China announced another round of tariff cuts, lowering import taxes on more than 700 goods from Jan. 1 as part of its efforts to open up the economy and lower costs for domestic consumers.

In its third round of tariff cuts this year, China announced that 700 more goods will have tariffs cut. Bloomberg reports:

No doubt, that’s what they say. And it is true that domestic consumers will benefit from lower cost access to foreign goods. But, is President Trump’s pressure on China not a factor? I am sorry, but I can’t accept the notion that Trump is irrelevant to the decision.

Part of the Port of Shanghai

Note that the rate cuts are temporary and can be changed at any time. To me, this is further evidence that they are a bargaining chip in the confrontation over trade that President Trump started.

The underlying reality – that President Trump recognized unlike his predecessors – is that because of its trade surplus, China has far more to lose than the US from a trade war. The comparatively simple reality should have fortified the US in taking a harder line toward China, and yet it never did until Trump. Instead, the US has allowed itself to de-industrialize on a massive scale.

There’s a new sheriff in town the last 2 years. A lot of people were doing very well under the old sheriffs, even though America as a whole did not.

Something to think about over the next 2 years.