Winning, so far, Anyway

This is interesting and actually some good news, for a change. I don’t know about you, but I could use some.

As all the world knows, the US and China are having, if not a full-scale trade war, some pretty serious trade skirmishes. So how is it going?

Pretty well actually, according to Chriss Street witing for American Thinker. Read it all. a lot of what I say here was derived from it.

Mexico and Canada were America’s top two trade partners in the first six months of 2019 as the escalating China-U.S. Trade War booted China to third place.

With China falling behind Mexico and Canada, President Trumps’ Trade War has succeeded in making North America’s revised trading bloc larger in population and GDP than the 28-nation European Union, according to Geopolitical Futures.

“I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN”

Six months later, U.S. importers paid $6 billion in tariffs in June, a 74 percent spike compared to a year ago, despite a slight decline in import values. About $3.4 billion of those tariffs were imposed by President Trump, according to a study titled ‘Tariffs Hurt the Heartland’ by The Trade Partnership, a globalist Washington D.C. consulting firm.

The report claims Trump’s tariffs are highly inflationary by forcing consumers to pay an extra $4.4 billion for apparel, $2.5 billion for footwear, $3.7 billion for toys and $1.6 billion for household appliances.” But U.S. inflation in the first half of 2019 averaged just 1.7 percent, down from 2.4 percent last year, according to the U.S. Inflation Calculator.

The biggest key to holding back inflation has been the rapid global redeployment of manufacturing supply chains from China to Mexico, Canada, and even the United States. The repositioning speed demonstrates that analysts in the New York City to Washington D.C. corridor that predicted an inflationary spike had no clue regarding multinational businesses always having “disaster recovery” plans for alternative suppliers.

Every business, including the kid that mows your lawn, knows that lesson. Who knows what may happen to the gas station that you buy your mower fuel from. But it’s apparently over the head of The Trade Partnership. Not much of a surprise there, when ideology matters more than reality, stupid things happen.

In any case, one point the author makes is that while we often think of Mexico as a third world country, it actually is not. Depending on how you figure, it is nearly as large as Australia. One of the strengths of the USMCA as a trade bloc is that there is no attempt to align standards such as causes a lot of trouble in the EU.

That includes free trade agreements that steer jobs to low wage areas, and that very thing has cost the UK a lot of good jobs and is in fact, one of the things that are pushing Brexit.

By the way, the USMCA’s GDP (a somewhat flawed measurement, but it will serve) is $22.1 trillion compared with the EU’s $17.3 trillion.

What it seems that the President is offering the UK when it leaves the EU is some sort of association with the USMCA, which would add the UK’s $2.6 trillion (the fifth largest in the world) to the USMCA while removing it from the EU. Using current numbers that would make the USMCA’s GDP $24.7 trillion,

The EU continues its slide into mediocrity and uselessness.

About that trade war – we’re winning.

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