The long and short of the US-China feud is that no trade barriers will disappear and no new trade openings will open up. China has gone rogue by imposing export controls on rare earths and other raw materials around the world. And of course the US must strike back. Scott Bessent is right: China is a command-and-control economy, and our allies will not be commanded or controlled.
Deals on rare earths were made at several meetings in London, Geneva and Madrid, but China broke up the deals. Just as they broke the deal for the Phase One trade agreement signed in January 2020. They go rogue. Maybe the Commerce Department is a rogue state. Maybe Xi is rogue. Who knows. But China pursuing rogue policies will hurt them more than it will hurt us. It is their economy that is in recession, and we are the major consumer power they so desperately need.
Now China is certainly losing friends, if they had any. Australia is furious with China. Japan. The EU. And of course, US Mr Trump will impose a huge tariff on November 1 unless China gives in. The US must strike back.
The co-host of “The Clay Travis and Buck Sexton Show” discusses President Donald Trump’s economic ties with China on “Kudlow.”
I still think that China may throw a tantrum because the Middle Eastern country has been so badly defeated by President Trump’s historic peace deal and the destruction of China-backed Iran. Another defeat looms as Mr. Trump focuses on ending the war between Russia and Ukraine. There too, China is backing the wrong horse.
Meanwhile, the US Senate wants to impose a 500% tariff on China for purchasing Russian oil. 100% will do just fine. Once again China is backing the wrong horse. By the way, with a 50% tariff, India has stopped buying Russian oil.
The Chinese trade incentive is greater than that on rare earths. They and their BRIC allies have been buying huge amounts of gold over the past decade or more, while reducing their holdings of US government bonds by almost 50%. What are they doing? Well, they are working overtime to reduce the US dollar’s status as the world reserve currency.
So here’s President Trump’s response to that: “I love the dollar. I’m very strong on the dollar. And anyone who wants to trade in dollars has an advantage over people who don’t. But for the most part, we keep it that way. Just like the BRICS. I told anyone who wants to be in the BRICS, that’s fine. But we’re going to impose tariffs on your country. Everyone’s dropped out. They’ve all left the BRICS. The BRICS was an attack on the dollar.”
Rep. Jim Jordan, R-Ohio, says President Donald Trump’s trade agenda sends a strong message to the world and discusses the government shutdown on ‘Kudlow.’
Pure and simple. Mr. Trump is right. BRICs and China are attacking the dollar. More villainy.
So the wisest course of action at this point would be a meeting at the APEC conference in South Korea between Mr Xi and Mr Trump. Perhaps then we can get back to lowering trade barriers and promoting prosperity. But if China insists on playing the petulant, spoiled brat as it continues to lose ground in global politics and influence, then so be it. Count on Donald Trump not to support China’s bad behavior. They’re going after the wrong man.
