Three Things – This is a Big Deal | Metals Mine

  • Three Things – This is a Big Deal

    From disciplinefunds.com

    Here are some things I think I am thinking about this week: 1) The China Deal is Actually a Big Deal The White House announced the framework for a trade deal with China where the effective tariff rate with China will drop to 30%. Trump had mentioned that 80% “seemed right” as recently as last week so this is a big relief. 145% was insane and 80% would have been an effective embargo so 30%, while still high compared to where we were, is tolerable. So, as I mentioned a few weeks back, this is all moving in a much better direction now. We’re still higher than the 5-10% total effective tariff rate I mentioned, but ... (full story)

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highdesertAZ
May 13, 2025 7:56am
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Remember, trade with China also has major geopolitical ramifications. China imports massive amounts of hydrocarbons (oil and natural gas) from Russia and Iran. India also imports Russian oil. As a result, China is funding the Russian and Iranian militaries. The US is in major proxy wars with both Russia and Iran. Iran supplies the Houthi pirates with most of the weaponry used to attack shipping in the Red Sea. Also, Iran provides most of the weaponry to their Jihadi allies Hamas, Hezbollah and other Jihadi groups fighting US ally Israel. China has done nothing to stop the Houthi pirates. The US is spending hundreds of billions supporting the Ukrainian war effort against the Russians. China is a major economic supporter of Russia. This is a major dilemma for US foreign policy. Finally, China engages in, facilitates and profits from, a massive amount of cross border crime into the USA: dope smuggling, money laundering, illegal immigration, counterfeit goods and other contraband. China is partnering with the Mexican warlords in all these criminal activities. Far more involved here than just imports of consumer goods and other products. Never mind the extreme (and illegal) Chinese mercantilism: IP Theft, goods dumping, massive central command subsidies to industries in order to dominate a sector.
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Tasrif
May 13, 2025 8:15am
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its really impacts on USD?
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