Are American Workers and Consumers Really Getting the Shaft in the Coming Trade War?
It seems like every news channel is talking about how the coming trade war with China is going to raise prices for consumers and cost American workers jobs. the truth is that we have been at war with China for a long time and we are losing. The United States is the biggest consumer of made in China products. Exports from the US to China were $169.8 billion and imports from China to the US were $478.8 billion in 2016.
China has been employing a trojan horse style war with the United States for a long time and it seems that past Presidents and politicians were only interested in talking about the issues without actually employing a solution to the problem.
Why is the American media fighting so hard for China?
The news media has been working overtime trying to sell the American public the message that tariffs are a bad thing for the American people and that it will cost consumers in the long run. Funny how they never actually break those numbers down though. Instead the talk about how “Americans would pay about $3 billion more for vehicles under the new tariffs.” Wow! 3 billion dollars is an astronomical amount of money but it actually comes out to about $175 more for a new car according to Commerce Secretary Wilbur Ross. That certainly isn’t as scary as the 3 billion dollar number being quotes on the television though, is it?
And what about consumer goods such as a six-pack of beer? How much more can consumers expect to pay at the grocery store? The 10% tariff when passed onto the consumer would amount to about cent-and-a-half increase in the price of a six-pack of beer. Not even enough for the consumer to consider stock piling beer before the price goes up.
You have to wonder why beer manufacturers are implying that they may have to lay off American workers if this tariff goes into effect. MillerCoors tweeted recently on Twitter that the tariff “is likely to lead to job losses across the beer industry.” The question no one is asking is why? Since we all know that the majority if not all of the increased cost is passed onto the consumer. Which amounts to nickels and dimes not dollars.
Why are some manufacturers fighting so hard for China?
Where is their outrage over China stealing the intellectual property of business owners, making knock offs to sell on places such as Amazon and putting American companies out of business? The US loses $225 Billion to $600 Billion each year because of Intellectual Property theft by China. This is a reason many companies are starting to take a more serious look at reshoring so that their designs are not stolen by the Chinese government.
Why aren’t corporations like MillerCoors talking about how China manipulates trade and price to benefit themselves at the expense of other businesses? According to the World Steel Association China was the “world’s biggest steel producer in 2016, with nearly half the world’s total of 1.63 billion tons.” While on paper this seems like a great accomplishment for China’s steel industry the truth behind how they got there is a whole other story.
Essentially China has been playing fast and loose with their production of steel by intentionally producing more steel than they need, dumping it into the global marketplace and pricing it below fair market price. The result is that American steel makers are unable to compete and eventually go out of business. This impacts the American steel industry, their workers and even our national security. Simply because if the US has to buy steel from China and other countries they are at the mercy of said countries for the supply and quality of steel.
There is also no mention of China devaluing their remnimbi (yuan) to make themselves more competitive in the global marketplace. Creating a distinct disadvantage for US manufacturers.
Not dealing with China sooner has cost the American people more than a small increase in the cost of consumer goods. Most people are unaware of the real price we pay for cheap products from China.
Trade Deficit With China Has Cost Americans Jobs
Since China was given entry into the World Trade Organization in 2001 the trade deficit has “more than quadrupled. Rising from $83 billion in 2001 to $367.2 billion in 2015.” Between 2001 and 2015 the United States has lost 3.4 million US jobs. The manufacturing sector has taken the biggest hit in job losses with 2.6 million jobs lost in the manufacturing sector.
The question all Americans need to ask themselves is this; are you willing to pay 10 cents more or even 30 cents more for six-pack of beer if it means that American workers will keep their jobs and more manufacturing will be brought back from China?
I know I am willing. Are you?
Let MillerCoors and other manufacturers who are against the tariffs know that you support America and want them to do the same. The price is just too steep not to.