Trump Urges Fans To Support His Trade War By Not Buying Products From American Companies
In another bizarre day in Trumpland, President Donald Trump kicked Monday morning unveiled a new tactic to shore up support for his trade war with China. In a series of tweets, Trump urged Americans not to buy products from American companies if they manufacture in China.
The way tariffs work is that American businesses pay the fees for bringing in goods manufactured in China, which they then pass on to consumers. The president reasons, however, that Americans can easily avoid these increased costs by simply not buying.
Trump said there is “no reason” for U.S. consumers to pay the tariffs, before claiming that companies inside China would soon move to other countries. In the meantime, Trump said people should just buy products from inside the United States.
“There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today, “Trump wrote on Twitter. “This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be…..
…completely avoided if you buy from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!…”’
Tariffs can still have an impact on the cost of a product, even if you buy it from inside the United States.
And avoiding products manufactured in China could be a lot more challenging than Trump realizes. Countless American companies have factories in China that will be impacted by the broad list of targeted products. A variety of Trump-branded products are even manufactured in China and could be impacted.
As NBC News’ Jonathan Allen pointed out on Monday, Trump’s call not to buy from American companies paints U.S. farmers further into a corner. Already, they will likely bear the brunt of the tariffs, as China counters with its own tariffs on U.S. agricultural products like soy. But now they will face increased costs on the very machinery they need to operate their farms.
Trump’s suggestion will also likely get in the way of his own plans to build a wall along the southern border. During his campaign, he insisted that the wall should be built exclusively with equipment manufactured by Caterpillar and John Deere.
In an interview Sunday, Trump’s top economic adviser Larry Kudlow admitted that it’s Americans who pay the cost of tariffs.
China, which had promised to retaliate against the tariffs, announced on Monday that it would impose tariffs on $60 billion in U.S. goods beginning June 1.
Read Trump’s tweets and Johnathan Allen’s reaction below.
…completely avoided if you buy from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!…
— Donald J. Trump (@realDonaldTrump) May 13, 2019
Wow! An American president just urged Americans to stop buying products from American companies like John Deere, Caterpillar and Ford. The argument is you should avoid the cost of tariffs by picking companies without facilities in China. But wow. Deere. Ford. Caterpillar
— Jonathan Allen (@jonallendc) May 13, 2019
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