The Trump trade policy is both sound and necessary in today's World where 'Trade Cheating' has become the norm. Nowhere is it more rampant and destructive than in the case of China. It is the 8000 pound Gorilla when it comes to Cheating. They have done this through their massive 'State Owned Enterprises' and State Owned Economy. They have done it by stealing IP and Cheating in Trade.
[Dan DiMicco| July 11, 2016 | Dan DiMicco.com]
The types of Trade Cheating to manipulate trade and make free trade an irrelevant concept include currency
manipulation, massive subsidies to export related industries, the use of a
tax system that works both as a tariff barrier for inbound goods and a
subsidy mechanism for targeted export products. The VAT tax, as it is known, or value added tax is both predatory and protectionist to an extreme. Added together all these have resulted in the end of global Free Trade.
Hillary Clinton has claimed Trump's trade policies will start a "Trade War" but what she fails to recognize is we are already in one. Trump clearly sees it and he will work to put an end to China's 'Mercantilist Trade War'! A War it has been waging against us for nearly 2 decades! A war in which we have yet to show up to fight! Trump gets it! He knows that it is past time to put an end to this attack on our Economy, 'Good' paying Job Creation, our Manufacturing Sector, our National Security, and the future of our Middle Class. He will do this by negotiating from a position of strength, not condescending weakness. China respects strength but takes full advantage of weakness. In the end it will be in China's best interest to stop cheating on trade.
It's not just the USA that has had it with China's Mercantilism, predatory export pricing, and massive protectionism at home. In today's WSJ article by Andrew Byrne, "China's One-Way Deals Grate on Germany" in which Germany's Chancellor Merkel " loses patience with China's shopping spree in Europe as it closes its own markets".
Trump also knows that it is this very Mercantilism that has not only undermined the concept of Free Trade but 'Killed it'! Clyde Prestowitz in his excellent article in the Washington Monthly titled "Free Trade is Dead" drives home this point and how the countless FTA's the US has put in place have failed America, its economy, and its workers.
During ERA of "Free Trade", since 1990, our accumulated trade deficit in goods is approaching $13 Trillion. Most every FTA from NAFTA to the Korean FTA has not just failed to live up to it promises but failed miserably. Net-Net, Trade and good paying job creation have been seriously negative. The two worst agreements were giving China 'favored nations trading status' and allowing them entry into the WTO. The latter before they became a 'Market driven economy', which they still are not today.
Trump knows this but Hillary Clinton has first been against and then voted for most FTA's that have been approved by Congress.
Trump gets what Hillary doesn't, you don't win a Trade War with appeasement or more Free Trade agreements. In particular, you cant win one if you refuse to acknowledge it even exists!
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