What Trump Doesn’t Understand — It’s a Lot — about Our Trade Deficit with China by Kevin Williamson at National Review
Our trade deficit with China isn’t a product of the Chinese getting rich — it’s a product of their being poor. We will not have more-balanced trade with China until Chinese people have a standard of living that is more like that of Americans. Putting a 45 percent tax on American shoppers and people who build computers in the United States (you know who does that? Lenovo, a Chinese company) or build robotics systems using some imported components isn’t going to change any of that. What’s worse, it will exacerbate one of the real problems that U.S-based firms do face: relatively high business taxes. Remember, much of that Chinese trade deficit comes from electronic equipment and industrial machines used by American companies rather than from cheap plastic waterguns, and Trump wants to put a 45 percent materials-and-equipment tax on top of the 40 percent they pay in corporate income taxes.
On economic matters as on so much else, Donald Trump is a dangerous buffoon — and so are those so-called conservatives who have rallied to his cause. Time to grow up.
Read more at: http://www.nationalreview.com/article/429510/trade-deficit-united-states-china-donald-trump