When I first heard the story about the United States/China trade wars, I really got the feeling that President Trump got over his head in this matter. Vision came into my head, of President Trump walking into a Mall, he sees a guy bending over with his back to him, tying his shoelaces. President Trump immediately starts running toward the guy, places both hands on his back and hops over the dude. Trump turns around and see the guy is only tying his shoelace. The President gets a little red faced and says, sorry Dude, I thought we were playing leap-frog.
That was my first reaction to Trump’s trade war with China. To tell the truth, I don’t know if his trade war with China, was a quick reaction, or he proceeded on the advice of the GOP or his staff. I really do not know. However China quickly laid the blame squarely on the United States for the tariff fight and break-down in the trade talks between the world’s two biggest economies.
The architect of this trade war with China forgot one little equation, RARE EARTH. China has over 65 percent of the world rare earth, this material is needed for computers, phones and defense. Some where along these trade war talks, China has backed America in its efforts to control North Korea and Iran. China has processed and supplied the United States with rare earth and processed Americas rare earth, as the USA has no processing capabilities in the United States. A light bulb must have been switched on by Trump, his advisers or the defense department because in a hastily written executive order, President Donald Trump urged private industry to boost the mining of critical minerals, [such as rare earth] to protect the national security of the United States. Another factor is In 2017 China charged the United States about $10,000 a metric ton to process and ship, in 2018 the Chinese government raised that to $60,000 a metric ton. plus any tariffs added. I don’t care what the reason was that started this trade war with China, I believe that it will have far reaching effect on the USA.
It should be noted: President Donald Trump’s trade battles are costing the U.S. stock market $5 trillion and counting, according to Deutsche Bank.