Trump's trade agenda on the verge of imploding
President Donald Trump is heading toward his 2020 reelection campaign with virtually nothing to show for his big trade promises — except for angry farmers and a jittery stock market.
A long-sought deal with China appears to be falling apart, exposing businesses on both sides of the Pacific to more tariffs and steep losses for farmers. His new pact with Canada and Mexico is facing significant opposition in Congress even from Republicans, who are demanding that he lift steel and aluminum tariffs before they’ll vote on it. Deals with the European Union, Japan and Great Britain are also stalled by politics here and abroad.
Trump’s failure to reach agreements with America’s trading partners could have a brutal impact on the economy and his reelection effort, even if his base likes his tough talk on China. By the time voters head to the polls in 2020, the prices of consumer goods could be skyrocketing. Farmers may be swamped with products they can’t sell abroad. And a bear market could be shrinking everyone’s retirement savings.
I wonder if folks realize that the importer is the one who pays the duty, then passes off the cost to the consumer. So GM orders parts they need from China, then has to pay the duty, and they pass the cost of that duty onto the consumer.
