The American press agreed because they do not like the Leader of the Free World -- President Trump.
But once again the American press is wrong.
Let us look at the numbers. The best available data is from 2015 as the December numbers are not yet available from the U.S. Census Bureau, Economic Indicator Division.
The U.S. exported $2.3 trillion in goods and services ($2,261,163,000,000).Also in 2015:
The U.S. imported $2.8 trillion in goods and services ($2,761,525,000,000)
The trade deficit was $500,361,000,000.
Exports to China were $116,071,800,000 -- 5% of our total exports.Thus by reducing our exports by 5%, we would reduce our trade deficit by 73%.
Imports from China were $483,244,700,000 -- 17.5% of our total imports.
The balance of payments with China was negative $367,172,900,000 -- 73% of our trade deficit.
Sounds good, but of course there are many mitigating factors.
First there is that $116 billion in goods and services that we lose. While less than 0.7% of the economy, that is a big hit nevertheless to the economic growth.
But China theoretically would still have demand for those products and services, and would acquire them elsewhere, which would shrink the supply. Price would rise. But U.S. producers would find new markets for their products -- at higher prices.
However, that also works for Chinese exports. The U.S. would pay more. But U.S. producers of the goods and services China now sells here would have a new market for their product -- their homeland.
On top of that, we would cut our trade deficit to its lowest level since 1998.
Meanwhile, who will buy China's products? Red China is far more reliant on selling exports than the United States. Roughly 12% of the U.S. economy is exports, while 21% of the Chinese economy is exports.
And the United States is China's No. 1 customer. We represent 3.6% of the Chinese economy (vs. their representing 0.7% of ours).
President Trump could shut down Red China tomorrow.
Who else would buy $4 worth of Chinese stuff for every $1 China spends?
This is not free trade. China does not open its doors to us. The Chamber of Commerce, both political parties, and the last two presidents are wrong.
The imbalance of payments represents a daily subsidy of $1 billion to the largest Communist country in the world.
Why are we doing this?
Trade with China is a one-way street. Continuing this deal undermines our future.
Xi Jinping lied when he said: “No one will emerge as a winner in a trade war.”
The United States would win. Big time.
From Pat Buchanan:
Protectionism was Republican Party policy from Lincoln through Reagan.By increasingly relying upon foreign nations for our national needs, and by outsourcing production, we are outsourcing America’s future.After Munich in 1938, Neville Chamberlain and Lord Halifax visited Italy to wean Mussolini away from Hitler. The Italian dictator observed his guests closely and remarked to his foreign minister:“These men are not made of the same stuff as the Francis Drakes and the other magnificent adventurers who created the empire. These, after all, are the tired sons of a long line of rich men, and they will lose their empire.”If the present regime is not replaced, something like that will be said of this generation of Americans.
President Trump brought that policy back.
And if China wants to retaliate by slapping tariffs on our products, let it. Don't buy our coal. India will.
The worst that can happen in a trade war with Red China is we cut our trade deficit by 73%.
Please read "Trump the Press," in which I skewer media experts who wrongly predicted Trump would lose the Republican nomination. "Trump the Press" is available as a paperback, and on Kindle.
It covers the nomination process only. The general election will be covered in a sequel, "Trump the Establishment."
For an autographed copy, email me at DonSurber@GMail.com
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