How could tariffs lead to lower prices?


“It all comes from China.” – Donald Trump

“We’ll be taking in over a period of time hundreds of billions of dollars in tariffs and charges to China, and our farmers will be greatly helped,” Trump said at a meeting of farmers, when he announced a $16 billion second round of aid, on top of the previous $12 billion. Trump said, “farmers are great patriots, willing to sacrifice for the country.”

Taxpayers will pay for the $28 billion subsidies to farmers. Midwest farms are still flooded, and farmers are unable to plant 2020 crops. Soil quality is priceless, it’s not wise to ignore Mother Nature.

U.S. dysfunctional traders

Back in 2016, Wilbur Ross, a wealthy investor known as “The King of Bankruptcy,” while buying distressed companies said, “there’s trade, there’s sensible trade, and there’s dumb trade. We’ve been doing a lot of dumb trade, that’s going to get fixed.” He got a job as U.S. Secretary of Commerce.

Peter Navarro, a fringe economist who hates China, is the director of the National Trade Council – a new White House office on par with the National Security Council and the National Economic Council.

Navarro is the worst person to deal with China. Ignoring their requests, Navarro showed up at the G-20 Argentina and Japan trade meetings. U.S. Trade Representative Robert Lighthizer, Treasury Secretary Stephen Mnuchin, and many others without the power to make a deal have muddied the waters. How many trade officials are fluent in Mandarin, Yue, or Wu?

Trump’s tough talk plays well in campaign rallies, but not when dealing with President Xi. Trump is playing with fire. Trump’s hate speech and dishonest, unreliable behavior make him a deal breaker. Not even the new NAFTA agreement has been signed!

A level playing field

The U.S. claims China cheats. How else could they grow so fast?

The U.S. is not credible, ignoring the climate emergency, selling weapons to 9/11 criminals, environmental destruction, $650 billion per year subsidies for fossil fuels, demanding lower rates from the Fed, and discussing currency devaluation.

Pretending the U.S. economy is booming has created a national moral and ethical deficit. America’s massive trade deficit and the lack of personal savings are undeniable.

The U.S. wants to make China to protect intellectual property, improve human rights, avoid using subsidies and currency manipulation. China has made good progress over time, and they object to the allegations. China’s population is five times larger and has a different political system and culture than the U.S.

Who pays for the tariffs?

After September 1, a $1,000 Apple product, for example, will incur a $250 duty fee collected at the port of entry. The $250 will be sent to the U.S. Treasury.

Apple is not hiring 20,000 people nor opening new factories in America. The new tariffs will be paid by American consumers, creating inflation. As prices rise, your money buys less. President Reagan said, “Inflation is as violent as a mugger, as frightening as an armed robber, and as deadly as a hit man.” Senator Tom Cotton (R-AR) says, “the sacrifices Americans will pay are minimal compared to those serving overseas.” Cotton is itching for war.

Investing in science to create Intellectual Property

Intellectual property theft is an old claim. U.S. companies in the past agreed to technology transfers, and the new China patent office is now protecting IP. China’s new government investment in science and research has created local IP.

Stop blaming China and cutting budgets for science and research, developing new IP in the United States is more important and creates more value.

Rise up

Why would you want to pay 25 percent more on what you buy? Inflation reduces your standard of living, recession follows.

Please call your U.S. Congressman and ask them to oppose all trade tariffs and protect our constitutional rights.

Congress gave up the power to set tariffs, but tariffs should not apply to all products and the rate of 25 percent (or more) is impulsive, unjustified, and not paid by China!

Dr. Luis Contreras


  1. Peter Navarro, Larry Kudlow and all WH “experts” are trying to re-write history

    The fundamental question is about 2020, as if the only thing that matters is 4 more years of lies

    Why do Americans go along with the trade war, when every household will pay $1,000 per year extra, due to higher costs of anything imported from China?

    Some are worried about the Farmers or Greenland. That is a distraction. Farmers are getting $28 Billion aid – everyone else gets nothing!

    Kudlow was a TV host, he had to make up stories all the time to entertain his audience. Navarro gets paid to tell Trump “China is an evil force trying to take over the world.”

    There are 5 or more Chinese workers for every American, and they have the best plants. Americans should be designing and experimenting better products for a hot planet

    Please comment if you have a different take. Thank you–alert-national&wpmk=1

  2. The first round of tariffs on industrial products did not go well – but no one complained

    For 25 percent on $250 Billion products made in China, the average household will pay over $830 per year.

    China will buy soybeans from Russia and impose tariffs on other American products … stay tuned, this is just starting. Trade wars, like all wars, start with a boom and in the end there are tears and sorrow

    Call your US Congress, put them to work for you

  3. American consumers will pay 100 percent of the tariffs.

    If you don’t like it, call your US Congress, or check on eBay for 1980 Zenith TV sets. There are good buys on B&W older units, some with wooden cabinets, and rabbit antenas

    No one is going to mess with Xmas shopping, Santa will pay for the tariffs for some popular products, but only for early shopers. Get your new iPhone or iPad before December 15.

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