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US Decided to Fight Trade Wars With China, Europe, Canada, Mexico Simultaneously; That Will Be Disastrous For The Global Economy…

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By Michael Synder  /  The Economic Collapse Blog

One trade war may be enough to push the struggling global economy into another recession, but the U.S. government has apparently decided that it is time to fight trade wars with pretty much all of the major economies around the world at the same time.  This is utter insanity, and it is going to have disastrous consequences that will be felt all over the planet.  Yes, we need to get tough on trade.  If you have followed my work for the last eight years, than you know that I have been a very strong advocate of protecting U.S. manufacturers and U.S. workers.  But these things have got to be handled delicately, because any significant disruption at this point could lead to an absolutely crippling global economic crisis.  Negotiating on an international level requires a great deal of finesse, because if you mess up it can have monumental consequences.  For example, one thing that you shouldn’t do is make an agreement with the second largest economy in the world and then tear it up less than two weeks later

The odds of a messy trade war between the United States and China are rising again.

The Trump administration shocked the world on Tuesday by tearing up a truce with Beijing and announcing it would impose tariffs on $50 billion worth of Chinese goods and restrict Chinese investment in the United States.

Without a doubt China has been taking advantage of us for many years.  They have been slapping our goods with high tariffs and have been shamelessly stealing our intellectual property.  But the Chinese are very proud people, and now they feel like they have been slapped in the face.

So they won’t back down in a trade war, and on Wednesday they said that they “aren’t afraid of fighting one”

China is ready to retaliate after the United States revived plans to hit it with new tariffs.

“We want to reiterate that we don’t want a trade war, but we aren’t afraid of fighting one,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a briefing on Wednesday.

Fighting a trade war with China would be bad enough, but it turns out that we are also starting one with the European Union.  The following comes from Zero Hedge

Time’s up! A month ago, President Trump delayed his EU steel and aluminum tariffs decision and as of Friday, that deadline is over and the US allies across Europe will face big decisions on retaliation.

Amid threats from various European leaders – and the potentially unipolar world order repressing blowback from Trump’s Iran decision and subsequent sanctions – The Wall Street Journal reports that the Trump administration, unable to win concessions from European Union counterparts ahead of a Friday deadline, is planning to make good on a threat to apply tariffs on European steel and aluminum, according to people familiar with the matter.

The announcement is reportedly likely to occur on Thursday, and will be 25% on imported steel and 10% on imported aluminum.

Other than the United States, China and the European Union are the two greatest economic powers on the entire planet.

Picking a fight with both of them at the same time is not wise.

And like China, the Europeans are pledging “swift retaliation”

The metal tariffs threaten €6.4 billion ($7.4 billion) worth of European exports, and the bloc has promised swift retaliation if it is not exempted from the trade penalties.

The European Union updated a list of American products earlier this month that would be hit with 25% tariffs if the United States moved forward. It includes US motorcycles, denim, cigarettes, cranberry juice and peanut butter.

There is more than a trillion dollars worth of trade between the United States and Europe each year, and so this is a very, very big deal.

A trade war should always be a last resort.  Every effort should have been made to negotiate a solution to our trade problems, and that does not appear to have happened.

And in addition to fighting China and Europe, the U.S. government has also decided now would be a good time to start a trade war with our neighbors here in North America as well.

In fact, tough tariffs on aluminum and steel imports from Canada and Mexico could start on Friday

The import taxes could take effect as soon as Friday.

The move is likely to have an immediate impact on global trade in steel and aluminum, particularly between the United States and Canada, the nation’s largest source of imported steel.

The decision also invites retaliation from each of the trading partners, which have vowed to erect new barriers to a range of U.S. products.

Canadians are perhaps the most polite people on the face of the planet, and so it really takes a lot to upset them.

But that is precisely what has happened, and they are pledging to “defend our workers and our industry”

“Our government always is very ready and very prepared to respond appropriately to every action. We are always prepared and ready to defend our workers and our industry,” Foreign Affairs Minister Chrystia Freeland said in Washington on Tuesday.

“Canadian steelworkers should absolutely know that the government of Canada has their back,” she said.

If we start slapping tariffs on all of our trading partners and they retaliate by slapping more tariffs on us, that isn’t suddenly going to bring manufacturing facilities and jobs back to America.

Instead, it will just result in a crippling economic slowdown.

It is true that we simply cannot continue to run a trade deficit of 40 or 50 billion dollars month after month.  The path that we are currently on is a path to national economic suicide.

But simultaneously fighting trade wars with China, Europe, Canada and Mexico is not going to solve anything.

In the end, our recklessness could ultimately be the trigger for the greatest economic crisis that any of us have ever seen.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

http://theeconomiccollapseblog.com/archives/the-u-s-has-decided-to-fight-trade-wars-with-china-europe-canada-and-mexico-simultaneously-and-that-will-be-disastrous-for-the-global-economy

 

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    Total 6 comments
    • raburgeson

      Banksters control (their) money. They cause economic chaos to rob the public. They are willing to force bail in by scuttling accounts if they like. You may have heard the statement that if you have money in the bank it is not yours. What is done in the EU is also done in the USA. It is not just gold that is price fixed, fiat money can be price fixed too. They have been very regular about crashes of several kinds in the last 3 decades. Inflating and deflating money at will within banks is not the end of it. They are controlling the stock market too. If they don’t get you through inflation they hammer you with insider trading. The money is unstable and the IMF is ready to launder you out of existence. The sooner that we are rid of the FED the better. The FED does not want to kill their cash cow, they want to continue milking it. There is no plan B. They are being called out. Either they save the cash cow through this period of economic warfare or they are out.

      • Just me

        The powers that be must devalue the American economy so we will be more competitive with Canada and Mexico in order for the North North American Trade Group to succeed. It’s all part of the NWO plan. Trump knows this and he is doing his part.

    • wheeties

      rabur–you should read martin armstrongs blog to get the truth that is really going on–martin had the largest fund ever-3 trillion plus under management–he was the largest gold dealer too–every large fund,goooovermint,etc.listens to armstrong,everybody–he has the largest data base on world history ever put together–usa gooooovermint tried to steal it from him–they failed–he says we are going to crash and burn and hopefully will be a good thing to make things right..he says goooovermint is the problem,they only act in their own self interest,not the peoples and trump is trying to change that but a lot of forces against him and warped thinking without facts does not help any—armstrong’s main input is that everything is in cycles–things go up,go down,war,weather,volcanoes,earthquakes,goooovermint,all in cycles and his ‘puter,not him,predicts these things…he is very accurate..

    • truck driver

      Dallas Texas greyhound bus terminal intercom said Monterey Mexico , Nuevo Laredo, elpaso, buses and people from Mexico that came off those buses were not Mexican but foreign black people from Africa some didn’t speak English other’s said when we get to new York city we got it made. One started every sentence with the word two two and ended sentences with two two. Mexicans said Mexico said we can sue greyhound bus for this. Accuse everyone of hitting them , Mexico said we can sue America and fall down and pretend your hurt

    • babar iley

      Yep, somebody(powerful, connected, in control) has a plan to benefit. Be sure of that because little happens by chance these days.

    • gradyt

      Hope it will not harm my business which deals with importing goods from the US. I use the help of the service from http://clearit.ca/ for brokerage, and they always help me with it. I think they will deal with everything even now… I really hope so

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