Response to Facebook posts by Friends.
THE major reason why tariff "tactics" have evolved into a huge headline feed that causes confusion is because this is Donald Trump we are talking about. But tariff deals on the negotiating table between economies have been going on for years or somehow since the history of global trade commenced. That's regardless of the British East India Company's brinkmanship from the 15th century to 17th century.
Fast forward.
After China entered the WTO in 2001 with an MFN (most favored nation) status, trade negotiations somehow took a new tact, away from Western standards (or dictates). Free trade, per principle, supposedly allows a "natural course" of trade sans tariffs, quotas and other restrictions but we know that isn't the case.
China and now BRICS have altered the global economic grid. Of course they impose tariffs per negotiations with individual economies, which eventually sent G7 reeling. For one, the Chinese business sense or strategy is always quietly shrewd, given as well that they have the labor force number and ample pertinent raw materials. BRICS: Think about the combined or collective leverage since the formation of the trade bloc a.k.a. “emerging economies” in 2009.
To compete with BRICS, the U.S. has to constantly shuffle cards, given that China has also expanded trade allies. Anyhow, so far Mr Trump's tariff chess game with China is working. Or China has no drastic moves. So far.
So we now go to the other pieces on the board or other economies. I don't claim to know how Mr Trump and his economic staff are doing things or if this will work or not. Remember, his first trade pact with China only materialized in his last year, January 2020. Joe Biden employed a contrary playbook so Don has to restart and then modify his Beijing playbook.
But then, President Trump is not fighting with China; he is playing a competitive trade game leading to mutual goodness. I believe.🇺🇸☮️🇨🇳
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