Trump Is Building An Army Of Nations In Trade War Against China

Having realized (perhaps) that taking China one on one will be difficult, not to mention lead to major stock market losses, Trump has decided to spread the pain, and is quietly building an army coalition of nations to join the US in the trade war against China. The first stop: Latin America.

Trump is due to make his first visit to the region next week to attend the Summit of the Americas in Lima, Peru, a trip which comes as his administration is waging a trade battle with China on one front and and pushing to overhaul NAFTA on the other.  While there, Trump will make the case case that the US - and not China - should be the trade “partner of choice” for Latin America, a senior administration official said on Thursday told Reuters.

“President Trump has been very clear ... in terms of his economic policies that the Chinese economic aggression in the region has not been productive for the hemisphere and that the United States should remain the partner of choice for them,” the official told reporters on a conference call.

Trump will deliver an address to the summit where he will talk about “shared values” in the hemisphere and the need to reduce drug trafficking, the official said. Substantive discussions on NAFTA are not expected at the summit, the official said.

Ironically, the trip also comes as Trump has been raging against migration from the region, having recently successfully halted a "migrant caravan" from Guatemala headed for the US in hopes of obtaining asylum. It was unclear how much emphasis Trump would place on stopping illegal immigration from the region into the United States - one of his main promises in his presidential run for office, and a very sensitive topic for those present. Surely, some form of quid-pro-quo will be unveiled, as in Latin America may side with the US against China but only if Trump agree to accept a given number of migrants.

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Separately, earlier on Thursday Larry Kudlow confirmed that Trump is indeed building an army ahead of the big showdown with China. According to Bloomberg, Kudlow wants to rally "pro-market allies to push back against China’s unfair trade practices," a senior White House adviser said.

“The damage of our economy comes from China’s restrictive practices. Blame China. They’ve been doing this for decades. Don’t blame Trump,” Larry Kudlow, head of the White House’s National Economic Council, told reporters in Washington.

In threatening to punish China for its abuse of intellectual property, Trump is “doing what everyone in the world has said we should do,” said Kudlow, adding that the administration will have more to say about its efforts to recruit other major economies to support the U.S. position.

"I call it a trade coalition of the willing. I think everybody in the world knows that China has not played by the rules  for many years," he said.

As reported earlier, for a second straight day Kudlow sought to reassure investors about Trump’s plan to impose tariffs on $50 billion worth of Chinese products. Kudlow emphasized that the tariffs haven’t been enacted, and the administration will consult with a range of parties, including U.S. lawmakers, the agriculture industry and the Chinese government itself. Overnight, China said Tuesday it prefers to negotiate a solution, but isn’t afraid to retaliate if the U.S. duties take effect. “It’s nothing around the corner. There’s going to be big discussion about it,” Kudlow said.

Perhaps, but according to the Chinese press, China has already won the "Trade Wars", which suggests that the only retreat possible is if Trump admits defeat, which knowing the president appears very unlikely, which in turn makes it very likely that the ongoing euphoric burst which has sent the Dow Jones 1000 points higher in the past 2 days will not last long.



JimmyJones DillyDilly Thu, 04/05/2018 - 13:26 Permalink

Cut all trade with China, let the cards fall where they may.  I am sure Taiwan can pickup the slack on the electronics front as they used to supply the world before China.   Let them crash and burn for attempting to wear the Big Boy pants when its only because of treasonous Globalist filth that they even have a pair of Big Boy pants.  Also lock up all the Rothschilds.

In reply to by DillyDilly

are we there yet beemasters Thu, 04/05/2018 - 17:53 Permalink

I lecture in both Russia and Ukraine and have watched ordinary people have a continuing decline in their standard of living. Even if the silk road of China and Russia is successful, the average person there has a lot of problems. Also, China has major vulnerabilities in food and oil. Their peasants have migrated to the city from the farm, and if food shortages hit they can not easily move their population back to country farms. In short China is trying a short term bluff.

In reply to by beemasters

AurorusBorealus beepbop Thu, 04/05/2018 - 15:52 Permalink

I am not so sure. South American nations are growing wise to the predatory, mercantilist practices of the Chinese, who seek always to undersell competitors with poor quality products, drive down wages, and create unemployment.  Unemployment leads to social and political instability overnight literally, and South America has experienced more than its share of social and political instability.

Trump could find allies here against Chinese mercantilism and willing trade partners for U.S.-based companies... if he were not so obnoxious and his supporters were not a band of bigots.  There is also the long history of CIA meddling in the affairs of every South American government and the (correct) impression that most South American media is owned and controlled by Wall Street and U.S. oligarchs.  Wall Street and the CIA have a long history of using the USD to promote corrupt politicians, create unsustainable debt levels, cause economic chaos here, and exploit this chaos to purchase assets. This history of U.S. imperial malpractice plays against Trump as well and is the major reason why South American nations have opened themselves to some trade with China.

My advice to Trump is to put a muzzle on the Neo-Nazi wing of the Republican Party if he wishes any concessions from South America or send the French and Germans in as proxies to handle the negotiations for him.  I would certainly be happier if I never had to purchase anything made in China again and could purchase electronics and plastics from higher quality American (North and South) manufacturers.

In reply to by beepbop

Brazen Heist beemasters Thu, 04/05/2018 - 18:01 Permalink

A stinking pile of red, white and blue all-American bullshit.

American corporations, aided by American lobbyists and American politicians, decided to cut costs and dump American workers for Chinese workers. China did not take this decision, yet is  blamed for decisions made in America.

And Trumptards are willing to put up with more inflation across the board just to save a few rusty jobs in the steel industry? This patriotism thing is not what its being sold for. A whole lot more people are going to get fucked.

I'm sorry but freer trade is a much better proposition for consumers.


In reply to by beemasters

Beowulf55 Savvy Thu, 04/05/2018 - 17:05 Permalink

Don't see that happening as they have to make up 38% of the US market and that ain't possible as harvest is over in SA.  And production cannot be ramped up over night.  You need land and resources that are not readily available to replace US production.  US is just now planting beans for this fall.  And if the prices fall their will be even less beans available to the market.  China will be squealing like the pig the feed the beans to for at least year or more without US beans.

In reply to by Savvy

Brazen Heist Beowulf55 Thu, 04/05/2018 - 17:10 Permalink

Trump will make the case case that the US - and not China - should be the trade “partner of choice” for Latin America.

So forcing others to trade with you and to go against their own interests is a "winning" strategy? LOL

That's like me forcing my friend's girlfriend to come and get a little jiggy with me instead.

What's clear at this point is the empire is now shameless about its bullying, and actually behaves like a retarded aspy-type on the geopolitical scene. Desperate times.

In reply to by Beowulf55

the cork Perimetr Thu, 04/05/2018 - 14:01 Permalink

"Wild" Bill Clinton sold us out granting china "most favored nation" status.

That's what gutted American Manufacturing.

I say fuck china. Cut 'em off.

That's what will re-ignite US Manufacturing.

I'd rather buy US, pay a little more, and have it last 10 times as long than buy the cheap chinese shit. Use it or wear it once and it's fucked up.

They can have it.

In reply to by Perimetr

mkkby Savvy Thu, 04/05/2018 - 16:05 Permalink

Don't cut em off.  Trump is doing the right thing with tariffs.  Make it more expensive to buy from china and production will move.  Some back to the US.

If china wants a full out trade war, everything we need can come from korea and japan right away.  It would be a little more expensive but better quality.

But, but -- what if they stop rolling over t-bonds?  Let em.  The yuan will go up against the dollar making it even worse for them.  They know that, which is why they'll threaten but not do.

In reply to by Savvy

sandman3365 JimmyJones Thu, 04/05/2018 - 14:04 Permalink

Omg, you muricans are really hopeless... The world is HUGE! Russia is much bigger than the USA, and RUSSIA ONLY can feed the chinese ppl. You just dont understand that China can still buy your food 25 percent more expensive, until they will find cheaper. And they WILL. But you will NEVER find cheaper TV than chinese built ones. This "trade war" will just empty your pockets more, cause you will still buy chinese electronics, but you will pay 25 percent more. Its simple as it. Cheers!

In reply to by JimmyJones

I am Groot sandman3365 Thu, 04/05/2018 - 22:40 Permalink

You're a fucking idiot. There are less than half the number of Russians in Russia than Americans in the US. Russia can't feed it's own people. If the US isn't selling soybeans to China, they will have to get them from Brazil. If we cut trade with China, we would have every country on the planet trying to be our supplier(s). And we can buy good, cheap tv's from South Korea ! We don't need or want cheap Chinese shit anymore.

In reply to by sandman3365

hwy JimmyJones Thu, 04/05/2018 - 15:29 Permalink

Idiots and idiots voters.

Tariff is 25% China charges it's importers. How do you calculate triple in prices?

Even if the world don't sell, Russia is still biggest exporter of wheat.

Chinese used to raise pigs in their backyard before they used imported feeds.

What level of IQ have you? Try eat less meat ! !

In reply to by JimmyJones

swmnguy rf80412 Thu, 04/05/2018 - 14:08 Permalink

All that manufacturing will come back to the USA as soon as Americans can live on the same $5,000/yr. income as manufacturing workers in Mexico and China live on.  And not one second before.  US companies can't absorb a 600% increase in labor costs. 

Sure, we could narrow the gap with tariffs.  And with higher prices domestically.  But we have to remember why manufacturing jobs disappeared in the US.  Because US companies were able to cut their labor costs 85% in so doing.  Not because China and Mexico tricked US companies into accidentally and against their will cutting their labor costs 85% while preserving their pricing structure, and using the windfall to increase Executive pay from 20x the median employee's pay to 300x and more.

"Clawing Back" manufacturing is a meaningless platitude.  What has to happen is for US companies to resume manufacturing here.  For that to happen, the 600% gap in labor costs has to be addressed or it's pointless.  As US companies are finding out, when you fire all your employees and suppress wages, eventually your customers don't have money to spend on your products.  In the meantime between cause and effect, you can live high on the hog and stuff your pockets, but equilibrium is a bitch.  They don't call it a "Race To The Bottom" for nothing.

US federal government policy could help.  Our system of business accounting only counts labor as an expense to be cut, not as an asset to be nurtured and developed, though any competent business owner knows it's better business to have a good, stable, skilled, loyal labor force than not to.  The tax code might be a good way to start addressing labor; penalizing companies that really only serve as middlemen to re-sell goods made overseas, and rewarding companies that make stuff here in the US.  But no doubt that would be "Socialist" so we won't consider it.

Remember, when US companies lobbied the federal government to go all-in on NAFTA and other global trade deals, to facilitate the shutdown of US manufacturing to the very great profit of the US Elites, the story was that US workers were too lazy, too greedy, too entitled and lacking the skills to fulfill manufacturing jobs, so the poor corporate interests had no other choice.  Has that changed, somehow?  Or was it all a lie, and the very same people who told that lie are now telling different lies?  It's so hard to tell who's lying when.

In reply to by rf80412

hwy swmnguy Thu, 04/05/2018 - 15:44 Permalink

With Chinese export to US, American retailers make most of the profit. Apple pays Chinese contractor Foxconn $5 per iPhone, sells it for $500 here. Foxconn pays for labor and material, Apple makes the profit. Walmart pays the Chinese 5 cents per mug, sells it for $2. This is why while Chinese export to US amounts to only 1% of their GDP, while US retail sales of Chinese goods account for 17% of US GDP and 40% of US jobs depend in part to selling Chinese goods.

In reply to by swmnguy