We are currently hearing a lot of debate about the trade war with China from the media talking heads, particularly on MSNBC and CNN. Their big claim is that President Donald Trump has put the United States at a disadvantage by raising tariffs on Chinese goods in an effort to get China to lower their tariffs and other barriers on American exports to that country. However, CNBC's Jim Cramer on Tuesday's Squawk Box, explained how Trump is using the right tactic as well as how the talking heads are getting it wrong.
JIM CRAMER: Look, the Chinese are rapacious, the Chinese they'll do anything to stop us, the Chinese are trying to take our intellectual property. At least we have a president that's going to do something about it even if we don't like him and I hear that over and over again and I keep listening to talking heads who act like, you know what, we're at the mercy of China and we better start realizing we're at the mercy of them but the business people don't feel like that at all.
Cramer might have the talking heads of the Morning Joe crew at MSNBC in mind who have been hyping how we are at the mercy of China.
Later he explained why we are not at the mercy of China as the talking heads have been insisting:
The game over thing is starting to really bore me. Yes there are some retailers that are going to have to raise prices a little but you know what, the Chinese have been eating most of these tariffs because they want the business. Why are they suddenly going to stop? You know, the Chinese are companies. It's bad capitalism that they use. They cannot dictate to us. We can dictate to them because they don't have a market for this stuff. But again I hear people come on and they say that we are a paper tiger. We're not. They need our business. They will have to cut prices of what they give to us. Why is it, Melissa, that that's never talked about?
Perhaps that is a question that Cramer should address to the Morning Joe doom and gloom talking heads.