If Trump drops tariffs on China to 50% this weekend, this is what it means:
1) no company will ever move manufacturing back to America no matter what. They know eventually Trump will back down. They might move out of China to Vietnam, etc but most likely will stay with China because it has a better workforce, infrastructure & government support than other countries. What sane company would move manufacturing to India after the events of the last week?
2) China will have won the trade war decisively. The world will see that not only will China not back down, but that it is the new economic (and thus political) #1 superpower. Expect more trade deals to be closed with China, including military weapons
3) No other country will rush to make major concessions to Trump. They might make small ones but they know major ones are not needed. The UK trade agreement was a nothing burger but is being spun by MAGA as a win and the Art of the Deal. It's 2025 in China but 1984 in America where Canadian Geese are now called American geese
4) tariffs will still be paid by American companies and consumers, continuing to hurt them while orders will bounce back for Chinese manufacturers. Chinese firms will earn again while Americans will have to pay more or face empty shelves. Inflation will be horrible which is why Jerome Powell didn't lower interest rates and American debt rates will remain high In other words, the whole tariffs on China move will destroy forever American standing and prestige and all for nothing.
It will go down in history as one of the dumbest things any politician anywhere has ever done
