Donald Trump has been called a rooster in a china shop six days, one million and six days, but what if it’s China’s store he’s trying to break? He probably will, to.
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Recent history demonstrates that tariffs is, at best, lead to mixed results, just like with any other federal program. However, I’m not here right now to discuss the general benefits of taxes, but rather how they affect our most troubling proper rival, Communist China.
( For the record, I usually support free trade, at least with friendly nations ), but I’m not an idealist.
Please bear with me because I have to find a little complex with this.
Last night, James Thorne, the Wellington-Altus main business strategist, argued on X about the constraint that Trump has placed on China. He claimed that China is “weighed down by income generation, overcapacity, and inflationary source.” Its development model is wobbling because of a fast aging population and rising labor costs.
China’s economy has yet to regain the explosive growth it experienced prior to the prolonged COVID lockdowns of Communist Party leader Xi Jinping.
What happens when millions of rural people lose their jobs as companies slower and imports decline, Thorne continued to ask. While Beijing’s half-hearted measures offer small relief, social turmoil was burst like a powder tank.
Selling their throng of T-bills aids Beijing in stifling the Yuan while thwarting Trump and SecTreas Scott Bessent’s efforts to lower interest rates. That is effective. After some earlier declines, the offer on the 10-year is now back off. The key to remember when it comes to war, yet a trade war, is that the opposing man has the right to fire up.  ,
Beijing’s goal is to keep its exports competitive despite the shocking 104 % tax while putting the brunt of Trump’s suffering on us here at home. However, Thorne compared Trump to Dirty Harry, who” stars down China’s perilous business and growls,” Go back, make my time.” Sell [ US Treasuries ] and devalue the RMB.
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However, if the RMB is devalued very much, capital flight could ensue as the Chinese trade their increasingly devalued RMBs while putting their savings elsewhere in safer currencies. Beijing has tried ( and failed ) for years to encourage economic growth, and a capital flight would only worsen a bad situation.
According to Rod Martin, the creator of Martin Capital,” States from Argentina to Vietnam are falling all over themselves to cut’zero’ tax deals with Trump,” giving businesses like Apple a not-so-gentle nudge to move their creation out of China.
Trump’s just-announced “pause” on increased taxes on all nations but China more demonstrates that his main objective had always been to isolate China from international markets to the fullest extent.
Trump is squeezing it hard, and China’s dependent on the U.S. export sector isn’t its just sticking point.
That doesn’t mean we don’t include choke items, either. Carol Roth, a financial analyst and author of” You Will Own Everything: Your War With a New Financial World Order and How to Fight Back,” now warned on X that” Small businesses have been beaten up for five years — Covid, supply chain, work disruption, inflation,” and that” they may take another state induced shock.”
According to Roth,” Wall Street is handle through, Main Street may be crushed again.”
There is at least some empirical proof to support that claim. There are many information available, but this is just the most recent I found:
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A small business owner who previously paid$ 26 000 in taxes on imported Chinese products is now subject to a$ 346, 000 tax as a result of Trump’s new 104 % tax on Chinese exports.
” We believe China will have to foot the bill for it. When… picture imports specific requires toys. twitter.com/bcDBrlUggM
— Ron Smith ( @Ronxyz00 ) April 9, 2025
Although those tariffs went into effect today, some manufacturers have their sales prices lawfully locked in. Where is the wealth supposed to come from for a small company with thin profits? That is a difficult problem, and we are still unsure of the solution.
Weaning ourselves away from China for important finished goods has its risks and anguish, and I’m once more trying to be open and honest about them. Remember that detoxification hurts, but it beats the devil out of continuing habit. And occasionally it takes a bully mindset from a china shop to encourage us to blow.  ,
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