It’s true 70% of the economy is services. But services is tied to the hips with the goods economy. Trucking is services. When people buy less there will be less demand for shipping. Large part of ads business like Google and Facebook, and all of Amazon’s ads are for physical goods. On and on.
30% of the economy is big enough that if it doesn’t do well, it will drag the whole economy down. The price increase in tariffs also affects every person and every business.
I think tariffs will hurt China more than America. But it’s like saying losing a leg hurts more than losing an arm. Both hurt like crazy.
At this point it’s about which country can stand the pain. China is a real dictatorship. CCP controls the media. Remember Xi shut down the whole economy over Covid for a whole year?
China can withstand the pain. America can’t. Heck. Americans elected a felon because eggs were too expensive. There will be widespread turmoil if price at Walmart went up 30%.
Gary Cohn from Trump’s first admin trying to steer Trump off the tariff path.
Biggest difference between the first and second Trump admins is that these people in first term are replaced by ass kissers and morons in second term. Trump is the same old low IQ Trump.
Some guy from Trump admin is floating a proposal to tax foreign ownership of treasuries. It’s like these guys just won’t stop sabotaging the American economy.
This is the true reason behind Trump’s actions. He just enjoys the spectacle. The bullying and countries submitting to his humiliation is why he’s doing all these.
China came to negotiate during Trump’s first term. What did they get? A deal that Trump tore up the first week he’s in office again. You can’t negotiate with a bully. Bullies only understand one thing. You need to out bully a bully.
PM Wong: US runs a surplus with many of its trading partners in services - exporting software services, education, entertainment, financial and business services. But this fact has been completely ignored.
