4 ms·
There's a bunch of different good results (along with the bad). The first, from the Chinese side, is the demonstration that the US can and will impact the imme
by TooBrokeToBeg 8y ago
There's a bunch of different good results (along with the bad).
The first, from the Chinese side, is the demonstration that the US can and will impact the immediate Chinese economy. That coldwar tactic is on the table (while open warfare in the south sea is not). Take the tariffs off, move on to a tariff on toys tomorrow.
From the US side, the government has a tacit approval to bring up other relationship imbalances that have gone on for too long. The fact that my machines are attacked by Chinese IPs more often than any other locality (via casual IP lookups) makes me think that this is actually part of a greater response to various Chinese incursions into various arenas in the world (not the least of which is the US infrastructure).
Another good is in regard to the impact on the US manufacturing base. Dealing with the fact that costing in existing processes and materials (based on abroad cheap labor and materials) is not reliable, is an important step. This will force higher capital investment into experimental materials and processes for alternatives (maybe with other 3rd party countries). There will also be a boon to choice US companies that the federal government favor, through existing and new contracts where these tariffs will otherwise be abated. It's not going to kill every existing company, but it hurts a lot. This is a future-investment move. It's possible it's a misstep and we will never have anything better than steel and cheap plastics, but I doubt it.
There is the geo-political arena to consider. The US has been in a cold war with China since after WW2, same as we have with Russia. The moves with regard to North Korea are suspicious. North Korea has been the heel of China for some time. NK has had no way to bargain, with anyone, much less their greatest benefactor. Setting a stake against China then making overtures to NK allows NK (KimJong) to consider becoming a valuable Geopolitical figure and US partner in a critical area, surpassing south korea (for once). It just happened to coincide (I have a feeling Trump is ironically talented at speaking to KJ) and happened to influence the ultimate decision to place the tariffs at this time.