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Trump Says China’s Export Subsidies and Yuan Devaluation Are a Subsidy of the United States — He Is Right

Trump now celebrating Chinese policies he started the trade war over

Faced with the critique that his China tariffs have raised prices in the US and are being paid by US importers, and ultimately consumers, Trump has responded by saying that that is not true.

Trump says there has been no increase in prices because China has made up for the rise that would result from the tariffs by ramping up export subsidies and devaluing its currency:

Trump says the US consumer still pays the same cheap prices, while the US Treasury rakes in billions in tariffs — and it is all paid for by the Chinese. Beijing’s subsidies and artificially weak yuan are now being hailed as a fantastic subsidy of the US by the Chinese which indeed they are.

However, since that is the case…then why has Trump spent years demonizing the Chinese for tightening their belts to subsidy American consumption, and launched a trade war to get them to stop?

Perhaps a thank you note should have been more appropriate?

It is not China’s fault the US does not save and hamstrings industries with regulation.

China (motivated by the same 18th century mercantile delusions that fuel Trump) merely made it possible for the much richer Americans could keep consuming as if they still had great manufacturing.

For that it has been repaid with demonization and an economic war. A war which it can not lose except by self-inflicted wounds. Ie if it tightens its belt even more so that it can keep carrying the US which repays it with scorn for a while longer.