E Tariff Man Trump Fooled Wall Street From The Start

Wall Street has been fooled from the beginning of the Trump tariff War. All we heard from Wall Street was an implicit trust in Donald Trump, that Trump was a negotiator and negotiations would bring a deal.

No one believed that the Tariff Man would betray stocks. Art of the Deal man promised more. Or did he?

But, in reality, Donald Trump is tariff man. He believes the deal of 25 percent tariffs on 400 billion dollars of product (the eventual total that will be put under tariffs) will bring in 100 billion dollars in taxes. Of course, that tax is to be paid for by US citizens. And Trump is trying to convince stock investors that this is a good deal. This will take at least a year or two, to collect the 100 billion, since not all of China's products are subject to tariffs now.

Trump wants to buy infrastructure and pay farmers with that 100 billion. That is a good deal in his mind. He tweeted it so it must be true! He wants to buy the products and then send them to poor nations. I can't quite believe that. He made promises before to help Puerto Rico with debt. But he changed his mind.

Donald Trump adopted his views on tariffs in the 1980s. He campaigned on the platform of tariffs. His base understood but mainstream media was asleep during the campaign. This is the real Donald Trump:

Trump adopted his current views on trade issues in the 1980s, saying Japan and other nations were taking advantage of the United States.[15] During the 2016 presidential campaign, Trump repeatedly favored policy proposals that renegotiate trade agreements for the United States. During a meeting with the New York Times Editorial Board in January 2016, Trump said that he would tax Chinese imports into the United States by 45%.[16] Trump frequently criticized the North American Free Trade Agreement calling it "the worst trade deal the U.S. has ever signed".[17] He also called Trans-Pacific Partnership "the death blow for American manufacturing" and that it would "put the interests of foreign countries above our own".[18]

On November 21, 2016, in a video message, Trump introduced an economic strategy of "putting America first", stating that he would negotiate "fair, bilateral trade deals that bring jobs and industry back onto American shores". On January 23, 2017, three days after becoming president, Trump withdrew the United States from the politically divisive Trans-Pacific Partnership believing that the agreement would "undermine" the U.S. economy and sovereignty.[19][20][21][22]

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Disclosure: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment ...

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Gary Anderson 1 week ago Author's comment

Update 4: US irrational sanctions on Huawei are by presidential decree. This will slow Huawei but make the giant telecom even more independent. The US wants to separate this cowardly act from the broader trade war. That may not come to pass. The world economy and the USA stock market are not immune.

Norman Mogil 1 week ago Contributor's comment

It is starting dawn on many that these tariffs are here for the long haul. Yet govts have not introduced measures to ease the adjustment e.g. how are farmers to be compensated for permanent market loss. The US govt does not understand the need for an adjustment mechanism has to go hand in hand with a permanent shift in trade patterns,

Anthony Varrell 1 week ago Member's comment

Yes, I admit I thought the trade war was just a tactic to get China to the bargaining table. But this won't end soon.

Gary Anderson 1 week ago Author's comment

We are close to the brink.

Gary Anderson 1 week ago Author's comment

Update 3: Citizen boycotts are highly effective in China. A people's war against the USA is exactly that sort of boycott. It was called for by the official Chinese media in a primetime announcement last night. This will be worse than any official tariffs that China imposes. Wall Street is asleep. #CNBC #tariffs

Leslie Miriam 1 week ago Member's comment

Wasn't a fan of the trade war. China is a gorwing power and we'd be better to have them as an ally. But lately I've been reading about how China is forcing it's own people into internment camps. Now I don't mind if we crush their economy a bit!

Gary Anderson 1 week ago Author's comment

This isn't a game for the American consumer, Leslie. 70 percent of shoes sold in the US and one third of the clothing sold in the USA comes from China! Serious costs await the American consumer. Add to this the Chinese don't want a tariff solution, and Trump wants to make up ground whatever that means. The only way around this is for Trump to keep US companies from giving up tech transfers while not forcing China to change its laws. Tech transfer is not illegal. Tech from other nations will gain an advantage in doing business in China over constrained US companies. But if that is what Trump wants, at least it would allow for a deal and circumvents the impasse about tech transfers.

Gary Anderson 1 week ago Author's comment

Update 2: Trump has now said that the tariffs on the remaining 325 billion dollars of Chinese products are undecided. That is NOT good enough! He must say they are off the table or the statement must be ignored by Wall Street. If it is not ignored by Wall Street, we have to conclude that Wall Street knows very little about anything it analyses.

Gary Anderson 1 week ago Author's comment

Update 1: Paul Krugman in the NYTimes says that Trump's trade war is more than just about economics. It is about destroying Pax Americana, the doctrine of peaceful international relations overseen by the USA. Trump wants to continually bully the world to submit to his vision of the world. If the world gives in, surely the resentment will build. Trump lies to his base, saying that China will pay for his tariffs. That is a boldfaced lie. You and I will pay for the #Trump #tariffs