Robair Robair:
The part I'm missing is why he would start an automobile tariff war with a country that the US sells 5 times more cars TO than it buys cars FROM ???
![huh? [huh]](./images/smilies/icon_scratch.gif)
The
content of the vehicles can be the tipping point in this discussion.
If the content is majority Chinese and the Chinese are demanding Chinese 'partners' (which they require for almost all imports) then it's entirely possible that even given the raw numbers of imports vs. exports that China is still the winner in the
status quo trade balance.
You'll note that content was a big issue in the NAFTA discussion because China has been using NAFTA as a way to evade the limits on direct Chinese imports to the USA.
They deliver their parts to Canada or Mexico, the parts get assembled into a product that gets tagged Canada or Mexico and then imported into the USA.
Now the requirement is that any such import has to be 75% North American sourced to qualify for import under NAFTA and that shuts down a myriad of products which were sometimes fully assembled in China but then tagged as 'Canadian' or 'Mexican' when in fact the only qualifying act of assembly was in adhering the tag.
Trump is dead set on cutting Chinese power in our markets and in the long term run that's good for all of us.
It also helps dry up the funding for China's imperial ambitions in the western Pacific.
And that's what this is really about.
Absent China's aggression in the South China Sea I doubt that Trump would have as much support in the Congress on this matter as he does.