The Status Quo Reveals Nothing
High tariffs work because China sells 5X more to the US than the US does to China.
The communist system has limited economic trickle-down effect. This is why it is only the communist government that has the spending power (forex reserves) to offset the balance of trade.
This is why the communist system pigs are squealing.
Because you found the pain point, and it is the only way to get what you want.
For example, Vietnam cannot quickly or easily close its trade deficit with the US without undermining its own economic model aka one party government. The structure of its economy, supply chains, and market realities make a rapid shift impractical.
Instead, Vietnam will likely continue gradual adjustments while maintaining its export-led strategy and financial safeguards. This is a classic example of how global trade imbalances are often rooted in deep economic structures, not just policy choices.
This is why they are making moves with China.
When you keep high tariffs you force the hand:
Factories are closing.
CCP officials are ‘disappearing’.
Empty cargo ships are loitering around ports.
Millions are out of work.
Time is running out.
Is this the only hand you have because you threaten the regime.
Imagine you did that to every other country that ripped you off?
Additionally, you got paid to wait.
Remember all those nurses on TikTok dancing during COVID? That was when they had the least work to do.
Did you see all the Chinese production workers making TikTok videos promoting luxury goods? That was also when they had the least work to do.
If all those luxury goods are so amazing and affordable, why doesn’t the population of China uplift these factories on its own?
It’s because even at those prices, the average consumer still doesn’t have enough to purchase them.
