By now, most of the world has learned to take President Trumps threats with a grain of salt.
Such is the case when over the weekend the president demanded an additional 5% hike on Chinese goods as well as a command that U.S. companies stop doing business with China.
I have the right, to use the Emergency Economic Powers Act of 1997, Mr. Trump tweeted Saturday. Case closed!
Which, of course, it isnt.
Saner minds will prevail, reminding the president that Chinas president Xi Jinping is not our enemy, as Mr. Trump called him Saturday morning and that trade with China is vital to the U.S. economy.
Thats not to say that Mr. Trump is off track in trying to hold China accountable for its unfair trade practices, but only that bully tactics rarely work. The last three days provide ample evidence there is no real strategy in effect here, only tweets and intimidation.
On Sunday morning, a more composed Mr. Trump admitted to having second thoughts as to the outburst.
But by Sunday night he was at it again, saying he might escalate the tariff war by demanding even higher levies on Chinese goods.
A word to the wise: Do your Christmas shopping now.
THE MOST recent tiff between the U.S. and China began Friday, when China announced a hike on trade levies on $75 billion worth of U.S. goods. Chinas move was in retaliation to an announcement earlier in the month that the U.S. would impose hikes on various imports from China beginning on Sept. 1 and others on Dec. 15, including a 25% hike on auto exports.
Hours after Chinas hike, Mr. Trump raised the stakes from 25% to 30% on an estimated $550 billion worth of Chinese goods.
By Saturday, the president delivered the ultimatum to U.S. companies to move all production home.
Such one-upmanship is nerve-racking.
The American Farm Bureau Federation on Saturday urged Mr. Trump to rethink his tack. For U.S. soybean farmers, the 30% tariff means more beans will lie fallow. U.S. ag exports to China in 2017 were $19.5 billion. In 2018, they had dropped to $9.1 billion due to retaliatory tariffs.
And U.S. manufacturers, no matter how much they appreciate Mr. Trumps generous tax cuts, have no intention of moving their businesses home, citing higher production costs.
U.S. consumers should begin feeling the pinch on Sept. 1, when a 10% tax on Chinese exports including smartphones, computers, and toys take effect.
If all of Mr. Trumps scheduled tariffs on China play out, U.S. consumers can expect to pay $1,000 a year in added costs, according to the Wall Street Journal.
Once Americas largest trading partner, China is now our third largest, following Mexico and Canada.
