Time to Get Smart

The results of being "smart" are piling up.

US Rejects China's Offer

The Wall Street Journal reports China Offers to Buy Nearly $70 Billion of U.S. Products to Fend Off Trade Tariffs.

In weekend talks in Beijing, Chinese negotiators led by Liu He, President Xi Jinping’s economic envoy, presented a U.S. team headed by Commerce Secretary Wilbur Ross a package that includes Chinese companies buying more U.S. soybeans, corn, natural gas, crude oil and coal, among other agricultural and energy products.

Chinese and U.S. officials estimated the value of the package at nearly $70 billion in the first year.

Trump said no. And as noted yesterday, Trade Talks With China End in Impasse and Threats from China.

Mexico Puts 20% Tariff on US Pork

Yesterday, Reuters reports Mexico Set to Impose 20 Percent Tariff on U.S. Pork Legs.

Mexico will impose a 20 percent tariff on U.S. pork imports, two industry officials with direct knowledge of the plan told Reuters on Monday, for the first time providing details of the country’s retaliatory measures to U.S. President Donald Trump’s tariffs on steel and aluminum.

Last year, Mexico imported nearly 650,000 tonnes of pork legs and shoulders worth an estimated $1.07 billion, according to government data.

Mexico Puts Tariffs on Pork, Apples, Potatoes, Cheese, Bourbon

Today, Mexico upped the ante with Tariffs on Pork, Apples, Potatoes, Cheese, Bourbon.

Winning

US manufacturers will pay more for steel and aluminum. Mexico will pay more for pork, apples, potatoes, cheese, and bourbon.

This is called winning.

Trudeau Urged to Strike Back

Trade war talk in Canada is equally amusing.

Canadian dairy farmers are concerned Trudeau will halt dairy tariffs and Canadian steel manufacturers want Trudeau to retaliate.

The Dairy Farmers of Canada branded as "troubling" and "worrisome" comments Trudeau made on NBC's Meet the Press that Canada was considering allowing U.S. dairy greater access to the Canadian market as part of the renegotiation of the North American Free Trade Agreement.

Trump, meanwhile, broadened his trade tirades on Twitter into agriculture, writing: "Canada has all sorts of trade barriers on our Agricultural products. Not acceptable!"

Trudeau also faced pressure Monday to speed up Canada's tariff retaliation on U.S. steel and aluminum imports, while it consults on imposing levies on other American consumer goods.

Everyone loses with these tit-for-tat retaliations.

Winning Smartly

Supposedly, it's "smart" when the other guy loses more than you do.

In reality, the only way to win, is to not play the game, no matter what the other guy does.

Mike "Mish" Shedlock

China Strikes Back: US Pig Farmers Bear Brunt of Trade Retaliation

In Trump's "easy to win trade war" script, US farmers will suffer from China's initial response.

Investigating Trump's Claim of Using Tariffs to Pay Down $21 Trillion in Debt

Trump said that trade wars are good and easy to win. He also proposed using tariffs to pay down debt. Let's investigate.

Trump Tweets "Tariffs are the Greatest!" Seeks "One-Time" Aid to Farmers

Trump offers farmers $12B in "one-time" aid to stem allegedly "illegal" trade retaliation by China and the EU.

Exploring Trump's Claim of Using Tariffs to Pay Down $21 Trillion in Debt

Trump claims he will use tariffs to pay down the national debt. Let's explore the idea with pictures.

Art of Changing the Deal: Trump Demands Canada Treat US Farmers Better

Trump made demands on Mexico and Canada regarding NAFTA talks. Canada complains Trump is changing the discussion.

US Farm Belt Bankruptcies Climb, Canada the Beneficiary of Trump's Trade Policy

Trump's trade policies put US farmers at risk. One beneficiary is Canada.

Increasingly Angry Farmers Blame Trump, Not China

Farmers are angry over crop reports, broken ethanol promises, tariffs, crop reports, Trump, and mounting debt.

Donald Trump Then vs Now on Saudi Arabia

Let's compare what Donald Trump said in 2014 vs what he is saying today regarding Saudi Arabia.

Trade Lie of the Day: Kudlow Claims US Exports to China Will Double

Round one of the US-China trade deal is allegedly "absolutely done". Let's investigate that and other claims.