Maine, who has consistently won reelection in a district Trump carried by nine percentage points in 2024, is emerging as one of the most ardent defenders of the administration’s recent tariffs. While some Congressional Republicans are seeking to rein in the president’s tariff authority, Golden is urging Trump to not listen to detractors urging him to stop implementing tariffs on countries around the world.

“My biggest worry is that they’re [the Trump administration] going to do this and lose faith and political will and back away,” Golden told Axios Tuesday.

Golden’s apparent support for the president’s baseline and reciprocal tariffs comes as some Congressional Republicans are moving to undercut the president’s authority to impose unilateral tariffs. (Read more from “House Dem More Supportive Of Trump Tariffs Than Many Republicans” HERE)

Photo credit: Gage Skidmore via Flickr

Trump Rejects European Union’s ‘Zero-For-Zero’ Tariff Resolution to Remove Industrial Fees on Us Goods: ‘Not Looking at That’

/0 Comments/in , /by

President Trump turned down a proposal by the European Union Monday for a “zero-for-zero” tariff scheme on industrial products, saying the offer was “not” enough to reverse 20% duties on imports.

“The EU has been very tough over the years,” Trump told reporters in the Oval Office when asked about the offer. “It was formed to really do damage to the United States in trade.”

“They don’t take our cars, like Japan in that sense. They don’t take our agricultural product; they don’t take anything practically,” he went on.

“We have a [trade] deficit with the European Union of $350 billion — and it’s going to disappear fast,” he added. “And one of the ways that that can disappear easily and quickly is they’re going to have to buy our energy from us.”

Asked elsewhere about whether the global tariffs imposed Saturday were merely an opening for further negotiations, Trump responded: “We’re not looking at that.” (Read more from “Trump Rejects European Union’s ‘Zero-For-Zero’ Tariff Resolution to Remove Industrial Fees on Us Goods: ‘Not Looking at That’” HERE)

Photo credit: Gage Skidmore via Flickr

Why People Are ‘Missing the Point’ on Trump’s Tariffs

/0 Comments/in , /by

The mainstream media have been in a state of doom and gloom over President Trump’s tariffs, but as usual, they’re missing the point.

And while the mainstream media fearmonger over the tariffs, Heritage Foundation President Kevin Roberts has faith that Trump’s plan will work.

“Just to be really objective about this, there will be an economic quarter or two where things are choppy. The treasury secretary has said as much, because what Trump is trying to do is reset the world economic order,” Roberts tells Sara Gonzales on “Sara Gonzales Unfiltered.”

“If I had to guess, as he gets into this negotiation with other countries and they recalibrate, because the administration is so good, they’re going to focus on the reciprocity part of this,” he continues, adding that alongside “deregulation, cutting the budget” and “making tax cuts” will get “America back on its feet.”

“There needs to be a zealous focus, a real target, on the worst abusers,” he says, noting that China and the European Union are among these abusers. (Read more from “Why People Are ‘Missing the Point’ on Trump’s Tariffs” HERE)

Photo credit: Gage Skidmore via Flickr

Trump and Our Return to the ‘American System’

/0 Comments/in , /by

Few economic philosophies have shaped America’s prosperity as profoundly as Henry Clay’s American System—a blueprint for national strength and self-sufficiency. Developed in the early 19th century, Clay’s vision centered on protective tariffs, a strong national banking system, infrastructure development, and the responsible use of natural resources.

These pillars propelled the United States into economic dominance. However, in the latter half of the 20th century, Cold War geopolitics led to a significant departure from these principles. Today, President Donald Trump’s economic policies signal a revival of the American System, aiming to restore national industry, energy independence, and economic resilience.

One of the key components of Clay’s American System was the use of tariffs to shield domestic industries from foreign competition. Clay and his contemporaries understood that fledgling American manufacturers needed time to grow without being undermined by cheaper imports. This approach helped transform the U.S. from an agrarian economy into an industrial powerhouse.

Trump’s embrace of tariffs is a modern adaptation of this strategy, aimed at protecting American businesses from unfair foreign trade practices. His policies seek to revitalize domestic manufacturing, reduce dependency on foreign goods, and address trade imbalances, particularly with China. Additionally, tariff revenue contributes to lowering the national debt, reinforcing economic sovereignty.

Clay’s American System also relied on a centralized banking institution to maintain financial stability. The Second Bank of the United States played a critical role in providing credit, regulating state banks, and preventing economic crises. Although Andrew Jackson dismantled the bank in the 1830s, its essential functions were later restored with the creation of the Federal Reserve in 1913. (Read more from “Trump and Our Return to the ‘American System’” HERE)

Photo credit: Gage Skidmore via Flickr

Media Fail — Trump Job Approval Rises 4 Points to 53%

/0 Comments/in , /by

President Donald Trump’s job approval rating rose four points during Tariff Week, from 49 percent to 53 percent.

The poll was taken by DailyMail.com/J.L. Partners of over 1,000 registered voters between March 31 and April 3.

Donald Trump’s four-point jump in job approval was not the only surprise.

Since March 7, Trump’s job approval from young voters between 18 and 29 jumped 13 points.

Among Independents and Democrats, Trump enjoyed a six-point increase. (Read more from “Media Fail — Trump Job Approval Rises 4 Points to 53%” HERE)

Photo credit: Gage Skidmore via Flickr