The first one is that other countries will follow suit. A US tariff on Chinese goods will result in a Chinese tariff on US goods.
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Replying to @JShahryar
Make it hard for Chinese exports to find a market in the US? Well, China will make it hard for YOUR exports to find a market there.
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Replying to @JShahryar
And what are you gonna do about Chinese protectionism against US goods? This isn't the 17th and 18 or even 19th or early 20th century.
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Replying to @JShahryar
Mercantilism works when you're a powerful nation and your trade partners are weak and under your thumb. They can't retaliate no matter what.
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Replying to @JShahryar
You unload your goods into their markets. And you erect stiff barriers on the import of their goods. You make huge profits, they suffer.
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Replying to @JShahryar
But US isn't the British Empire circa 19th century. And the world's largest markets like India and China and the EU aren't push-overs.
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Replying to @JShahryar
Hyper protectionism means a complete trade ban between US and its partners. If we don't buy anything, we won't be able to sell anything.
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Replying to @JShahryar
Now, bear in mind, China holds the largest reserves of rare earth metals... Shit like praseodymium and holmium. Vital for tech production.
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Replying to @JShahryar
It's not just that China can build it cheaper because it has cheap labor. It also has cheap raw material for building tech products.
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Replying to @JShahryar
If China ever decides to restrict rare earth metal exports to America, WE. ARE. BONED.http://www.forbes.com/sites/chuckjones/2016/11/17/one-overlooked-reason-trump-shouldnt-impose-tariffs-on-china/#25dd946b2802 …
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.@JShahryar someone(s) in Trump's transition team/cabinet binged too much on House of Cards & American exceptionalism. Likely Bolton?
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