How To Make A Bad Situation Even Worse With China

Blackmail and extortion are not a strategic tariff negotiating tool. Really.

"Here's our offer - If you DON'T do business with China, we'll reduce your tariffs. Otherwise, we'll crush you with the high tariffs. That's our offer."

Last week, I informed you of China's offer in response to Trump's tariff rollout, Mafia style....

"My offer is this Senator....nothing", said, Michael Corleone.

That was essentially China's answer and then China left the room. Trump's team still doesn't get it. I am amazed by this.

By the way dear friends, If you think my view is mistaken in this post, please do jump in and say so below, I would genuinely love to know your thoughts on this.

Right now, not 6 months or a year from now, China's response to match and move on, is literally wrecking the fundamentals of the U.S. economy.

We already have an emergency instant karma situation right now with regard to three main sectors of the U.S. economy

1. Automotive parts - a plethora of items irreplaceably dependent on China so that your car works

2. Consumer clothing / staples for American's famous retail brands of hundreds of items you buy daily.

3. Amazon, which is truly in the thick of it

Last week's U.S. shipping imports at the ports PLUNGED 60%...

Trump and his team still don't see this unraveling as fast as it is?

And now as you can see from the current hot headlines, the Trump team's next brilliant step is to doubledown on threats, to go on a campaign to coerce other countries into collusion to NOT cooperate with China....to even further piss them off?

This is your strategy to fix this situation for America, Mr President!?

This will lead to winning? To solve the problems that need to be solved for Americans?

More threats are the Trump administration's next step this week? Seriously!?!?

Predictably, China has once again warned the U.S. of its response to such tactics.

According to today's release by China's MOFCOM found in the Global Times and headlined by major U.S. media including the WSJ, CNBC, today we have this....

1. China has warned it will retaliate against countries that cooperate with the U.S. in ways that compromise Beijing’s interests, according to a statement from the Chinese Ministry of Commerce.

2. The threat comes as U.S. President Donald Trump’s administration is reportedly planning to use tariff negotiations to pressure U.S. partners to limit their dealings with China.

3. The quote is “China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will not accept it and will resolutely take reciprocal countermeasures,” the Chinese Ministry of Commerce said,

Ok, do you see it? Trump acts then China matches with reciprocal measures.

Now, two weeks later, China is saying again, whatever you do, we are going to resolutely take reciprocal countermeasures AND we're not even talking to you anymore.

Do you understand CHINA IS NOT BLUFFING?

Friends, my message remains the same in its simplicity and rising level of danger

Am I the only one who sees the danger for the U.S. and world economy?

China was prepared for this

China has responded

China has left the room

And somehow the Trump team still doesn't get it.

A final point: There is a very very real possibility they are doing this on purpose (but would never publicly say that) because they MUST hurt the economy to get interest rates to come down.

No matter how much truth there might be in that view, that plan seems to be backfiring with the bond market and US dollar collapsing as we speak.

We are truly in uncharted territory and China is far better ready to handle whatever unfolds in the coming days. How can this direction be reversed and fast?

#China #TrumpTariffs #Amazon #CounterPointChina #TradeWar #Trump #AMZN #NVDA #Tesla