The time for incremental adjustments is over. China’s calculated strategy to dominate the global stage demands a bold, decisive counter-strategy from the United States. China isn’t just building military might; it’s meticulously crafting a network of economic dependencies, leveraging trade imbalances to ensnare nations and isolate the U.S. This insidious tactic, if left unchecked, will irrevocably reshape the world order by 2035. We must act now, with a comprehensive plan that combines strategic containment and economic trade rebalancing, to prevent China from becoming the world’s dominant economic power and undermining American interests. No more hair brain tariff ideas.
Both Henry Kissinger and George Kennan, geopolitical giants, aimed to manage the Soviet Union, but with different approaches:
- Kennan: Advocated “containment”—resisting Soviet expansion through strong alliances and counterforce at strategic points. He emphasized long-term pressure and internal changes within the Soviet system. This approach is more necessary for addressing the challenge posed by China.
- Kissinger: Focused on “balance of power” and détente. He sought to manage the Soviet Union through diplomacy, strategic arms limitations, and engaging with China to create a triangular balance. (For reference, he thought of building up China as a counterbalance to the Soviet Union—a strategic blunder. The U.S. should not be in the business of building up superpowers, for example, India. The only point on which Kissinger was correct is the need for a balanced approach; China should not be allowed to become a larger economy than the U.S.)
Containment and Balance
The U.S. cannot stop China from being a superpower at this point. The goal now is to prevent China from becoming the largest economy. Containment involves trading more with the countries that China is targeting for alliances and partnerships. Balance involves leveling the economic playing field between China and the U.S., so China gains no economic advantage from the trade relationship. This means the U.S. should eliminate its trade deficit with China and persuade Europe to do the same. The U.S. will need to run trade deficits with alleys to beat China.
The undeniable truth is that economic power translates to global influence. China is projected to have an economy 50% larger than the U.S. by 2060, making it the next dominant superpower. The average U.S. GDP growth rate is 2.5%, while China’s is 5%. China’s economy is a $20 trillion GDP, while the U.S. economy is a $30 trillion GDP. The U.S. must focus on reducing China’s growth to between 1% and 2.5% over the next two years. Based on current averages, China will reach economic parity with the U.S. by 2045, with both countries having a GDP of $45 trillion. However, this will most likely happen sooner rather than later. Over the next five years, China’s percentage of global manufacturing will increase significantly. In 2023, it was 28%; today, it is nearly 32% today, and by 2030, it is projected to be 45%. This represents a huge imbalance that can only be addressed via tariffs.
We stand at a precipice. Failure to act decisively will cede global dominance to China. Implementing the strategies outlined here is not merely advantageous — it’s essential. By doing so, China’s 2045 GDP will be held to $30 trillion, its manufacturing growth will stagnate, and its trade surplus will be halved, while the U.S. GDP will reach $45 trillion, preserving a crucial lead. The U.S. currently possesses significant influence over China’s growth trajectory, a fact China recognizes. However, by 2045, without the implementation of this plan, that influence will vanish. Imagine a Chinese aircraft carrier operating unchallenged off the coast of Virginia, within the U.S. exclusive economic zone. Picture the U.S. Navy issuing warnings of sovereign territory violations, only to be met with complete and utter disregard from China. This is the stark reality we face if we fail to act. The roles will be reversed; the U.S. will find itself in a position akin to China’s today.
While China’s domestic services, consumption, real estate, and construction sectors struggle, its growth engines are green energy, technology development, and export manufacturing. These sectors are heavily subsidized by the government—subsidies made possible only by China’s massive global trade surplus, largely generated by trade with the United States. Thus, China’s primary growth driver at the moment is manufacturing and exports for the United States.
This growth is currently fueled, in part, by a select few countries and regions. Primarily, the U.S. contributes to 50% of China’s growth, Europe 25%, and a handful of other U.S. allies and friendly nations, such as India, Thailand, the Philippines, Turkey, Colombia, Vietnam, and Mexico, contribute the remaining portion. If all of these countries declared they would raise tariffs on China until trade was balanced, China would run a trade deficit and experience no economic growth at all for 20 years.
In 2024, the U.S. world trade deficit was $1.221 billion. China’s 2024 trade surplus was $992 billion. This surplus, along with accompanying manufacturing activity, was a major contributor to China’s 5% GDP growth in 2024. (A $992 billion surplus divided by a $20 trillion GDP is approximately 5%GDP growth). The TV pundits claim China is in decline. The reality is they are just getting started. China’s annual trade surplus is directly linked to its GDP growth.
A breakdown of China’s 2024 trade surplus with the U.S. reveals the extent of the problem:
- ~$50 billion in de minimis direct package shipments.
- $295 billion direct trade surplus.
- +$40 billion in Mexican final assemblies (primarily at 1,300 Chinese-owned factories in Mexico, with 40% of all products coming from Mexico containing Chinese components).
- +$30 billion in Vietnamese final assemblies coming from China.
- +$10 billion in foreign (non-Chinese) automotive vehicles with Chinese components.
- +$50 billion in Chinese components and supply chains in other countries.
This totals show a $500 billion trade deficit with China. This clarifies why Xi Jinping consistently urges against “weaponizing trade.” If China’s surplus drops drastically, it can no longer project power in its current manner, China cannot subsidize in Artificial Intelligence and semiconductors at the same pace. It will no longer need to import so much iron ore from Brazil helping to naturally undermine the alliance China has with Brazil, and it will need to backtrack on building alliances and focus on maintaining its domestic growth initiatives.
Trading more with other countries should result in the U.S. selling more to those countries. China is a country that does not reciprocate fairly. Consider these 2023 figures:
- The current U.S. global trade ratio is $1 in exports for every $1.35 in imports.
- Excluding China’s approximately $500 billion deficit (direct and indirect), the ratio becomes $1 in exports for every $1.18 in imports. Without China, the U.S. trade relationship with the rest of the world is relatively balanced, with only an 18% imbalance (approximately $500 billion deficit vs. $1 trillion deficit).
- China is the U.S.’s largest trading partner, with a highly imbalanced ratio of $1 in exports for every $3 in imports. With indirect and de minimis shipments, it is a $1 to $5 ratio.
President Trump doesn’t need to tariff anyone, as only one country is destabilizing fair trade. The opportunity lies in shifting imports away from China and lobbing that $500 billion onto 35 pre-identified countries and regions that make the most sense geopolitically, and toward nations that reciprocate trade. Even if trade with these other nations remains imbalanced, it is far more balanced than trade with China, at a 1 to 1.18 ratio vs 1 to 5 ratio. This could significantly boost U.S. exports and create jobs. Redirecting the $500 billion of the $650 billion (2024) spent on Chinese imports could generate an estimated $169 billion to $278 billion in new U.S. exports, representing substantial economic activity.
The bill is below and explinations on why things are done are in blue:
THE BILL:
SECTION 1
BALANCING TRADE WITH COMPETITOR COUNTRIES
Section 1 will balance trade with China over a 5-to-10-year period and eliminate the $500 billion dollar trade surplus they currently gain from the USA.
(a) Graduated Tariff on Goods: A tariff shall be imposed on all products originating in the People’s Republic of China. This tariff shall commence at 10% and increase by 1% bi-monthly (equivalent to 6% per annum) until the ratio of United States imports from China to United States exports to China reaches 1 : 1. Upon reaching this ratio, the tariff increase shall be suspended and will decrease if the USA has a trade surplus with China, and will increase if a trade deficit reappears.
This tariff increase is for products that few other countries can economically manufacture. This is the only way to bring about balanced trade and general balance, and it could take up to 10 years to achieve that balance as China will do everything in its power to devalue its currency and goods which is good to prevent goods inflations in the United States. However, the process would be incredibly gradual, so companies and businesses would not be hurt by knee-jerk reactions. These are the products that the USA want to buy from China.
(b) Accelerated Tariff on Critical Goods and Redundant Products:
A tariff shall be imposed on all products originating in China that fall within the following categories:
- Critical national importance,
- National security,
- Pharmeceuticals/ chemicals that make pharmeceuticals
- Future technologies not yet made,
- Designated medical products,
- Clothing, Textiles, Shoes and Apparel,
- Appliances, Furniture, other light manufacturing,
- Consumer Appliances and Electronics
- Microchips or products in them with semiconductors less than 24 nm,
- Commodity-related products (steel, aluminum, copper, iron ore, chemicals, etc.),
- Products currently manufactured in the United States or allied countries,
Any product readily transferable for production in the United States or third-party countries, This tariff shall commence at 20% and increase by 1% monthly, indefinitely, forever (12% annually).
We want to relocate as much light manufacturing as possible from China to the United States and other countries where it can be easily set up and supplied. We want critical technology and national security products out of China and never to return there.
(c) High-Tech Exemption: An exemption from the tariffs outlined in sections (a), and (b) may be granted for high-technology products for a period not to exceed three years. This exemption is contingent upon demonstrable efforts to relocate the production of said high-technology products outside of China.
(specifically for Apple to move out)
(d) Other Tariffs: This law and the tariffs in this law are not subject to removal by executive order, and other tariffs placed in addition to these tariffs would be additional to these tariffs and would have no effect on altering the increases.
(d) Tariff on Chinese Content in Imports: A tariff shall be imposed on all products imported into the United States from any country, if such products contain any content originating in China. This includes, but is not limited to, sub-assemblies, components, steel, copper aluminum supply chain elements, and software. This tariff shall commence at 4% and increase by 1% quarterly. The tariff increase shall continue in perpetuity.
This policy aims to increase tariffs, but with a key distinction: it targets only China. If the US imposes tariffs on Europe or Canada, those countries will likely retaliate. However, by specifically targeting products with Chinese components, the affected companies’ main recourse is simply to remove those components. The US government could then state: “We are not imposing tariffs on you. If a product contains a Chinese component, simply remove it. Do not retaliate against us.”
This is the most critical tariff that could be placed on China, as Chinese sub-components and raw materials are present in nearly everything worldwide. This tariff would affect between $600 billion and $1 trillion in annual U.S. imports from around the globe. All car imports ($234 billion) would be subject to this tariff; 40% of Mexican imports (nearly $200 billion) and 40% to 65% of Vietnam’s imports (approximately $65 billion) would also be affected.
Initially, a 4% annual tariff increase would not have a significant immediate effect. However, when this tariff reaches 12%. From day one there will be a frantic rush to remove Chinese components from supply chains in Europe, Vietnam, and Mexico. The initial tariff cannot be high, as that would create chaos and possible retaliation. For example, if a car plant in Germany builds cars primarily for Europe (80%) and a smaller portion for the USA (20%), all of those cars would need to be stripped of Chinese components. This is a significant undertaking designed to compel other countries to reduce their reliance on Chinese products.
(e) Tariff on di Minimus Imports: A tariff of 100% will be placed on direct ship mail products from Asia, as well as the cost to process each package. The tariff will start at 20% and increase 20% per quarter until reaching 140%.
The 2024 de minimis value was $73 billion, of which over 60% originated in China. Some goods were shipped from China to Mexico and then to the United States. It’s clear that the de minimis provision, intended for US citizens to send home souvenirs from vacation, is now being used as an e-commerce tool to avoid tariffs. It simply needs to end altogether from all countries that use it for E-commerce.
Summary: Overall, Section 1 will effectively redirect $400 billion to $500 billion annually to other parts of the world. It will strengthen U.S. partnerships and alliances, containing China’s economic influence. It will allow the USA to build new Major Non-NATO Alliances and potentially sway some countries, such as Brazil, away from China. As new supply chains develop, Europe and India will have more options for sourcing consumer products as the US builds up consumer products manufacturing in countries other that China, further reducing their dependence on China.
Everything else in this bill could be forgotten, as long as Section 1 is implemented.
SECTION 2
BALANCE TRADE WITH ALLIES, FRIENDS AND PARTNERS
As we balance trade with China, imbalances may arise in other areas. Section 2 of this legislation will address those imbalances to ensure fairness for the United States.
(a) Effective Date: The provisions of section 2 shall take effect on January 1, 2028.
(b) Tariff on Imports from High-Income Countries: A 4% tariff shall be automatically imposed on all imports from countries with a Gross Domestic Product (GDP) per capita exceeding $20,000 if the ratio of United States imports from said country to United States exports to said country exceeds 1.4:1. If this trade ratio falls below 1.4:1, this tariff shall be removed. If the trade ratio remains above 1.4:1, the tariff shall increase by 1% per quarter in perpetuity. If the ratio remains above 1.4:1 for three consecutive years, the monthly increase is 1% per month.
Japan, South Korea, Ireland, Italy, and Germany are among the countries that contribute most significantly to the trade imbalance with the United States. However, these countries also rely heavily on US energy exports. Moreover, a significant portion of this imbalance stems from automobile imports, which could potentially be shifted to existing manufacturing facilities within the United States. They could also purchase more US energy. Canada, with a trade ratio of 1 to 1.22, would not be subject to this tariff. Section 1(d) will have a major impact on trade supply chains, and many of these issues will likely correct themselves over the next three years. Companies will anticipate this and build factories in countries where they are least likely to be affected by tariffs. The USA will gain basically all new chemical and heavy industries over Europe in the next 3 years due to provisions in Section 1(d) and section 2(b).
(c) Tariff on Imports from Lower-Income Countries: For countries with a GDP per capita below $20,000, a 4% tariff shall be imposed if the ratio of United States imports from said country to United States exports to said country exceeds 2:1. If this trade ratio falls below 2:1, the tariff shall be removed. If the trade ratio remains above 2:1, the tariff shall increase by 1% per quarter in perpetuity. If the ratio remains above 2 : 1 for three consecutive years, the monthly increase is 1% per month.
This legislation targets significant trade imbalances with countries like India, Thailand, Malaysia, Vietnam, Indonesia, and Bangladesh by using tariffs to incentivize them to lower their trade barriers and import more from the US. Section 1(d) will particularly impact Mexico and Vietnam’s exports to the United States, possibly resolving the massive deficit the USA has with both.
(d) Safeguard Exemption for Small Nations: For countries with a population under 6 million, safeguard tariffs imposed under this section 2 (b) (c) shall be capped at 10%.
In many cases the imbalance is because they have one large auto-factory, or something and they lack the population to buy significant products from the USA.
(e) Tariff on Vehicles: A 100% tariff shall be imposed on vehicles originating in any country that has exported fewer than 5,000 vehicles annually to the United States in the preceding five years. For countries that export more than 5,000 vehicles annually, the tariff under Section 2 is capped at 10%. Existing tariffs on vehicles are not affected. Tariffs in Section 1(d) are not affected by this 10% cap.
This prevents new vehicle factories being built in the world outside of North America. The 10% tariff forces Toyota, Honda, Nissan, Kia, Hyundai, BMW, Mercedes to build more of their vehicles in their existing US factories that would otherwise be imported.
(f) Steel and Aluminum Imports: A 25% tariff is placed on all steel and aluminum imports, excluding those from Australia, Brazil, and Canada.
The United States needs a strong steel sector. Many countries, including South Korea, Japan, and China, engage in mercantilist practices by purchasing raw iron ore (likely from major suppliers like Brazil and Australia), processing it, and then reselling the steel, often to the US. Brazil and Australia together control over 80% of ocean freight iron ore transport. Therefore, strengthening US relationships with these two countries is crucial to counter China’s influence in the global steel market. Australia is a key trading partner with whom the US currently has a trade surplus. Brazil, an ally of China, also needs to be engaged through a stronger US relationship.
(g) Exempt Countries from Section 2 (b) and 2 (c) : Iraq, Kuwait, Qatar, Bahrain, UAE, Oman, Saudi Arabia, Libya, Switzerland. Due to Oil and Gold imports.
(h) Exempt Goods: The following goods are exempt from tariffs imposed under this section: Commodities, Oil, Liquified Natural Gas (LNG), Minerals (refined and unrefined), Precious metals (gold, palladium, platinum), Rare earth minerals (refined and unrefined).
SECTION 3
COUNTERING CURRENCY MANIPULATION BY ADVERSERY COUNTRIES
Section 3 allows for a rise in tariffs with little inflation. This section goes against common US policy thinking for decades.
(a) Currency Monitoring: The United States Department of the Treasury shall monitor and quantify any devaluation of the currency of the People’s Republic of China against the United States Dollar (USD).
(b) Tariff Response to Devaluation: In the event of a devaluation of the Chinese Yuan against the USD, a one-time tariff increase shall be imposed on all goods originating in China. This tariff increase shall have a maximum cap of 9% each year. This tariff increase shall be implemented each quarter to gradually spread out the increase.
(c) Graduated Tariff Response to minor devaluation: If the Chinese Yuan devalues by 1% against the USD in a given year, a 1% tariff increase on all goods originating in China.
(d) Tariff Response to Significant Devaluation with Gradual Countermeasure: If the Chinese Yuan devalues by 15% or more against the USD in a given year, the following tariff increases on all goods originating in China shall be implemented:
- Tariff increase of 9% in year 1
- An additional 6% in year 2
Analysis of Potential Chinese Currency Devaluation: While the United States traditionally opposes currency manipulation, a strategic devaluation of the Chinese Yuan could present certain advantages.
However, it’s crucial to consider the implications of such a devaluation for both China and the global economy. China would face a dilemma with two Options:
Option 1: Maintaining Yuan Stability: To prevent a sharp decline in the Yuan’s value, China would need to utilize its dollar reserve, buying Yuan to prop it up. The more tariffs the USA places on Chinese goods, the more the Yuan would naturally devalue. Meaning China will use dollars to buy Yuan and it will be in the hundreds of billions of dollars to maintain the value. The US wins if China spends dollars on propping up its Yuan, versus spending dollars on building alliances.
Option 2: Embracing Devaluation: A manipulative devaluation could offer several benefits to USA and allies. I suspect China will devalue over 3 to 5 years by 37% and this will counter the tariffs.
The lowest recorded value of the yuan was 8.73 to 1 US dollar. Today, it is approximately 7.3 to 1 dollar, representing a 16.4% decrease in value for the yuan. If this law passes, China will likely devalue the yuan further, potentially to 10 to 1 dollar, which would be a decrease of approximately 37% from its current value. Following such a devaluation, China would encounter other economic imbalances, such as the increased cost of imports.
- Soft Currency Advantage: A weaker Yuan would make Chinese exports more competitive, however the Yuan will be seen as volatile and unstable to replace the US dollar as an eventual reserve currency.
- Debt Relief for Partner Nations: Countries burdened by Yuan-denominated debt traps ($250B) would find their obligations easier to manage. This could create opportunities for the US, Development Banks and IMF to refinance these debts in dollars, further diminishing China’s leverage over Major Non-Nato Ally countries (MNNA).
- Reduced Imports: China’s will seek to maintain a trade surplus as this is how it is creating its GDP growth and to do this China will import less from countries it seeks to have partners with. We could see a $200 billion decrease in China’s imports from South America and Southeast Asia. This would create an opportunity for the USA to re-engage with these regions through new trade agreements.
- Global Market Flooding/Dumping: An influx of cheap Chinese goods could trigger anti-dumping tariffs worldwide and this could anger countries far and wide, potentially facilitating the US to convince Europe, and India to raise tariffs against China to balance their trade. If China dumps into countries it hopes to see as strategic partner, then that will give them a bad aftertaste, they will need to further raise tariffs. The USA won’t be affected by this dumping as tariffs will be perpetually increasing and this section address’s currency devaluation.
- Exhaust Countermeasures: China has been deflating goods domestically for the last two years, using a domestic recession to force wages lower, having goods inflation of 10%, and has devalued its currency by 21% since 2014. The USA wants China to exhaust all its tools so that balance will return to global trade.
- Tax Raises and Less Impact on Companies: A significant tax collection can occur if China devalues, they would essentially pay for the tariffs.
Example 1, avoiding inflation: 24 Months
- Starting Point: $100 widget
- Tariff: 12% tariff imposed, raising the price to $112.
- Devaluation: China devalues the Yuan by 15%.
- New widget price in dollars: $85 ($100 x (1-0.15) = $85)
- Tariff Adjustment: US increases the tariff to 22% (12% + 9%).
- Tariff amount: $17.85 ($85 x 0.21 = $17.85)
- Final Price: $103.70 ($85 + $17.85 = $102.85)
- 36 Month Final Price of widget is $113.05
In this scenario:
- Consumers experience no inflation. Consumers are protected from inflationary effects only when tariffs on Chinese goods are implemented gradually. No other country manipulates its currency to the extent that China does; therefore, tariffs on Canadian or European goods would likely cause inflation.
Example 2, avoiding inflation: 60 Months (5 Years)
- Starting Point: $100 widget
- Cumulative Devaluation: China devalues the Yuan by approximately 37% over 5 years. (FX from 7.3 Yuan to 1 dollar and now 10 Yuan to 1 dollar).
- New widget price in dollars: $63 ($100 x (1-0.37) = $63)
- Cumulative Tariff Increase: US increases tariffs gradually, reaching 67% over 5 years.
- Tariff amount: $42.21 ($63 x 0.67 = $42.21)
- Final Price: $105.21 ($63 + $42.21 = $105.21)
- This is a 40% tax on products from China and the prices in the USA are the same.
This law allows China to technically neutralize the tariffs from Section 1 (a) in the first five years, giving time for companies to exit China. This is why Section 1(B) has accelerated tariffs to move essential items out of China, as these cannot keep up with China’s countermeasures, certain items will exit faster. By the time the tariffs really begin to bring inflation to consumers, the trade will be balanced and most companies that could leave China will have moved on. Especially essential goods which would have a 60% tariff.
SECTION 4
PREVENTION OF FULL DECOUPLING AND RETALIATION FROM CHINA
(a) Prevention of Decoupling: If China drops imports 10% below the $147.5 billion 2023 level, the United States will impose technology restrictions on more benign technology, such as the COMAC C919 single-aisle aircraft, and other technologies, including international bans. (b) Full technology restrictions will be placed on China if it attempts a full decoupling. A panel will be created to determine which technologies to restrict in this case.
The ideal scenario is China raises purchases of US goods above $200 billion, and this is to incentive China to do that. The USA wants China as an equal balanced partner.
SECTION 5
TARIFF EXEMPTION FOR US-OWNED FACTORIES ABROAD EXCLUDING CHINA
(a) Tariff-Free Access: US companies that currently import products from China or other countries via contract manufacturers or third-party manufacturers shall be granted tariff-free access to the United States market for goods produced in factories if they set up their own factory that they own and operate in any country outside of China, provided the following conditions are met:
- Ownership: US citizens must hold at least 70% ownership of the foreign entity operating the factory. The business must be headquartered in the United States.
- Exclusion of Chinese Content: The goods must not contain any components, sub-assemblies, raw materials, or intellectual property originating in China.
(b) Vehicles and Transportation: Vehicles, trucks, and other transportation vehicles shall remain subject to standard tariffs, regardless of the ownership structure of the manufacturing facility.
(c) Exception for Relocated US Factories: This tariff exemption shall not apply in cases where a US-based factory is closed for the primary purpose of relocating its operations outside of the United States. An independant panel will determine if this is the case.
(d) Specific Products Exemptions: The tariff exemption for US owned factories will not apply for the products listed in Section 7.
It is evident that US investors and factory owners should have a competitive advantage over third-party contract manufacturers and, therefore, should not be subject to the same tariffs. Apple does not own any factories where it makes the iPhone, it is all owned by Asian companies who are contract manufacturers and make a piece of the profit.
Section 6: Bilateral Trade Agreements and Priority Countries
The United States shall pursue bilateral trade agreements and prioritize strengthening trade relationships with countries that meet the following criteria. (1) Existing Trade Deficit Countries (2) Countries that suffer from Dollar Scarcity forcing them to rely on the Yuan. (3) Countries abused by China’s trade Practices and have large deficits (4) Countries China is targeting for strategic partnerships. (5) Countries with Formalized Allied Relationships with the United Stats.
The best way to preserve the dollar as the US Reserve Currency is by trading more with numerous countries. By shifting 400 to 500 billion of imports out of China to other countries these countries will have more dollar usage, and protect the dollar as a reserve currency.
(a) Existing Trade Deficits with the USA: Priority shall be given to countries that don’t have a history of abusing the United States with trade, including but not limited to:
- Argentina;
- Brazil;
- Chile;
- Colombia;
- Peru;
- Honduras
- Dominican Republic;
- Egypt;
- Guatemala;
- Uruguay;
- Paraguay;
- Panama.
(b) Dollar Scarcity and Yuan Usage: Priority shall be given to countries experiencing dollar scarcity and increasing reliance on the Chinese Yuan, including but not limited to:
- Sri Lanka;
- Pakistan;
- Tunisia;
- Argentina;
- Egypt;
- Nigeria;
- Ghana;
- Kenya;
- Ethiopia;
- Zambia;
- Bangladesh;
- Suriname;
- Turkey.
The USA does not buy enough from these countries, they face dollar scarcity and then they seek help from China. China offers loans and military equipment loans. This undermines the dollar worldwide.
(c) Significant Trade Deficits with China: Priority shall be given to countries with substantial trade deficits with China that don’t currently have a free trade agreement or are not negotiating free trade agreements with China, with the aim of convincing these countries to raise tariffs on China in order to balance their trade with China one to one (1 to 1).
- India;
- Mexico;
- Turkey;
- Nigeria;
- Bangladesh;
- European Union member states; Spedifically Spain, Netherlands, and other countries that the US has a trade surplus with.
- Colombia.
These countries supply nearly 80% of Chinese 1 trillion dollar trade surplus, if they seek balance trade due to massive Yuan devaluation, or behest of the United States, then China’s ambitions are diminished. The USA must convince the EU to raise tariffs on China, the USA must not get into a trade war with Europe.
(d) Targets of Chinese Alliance-Building Countries: Priority shall be given to countries that China is actively seeking to cultivate as allies. The United States shall aim to establish “indispensable” trade relationships with these countries to counter China’s influence. These countries include, but are not limited to:
- Brazil;
- Chile;
- Peru;
- Malaysia;
- Indonesia;
- Argentina;
The Chinese concept is simple: focus on large, well-known countries, get them on board with China’s Strategic Partnership, and then the smaller countries will follow suit.
(e) Formalized Allied Countries: Priority will be given to countries that are formal US allies:
- Philippians;
- Colombia;
- Egypt;
- Australia;
- Bahrain;
- Brazil;
- Colombia;
- Tunisia;
- Israel;
- Japan;
- Jordan;
- Kenya;
- Kuwait;
- Morocco;
- New Zealand;
- Pakistan;
- Thailand;
- South Korea;
Implementation: The United States Trade Representative (USTR), in consultation with relevant government agencies, shall be responsible for developing and implementing a comprehensive strategy to pursue bilateral trade agreements and strengthen trade relationships with the countries identified in this section. This strategy shall include, but not be limited to:
- Identifying specific trade opportunities
- Prioritizing Ex/Im Bank to move production from China to these countries.
- Providing technical assistance to facilitate trade
- Support for these countries to set up free trade manufacturing zones that work.
- Support to these countries to help make reforms to bring stability.
- Monitoring compliance with trade agreements
- Most importantly Negotiate initially bilateral trade agreements
- Lastly Negotiate multi-lateral trade agreements.
Breakdown: If we import much more from these 40 countries, import less from China, one billion people will have a chance to rise out of poverty. As they urbanize, they will have a significant demand for US goods and food. In memory of President Jimmy Carter, one of the reasons he normalized relations with China in 1979 is he saw that 88% of their population lived in poverty. These countries have significant poverty rates but none of them will ever be strong enough to challenge the United States in 40 years.
Promoting the use of the dollar in more countries will also help significantly increase its adoption. The more countries that have a dollar surplus, the more the dollar will be viewed as the sole true international reserve currency.
The USA should stand for something, and that should be for a better world, not for the cheapest TVs or $12 designer dresses from China.
SECTION 7
IMMIGRATION REDUCTION AND COUNTERING CHINA IN LATIN AMERICA
(a) Tariff: A worldwide tariff of 1% per quarter is imposed on imported apparel (knitted, crocheted, and non-knitted), footwear, leather goods, headgear, certain textiles (including woven fabrics, lace, tapestry, and various fiber products, carpets), and related manufactured textile articles from all countries except those listed in (b). The tariff will increase until 50%.
(b) Exempt Countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay, Venezuela, Antigua and Barbuda, Aruba, Bahamas, Barbados, Cuba, Dominica, Dominican Republic, Grenada, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, and Trinidad and Tobago.
(c) Quata For Major Non-NATO Alley (MNNA) Countries at the time of this law’s passage with a GDP per capita of less than $4,000, tariffs will only take effect if imports exceed 2024 import levels for the specified items. Quota’d countries: Egypt, Kenya, Morocco, Pakistan, Philippines and Tunisia.
This tariff aims to promote economic development and job creation in exempt Latin American and Caribbean countries. It is projected to generate $125 billion to $150 billion in economic activity in these countries within ten years, thereby reducing economic pressures contributing to US migration, supplanting China’s influence in Latin America, lowering poverty through the creation of 10 million jobs, and incentivizing investment and manufacturing in those nations. The following list shows the current value of US imports for the items to which the tariff would apply. Companies like Puma, Adidas, and Nike, which recently shifted their manufacturing hub to Vietnam, will likely be significantly impacted.
- Articles of apparel, knit or crocheted $45.24B
- Articles of apparel, not knit or crocheted $36.35B
- Footwear, gaiters and the like, $26.79B
- Other made textile articles, sets, worn clothing $16.83B
- Articles of leather, animal gut, harness, travel good $13.92B
- Headgear and $3.15B
- Impregnated, coated or laminated textile fabric $2.99B
- Wadding, felt, nonwovens, yarns, twine, cordage $2.79B
- Knitted or crocheted fabric $886.59M
- Special woven or tufted fabric, lace, tapestry $818.59M
What does this do?
Vietnam currently has an incredibly imbalanced trade relationship with the USA, because Puma, Nike, Addidas has made it the center of their manufacturing operations and export over $30 billion in textile and shoe products to the USA. Most likely these countries will shift their center of operations to Central America.
SUMMARY
Breakdown: America is bankrolling its own decline. If we import much more from these 35 countries, one billion people will have a chance to rise out of poverty. As they urbanize, they will have a significant demand for US goods and food. President Jimmy Carter, one of the reasons he normalized relations with China in 1979 is he saw that 88% of their population lived in poverty. These countries have significant poverty rates but none of them will ever be strong enough to challenge the United States in 40 years.
The solution: The only way to achieve containment and balance is through this law. There is absolutely no other way; any other suggestion will not work. Perpetual tariffs are the only way to bring balance. Identifying the countries with which the US needs to enhance economic relationships is the only way to block China’s influence. This law is designed to incentivize China to engage in actions we would normally discourage, specifically dumping products on the world market, which can convince Europe to balance trade with China. Our goal is to portray China as a significant problem, thereby encouraging Europe, India, and other countries to raise tariffs against them. We want these countries to perceive China as a threat to their manufacturing sectors. Furthermore, we want China to manipulate its currency to weaken it, which will reduce imports and thereby hinder its alliance-building efforts. The intent is to neutralize the effects of tariffs so that they can be set as high as possible without causing inflation.
