Thursday, 10 April 2025

TRUMPONOMICS, CHINA’S TRADE SURPLUS AND TARIFF 90 DAYS SUSPENSION

S&P 500 recorded its largest rise since the credit crunch of 2008, stock indexes posted biggest one day gain, the dollar gained in the global currency market 24 hours ago. I commend President Donald Trump for listening to stakeholders, especially Elon Musk, to pulse on all the reciprocal tariffs for 90 days except that of China’s tariffs hiked to 125%. Although China has fired back with 84% tariff on American imports, the two nations would eventually come to a deal. Donald Trump is not as daft as African leaders who don’t understand negotiation. Donald Trump is a president so different yet easy to understand and work with. His economic policies are reasonable and effective; more importantly so much better than the democrats. 



I agree with Donald J Trump that America is the most exploited nation in the world — shortchanged by the deep state as well as other nations around the world who parasitically sap America’s resources in commercial exploitation. 


The United States remains the largest consumer economy in the world, with Americans spending an astonishing $20 trillion annually. Despite this immense consumer power, the nation has historically paid disproportionately high tariffs compared to countries like China and Japan—a practice that many view as exploitation of America's economic strength except many democrats. That’s why TRUMPONOMICS prefers to address this exploitative imbalance through 

 tariff policies. By urging other nations to pay higher tariffs, he aimed to create a more equitable balance of trade.


Here is the U.S. imports from key trading partners and the tariff differences:


China: $462.62 billion

    • U.S. tariffs on Chinese goods: Up to 34% (including baseline and reciprocal tariffs).
    • Chinese tariffs on U.S. goods: Average 67%.
    • Donald Trump has currently changed the dynamics opting for 125% tariff.


Canada: $421.21 billion

    • U.S. tariffs on Canadian goods: Generally low due to USMCA (United States-Mexico-Canada Agreement).
    • Canadian tariffs on U.S. goods: Minimal under USMCA.


Mexico: $509.96 billion

    • U.S. tariffs on Mexican goods: Low under USMCA.
    • Mexican tariffs on U.S. goods: Minimal under USMCA.


Germany: $163.39 billion

    • U.S. tariffs on German goods: Around 2.8%-3%.
    • German tariffs on U.S. goods (via EU): Similar rates.


Japan: $152.07 billion

    • U.S. tariffs on Japanese goods: Approximately 2.5%-3%.
    • Japanese tariffs on U.S. goods: Comparable rates.


South Korea: $135.46 billion

    • U.S. tariffs on South Korean goods: Around 7%-10%.
    • South Korean tariffs on U.S. goods: Similar.


United Kingdom: $68.83 billion

    • U.S. tariffs on UK goods: Approximately 2.5%-3%.
    • UK tariffs on U.S. goods: Similar.


France: $61.14 billion

    • U.S. tariffs on French goods: Around 2.8%-3%.
    • French tariffs on U.S. goods (via EU): Comparable.


President Trump’s business acumen and deep understanding of economic dynamics had driven this tariff hike policies, which are already yielding significant results. Scores of international companies are now shifting production to the U.S., bringing massive investments and creating thousands of jobs for American workers. While the tariff policies may cause short-term challenges, they are paving the way for long-term economic gains.


Here’s a comprehensive list of companies that have announced major investments in the U.S. to avoid tariffs:


Softbank, OpenAI, and Oracle: Launching Project Stargate with a $500 billion investment in U.S.-based AI infrastructure.


Apple: Pledging $500 billion to U.S. manufacturing and training initiatives.


Nvidia: Allocating hundreds of billions to domestic manufacturing over the next four years.


Taiwan Semiconductor Manufacturing Company (TSMC): Investing $100 billion in U.S.-based chips manufacturing facilities.


Hyundai: Investing $20 billion in the U.S., including $5.8 billion for a Louisiana steel plant.


Merck: Committing $8 billion after opening a $1 billion manufacturing facility in North Carolina.


Volkswagen, Rolls-Royce, and Volvo: Exploring expansions and shifts in U.S.-based production capabilities.


Taiwan-based Compal Electronics and Inventec: Considering Texas-based expansions to capitalize on the tariff incentives.


France-based CMA CGM: Injecting $20 billion into shipping and logistics in the U.S., creating 10,000 jobs.


South Korean automakers and Japanese companies: Broadening investment in U.S. operations.


Eli Lilly and Company: Announcing a $27 billion investment in domestic manufacturing.


United Arab Emirates-based DAMAC Properties: Committing $20 billion to new U.S.-based data centers.


United Arab Emirates-based ADQ and U.S.-based Energy Capital Partners: Investing $25 billion in U.S. data centers and energy infrastructure.


Clarios: Planning a $6 billion expansion of domestic manufacturing operations.


GE Aerospace: Investing $1 billion across 16 states, creating 5,000 new jobs.


Stellantis: Pledging $5 billion to its U.S. manufacturing network, including reopening an Illinois plant.


Schneider Electric: Committing $700 million to U.S. energy infrastructure over the next four years.


GE Vernova: Investing nearly $600 million in U.S. manufacturing, creating over 1,500 jobs.


London-based Diageo: Allocating $415 million for a new Alabama manufacturing facility.


Dublin-based Eaton Corporation: Investing $340 million in a South Carolina manufacturing facility.


Germany-based Siemens: Announcing a $285 million investment in U.S. manufacturing and AI data centers, creating 900 jobs.


Paris Baguette: Investing $160 million to construct a manufacturing plant in Texas.


Switzerland-based ABB: Expanding production with a $120 million investment in Tennessee and Mississippi.


Saica Group: Building a $110 million manufacturing facility in Indiana.


Paris-based Saint-Gobain: Opening a $40 million NorPro manufacturing facility in New York.


India-based Sygene International: Acquiring a $36.5 million biologics manufacturing facility in Baltimore.


Asahi Group Holdings: Investing $35 million to boost production at its Wisconsin plant.


Honda: Preparing to produce its next-generation Civic hybrid model in Indiana.


Nissan: Considering moving production from Mexico to the U.S.


Cra-Z-Art: Moving a significant portion of its China-based manufacturing back to the U.S.


Prepac: Relocating production from Canada to the U.S.


Lear: Exploring options to shift production to the U.S.


Italian spirits group Campari: Assessing opportunities to expand U.S. production.


Swedish hygiene product manufacturer Essity: Considering shifting production to the U.S.


Taiwan-based Inventec: Expanding operations into Texas.


LVMH: Seriously considering expanding U.S.-based production capabilities.


Taiwan-based Compal Electronics: Exploring U.S. expansion opportunities.


Half of Japanese companies: Planning to boost U.S. investments due to tariffs.


Paris-based Saint-Gobain: Opening a $40 million NorPro manufacturing facility in New York.


This is TRUMPONOMICS in action. It will definitely weaken China’s economic growth opportunities as the movement towards America is growing due to lower corporate taxes, better access to funds and cheaper labor and the high tariffs for China’s exports. The ripple effects of these investments will be profound— creating thousands of jobs in America, strengthening supply chains, revitalizing the stock market and boosting domestic innovation. 


Beyond the economic benefits, these policies challenge nations and corporations to reconsider their dependence on American consumers and market access.


Yet, amidst these gains, opposition remains fierce. Trump’s detractors, including habitual critics and political operatives funded by the establishment, often dismiss the policy's successes. Some argue the tariffs create tension in international relations, while others campaign against Trump’s approach solely due to political bias.


Trump is winning with his tariff policy, proving that short-term challenges often pave the way for long-term gains.


In the end, American consumers remain the lifeblood of the global economy, and foreign nations, despite potential retaliations, cannot afford to alienate this powerhouse. As businesses rush to invest in America to avoid tariffs, the U.S. strengthens its position as an economic giant, achieving unparalleled benefits for its workforce and industries.


China will sit up by force or lose billions in America’s consumer goods. China would not fight the tide successfully. China should join in the investment race to have a share in America’s consumer economy. America is the biggest economy in the world. China can not win all the time. The country had trade surplus under Joe Biden. The music has changed. 


This investment race underscores the success of President Trump’s tariff policies, which aims at revitalizing American industries and creating opportunities for workers. While critics may continue to oppose these measures, the results speak for themselves. The U.S. is solidifying its position as an economic powerhouse, and the benefits of these policies will be felt for generations to come.

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