China Cannot Survive The Trump Tariffs - But can We?

China’s retaliation Tariffs against President Trump’s tariffs are essentially blowing up in their face.

After grounding dozens of Boeing planes, shifting Liquified Natural Gas purchases to Australia, buying oil from Canada instead of the USA, and withholding rare earth minerals from US sale, Beijing thought it had the upper hand, but now that move to confront the USA is backfiring — badly.

Chinese factories are collapsing under the weight of economic uncertainty, and insiders say more than half could shut down this year.

One supplier admitted, “I nearly passed out” after a major U.S. client suspended all orders.

The United States is the buyer of about 25% or more of all goods manufactured in China.  The manufacturing industry is such that it cannot withstand the overnight loss of 25% of its customer base.  Factories will be forced to close and go out of business from such a loss.

And it’s not just the tariffs.

China is now in an economic spiral — deflation, unpaid wages, and collapsing property giants — all while the China Communist Party (CCP) scrambles to hide the damage from the world.

Trump’s critics call it reckless. But the unpredictability of Trump is working miracles — keeping China guessing at every turn?

PHARMACEUTICALS

This trade war with China may get very much more ugly.

Right now, about eighty percent (80%) of the Pharmaceutical medicines in our drug stores, are manufactured in China.  Even those that are made in India, get the source material from China. If China cuts-off shipment of medicines, this country will plunge into a medical crisis the likes of which has never been seen before.

Of course, people automatically say to themselves "they would never do that."  They would.

Remember, the CCP is the entity that, under their long ago leader Mao Zedong, killed fifty million of their own people in their "cultural revolution" and in their "great leap forward."   This is the same CCP that used TANKS to literally run-over peaceful protesters in Tiananmen Square.   Killing is a tool for the CCP and, after all, we're "only" Americans.

So if YOU need certain prescription medicines to live on, YOU had better go get yourself some reserve supplies.   Yes, it will be expensive - especially if your Insurance company says, "we won't refill it until such and such a date."  You will likely have to pay for these medicines YOURSELF.

Few of us have a lot of money in the bank, but that money in the bank will do you absolutely no good if you're dying from lack of Insulin or some other medicine you need TO LIVE.   So spend the money now, while the meds are still available, because this trade war is turning ugly, fast.

We could very well reach a moment where you finally say "OK I'll spend the money" only to find out there is no medicine left to be purchased!

If you have an extra 90 days supply, that ___may___ just tie you over until more arrives in the country.

Same with car repairs you've been putting-off.   Get the work done NOW while the parts are still available.  Same with home appliances you've been meaning to replace or upgrade.   Get them NOW while they're still available.

EMPTY SHIPS

Last week, slightly over eighty (80) large ocean-container vessels departed China . . . . EMPTY.    US merchants have been cancelling orders due to the Tariffs.  Merchants know the public won't buy the items with a 145% Tariff increasing the product price, so they canceled the orders from China.   The ships had to leave China empty  and head to some other country to be loaded with things to ship.

The trucking industry here in the US is now seeing layoffs because freight traffic is in rapid decline.

IF freight is not coming in on ships, and not moving by truck, inventories are being drawn down in stores and warehouses.   It is literally only a matter of time before lots of things are no longer available.

Buy what you need NOW.   Don't think you can wait a few weeks.  You can't.