Tariffic Tuesday, Part 12 – Trump Ramps Up Tariff Talk Ahead of G20 Meeting

Image result for trump robin hoodDoes he do it on purpose?  

As much as the President likes to complain about the market not performing well, more often than not he's the primary cause of poor performance.  Yesterday, for example, we were having a lovely bounce (albeit on very low volume) but then Trump suddenly decides to say he's moving ahead and boosting tariffs on $200Bn worth of Chinese goods from the current 10% to 25% – which is up 150% from where they are and will sock American Consumers with an additional $30Bn in tax, crippling disposable income and boosting inflation.  But it's $30Bn more in tax breaks he can give to his friends so – winning!  

In an interview with The Wall Street Journal, Mr. Trump suggested that if negotiations don’t produce a favorable outcome for the U.S., he would also put tariffs on the rest of Chinese imports that are currently not subject to duties.

"The rest" is another $267Bn with of goods and 25% of that would be yet another $66Bn picked from the pockets of American Shoppers.  So we're talking about $96Bn worth of additional taxes aimed at the people who can afford it the least and the chances of Trump not doing that but instead making a deal with Xi this weekend that widens his already out-of-control budget deficit by $96Bn are slim to none – just as I've warned about from the start.  These tariffs have nothing to do with China and everything to do with making middle Americans (the suckers who voted for him) pay for his tax cuts while wrapping it in a flag of patriotic protectionism that hasn't bought a single job back to our shores in two years.

Trump has done NOTHING for jobs and, in fact, Trump's first 22 months in office created just 4.1M jobs while Obama's last 22 months in office created 4.8M jobs – Trump inherited a triple and turned it into a double and, at this pace, it will dribble out into a weak single. 

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