Trump is adding tariffs to Chinese goods but the hidden cause of the tariffs never seems to be reported.
American jobs are lost as China undercuts American manufacturers. The problem is the selling price from China does not include a lot of living costs so the Chinese factory can pay the workers less and sell for less. For example, if a Chinese worker is paid $1 per hour but gets an apartment, a bicycle and doesn’t have to pay taxes the $1 is not the real cost per hour. It is an accounting device that has use in some contexts but Trump is right to charge China tariffs to account for the cost of the jobs destroyed in America.
The world is a difficult place for economic comparisons because of many hidden factors. Trump however is cutting right to the chase and telling China they must not engage in Fake Accounting.
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