Effects of China tariffs are minimal

CHINA HAS MUCH MORE AT RISK THAN THE U.S.

TARIFFS WILL BE OPPORTUNITY FOR OTHER SUPPLIERS

Much is being made of the tariffs being placed on Chinese goods imported into the U.S. market. The U.S. imports $539 billion in goods from China, China imports $120 billion from the U.S.  Most of the exports to China are aircraft, machinery, optical and medical equipment.

We export $9.3 billion in agricultural products to China mostly soybeans, cotton, pork products and grain.

While we can put tariffs on much more products than China, most of the things we import are not necessitates. Most of it is discretionary items.

When China puts tariffs on pork and soybeans it is on products that are necessities and will be felt directly by their people.

Tariffs placed on most Chinese products are not direct. While they may raise costs to consumers, there also will be an opportunity for other countries, Viet Nam, Taiwan, Japan, and South Korea to take market share from China. It will also be an opportunity for clothing manufacturers in Central America, Mexico and Africa to become alternate suppliers to the U.S. market.

American manufacturers and retailers will see some costs rise, but China may be forced to absorb some of this cost to maintain their competitiveness in many of these markets. They will unlikely be willing to continue to resist reform for an extended period as the rest of the developing world will be more than willing to attempt to under price Chinese tariffed products.

China has been notorious for stealing and copying American products, Forcing manufactures in China to turn over copy rights and patents for access to their markets, and placing high tariffs on many American products.

All the while, rather than expanding their middle class, and developing a domestic consumer market, they are building a large military and expanding influence around the world. They have openly planned to be a world power in the next five years. 

It is interesting that even some of the leading Democrats support Trump's pressure on China to reform, while opposing tariff's. No one seems to have a viable alternative to this approach. What is needed is a united effort on the part of all Americans to stand firm and insist that China play by the accepted rules of free and fair trade.