by Mike Whitney, The Unz Review:
The Trump tariff extravaganza was never about trade deficits, reindustrialization, or bringing jobs back to America. It was always about China. Now that Trump has either eased or lifted the tariffs on 90 other countries, we can see what’s actually going on. Trump is using the ‘tariffs smokescreen’ to implement his decoupling policy, a strategy that is designed to isolate, encircle and eventually crush the People’s Republic of China. That’s the motive that drives the policy. The tariffs were just a means to an end. This is from CNN:
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President Donald Trump announced a complete three-month pause on all the “reciprocal” tariffs that went into effect at midnight, with the exception of China, a stunning reversal from a president who had insisted historically high tariffs were here to stay.
But enormous tariffs will remain on China, the world’s second-largest economy. In fact, Trump said they will be increased to 125% from 104% after China announced additional retaliatory tariffs against the United States earlier Wednesday. All other countries that were subjected to reciprocal tariff rates Wednesday will see rates go back down to the universal 10% rate, he said.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump said in his social media post. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he wrote. Trump announces 90-day pause on ‘reciprocal’ tariffs with exception of China, CNN
China’s “lack of respect”? So, Trump is setting US trade policy based on bruised feelings??
That’s just not a credible explanation. Something else is going on here.
China is being targeted because China’s meteoric rise and explosive growth has made it a threat to America’s global hegemony. That is why China has entered Washington’s crosshairs. By imposing prohibitive 125% tariffs on Chinese exports, Trump is indicating that the era of integrated markets in a globalized system is over. The world is being redivided into warring blocs by wealthy Capitalists in the West who cannot compete with China’s government-led model that controls the nation’s critical industries and recycles massive profits back into vital infrastructure, education, R&D and technology. The West’s highly financialized model—that increasingly depends on skimming the cream off toxic securities and stock buybacks—cannot remake itself into a manufacturing powerhouse willing to compete with China on a level playing field. Instead, it must use its waning influence to jolt the system with some unexpected fireworks display (the tariffs) that sends shockwaves through the system and panic across the markets. These contrived spectacles, that border on economic terrorism, are all part of Uncle Sam’s repertoire that are used to subdue the opposition and maintain Washington’s tenuous grip on power.
Originally Posted at https://www.sgtreport.com