Trump's trade war rattles Chuck Grassley: 'I hope he knows what he's doing'

[mystery-ak]

Trump's trade war rattles Chuck Grassley: 'I hope he knows what he's doing'
by Pete Kasperowicz
 | July 11, 2018 08:34 AM



Sen. Chuck Grassley, R-Iowa, said Wednesday that both he and farmers in his state are "very nervous" about President Trump's trade brinksmanship, and warned that Trump's trade wars with Europe, China, and others could be "catastrophic" for the U.S. if Trump's plan backfires.

"I'm very, very nervous about it, and my constituents are very, very nervous about it," Grassley said on Fox News. "It doesn't just affect the 5 percent of the people in Iowa that operate farms. It ripples through the whole economy."

Trump has imposed tariffs on steel and aluminum imports to protect those U.S. industries, and has hit China with tariffs, and has threatened more tariffs against China, to protest China's failure to respect intellectual property rights and its predatory investment rules. China has hit back by imposing tariffs on U.S. agricultural exports.

Grassley said as a free trader, he wants Trump to fight China's unfair trade practices, but warned Trump's approach comes with heavy risks.

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[Maj. Bill Martin]

If there was ever a time to pressure China on some of its trade practices, it's now.  The economy is roaring along at almost full employment, so we're in a stronger position than we've been in years.  Trying to use some of that power to get China to reduce some of its unfair trade practices is worthwhile.

[Free Vulcan]

Grassley said as a free trader, he wants Trump to fight China's unfair trade practices, but warned Trump's approach comes with heavy risks.

"The uncertainty of it is very bad, and we do know this," Grassley said. "That if the president, the negotiator he is, brings these negotiations to the brink, and if he doesn't go over the brink, we know that it's going to be better for the United States, but if he does go over the brink, it's going to be catastrophic."

Pretty much my position. I'm not scared of risk, but there is a risk. There's also a risk of we do nothing, albeit longer term.

[Weird Tolkienish Figure]

If there was ever a time to pressure China on some of its trade practices, it's now.  The economy is roaring along at almost full employment, so we're in a stronger position than we've been in years.  Trying to use some of that power to get China to reduce some of its unfair trade practices is worthwhile.

 

I hope Trump knows what he's doing too. He's playing with fire IMO, especially when the economy is gangbusters.

[Frank Cannon]

I hope Trump knows what he's doing too. He's playing with fire IMO, especially when the economy is gangbusters.

Fordney-McCumber.

[Maj. Bill Martin]

I hope Trump knows what he's doing too. He's playing with fire IMO, especially when the economy is gangbusters.

The thing is that he can always back off if it gets out of hand.  But the Chinese have truly been screwing us for a long time, so it certainly is worthwhile to finally try some legitimate pushback.

[Weird Tolkienish Figure]

The thing is that he can always back off if it gets out of hand.  But the Chinese have truly been screwing us for a long time, so it certainly is worthwhile to finally try some legitimate pushback.

But see, "screwing us" to me isn't really relevant in a trade settings. Trade is mutually beneficial, for the most part. If it wasn't we wouldn't but their stuff. That is how the market works.

[Bigun]

The thing is that he can always back off if it gets out of hand.  But the Chinese have truly been screwing us for a long time, so it certainly is worthwhile to finally try some legitimate pushback.

Problem with that is that the tariffs don't punish the Chinese directly but they sure as hell do punish US Consumers of their products!

[Weird Tolkienish Figure]

Problem with that is that the tariffs don't punish the Chinese directly but they sure as hell do punish US Consumers of their products!

 

[Frank Cannon]

Problem with that is that the tariffs don't punish the Chinese directly but they sure as hell do punish US Consumers of their products!

Yeah, because I am so excited being forced to buy poor quality garbage from a Communist county.

BTW it is hurting the hell out of the Chinamen. They import almost 90% of their soybeans from us to feed their people. Let's see how some starvation works out over there.

[Bigun]

Yeah, because I am so excited being forced to buy poor quality garbage from a Communist county.

BTW it is hurting the hell out of the Chinamen. They import almost 90% of their soybeans from us to feed their people. Let's see how some starvation works out over there.

Did someone pass a law that says we have to buy Chicom junk?  Is it like Obamacare and nobody told me?  NO!  What "forces" you to buy that crap is our very own Marxist income tax laws that, over time, have forced much of our manufacturing base to exit for places where they can produce their products at a price that makes them competitive in the world's markets.

[edpc]

China has people to spare that they don’t care about to lose in a famine.  The last time we put existential economic pressure on an Asian nation, we got pulled into WWII.

[Frank Cannon]

Did someone pass a law that says we have to buy Chicom junk?

Um, yeah, when we let the Chinamen take over entire industries and we are left with no other options to buy shit.

BTW all you anti tariff dudes always trot out Smoot Hawley but never a peep about Fordney McCumber which is totally comparable to what we are doing right now.

[Weird Tolkienish Figure]

Um, yeah, when we let the Chinamen take over entire industries and we are left with no other options to buy shit.

BTW all you anti tariff dudes always trot out Smoot Hawley but never a peep about Fordney McCumber which is totally comparable to what we are doing right now.

They don't take over entire industries. The US manufactures more than ever, we just do it with less people than ever.

[Bigun]

Um, yeah, when we let the Chinamen take over entire industries and we are left with no other options to buy shit.

BTW all you anti tariff dudes always trot out Smoot Hawley but never a peep about Fordney McCumber which is totally comparable to what we are doing right now.

One more time Frank and I'll type Real big this time so you can see it better!  GET OUR ON HOUSE IN ORDER TAX WISE AND TARIFFS WOULD BE COMPLETELY UNNECESSARY!

[Bigun]

They don't take over entire industries. The US manufactures more than ever, we just do it with less people than ever.

Yes they did take over entire industries! Find me a radio or television manufactured in this country today but the REASON they were able to do that is nothing other than our own tax system whch punishes the hell out of anything manufactured the USA currently.

[Weird Tolkienish Figure]

Yes they did take over entire industries! Find me a radio or television manufactured in this country today but the REASON they were able to do that is nothing other than our own tax system whch punishes the hell out of anything manufactured the USA currently.

Electronics was outsourced long before China took over.

[Bigun]

Electronics was outsourced long before China took over.

So what?  The reason they were does not change!

[Weird Tolkienish Figure]

So what?  The reason they were does not change!

There is still a huge amount manufactured in the United States.

[Frank Cannon]

Electronics was outsourced long before China took over.

No. We had choices. US, Japan or West Germany. Now we have none.

[Frank Cannon]

There is still a huge amount manufactured in the United States.

Yeah sure. Try to buy nothing but American for a month.

[Bigun]

There is still a huge amount manufactured in the United States.

Yes!  And every damned bit of it is at a huge competitive disadvantage internationally because of our CRAZY income tax laws!

[Weird Tolkienish Figure]

No. We had choices. US, Japan or West Germany. Now we have none.

Obviously people didn't care about "Made in the USA" then.  Consumer choice. And they don't care that Iphones and Amazon shit is made in China, cause they sell like hot cakes.

Some tools are still made in the USA, but if you go to a trade forum, or DIY, and plenty of people will tout made in China tools too.

If "Made in the USA" matters to you, buy "Made in the USA", but if it doesn't matter to enough people, then manufacturers will no longer tout it.

And BTW, manufacturing jobs suck anyway, at least the ones I had did. And you know that this isn't the 50's, most factories use automation to such an extent that bringing manufacturing back to the states won't provide the same amount of jobs it used to.

[catfish1957]

There is still a huge amount manufactured in the United States.

A world's biggest trade deficit would say otherwise. (base on 2015 data we lead with $803B annual vs. 2nd place UK @$163B)

[Weird Tolkienish Figure]

Yeah sure. Try to buy nothing but American for a month.

I think it's most non-consumer goods that are manufactured in the US: heavy machinery, that sort of thing. Stuff that is difficult to ship.