Tag: china trade war
If They're 'Pro-Life,' Why Did Republicans Vote No On Baby Formula?

If They're 'Pro-Life,' Why Did Republicans Vote No On Baby Formula?

In the long era of anti-abortion demagoguery, “babies” have been the enduring symbol of Republican caring. They want to defend the rights of babies as persons even before they are born. Or, as former Congressman Barney Frank quipped, “From their perspective, life begins at conception and ends at birth.”

And yet Congressional Republicans proved beyond doubt this week that they regard living, breathing babies solely as political props, not real human beings with actual needs. True to compassionless form, nearly every Republican in the House voted no when the chance came to feed infants, living ones.

Did you get that latest “pro-life” hypocrisy? The Republicans almost unanimously opposed a bill to increase the supply of infant formula during a crisis—192 Republicans against, with only 12 breaking ranks. What could make them behave so irresponsibly and even cruelly? Because they always want the problem and never want the solution.

What this midterm election season is teaching us about the Republican Party is a political lesson we ought to have learned years ago. When a real problem arises, like soaring inflation or supply chain disruptions, they propose nothing and oppose everything. They just want to exploit whatever the problem is for political profit—and often for the financial profit of their dark money benefactors.

By voting against an emergency Biden administration bill to alleviate the nationwide shortage of baby formula, the House Republicans again proved Barney Frank’s adage that their party is “pro-life” until the moment of birth. After that, it’s every baby for herself. The Republicans’ complaint that the White House is “throwing money at the problem” sounds especially absurd because the bill’s cost to solve a very serious problem is a mere $28 million, literally a rounding error in the Food and Drug Administration budget, let alone overall federal spending.

Given the usual glacial pace of Washington, the White House has in fact moved with blinding speed to solve the shortage, slashing away barriers to safely import formula from abroad and reopen the Abbott Labs factory whose closure from contamination had sharply limited domestic supplies.

Acting decisively, President Joe Biden has invoked the Defense Production Act to corral raw materials for the formula manufacturers and ordered the Pentagon to airlift specialty formulas from overseas that are urgently needed by several thousand families. The result, according to White House data, is that during the past four weeks more formula has been produced than during the same period preceding the Abbott formula recall that caused shortages in many states.

Instead of embracing solutions, of course, the Republicans are constantly searching for scapegoats, with particular attention to inflaming ethnic and racial hostility. Recall that the baby-formula debate began with Republican leaders attacking the White House over pallets of formula sent to the southern border, where infants in migrant families detained by authorities also needed to be fed.

The freak show contingent of the GOP has set the tone. Led by Reps. Marjorie Taylor Greene and Matt Gaetz, they accused Democrats of feeding migrant babies instead of native-born babies, as if the government policy should allow those other infants to starve to death. See, that’s how much these “replacement theory” racists value and love babies. “Pro-life” apparently means let living babies die.

And this week, following that compassionate “pro-life” agenda, those same Republican extremists voted against expanding the Women, Infants and Children program to allow lower income families to buy more varieties of formula. Instead, they seized on the chance to blame poor families for the shortage too. There were only nine of those monstrous members in the GOP caucus, but they’re the party vanguard.

If the Democrats were more like their partisan adversaries – that is, more concerned with pointing fingers than nourishing children – they might well have seized the opportunity to blame the Trump administration for the formula shortfall. Pursuing his futile and destructive trade war with China, Trump’s trade advisers wrote provisions into the US-Mexico-Canada Act that hindered exports of baby formula from Canada. To thwart a Chinese investment in an Ontario, Canada dairy plant, they made it virtually impossible to bring formula over the northern border. American infants are now going hungry thanks to that typically counter-productive and thoughtless action.

The Biden administration and Democrats in Congress have scarcely mentioned this Trumpian predicate to the current national predicament. They’re too busy figuring out how to get actual bottles of formula into the mouths of real infants that need them. They’re too concerned with solving the problem. Meanwhile, the Republicans chortle that they have manipulated public opinion into believing that it was all Biden’s fault at the same time they attempt to sabotage the solution. It’s their heartless, cynical, and absurdly predictable game. They are not crying about spilt milk.

Americans need to understand that if they vote for Republicans, real live children are going to suffer. Just look no farther than those 192 House Republicans who voted against baby formula.

Trump’s Trade War Hits Sporting Goods

Trump’s Trade War Hits Sporting Goods

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

Since 1983, Kim Karsh has helped baseball teams deal with an inconvenient fact of the modern economy: Almost everything you need to play America’s homegrown sport is now made in China, from cleats to batting helmets.

Lately, supplying the game’s amateurs and fans has gotten more difficult. Karsh owns California Pro Sports in Harbor City, California, where invoices for big customers now include a caveat: Prices are up due to the Trump administration’s tariffs on Chinese imports, and they could rise further on short notice.

“We have to explain to our customers that the trade war affects them as it does us,” Karsh said. “We can pass on pretty much everything to the consumer. The problem is, now they will shop lower-quality items. Some understand, and other people don’t.”

Although duties set to kick in soon will affect all manner of sports equipment that hasn’t been made in America for decades, baseball enthusiasts are perhaps affected most because so many items are needed to play the game.

Baseball caps were hit first by the third round of China tariffs that went into effect at 10 percent last September and rose to 25 percent in January, on top of the 7.5 percent base tariff. Those added about a dollar to the cost of a hat, Karsh said. Trump’s tariff will rise to 30 percent in October, bringing the total to 37.5, and possibly causing another price increase.

Retail prices for metal bats have already risen $5 to $10 each, Karsh said, even though a 10 percent hike on bats and other sporting goods was put off until Dec. 15 as the Trump administration made a concession to the Christmas shopping season. On Aug. 23, President Donald Trump said he would jack up the levy to 15 percent.

Baseballs themselves faced tariffs starting Sept. 1, and although Karsh said prices haven’t increased yet, he’s expecting to add between $3 and $5 per dozen. “If you can buy now that would be a plus,” Karsh told customers in August, figuring the only direction the tariffs will go is up.

Since the sporting goods industry has become so dominated by Chinese imports, teams have little ability to shop around. Meanwhile, equipment is not the only mounting cost, with rising fees at municipal fields and less volunteer labor from parents. That raises the barrier to entry for a game that’s supposed to be accessible to everyone.

“Baseball is struggling. The expense of playing the game has gone up sky high,” said Charles Blackburn, executive director of the National Amateur Baseball Federation, a 105-year-old volunteer group that organizes teams and tournaments. “It’s a tax on top of a tax. They’re discouraging people from playing the game of baseball.”

The story of how baseball gear became a product of China is the tale of globalization, writ small.

In the 1800s, when baseball consisted of loosely organized leagues with few uniform standards, balls were made in a factory in Natick, Massachusetts, and sewn together by women who worked out of their homes. The manufacturer, Harwood, developed the iconic figure-eight seam design involving 108 stitches and horsehide tanned on the outskirts of town.

As baseball developed, the major leagues standardized their balls and cut exclusive sourcing deals, first with Spalding and then with St. Louis-based Rawlings. Partly owned by Major League Baseball, Rawlings is now the nation’s largest supplier of baseball gear, and also a heavy importer from China.

Even slight alterations in baseball materials and construction can lead to heated debates, fueled most recently by a rise in home runs that some have theorized may have to do with the 5-ounce spheres having less drag. But the physical ball hasn’t changed much since 1977, when Rawlings officially started producing them for both the National and American Leagues. A cork center is coated with rubber, wound with hundreds of yards of wool and cotton yarn, and finished with hand-sewn leather. Since it remains a labor-intensive process — with no machine yet able to navigate those 108 stitches — manufacturers have moved around the world in search of lower wages and higher-volume suppliers of raw materials with less toxic production processes.

“We had the facilities and the know-how,” said Bill Sells, senior vice president for government affairs at the Sports and Fitness Industry Association. “And as the market developed, others became proficient at making balls, and it went overseas.”

While the major leagues won’t be affected much by tariffs on Chinese imports, everyone from Double A players down through the office softball team will be.

Rawlings made its balls in Puerto Rico until the 1960s, when it moved to Haiti — along with other ball manufacturers, like Wilson — in search of lower labor costs. As workers in Haiti agitated for higher pay and the political situation destabilized, Rawlings then moved production to Costa Rica, where balls are still produced for the major leagues and Triple A teams.

But in 1994, Rawlings started sourcing lower-end balls for mass consumption in China. Now, America imports $69.5 million worth of baseballs and softballs from China annually, compared with $18.5 million from the next-largest supplier, Costa Rica.

Only one company still produces baseball gloves in America — Texas-based Nokona, which sells mitts for hundreds of dollars each. Wooden bats are still produced in the U.S., which is rich in lumber. But metal and composite bats are largely made in China, and those are the ones used by club and school leagues with the tightest budgets.

Although U.S.-based sporting goods companies now produce almost none of their own gear, increasing the cost of imports from China could still jeopardize thousands of U.S. white collar jobs in design, product development, and sales and marketing.

Rawlings, which declined to comment, argued against tariffs in a June letter to the Office of the U.S. Trade Representative. It said that if tariffs were imposed, “entire product lines” could be eliminated, and job losses within its 670-person domestic workforce would be “inevitable.”

So far, no major manufacturers have responded to Trump’s tariffs by saying they will move their supply chains out of China. Baden Sports, a family-owned sporting goods manufacturer based in Renton, Washington, tried to rush its orders to get inventory through customs before new duties take effect. After that, CEO Michael Schindler says they’ll try to distribute increased costs.

“We’re working hard with our suppliers to help alleviate the hit,” Schindler said. “The Chinese government changes the currency to account for about 2 percent. Then you pass a couple percent on to your customers, and you might eat a percent or two. Everybody participates in the pain. It’s in everybody’s best interest to keep the thing going.”

But Schindler acknowledged China may not be his company’s last stop. As China moves on to higher-tech products like electric cars, Schindler said, the painstaking work of ball manufacturing may migrate to nations earlier on in their industrial evolution, like Bangladesh and Malaysia — just as his company shifted from Taiwan and South Korea in the 1980s to Japan and on to China. For his next move, Schindler is thinking about someplace closer to his customers, like Mexico or the Dominican Republic.

The problem is, other countries don’t have the labor force or the port capacity yet to handle a total exodus from China. Also, relationships with suppliers are hard to build: Baden has worked with the same Taiwanese-owned company since 1979, as it moved with him from country to country. It’s easier to relocate within Asia than to move halfway across the world — especially when the tariff situation seems to change from week to week.

“If you’re not thinking about it, you’re nuts,” Schindler said. “It’s almost impossible to do anything about it quickly. And partially because when the tariffs were first talked about, you never really knew. It’s really hard to make hard and fast decisions when you really don’t know.”

Uncertainty also faces most baseball teams and leagues as they plan next season’s purchases.

The Fort Wayne TinCaps, a Class A team, has braced for a cost increase. The team bought 8,160 balls last year at $53 a dozen, which comes to $36,040. Rawlings has an exclusive contract to supply the TinCaps with Chinese-made baseballs, so there’s no way to bargain down the price. Although the TinCaps share the cost of bats and balls with their major league affiliate, the San Diego Padres, collectively the tariffs could mean a significant cost increase by next year.

And that could also affect the fan experience, from Double A teams on down, said team President Michael Nutter. One of the traditions of these games is tossing balls out to eager fans, which can get expensive if prices rise.

“I know some teams and operators are really strict with the baseballs and discourage players from throwing them to fans and trying to protect every single baseball,” Nutter said, while noting that he’ll continue to encourage fielders to be generous. “Really, to us, this is a cost of doing business.”

Youth sports have even less wiggle room. Tariffs have been on the minds of school baseball team managers across the country, many of whom operate on fixed budgets from local governments, dues paid by parents and ticket sales.

“Anytime there’s an increase in equipment cost, it gets passed on to the gate, or you have another fundraiser,” said Shelton Crews, executive director of the Florida Athletic Coaches Association. “I know up here in Tallahassee, parents have to raise so much money or make up the difference in cash.”

At a certain point, increased prices will translate into lower sales, especially for the mom-and-pop shops like Karsh’s that already operate on razor-thin margins.

“We can survive, but it’s very unfortunate what they’re doing,” Karsh said. “The manufacturers have put all their eggs in one basket. But there’s not much I can do about it. Not much anybody can do about it.”

Recession Hits US Manufacturing Sector In Trade War

Recession Hits US Manufacturing Sector In Trade War

U.S. factories are struggling so badly that the manufacturing sector is officially in a recession, according to a Bloomberg report. It’s thanks in large part to Trump’s trade war with China.

New data released Tuesday shows shrinking orders, production, and hiring in the manufacturing industry, hitting a three-year low. The news follows worrisome data from August showing new manufacturing orders and exports hit a 10-year low.

Factories are struggling so much that the manufacturing industry is “technically already in a recession in the U.S.,” Bloomberg wrote. A recession is defined as when the Federal Reserve observes two straight quarters, or six months, of declining output.

And a recession does not just mean fewer things are being made; it also means fewer people have jobs. Data shows factory employment dropped to the lowest level since March 2016, during President Obama’s final year in office.

As far back as early summer, economists looking at the decline in manufacturing under Trump expressed concern.

“In our view, a continued decline … will be hard to spin as anything but a manufacturing recession,” Binky Chadha, chief strategist at Deutsche Bank, wrote in June.

The manufacturing recession can be laid at Trump’s feet.

Trump’s “escalating trade war with China is taking a big bite from the manufacturing sector,” CNBC reports. For more than a year, Trump has engaged in a trade war with China, culminating in increased tariffs on almost every product imported from China. Those tariffs mean companies must pay more for materials and parts imported from China.

And whatever costs those companies don’t absorb, they pass along to buyers, meaning the tariffs are nothing more than a tax on American consumers, a fact even Senate Majority Leader Mitch McConnell admits. In total, families can expect a $1,000 tax hike, thanks to Trump’s trade policies.

In retaliation for tariffs ordered by Trump, China has stopped buying U.S. agricultural products, pushing American farmers into bankruptcy at record rates.

The trade war has gotten so bad that major banks warned that Trump’s policies could spark a nationwide recession.

“Trade tensions have pushed corporate confidence and global growth to multi-year lows,” Chetan Ahya, Morgan Stanley’s chief economist, said in early August.

The manufacturing recession could just be the beginning. The new data indicates “manufacturing is likely to have again acted as a significant drag on the economy in the third quarter,” Chris Williamson, chief business economist at IHS Markit, said in a statement.

When he ran for office in 2016, Trump vowed to restore “the glory of American manufacturing.”

But that’s not what is happening. Instead, the American manufacturing sector is experiencing a recession.

Published with permission of The American Independent.

Trump’s Trade War Raised Taxes By $30 Billion

Trump’s Trade War Raised Taxes By $30 Billion

Trump’s trade war is going to cost American taxpayers an additional $30 billion taxes a year, according to a new analysis released Thursday by the nonpartisan Congressional Budget Office (CBO).

“CBO estimates that all tariffs enacted under Trump are raising taxes by about $30 billion annually ($315B 2020-2029),” noted Zach Moller, deputy director of Third Way’s Economic Program. “This would rise to about $45 billion a year if announced tariffs go into effect.”

The trade war tax hike would add to Trump’s already weak record on taxes.

Trump has claimed that the tax cut enacted by him and congressional Republicans in 2017 would be “rocket fuel” for the economy, but instead economic growth slowed. That legislation contained tax cuts targeted toward the super-rich and large corporations.

The trade war has weighed on American businesses and the economy.

Farmers have been filing bankruptcies at a record rate as Trump’s tariffs have kept them out of the global marketplace. China has raised tariffs for American goods in retaliation for the trade war.

The program designed to bail out farmers until the trade war is over is also experiencing major bureaucratic delays, with only a small sliver of the farmers who should receive funds actually taking in money so far. The government has now paid more than $1 million in interest to those farmers who haven’t received their payments on time.

Even when those payments are made, they will not make up for the shortfall from the trade war, and it will cost taxpayers billions.

At the same time, an overwhelming number of economists have said the trade war is dragging down the economic recovery Trump inherited from President Barack Obama and could lead to a recession.

Even as the trade war threatens the economy and passes increased costs to individual Americans and American businesses, Trump and his Republican allies continue to insist they are dug in for the long haul, no matter the harm.

Published with permission of The American Independent.