One way tariffs can hurt the other country is through people waiting to buy thinks that aren't actually needed- consumers (some, not as many as in the past) are careful with their discretionary spending.
China may have control over their people and corporations, they still don't control consumption, or consumers.
OK, if using tariffs is a fallacy, how would you make China understand that low-balling on price and stealing intellectual property is not something that the US wants to tolerate?
I can't claim expertise in this area.
However, were I president, I would seek out such expertise among business analysts and major international corporations.
China has been undercutting prices for decades, and my understanding from recent articles is that are hardly doing it any more, but it would still be worth it to take precautions against it.
However, I believe the intellectual property issue is currently much more relevant!
My first question would be why, after watching China steal the technology that puts a company above their competitors, do companies still go to China to manufacture products that use such technologies (fully aware that China will steal the tech)!
Why aren't companies protecting themselves from this type of "self-destruction"?
My personal theory (based on the management of companies I have worked for) is that the managers have a very lucrative bonus structure and they can make enough money moving mfg to China to justify (based on personal greed) doing this, then cashing in their chips before the loss of proprietary info undermines the company (and the US in the process)!
That issue (which I have seen as a negative on businesses) is basing bonuses on short term (annual) profit.
But, like I said, I am no expert on this.
However, there are some basic principals that Trump is not adhering to:
1) If you plan to hurt a country by imposing sanctions or boycotting their products, it is much more effective if you have allies who will impart a similar restriction, otherwise, trade often just shifts around and the impact is not nearly as effective. Most of Europe and Japan are experiencing the same frustrations with China and intellectual property. It would have been worth discussing options with them. Our allies are a significant resource, and if you are going to challenge the likes of China, they represent a great edge for our success. If the major international countries acted with unity against China, it would have a much more profound effect on their behaviors. As is, they can just coach it as getting into a pissing match with Trump, and it is an easy game for them to manipulate/win!
2) The consequences imposed should fit the crimes as closely as possible. I could see sanctions against the companies that apply the stolen technologies as a much better target than listing categories of products. This would have made it a bit more difficult for China to justify tariffs on USA soy beans as a arguably reasonable counter-measure!
3) If you are going to impose any measure of "punishment" (Trump chose tariffs),it is important to define clearly what your expectations are for removal of those punishments. If you see the demands being made, they are vague (from the perspective of business) with a wide range of possible interpretations, such that it is very unclear what is expected - IOW China has no assurance that a certain course of action would remove the tariffs. It is almost like an employer saying your pay is based on how happy you make them.
4) Don't get in a game of chicken with a dictator! His ego is probably even bigger than yours and he is used to sacrificing the comfort/convenience of his people for the long-term benefit of his country (if you want to be generous) or for his personal victory (if you want to be not so generous). Either way, you will lose (even if the $ numbers favor you)! The whole reason for this thread was that Trump set China up to dispose him from the presidency in 2020, because unlike China, our president has to maintain popularity and getting into a long term tariff/trade war with China (especially without seeing progress towards results) unfairly punishes a lot of the good people of our country.
Again, and I cannot emphasize this enough, not enlisting the participation of our allies did much to tilt the scales against us.
One last point, if you are going to impose tariffs with the intent of revitalizing industry in the US, you don't leave uncertainty as to when those tariffs will be lifted. If I decided to start making widget XYZ and invested in a facility with tooling to begin production 6 months from now, I would get screwed when and if those tariffs were removed and China undercut my pricing with pre-tariff pricing!
