Fake News Media Protects Trade Status Quo by Pushing Deceptions on Trump’s Tariffs
Shane Trejo
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The corporate fake news is trying to incite panic and hysteria about President Donald Trump’s tariff push, as he pushes to get more favorable trade terms with China.
On Monday, the Dow Jones dropped 617.38 points, or 2.4 percent, to 25,324.99. The Nasdaq Composite Index dropped 269.92 points, or 3.4 percent, to 7,647.02. These were the biggest one-day losses since Jan. 3.
The Wall Street corporate class, which has supported NAFTA and open borders for decades to boost their profit margins, used this small slump to create uncertainty in the hopes of manipulating public opinion against Trump’s policies.
“The escalation of trade tensions is likely to weigh on risk assets quite meaningfully in the next few weeks and months because the year-to-date rally was build on two premises: no escalation of trade tensions, and global policy easing,” said Alessio de Longis, portfolio manager for the global multiasset group at OppenheimerFunds, to MarketWatch.
“One of these pillars has been taken away, and that’s even more important because we are also dealing with the negative underlying force of deteriorating economic data,” de Longis added.
“The escalation of the U.S-China trade war is unequivocally a negative for the growth outlooks for both countries and the global economy,” Veneta Dimitrova, senior U.S. economist at Ned Davis Research, wrote in a note to CNBC. “Tariffs result in higher inflation, increased policy uncertainly, slower capex and employment growth, and weaker productivity growth.”
“Investors are increasingly worried an anticipated second-half profit rebound may now evaporate as President Trump’s threat to tariff the remaining $325 billion in Chinese imports would disproportionately target consumer products like iPhones, thereby posing a greater threat to the consumption-driven U.S. economy,” wrote Alec Young, managing director of global markets research at FTSE Russell, in an email to MarketWatch.
However, it took less than two days for markets to rebound. The Dow Jones gained by 156 points on Wednesday while the S&P 500 gained 0.7 percent and the Nasdaq Composite improved by 1.2 percent.
Economic reporter Brett Arends of MarketWatch pointed out some numbers that put the fake news media’s tariff hysteria into proper context.
He made note of the closed nature of China’s massive economy to U.S. imports. If China cut off all U.S. exports from their market, it would only impact 0.6 percent of the U.S. gross domestic product, which is tantamount to a drop in the bucket.
Arends also noted that Trump’s tariff push is a tax hike of roughly $30 billion a year imposed on importers and consumers. The total tax bill paid by all Americans combined was $5.51 trillion in 2018, so this increase accounts for another drop in the bucket.
Trump is not buying the deceptions made by the fake news. He is re-doubling his efforts as he uses all the leverage at his disposal to level the playing field with China.
We can make a deal with China tomorrow, before their companies start leaving so as not to lose USA business, but the last time we were close they wanted to renegotiate the deal. No way! We are in a much better position now than any deal we could have made. Will be taking in…..
— Donald J. Trump (@realDonaldTrump) May 14, 2019
Billions of Dollars, and moving jobs back to the USA where they belong. Other countries are already negotiating with us because they don’t want this to happen to them. They must be a part of USA action. This should have been done by our leaders many years ago. Enjoy!
— Donald J. Trump (@realDonaldTrump) May 14, 2019
China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a “match,” it would be game over, we win! In any event, China wants a deal!
— Donald J. Trump (@realDonaldTrump) May 14, 2019
President Trump is re-writing the rules on world trade, shattering the neoliberal globalist status quo, and the corporate fake news will just have to get used to it.
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