Trump Announces Deal With China; Media Cry About Tariffs Not Causing Inflation As They've Insisted They Would for Two Years

The latest coordinated Democrat-Media Party panic operation concerned rare earth metals. They said that the economy would collapse because Trump's trade war with China was reducing the amount of heavy metals China was selling us.

Well, Trump says he just struck a trade deal with China and China will begin sending us heavy metals again.

(I know I keep flipping between rare earth metals and heavy metals but I think they're largely overlapping Venn circles and I like saying heavy metal and taking a ride on heavy metal.)

President Donald Trump said on Wednesday the U.S. deal with China is done, with Beijing to supply magnets and rare earth minerals while the U.S. will allow Chinese students in its colleges and universities.

"WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!" Trump wrote on Truth Social without elaborating.

A White House official said the agreement allows the U.S. to charge a 55% tariff on imported Chinese goods. This includes a 10% baseline "reciprocal" tariff, a 20% tariff for fentanyl trafficking and a 25% tariff reflecting pre-existing tariffs. China would charge a 10% tariff on U.S. imports, the official said.

Trump said the deal is subject to final approval by him and President Xi Jinping.
"FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," Trump said.

China has agreed to a 55% tariff on their goods with only a 10% tariff on our goods? That seems incredible, but they have, in fact, been ripping us off for decades, and they are being hurt by Trump's tariffs. We're not, but they are.

Meanwhile, the media is now crying that the runaway inflation they were praying for isn't coming to save them from the Bad Orange Man:

Axios is very sad:

A run of better-than-expected indicators -- including Wednesday's inflation report -- so far point to a strikingly resilient economy.

Why it matters: Those waiting for signs of a tariff-wrecked economy will have to keep waiting.

Economists anticipate President Trump's policies, particularly those related to trade, will weaken growth and raise consumer prices. But how, when, or even if looks more uncertain than ever.

Aw. So sad! I know you were really counting on this, Democrat-Media Party.

Just six days ago, on June 5th, this same Politico for Kidz! website we know as Axios reported that "anecdotally" there was proof of the claim that tariffs are causing inflation, and said it was "textbook economics."

Now, it is true that tariffs usually cause price increases but you know what reduces prices? An economy becoming more productive. Like reversing the Obama-Biden trend of cutting jobs in the real economy (and putting people on welfare, where they're paid to produce nothing) while creating jobs in the fake economy of government bureaucrats taking money from some people and giving it to other people. Moving people from destructive to productive uses will tend to check price increases.

Bloomberg is very, very sad that Trump's tariffs are causing, if anything, prices to fall.

I won't bother to prove it -- though I could, easily -- the vile communist corporate propaganda media is wailing and gnashing their teeth that the explosion of inflation they've been wishcasting for not just since the election but for years before it just isn't happening.

The Guardian, in fact, flat out lies to its readers and tells them prices are going up:

US prices continued to rise in May amid Trump tariffs

Annualized inflation hit 2.4% in May, up from 2.3% in April, as Trump pushes ahead with controversial trade plans

US prices continued to rise in May as companies and consumers grappled with Donald Trump’s tariffs. The president has repeatedly pledged to lower costs across the economy.

Annualized inflation ticked higher, to 2.4%, in May, up from 2.3% in April. On a month-to-month basis, the consumer price index rose by 0.1%, down from 0.2% the previous month.

The readings were softer than expected. Economists had expected a headline CPI reading for 2.5% in May, amid widespread uncertainty over the direction of the US economy.

Now, it is true that inflation clocked in at 0.1% in May -- which is a very low rate. Sean Davis did a quick calculation and confirms that that 0.1% monthly increase in inflation translates to a yearly inflation rate of 1.25% -- well below the 2% inflation rate the Fed actually aims for as its "target" rate. (The Fed believes that some amount of inflation is good and necessary. I think they reason that some inflation pressures people to invest money or at least put it into savings accounts (with the bank investing it) rather than just hoarding it.)

posted by Ace at 03:30 PM

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