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gtrxuone -- thanks. I agree 100 percent with your comments. The Americans need to put a low tariff on China's products which should concentrate minds in Peking a wee bit and would go a little way to solving America's budget deficit. As you pointted out, given how much the world order has favoured them in the last forty years, it is amazing that they are rocking the boat. In truth, as well as keeping in mind the American role in China's 'economic miracle' the Chinese should also consider that the Americans rescued them from occupation by Tokyo, facts which together, if they were thoughtful, would discourage them from acting as the regional bully.

AR...the Americans already have a low import duty regime on Chinese goods. Chinese goods don't get any preferential treatment and attract the "general" rate of duty in the HST. In addition, Chinese goods found to have been dumped in the US get additional tariffs to bring the normal value back to something reasonable.

BC -- your right that the Americans already have some sort of tariff regime against China, obviouslly given the trade deficit, it is not strong enough for the US to compete. America's tariff system needs to be completelly re-vampped to reflect this important factor, changed in such a way, that it encourages import substitution. Lastly, China is such a problem in this respect that, in the UK, they have more or less nationalised what is left of the steel industry to protect local jobs. Bear in mind they have a Tory government too, not a Socialist one in Westminster.

AR...America's tariff system is exactly the same as every other WTO aligned country. The import tariff is broken down into 97 chapters the same as everyone else. It's the duty rate applied to particular goods which varies and the US like Australia is reducing rates and entering into free trade agreements such as the TPP. Whether or not they become more protectionist with a Republican President remains to be seen but in saying that, import tariffs will be the least of the US problems if Trump gets up.

Devonleigh wrote: Whats Anne Aly going to say about this?

Hope all that voted for her, push her to the front to condemn this action.

Devonleigh simply outrageous those comments of yours.

BC -- I hear you; I am not a free trader; it is a nineteenth century ideology which suited Britain well when it was the only industrial nation. Without tariffs, America nor Australia would never have industrialised, that is a simple historical fact which most economists fail to realise. Today, the Western World, in the light of the collapsing industrial sector, is slowly learning this important lesson.

One does not usually quote Bismarck, but on free trade he was correct: 'free trade is the weapon of the strong'. The silly thing about the West is that it is still apping cliches from the nineteenth century when it is no longer strong in relation to the competition from China.

gtrxuone wrote: Great post AR.
The Chinese know Obama won't do a think.Even the old enemy Vietnam is lobbying the US to do something.
If Trump does half the things he's talking about if elected the next American President the Chinese economic miracle is over.As you state with the trade inbalance.
Picking a blue with President Putin.Good luck with that 1.Only a crazy man like Adolf Hitler would pick a blue with the Russians.

If Trump gets in, and we only hope that sanity will prevail and H Clinton is elected, we will be at war - World War III.

BC wrote: AR...America's tariff system is exactly the same as every other WTO aligned country. The import tariff is broken down into 97 chapters the same as everyone else. It's the duty rate applied to particular goods which varies and the US like Australia is reducing rates and entering into free trade agreements such as the TPP. Whether or not they become more protectionist with a Republican President remains to be seen but in saying that, import tariffs will be the least of the US problems if Trump gets up.

BC we very rarely agree but I certainly concur with your comments if Trump wins in November.

Swan42 it is not simply a matter of Trump it is also a question of Sanders-- he too would adopt a much tougher line with China on trade; any left-winger would.

ArkRoyal wrote: Swan42 it is not simply a matter of Trump it is also a question of Sanders-- he too would adopt a much tougher line with China on trade; any left-winger would.

Sanders is not going to be elected in November.