China exports

In 1978 China moved to a free market economy while keeping the government communist. In 2001 China was admitted to the World Trade Organization and they immediately began to disregard the rules to give themselves and advantage. Chinese people living in poverty dropped from 88 per cent in 1981 to 6 per cent in 2017. This had a profound effect on US industries. Take one example. China began producing steel at below cost by using cheap labor and government subsidies and then dumped steel on the world market which caused the US steel industry to fold. This went on across the board with many industries and the world stood by enjoying the low cost which was passed on to consumers while watching our manufacturing base disappear. It was so thorough and complete that President Obama famously said that jobs lost in the rust belt would not be coming back. As Trump increases import taxes on Chinese goods companies will look for other places and some will return their production to the US. They will have to pay higher cost including wages which means higher cost to consumers. If Americans are informed as to what is happening will they be willing to accept higher prices. Stay tuned.