Tariffs Can Lead to Higher Consumer Prices, Trade Tension, and Retaliatory Measures from Other Countries. Economic Experts Say that America’s Real Challenge is not Tariffs but Its Reliance on Debt and Rising Interest Costs. President Trump’s Tariff Plan is Projected to Raise Over $5.2 Trillion Over 10 Years

Tariffs Can Lead to Higher Consumer Prices, Trade Tension, and Retaliatory Measures from Other Countries. Economic Experts Say that America’s Real Challenge is not Tariffs but Its Reliance on Debt and Rising Interest Costs. President Trump’s Tariff Plan is Projected to Raise Over $5.2 Trillion Over 10 Years

Mujeeb Khan   

 

 

Furniture Manufacturers in Vietnam

  The Trump administration has completed 100 days, and President Trump has made revolutionary changes in government departments through his executive orders. Thousands of people have been laid off. The Department of Education has been eliminated. The government is being kept small, and unnecessary expenses are being eliminated from government agencies. More attention is being paid to reforms in the Pentagon, CIA, FBI, Justice Department, and Homeland Security. Meanwhile, immigration and tariffs are important issues facing the Trump administration now. If immigration is an easy one for President Trump, then tariffs are an equally complex and difficult issue. America was kept busy solving the world’s problems with wars for over thirty years. At the same time, the world was becoming a global village through globalization.

Exports were coming to America from all over the world in this village; they called it a free market economy. In America, people were used to buying cheap goods. It is not so easy to dismantle this global village with tariffs. The materials or parts of the goods that American companies make in China come from different countries. Garments of American brand-name companies are made in Bangladesh; their material, cotton, rayon, and silk, come from Central Asian countries or China. In which case, how many countries will have tariffs? And when a polo shirt made in Bangladesh comes to America, how many tariffs will there be? More than a hundred thousand Americans work in American companies in China, and native Chinese also work with these Americans. They manufactured electronic and non-electronic goods, and these China-based American companies shipped them to markets in America and around the world. In this case, what tariff will there be in African countries, and what tariff will there be in Asian countries? Apple is an American company that makes Apple phones in China. This Apple phone is sold in the US for $900 to $1000, but with the imposition of tariffs on China, this phone will cost $2000 to $3000. Apple is worried about who will buy such an expensive phone? Apple CEO Tim Cook has announced that 70 to 80 million phones will be made in India next year. But labor will be expensive in India, and the government’s foreign corporate tax is high. However, in both the first and second cases, there are high risks for the global economy in President Trump’s tariff policy.

  There will now be economic zones in response to the Trump administration’s tariff regime. East Asia will be a strong and the largest economic zone. The European Union is already an economic zone. It will be made even more dynamic. BRIC will also be a vibrant economic zone with a population of about three billion countries, including China, India, Russia, Brazil, South Africa, Iran, and eight other countries. Latin American countries will also have an economic zone. Now, the cornerstone of foreign policy will be economic. Military-security alliances will become history. The global system and institutions established after   World War II are obsolete in today’s high-tech, fast-moving world. Wars had a special place in the 80-year-old system. In this system, the natural resources of the newly independent countries were exploited by the colonial and imperialist powers. It is a great contribution of China that, with its economic development, it has taken the developing countries out of the plunder and exploitation system of the colonial and imperialist powers.

  President Trump is dismantling this world order. The military alliance, the economic alliance system are ending. The old powers of Europe are the old exploiters. America was a colony of Britain. By becoming an ally of America, they exploited America. These European powers used to put America ahead in every war, and America fought wars for them. When America’s debt reached $37 trillion, America realized that European countries were not spending much on defense, and they are not paying their share in NATO either.  

  Now, everyone agrees that the world order that has left the United States in debt of $ 37 trillion should be dismantled. There is no warmongering adventurism in President Trump’s foreign policy. President Trump is working with full energy to end the Russia-Ukraine war. President Trump wants to restore diplomatic relations with Iran. There is progress in direct negotiations with the United States on Iran’s nuclear program. An agreement on Iran’s nuclear program will bring amazing changes to the region. President Trump is urging Israel to remove obstacles to the supply of food to the people in Gaza.                 

The Neoconservatives Have Changed the World. They Have Given America Wars to fight, and made America the World’s only Military Power, and made China the World’s Economic Power. China will feed the World, keep the Standard of Living Higher for People in America, and Europe

  

The Neoconservatives Have Changed the World. They Have Given America Wars to fight, and made America the World’s only Military Power, and made China the World’s Economic Power. China will feed the World, keep the Standard of Living Higher for People in America and Europe

Mujeeb Khan

 

In the 70s and 80s, there was a big uproar against Japan in the US, saying that the flood of Japanese electronics and cars was causing American electronics and car companies to go bankrupt. Jim Baker was the Secretary of Commerce in the Reagan administration. The chairmen of American car companies met with Secretary Jim Baker in his office and asked him to ban Japanese cars; they told Secretary Baker to impose tariffs and duties on Japanese cars, or they would go bankrupt. Secretary Jim Baker writes in his book, they kept banging on my desk. I kept listening to them, I told them, “We will not impose tariffs or duties, you make better cars than Japanese cars and compete with them.” The Secretary writes, “After five years, the sales of American cars increased, they were making better cars than Japan.”   

President Clinton signed the NAFTA bill

President Trump signed an executive order against NAFTA

Port of Los Angeles, growing Chinese Container

   Chinese capitalism with socialist characteristics, while Western capitalism with American characteristics, in fifty years Chinese capitalism with socialist characteristics has proven to be very attractive and successful. More than 500 American companies are in China. China has turned American companies into billion-dollar and trillion-dollar companies in a short time. It has made thousands of American millionaires in America those who were millionaires have become billionaires. The profits of retail companies in America had increased from 300 percent to 500 percent. Chinese Premier Zhu Rongji, during his visit to America in 1994, in a question-and-answer session with students at the University of Washington, Seattle, when a student asked Premier Zhu that China was making a lot of money in trade with America. Premier Zhu said that a Nike sneaker is made in China for ten dollars, including labor and materials, but we made only two dollars. This Nike sneaker is sold in Chicago for 280 dollars, now, who is making money, China or the Nike company? When seeing big profits in China, companies from Europe also moved to China. Where was corporate America? Merging of Chinese capitalism with Socialist characteristics.

  In China, corporate America has become a global company. China is a big country; it has a population of 1.3 billion. It is a huge market in the world. Global companies in China will not leave the Chinese market and go to the 350 million market in America or the 300 million market in Europe. They will not leave a 100-million-dollar business in China and come to America to do a 50-million-dollar business. Taiwanese companies are in mainland China. Chinese companies are in Taiwan. Japanese companies are in China. Indian companies are a major importer of goods from China. Chinese companies have invested in Vietnam. These Chinese companies export their goods from Vietnam to the US. Similarly, Vietnamese companies in China also export their goods to the US. Some American companies have moved from China to Vietnam to expand the supply chain. But they also operate in China. Similarly, there are Chinese companies in Indonesia and Malaysia, and Indonesian and Malaysian companies import parts and other industrial goods from China. A web of economy and industrial production has been formed in East Asian countries. American companies are now in this web. There is no free trade in East Asian countries, but there is close cooperation in industrial production.

  North America has free trade between the US, Canada, and Mexico. The United States and Canada benefited from Mexico’s cheap labor. Canada and Mexico both supply oil to the US, and this is a major trade they have with the US. After the NAFTA agreement, some companies from the US moved to Mexico. President Clinton signed the NAFTA agreement in 1994. Four former US presidents, Ford, Carter, Reagan, and Bush, had supported NAFTA and said it was in the interest of the United States, more jobs will create in America. While labor unions and the people were strongly opposed to NAFTA. Thousands of Americans lost their jobs because of the NAFTA agreement. President Clinton told those who lost their jobs that jobs that had gone would not come back, they should look for jobs in new fields, and they should get training in technology fields. The government would help them. In 30 years, NAFTA has linked the economic survival of the US, Canada, and Mexico. And now it is not so easy for the US to leave NAFTA; it is easy for the US to leave NATO, but it will be difficult for the US to leave NAFTA

  After the end of the Cold War, there was talk of how the world had changed. Israel’s Benjamin Netanyahu said that God has given the right to change the world to the Jews, and we will change the world. And they did this plan in 1990, with the first Iraq war, Iraq was left under the most inhumane economic sanctions. America was pulled out of the economic recession; America’s economy was strengthened. During this period, Central Asian oil came to the market. Russia’s oil pipelines in Europe were completed. When there was no threat to the world economy, the mission of regime change wars in the Middle East was given to America. The neoconservative plan to change the world was that America would wage wars in the world. It would make weapons, sell weapons, and establish military bases everywhere in the world. China would feed the world and provide bread, clothes, and housing to the world. China would take care of the living standards of people in America and Europe, provide them with cheap goods, and keep them prosperous. That is, China would be the world’s economic power. America would be the world’s military power. The policeman of global security. There are countless dangerous places in the world. Where there are unwanted rulers, America has military surgery to treat them. Just think, if China were not the world’s economic power, after twenty years of war with Afghanistan, the United States and its European allies would be seen crossing the Afghan border into Pakistan in a desperate situation. China had been manufacturing military boots and uniforms for the United States and its European allies at a discount rate for twenty years. Wars have left the US in debt of $37 trillion. While China has $3 trillion in foreign reserves. The US is punishing the world for not winning the wars, losing its $ trillions in war with tariffs.