The Democrats are mistaken if they think they have Trump on the ropes as he raises tariffs. He will win the fight and cement another part of his economic legacy.
While Trump is imposing tariffs on all countries, he knows that ultimately it will come down to a trade war between the U.S. and China — a war Trump and America will win.
As the other nations hit with higher American tariffs face American retaliation, they will fold and come hat in hand to Washington trying to cut bilateral trade deals with America.
Already, 70 nations have approached Washington for deals. Vietnam, Japan, the European Union, the U.K., and many others are doing something they have never done before: Throwing themselves at Trump’s feet and begging for deals.
In a historic application of his famous book, the Art of the Deal, Trump has them just where he wants them — begging for mercy.
And they will all get their deals, one at a time over the next month. Each day will feature a new surrender and a new deal for Trump. Americans, overwhelmingly and rightly convinced that we are being taken to the cleaners in foreign trade, will applaud each new move and Trump’s ratings will soar.
And then he will get to China. Trump opened the bidding by imposing a 104% tariff on Beijing. And, as China retaliates, he will jack them up even higher. (Already 125%)
Ultimately, it is a game China is destined to lose. And lose badly,
The U.S. buys $464 billion from China each year and sells them only $200 billion. Blessed by a robust consumer market, exports account for only 11% of our GDP while China relies on exports for 20% of its economy.
We buy 15% of China’s exports. They buy only 7% of ours’. In other words, U.S. exports to China are only a relatively minor part of our economy but Chinese exports to America are the lifeblood of their economy.
And China is entering the trade war as it remains mired in a recession, partly started by Trump’s first-term tariffs on them. But the U.S. economy is strong and the coming concessions from 70 nations will make us stronger.
And, as a democracy, we can tolerate economic pain a lot better than Beijing can where the Communist Party needs to maintain a vast system of censorship and information to stay alive.
Game, set, match to America and to Trump.
Dick Morris is a former presidential adviser and political strategist. He is a regular contributor to Newsmax TV. Read Dick Morris' Reports — More Here.
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