May 10, 2019: Surprise - President Trump Can't Figure Out Tariffs

 

5/10/19: The Art of the Deal President admits he still can’t get a trade agreement with China. With that, he slaps a 25 percent tariff on $200 billion worth of Chinese products entering the U.S.

 

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“We’re in the middle, taking most of the hits.” 

Iowa farmer, Tim Bardole

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Naturally, China retaliates, with American farmers caught in the middle. According to one estimate, U.S. farmers’ personal income fell by $12 billion during the first three months of 2019. 

China is the fourth-largest importer of American agricultural goods. Deere & Co. reports that farmers are cutting back on purchases of tractors and equipment as market uncertainty spreads. 

According to the Des Moines Register, soybeans prices have now touched a 10-year low. Still, Iowa farmer Tim Bardole says he supports Trump and his trade policies. “He does really seem to be fighting for us, even if it feels like the two sides are throwing punches and we’re in the middle, taking most of the hits.”

 

Even this liberal blogger sometimes agrees with Trump on policy and agrees that pressure should be brought to bear on the Chinese. It does seem odd, however, to hear the president claim that U.S. consumers will not be paying the tariffs. China will be paying, he insists. They will pay the 25% to the U.S. government. This will help reduce the massive deficits the federal government is running with “Balance the Budget” Trump in charge. Even though that money will go to the U.S. government, and even though imports will cost more, in some magical fashion consumers won’t pay more for products like light bulbs and tennis shoes that they want. 

Even better, markets for U.S. products won’t be harmed! In Trumpistan, where delusion reigns supreme, it’s a win-win-win-win-win-win-win-win for every man, woman, and child in America. 

Because with Trump we always win, even at obstruction of justice.

 

A caveat, of course: When a company imports Chinese goods, the government sends them the bill – that is a bill to pay the tariff. The importer turns around and adds the additional cost to the products it sells. 

In the meantime, the president is talking about “our great Patriot Farmers” and how he’s going to step in and help them out. A $15 billion bailout package for farmers and ranchers –  who Trump keeps insisting aren’t going to be hurt – on top of an $11 billion bailout package last year, is in the works. 

If you pay taxes (we still don’t know if President Trump does) you just helped bail farmers and ranchers out.