Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
The supply chains are so complex at this point that most people have absolutely no clue how and where anything is produced. Nor do they understand how hard it is to actually create supply chains from the ground up. The US has been trying to decouple for China for close to a decade now with basically nothing to show for it. Trump and his crew clearly don’t understand this, and think that if they just play tough with China then they’ll get what they want. The US is headed for some really bad times in the near future.
I suspect what we’ll see if Trump continues his belligerent ways is that China just says screw it, cuts us off completely, and leaves the whole nation hanging. There will be the crowd who are fine with it because they somehow imagine China is hurting even worse, but eventually the reports will filter in from other countries about how China is doing just peachy, taking away even that imagined victory from MAGA.
The supply chains are so complex at this point that most people have absolutely no clue how and where anything is produced. Nor do they understand how hard it is to actually create supply chains from the ground up. The US has been trying to decouple for China for close to a decade now with basically nothing to show for it. Trump and his crew clearly don’t understand this, and think that if they just play tough with China then they’ll get what they want. The US is headed for some really bad times in the near future.
It’s also worth mentioning that US trade is only a small portion of the overall Chinese economy. So, even if Trump cut China off entirely, the impact there isn’t going to be dramatic. It’ll hurt, but not nearly as much as it’ll hurt the US https://wits.worldbank.org/CountryProfile/en/Country/CHN/Year/LTST/TradeFlow/EXPIMP
I suspect what we’ll see if Trump continues his belligerent ways is that China just says screw it, cuts us off completely, and leaves the whole nation hanging. There will be the crowd who are fine with it because they somehow imagine China is hurting even worse, but eventually the reports will filter in from other countries about how China is doing just peachy, taking away even that imagined victory from MAGA.