Touch the Soil News #1062 (Feature photo – Bulk Freighter – public domain)
Now that there is open war over trade between the U.S. and China, the wars will be fought with monetary increases on goods that the citizens of both countries buy (the new tax). The billions in tax collections will be pocketed by both the American and Chinese governments. Amid lots of talk about earlier tax cuts, major indirect tax increases are in the works.
One must ask, will the American government take the tariffs collected on Chinese goods coming in and share it with the American public who is paying the price and the farmers who lost customers? Will the Chinese government share the tariffs it collects to lessen the burden for its poor?
With tensions around the globe rising between nations, will gains made in reducing the trade deficit be offset with increased military and security costs? Will the new tensions with many of America’s former allies create problems that will cost more?