Trade policies and China’s rise: Challenges for the U.S. economy
By finnheartley // 2025-09-17
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  • Failed Tariff Strategy: Trump’s tariffs disrupted U.S. supply chains, weakened competitiveness, and accelerated China’s economic dominance while failing to secure stable trade agreements or protect American industries.
  • China’s Rising Power: China deepened ties with BRICS nations, secured cheap Russian energy, and dominates critical technologies (AI, robotics, rare earths), outpacing U.S. innovation and manufacturing capacity.
  • Eastward Economic Shift: Global wealth is moving toward China and India, mirroring historical trade realignments, while U.S. policy missteps risk leaving America economically marginalized like the Ottoman Empire.
  • U.S. Workforce Crisis: Decades of offshoring and a failing education system have eroded skilled labor, with even TSMC hesitating to invest due to America’s lack of trained workers.
  • Urgent Need for Reform: Without restructuring trade policies, rebuilding manufacturing, and investing in education, the U.S. faces economic collapse while China and Russia solidify global dominance.

Trump’s Tariffs Backfire as China’s Economic Dominance Grows

The Trump administration’s aggressive trade policies, particularly its tariffs on allies and failure to secure stable agreements with China, have exacerbated America’s economic decline while accelerating China’s rise as the world’s dominant manufacturing and technological power. Despite claims of protecting American jobs, these policies have instead disrupted supply chains, weakened U.S. competitiveness, and pushed key industries toward collapse.

Tariffs Punish Allies, Strengthen China

Colonel Douglas MacGregor, a geopolitical expert and former Pentagon strategist, warns that Trump’s tariff strategy has been disastrous. “Tariffs are defensive mechanisms,” MacGregor explains. “They were historically used to protect fledgling industries, not to punish allies.” Yet, the Trump administration imposed harsh tariffs on trade partners like Japan, Germany, and India while failing to secure a coherent deal with China. The result? China shrugged off the pressure. “The Chinese don’t need us as much as we need them,” MacGregor notes. Instead of bending to U.S. demands, China deepened trade ties with Russia and other BRICS nations, securing cheap energy and raw materials while expanding its industrial base. Meanwhile, American manufacturers—already struggling with high costs—faced further disruptions as supply chains shifted away from the U.S.

The Shift of Wealth and Power Eastward

China’s economic ascent is undeniable. With nearly 1.4 billion people, a thriving STEM workforce, and dominance in 60 out of 65 critical technologies—including robotics, rare earth processing, and AI—China is outpacing the U.S. in innovation and production. The newly approved Power of Siberia 2 pipeline will soon funnel cheap Russian gas to China, fueling its factories and data centers while Europe’s industrial base collapses from energy shortages. MacGregor compares this shift to the 1492 reorientation of global trade, when wealth and influence moved from the Middle East to Europe. Today, the flow of capital and resources is reversing—heading eastward as China and India emerge as the new economic powerhouses. “Unless we change our behavior, we’ll end up like the Ottoman Empire—left behind,” MacGregor warns.

America’s Self-Inflicted Decline

The U.S. faces a deeper crisis: the erosion of its skilled workforce and manufacturing base. Decades of offshoring, coupled with a failing education system, have left America without the human capital needed to compete. Even Taiwan Semiconductor Manufacturing Company (TSMC) expressed doubts about building U.S. plants, citing a lack of trained workers. MacGregor highlights Germany’s former industrial model—where corporations partnered with trade schools to train workers—as a solution America has ignored. Instead, U.S. leadership remains impulsive, prioritizing short-term political wins over long-term strategy. “We need coherent, strategic thinking,” MacGregor insists. “Right now, we’re getting none of it.”

The Path Forward

The solution? Restructure trade policies to prioritize stability, rebuild domestic manufacturing, and invest in education. But with Trump doubling down on tariffs and Biden’s administration equally hostile toward China, neither side offers a viable plan. MacGregor warns that without urgent reform, America risks economic collapse—akin to the Great Depression—while China and Russia solidify their dominance. “If we go under financially, no one will care about Ukraine or the Middle East,” he says. “Our survival depends on fixing this now.” The clock is ticking. The question is whether America’s leaders will wake up—or watch as the world’s economic future is decided without them. Watch the full episode of the "Health Ranger Report" with Mike Adams, the Health Ranger, and Col. Douglas Macgregor as they discuss how the West lost hegemonic dominance. This video is from the Health Ranger Report channel on Brighteon.com.

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