The tariffs on China aren't cutting demand for Chinese goods
Trump's 25% tariffs on Mexico and just 10% on China make sense for him.
Already $330B worth of Chinese imports to the US are slapped with a 7.5% to 25% tariff since Trump's first term. These weren't lifted by Biden.
Adding 25% on top of what exists already isn't just overkill - it's counterproductive. US imports from China are running 2% higher in the first 9 months of 2024.
In other words, tariffs on China aren't cutting demand for Chinese goods in any meaningful way.
Meanwhile, Mexican exports to the US have surged, replacing China as the US top trade partner. And it's not because Chinese goods are using Mexico to bypass tariffs.
US and other Western carmakers are boosting their production in Mexico to serve a US market that has no Chinese competition whatsoever.
Vehicles are the top exports of Mexico to the US. Exports of GM, Audi, Kia and Honda are growing in the high double-digits.
US auto industry workers aren't losing jobs to Chinese companies at all. It's the $150 billion/year car and parts manufacturing industry that spawned in Mexico as a result of $Ford(F)$ $General Motors(GM)$ $Volkswagen AG(VWAGY)$ $Toyota(TM)$ $Nissan Motor Co., Ltd.(NSANY)$ $Honda(HMC)$ shifting manufacturing down south.
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but it is heard that Trump will raise the tariff to China to 60%……