As the last month of summer invites everyone to get their vacations in, China has reminded America just why taking Sarah Palin’s advice to “Drill baby, drill” may be the best route to take. As Oil Price (dot com) has just conveyed, Xi’s nation admitted “on Wednesday that it would impose a 25-percent tariff on U.S. imports worth U.S.$16 billion, including crude oil, diesel, cars, coal, and steel products,” a fact that CNBC has also confirmed.
China is attempting to flex their muscles in response to President Donald Trump’s “unfair trade” tariffs which are designed to level the playing field for America. If Uncle Sam was producing his own energy at the levels which are needed, this leverage would arguably not be an option for China (or anyone else).
“This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China which went into effect on July 6,” stated the Office of the United States Trade Representative (USTR).
China has also said on Twitter “that its tariffs on 333 U.S. products, including crude oil, would also take effect on August 23.” This, however, is not the doom and gloom that some see.
That is because, hopefully, America will stop outsourcing jobs and return to making things exclusively in the U.S.A. with no help from China at all. When that happens, America will rely on America, not other nations, and will prosper as result. Arguably, this is what made the U.S. so powerful to start with.
China buys a lot of energy from the U.S., but it comes at a cost that is undermining the rest of the economy, a fact that Mr. Trump sees clearly.
What all of this boils down to is the fact that China, much like Canada and Mexico, are furious that the U.S.A. is no longer going to suffer losing revenue in order to please world leaders.
It is time that America starts pleasing America, a thought shared by many of those who elected President Trump into office.
If China is unhappy now, just wait until America starts making their own TV’s, video games, widgets, gadgets, and other such toys.
Then, the U.S. may not need China at all.