WASHINGTON – President Trump portrayed America on Monday as the victorious end of his trade war. Tariffs punish China's economy and generate billions of dollars for the United States, an economic victory that will enable it to continue its fight without it causing domestic damage.
"We have taken tens of billions of dollars in customs duties from China," Trump told reporters during a White House "Made in America" product event. While China has "taken off" $ 16 billion by stopping its purchases of American agriculture, the United States has "taken much, much more ̵
But government figures show that the revenue the US has raised from tolls on Chinese goods worth $ 250 billion is not enough to cover the president's cost of rescuing farmers, let alone to compensate for the many other industries that are suffering from the tensions. The longer Mr. Trump's argument with China strikes, the harder it would be for him to ignore this gap.
Mr. According to the United States Customs and Border Protection, Trump's Chinese import tariffs increased by 20.8 billion US dollars by Wednesday. Mr. Trump has already agreed to pay $ 28 billion to the American peasants affected by the trade war.
The President has rolled out two rounds of financial support to the peasants: a $ 12 billion package announced last July, of which nearly $ 10 billion was spent and another $ 16 billion was announced in May ,
The government has failed to provide such benefits to countless other companies, including aircraft manufacturers, technology companies, and medical device manufacturers that have lost contracts and revenue, as a result of Mr. Trump's tariffs and China's retaliation against American goods.
The trade talks with China have stalled in recent months, and Mr. Trump and his staff seem in no hurry to resolve the dispute as they trust that China suffers more from the damage, if not all.
Mr. Trump's tariffs undoubtedly harm China, where exports make up about 20 percent of the economy, compared to 12 percent in the US. On Monday, the Chinese government said its economy had grown 6.2 percent a year in the second quarter, the lowest level in 27 years.
"US tariffs have great impact on companies that want to leave China – tariff countries," wrote Trump on Monday morning on Twitter commenting on Chinese growth figures. "Thousands of companies are leaving the company. For this reason, China wants to close a deal with the US and wishes it had not broken the original deal. "
However, there is little evidence that China's loss is America's gain. Much of the business is shifting to other low-cost economies, such as Vietnam, with transition costs for American companies that depend on them.
Many companies have announced changes in their supply chains or other impact of tariffs In the coming weeks, companies were able to post their profits for the second quarter. According to Panjiva, a supply chain research firm, Nintendo has accelerated the relocation of its switch console from China to Vietnam, while GoPro, Hasbro and other companies are revising their supply chains to reduce their exposure to China.
President and his advisers have argued that now is the time to force China to change the trade practices that allegedly hurt US companies and led to the loss of American jobs. The government argues that the status quo for the American economy was not without costs. An investigation by the Chinese government on the theft of intellectual property revealed that China's policy had inflicted at least $ 50 billion in damage per year on the American economy.
Many trade experts and business leaders support the confrontation with Beijing, and some have stated the high cost of the trade war will be worth it if the United States can persuade China to open its economy. However, most disagree with the government's claim that the trade war has no negative impact on American companies.
"It is undoubtedly nonsense to say that this is free for the US," said Rufus Yerxa, president of the National Foreign Trade Council, which represents the major American exporters.
Numerous studies have shown that American consumers bear most of the customs costs. Studies by the Tax Foundation in Washington and the Penn Wharton Budget Model at the University of Pennsylvania have shown that tariffs represent a significant tax hike for Americans by raising prices for goods. The damage is concentrated as a percentage of income on the low earners who spend a larger part of their income on imports than the upper middle class and the rich.
The administration has gradually increased the amount of Chinese goods to which they are subject from last year's $ 34 billion tariffs to a total of $ 250 billion and increased the tariff on these goods.
However, the monthly rate of customs duties has not increased this year. This is because America imports less Chinese goods than it did a year ago, ruining higher tariffs on more Chinese goods.
This decline appears to be the result of a general slowdown in trade – which has helped to weaken exports by American manufacturers – and the shift of supply chains to other countries. Imports of goods from Vietnam increased by more than 30 percent compared to the previous year.
Customs revenues would likely rise if Trump continued to threaten to impose duties on almost all Chinese goods.
] The government has been trying to leverage the government to protect and support American companies. On Monday, Mr Trump signed an executive order stating that 95 percent of the steel and iron used in projects funded by federal contracts must be manufactured by 50 percent in the US.
The ruling is the latest in a series of announcements that the President has made to promote more purchases of American goods. An order in January encouraged companies to use American iron, steel, aluminum, cement and other products on a practical scale, but set no binding targets.
John Ferriola, General Manager of Nucor, a steel company in North Carolina, applauded the move. "We believe it's good for our country, and it's certainly good for the industry, I can not deny it," he said.