Trump urges U.S. companies to dump China as trade war escalates

The trade war between the United States and China is escalating with threats of new tariffs, and President Trump sent out a tweet storm directing companies to come home.

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The trade war between the United States and China is escalating as both sides threaten new tariffs in response to stalled talks. Today, President Trump took to his bully pulpit on Twitter to send a message to all American companies.


Here is Trump's entire tweet thread deciphered into English:

"Our country has lost, stupidly, trillions of dollars with China over many years. They have stolen our Intellectual Property at a rate of hundreds of billions of dollars a year, and they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must stop. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies home and making your products in the USA. I will be responding to China’s tariffs this afternoon. This is a great opportunity for the United States. Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to search for and refuse all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop - it didn’t. Our economy, because of our gains in the last 2 1/2 years, is much larger than that of China. We will keep it that way!"


The Dow Jones and other stock market indexes all tanked on news of trade war escalation.
The Dow Jones and other stock market indexes all tanked on news of trade war escalation.

The U.S. stock market tanked on the news that China and Trump are escalating the trade war. Shares of multinational Apple Inc. (AAPL) were down nearly $10/share from their high of the day as the Cupertino tech giant manufactures a lot of their products in China. Many companies have joined in the selloff, but Apple has largely been a poster child of this trade war between the United States and China. In a press conference with the President of Romania, Trump said that "somebody had to take China on."

"China's been ripping this country off for 25 years, for longer than that, and it's about time, whether it's good for our country or bad for our country short term, long term it's imperative that somebody does this." Trump is taking a hard line against China and even said that the stock market would be 10,000 points higher if he would just give up on the trade war. He even described himself as "the Chosen One" during another press briefing. 

The trade war between the United States and China continues to escalate, which will lead to more volatility in the stock market, and a potential global economic slowdown in the future. President Trump doesn't seem to be too worried about the short term, and it is likely that things will get even dicier this afternoon when he announces his response to China's $75 billion in new tariffs announced this morning. We will continue to stay on this story as the current tariffs will directly impact the prices of consumer products, technology, and even automobiles. Stay tuned to hear which tariffs Trump dumps on China next.

CEO

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty
  • reply
    August 23, 2019 9:32 AM

    Asif Khan posted a new article, Trump urges U.S. companies to dump China as trade war escalates

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      August 23, 2019 9:45 AM

      "Hereby ordered" is about as authoritarian as you can try to be, I guess.

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      August 23, 2019 9:51 AM

      "trade wars are easy to win"

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      August 23, 2019 10:54 AM

      Lets say this goes on for the next 18 months or longer if he is reelected. How likely are US companies going to follow his advice?

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        August 23, 2019 10:56 AM

        Well they're going to have to when congress cedes all power to the president.

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        August 23, 2019 10:57 AM

        All the major co’s hauled ass over to Vietnam & set up shop there the moment the first tariff landed

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        August 23, 2019 11:08 AM

        I’m seeing it happen on the offshore side. A lot of companies have asked that their consulting outsource crew not Be Chinese based for various reasons. Some big shift the last 6 months.

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        August 23, 2019 12:11 PM

        Might see some shifts to other countries like Vietnam or somewhere in South America even given enough time. But then they're next to get tariffs if it goes long enough and if it worked the first time it'll happen a second.

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          August 23, 2019 3:38 PM

          Could happen. Vietnam is getting pretty chummy with the US right now, and they're probably our best option for an ally in the south China Sea to push back on China's expansion there.

          One of the smartest guys I know about national security is sure the next major US military base will be in Vietnam. Sounds crazy to me, but they're willing to push back hard on China.

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            August 23, 2019 3:40 PM

            China and Vietnam has historically been enemies. They had regional skirmishes shortly after the end of the Vietnam War and only played nice as the US was the common foe and the Soviets hedged themselves in between.

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              August 23, 2019 4:22 PM

              Yeah, it's impressively-stupid how badly the US misunderstood that in the cold war. And now China basically stealing Vietnamese territorial waters and treating them like a vassal state. Vietnam's not going to tolerate that forever.

              The US could do some good work helping them acquire small diesel subs for their navy. Might put the Chinese on the back foot a bit.

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                August 23, 2019 4:27 PM

                Ho Chi Minh was a OSS asset during WWII and afterwards he wanted to be closer to the US. But we bent over for France and even after their departure we had a chance to gain them as an ally if the politicians listened to the intelligence people on the ground.

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            August 23, 2019 4:42 PM

            Biggest issue tbh is lack of talent and knowledge. China has 50 years of manufacturing, shipping, etc experience in every product field imaginable. Building that somewhere new won't be easy or fast

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        August 23, 2019 3:28 PM

        Depends on the tariffs. The US is a money whore.

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      August 23, 2019 12:14 PM

      Andrew Yang for President, 2020. Get someone with a Chinese background at the negotiating table.

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      August 23, 2019 3:43 PM

      I wonder how much an iPhone would cost if it was made from top to bottom here in the US.

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        August 23, 2019 5:13 PM

        I'm not sure if it's possible, especially if you include the chip fabs, which are mostly in Taiwan and Korea anyways.

        Probably double. But American people really don't want to work in iPhone assembly plants so it'd never happen.

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      August 23, 2019 5:07 PM

      Is shacknews cutting ties with China?

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