Folks the Chinese this past week have seen all their schemes being destroyed by the Atomic Sledgehammer of Truth! Ole Xi will have to decide in the very near future whether he wants to hold onto North Korea or whether he wants to destroy his paper economy. He CAN’T have both!
Our President continues to drive the Dragon 🐉 crazy 😜. Xi knows damn well that as our President finalizes the trade deals with Mexico, Japan and the EU, China 🇨🇳 will see a reduction of 3% to 4% to their real GDP rate!
There is a cause and effect to our GDP and theirs. By squeezing them with tariffs of 10% on the first $50 billion coupled with the proposed 25% (in a week or so) on the next $200 billion and what I believe maybe as high as 50% on the remaining $250 billion, PDJT is swinging our GDP up and killing China’s GDP.
Let’s look at the math:
USA 🇺🇸 Tariffs on China:
- $50 billion x 10% tariffs = $5 billion dollars to our Government
- $200 billion x 25% tariffs = $50 billion dollars to our Government
- $250 billion x (being a bit conservative) 37.5% tariffs = $93.375 billion dollars to our Government
China 🇨🇳 Tariffs on USA:
- $50 billion x 10% tariffs = $5 billion dollars to their Government
- $60 billion x 25% tariffs = $15 billion dollars to their Government
- $40 billion x (THAT IS ALL THEY HAVE LEFT) 37.5% tariffs = $15 billion dollars to their Government
That totals $148.375 billion dollars in tariffs for our Government versus $35 billion dollars to their Government.
That shrinks the trade deficit by $113.375 billion dollars a year.
What does that mean for each country’s real GDP rate?
Just last Quarter we shrunk the trade deficit by $52 billion dollars and it added 1.16% to the 4.1% for the 2nd Quarter.
Please keep in mind with my math above, China 🇨🇳 and the USA 🇺🇸 brought in the same $5 billion in tariffs. They washed each other out. That didn’t factor in the $52 billion dollar reduction our President tweeted about.
However, going forward, that isn’t the case! Your talking about an additional 2.32% real GDP rate for each year using the tariffs on China 🇨🇳 and them losing that same percentage.
Our President is absolutely right that WE CAN’T LOSE!
Xi saw this today and realizes HE CAN’T WIN!