Trump Trade War Will Start Killing The Economy And Increase Unemployment Very Soon
Thus far, Trump has imposed $34 billion in tariffs on products from China with another $16 Billion coming into effect on Thursday, in his Trade War with China. He has plans to go as high as $200 billion if negotiations with with China fails. What has made these trade negotiations difficult for both sides is the fact that President Trump has offer no clear detailed policy on what his desired agreements are. Both the Chinese and American negotiators are in the dark about how to proceed other than proclaiming a desire to meet. This has caused a tit for tat bickering that has caused panic among business owners and investors on both sides of the Pacific Ocean. On our side of the ocean, this chaos and uncertainty will result in tremendous pain and downturn on the U.S. economy and joblessness on the American public. There is palpable fear that thousands of small businesses will close and never be able to recover. U.S. Commerce groups have called on Trump for a cease fire on the trade war seems to have fallen on deaf ears. The main goal for for the White House seems to be to force American businesses to stop importing products from China and start making products in the U.S. and become self sufficient to where imports are not needed, This is an impossibility in this age of a global economy. We are literally shooting ourselves in both feet. According to the U.S. Census Bureau, China is a major supplier for many states as follows:
- For 23 states, China is the top source of imports.
- For 45 states, China is in the top three.
- China is among the top five import sources for 47 states. (North Dakota, Louisiana, and Delaware are the only exceptions.)
- Of the 23 states that count China as their largest source of imports, Trump won 15 in the 2016 presidential election.
The prices of goods for consumers will definitely rise as 1 in 6 imported product will be affected by tariffs. The latest estimates from the nonprofit Tax Foundation shows that if U.S. and retaliatory tariffs are fully enacted, U.S. GDP would drop by $110 billion, wages for American workers would decrease 0.31%, and there would be a net decrease of 314,479 U.S. jobs and that is a low ball estimate. This will wipe out any rebound or recovery that the economy has made since the 2008 banking and auto industry collapse. One huge health danger will be to the U.S. drinking water supply. Purolite, which produces a resin that municipalities use to purify their water supplies, is in the crosshairs for the 25 percent tariffs that take effect on Thursday. The Bala Cynwyd, Pa., company imports about $50 million worth of chemicals from its wholly owned Chinese subsidiary near Hangzhou and — amid a worldwide shortage of the resin — says it cannot find an alternative supply. What other water treatment plants in how many other states utilize Purolite? Without this chemical, how many Flint, Michigan-like water situations will come about in how many cities and states across the U.S.?
President Trump has stated that Trade Wars are easy to win. His plans have all the potential of causing harm to the economy, businesses, jobs, quality of life, and endangerment of the American public’s health and welfare. This is not winning!