Well after much theatrics, it looks like President Trump will follow through on his threat to impose 25% tariffs on Chinese Import Goods effective Friday Night at midnight unless there is a last-minute breakthrough on trade negotiations.
I wrote an article published Friday on DRJUNCUT site, about why this trade deal is so important on many fronts. You can refer to it: China Trade War- What Really Going On. It is important to understand that countries need to trade with each other as a critical means of maintaining it’s standard of living. Balanced Trade is what every country tries to achieve. Today, America has a HUGE trade deficit with China being the main culprit. Currently, the USA takes in Billions of Dollars more in goods from China than it Exports to China. This is a problem and one President Trump intends on winning.
Economic Wars are won or lost in many ways. Currency Wars start when one country tries to devalue its currency. When that fails, it leads to Trade Wars, the one we currently are in with many countries. This results with tariffs placed on goods coming into America from other countries, who may retaliate in kind if they feel the trade deal is unfair or unbalanced. If Trade deals escalate it could lead to global growth slowdown and tremendous added debt both of which only raise tensions and
may lead to a Shooting War. The latter is not a preferred option.
Paul P. goes onto explain what is at stake why it is a BIG DEAL!
Daily Talk Radio