Valuetainment - August 19, 2025


ļ¼‚China's Feeling The HEATā€ - China ADMITS Trump Tariffs CRIPPLED Economy & DEVASTATED Trade


Episode Stats

Length

8 minutes

Words per Minute

169.24118

Word Count

1,417

Sentence Count

132

Misogynist Sentences

2

Hate Speech Sentences

1


Summary

China just admitted that Trump's trade tariffs are taking a toll on their economy. What does that mean for the world's second-largest economy? And what will China do about it? We talk about it all on this episode of the podcast.


Transcript

00:00:00.000 China just admitted that Trump's tariffs are taking a toll on their economy.
00:00:05.600 Think about that.
00:00:06.840 That they have to finally admit that it's taking a toll on their economy.
00:00:11.480 Let me read this to you.
00:00:13.500 China's economy weakened in July with Beijing,
00:00:16.140 acknowledging the impact of U.S. tariffs,
00:00:18.140 as stated by Fuling Yu, spokesman and chief economist of China's National Bureau of Statistics,
00:00:23.360 which Tom's got a very good point to say about that,
00:00:25.340 who noted the international environment in July was complex and severe
00:00:28.700 with the continued impact of trade protectionism and unilateralism.
00:00:34.040 Official data showed industrial output rose 5.7% year over year,
00:00:39.360 down from 6.8% in June.
00:00:41.520 Retail sales growth slowed to 3.7%, the lowest in 2025.
00:00:46.160 And unemployment rose to 5.2% with millions of college students struggling to find work.
00:00:50.500 Chinese exports to the U.S. fell 22% in July.
00:00:55.280 Compared to the previous year, amid ongoing trade negotiations with the Trump administration,
00:01:00.620 the U.S. and China extended a temporary trade truce in May for another 90 days on Monday,
00:01:05.120 keeping U.S. tariffs on Chinese goods at 30%,
00:01:07.140 higher than during the Biden administration,
00:01:08.940 but lower than the 100% rates in April,
00:01:11.080 with Trump administration also closing tariff loopholes,
00:01:14.160 like the de minimis exemption and transshipment through third countries.
00:01:20.100 They're feeling the pain.
00:01:21.340 Oh, tariffs are not going to do anything to China.
00:01:23.660 We're going to pay price for it.
00:01:24.800 Really?
00:01:25.420 That's not what China is saying.
00:01:27.520 Tom, thoughts?
00:01:28.200 I'll tell you, I have a few thoughts here.
00:01:31.140 China was, how many of you out there,
00:01:34.300 and I'm sure there's people out there,
00:01:35.360 think about this, Vinny,
00:01:36.680 let's say you have a company and you have one big customer
00:01:39.500 and you really rely on that customer,
00:01:41.300 and they go from 20% of your business,
00:01:45.340 one-third of your business,
00:01:46.880 40% of your business,
00:01:48.120 it's like what I used to talk to my dad about.
00:01:53.040 It says, remember, in business,
00:01:55.520 if you owe the bank $10 million, you're in trouble.
00:01:58.280 If you owe them a billion dollars, they're in trouble.
00:02:01.600 And so you take a look at this,
00:02:03.920 you have this one giant customer,
00:02:05.380 and then that customer says,
00:02:06.880 hey, you know, we're really having a tough time.
00:02:08.480 We might go into a recession.
00:02:09.760 Who panics?
00:02:10.560 You.
00:02:11.080 You're like, oh my gosh,
00:02:12.140 40% of my business is relying on this customer,
00:02:14.220 and now this customer is in trouble.
00:02:15.840 That's exactly what's happened to China,
00:02:17.480 because underneath China,
00:02:18.640 they had a poor labor market,
00:02:20.480 they have poor opportunities for the next generation,
00:02:22.940 they have a completely mismanaged real estate industry
00:02:26.160 throughout the,
00:02:26.880 you see them tearing down apartment buildings
00:02:28.460 that were built to make mini cities in the wrong areas,
00:02:31.320 and there was no one to live there,
00:02:32.760 and so they're tearing them down.
00:02:34.120 So behind, guess what was a big Band-Aid on top of it?
00:02:38.800 Another $10 billion of trade with the U.S.
00:02:42.380 It was a big Band-Aid.
00:02:43.820 And what did Trump do?
00:02:45.880 Daddy's home.
00:02:47.440 And all of a sudden,
00:02:49.240 the U.S. exports fell one-fifth this July versus last July.
00:02:55.020 So people want to know,
00:02:56.260 whoa, you haven't got a trade deal with China yet.
00:02:58.080 You haven't got a trade deal with China yet.
00:03:00.200 They'll be here.
00:03:01.060 Yeah.
00:03:01.620 They'll be here.
00:03:02.440 This puts us closer and closer to a deal.
00:03:05.900 Adam.
00:03:06.940 Yeah, Tom's absolutely right.
00:03:08.500 If you see what's going on,
00:03:09.280 there's slow growth.
00:03:10.240 There's exports have dropped significantly.
00:03:11.780 They have empty ships without cargo.
00:03:14.240 Factories are laying off work.
00:03:15.780 I think they actually just played like,
00:03:17.440 let's make a deal to try to inflate these ghost cities with real estate.
00:03:21.760 They're basically saying,
00:03:22.920 listen, guys,
00:03:23.560 we're going to give you a half off.
00:03:24.580 We're going to give you subsidies.
00:03:25.720 Buy some of these apartments because there's nobody living there.
00:03:28.660 So imagine building apartments all around Nebraska, Omaha, Iowa.
00:03:33.560 You're doing all these cities and then nobody's moving there.
00:03:35.700 And now they're like, we'll give you a half off.
00:03:37.540 Come work at the factory.
00:03:38.660 Free apartment.
00:03:39.380 Please.
00:03:39.780 Yeah.
00:03:40.040 So free, free, free.
00:03:41.140 Where have I heard that before?
00:03:42.940 Communism.
00:03:43.960 So yeah, Tom's absolutely right.
00:03:46.040 China's going to feel the heat.
00:03:47.000 I don't think they've succumbed to the full deal yet, but it'll happen.
00:03:51.060 Tom, great point.
00:03:51.900 If, you know, 25, 50% of your deals that come through one,
00:03:59.080 what'd you call it?
00:03:59.780 One customer, you have a major problem if that customer stops buying.
00:04:03.620 Trump, while this is taking place,
00:04:06.660 says no eminent plan to penalize China for buying Russia oil.
00:04:11.240 Rob, I think you have a clip on this one here.
00:04:13.540 He says that while saying at the same time,
00:04:18.440 semiconductor tariffs are coming soon.
00:04:20.480 And you know how high they could reach, according to Bloomberg?
00:04:23.940 300%.
00:04:24.420 300%.
00:04:26.060 So what is he doing?
00:04:27.120 Here's him and Brett Baer.
00:04:29.960 Go ahead, Rob.
00:04:31.280 That Putin comes to this table maybe in an economic pinch
00:04:35.500 and that maybe the things you've already done
00:04:37.920 have put him in an economic pitch.
00:04:41.340 Is there an economic side to this
00:04:43.180 as Russia hoping to open up to the world?
00:04:48.500 Well, he lost an oil client, so to speak,
00:04:52.940 which is India, which was doing about 40% of the oil.
00:04:56.780 China, as you know, is doing a lot.
00:04:59.060 And others, I have another few countries.
00:05:01.380 And if I did what's called a secondary sanction
00:05:04.000 or a secondary tariff,
00:05:05.880 it would be, you know, very devastating from their standpoint.
00:05:09.960 If I have to do it, I'll do it.
00:05:11.220 Maybe I won't have to do it.
00:05:13.700 Typical Trump.
00:05:14.400 Maybe I'll do it.
00:05:15.060 Maybe I won't.
00:05:15.600 Maybe I'll have to do it.
00:05:16.360 Yeah, maybe I'll do it.
00:05:17.600 Maybe I won't do it.
00:05:18.500 But the reality of it is,
00:05:19.800 this is also leading to once Russia-Ukraine is solved,
00:05:25.060 then tariff is solved.
00:05:27.560 Semiconductors are part of the tariff issue
00:05:30.000 because, you know, that's also him trying to negotiate
00:05:32.940 a future peace deal between China and Taiwan,
00:05:36.840 which China is watching very closely
00:05:39.660 on everything that's going on between Russia and Ukraine
00:05:43.160 because China knows their Ukraine is Taiwan
00:05:45.920 and they're watching that in a way
00:05:47.380 to see what they're going to be doing next.
00:05:49.360 All eyes on Russia, Ukraine, Zelensky, Putin,
00:05:53.200 all of that going on from China's perspective.
00:05:55.960 Tom, your thoughts on this.
00:05:56.960 Final thought on semiconductors.
00:05:58.040 Make it real quick.
00:05:59.120 Trump cleared the boards of regulation
00:06:01.140 and to allow semiconductors to come back to the United States.
00:06:03.940 They want TMSC, Taiwan Semiconductor Company.
00:06:07.940 They want to be here.
00:06:08.660 A factory was started in Arizona under Biden,
00:06:11.320 as a matter of fact, the CHIPS Act.
00:06:13.740 But now what Trump is saying,
00:06:14.760 you know what Trump is also saying?
00:06:16.200 He's putting the American semiconductor industry on the clock,
00:06:19.500 saying you said you were going to build your factories here.
00:06:22.340 Get on with it.
00:06:23.920 Build, build, build.
00:06:25.120 Build, baby, build.
00:06:26.140 Because as soon as he puts the tariffs over there,
00:06:27.960 it's expensive unless they're made here.
00:06:30.020 That's right.
00:06:30.560 Now, you know, part of this is also, you know,
00:06:33.440 Apple, $600 billion,
00:06:34.660 all these other companies that made the promises.
00:06:36.280 Pressures on a lot of people
00:06:38.380 because he's moving faster than businesses are.
00:06:41.540 And businesses are not accustomed to the government,
00:06:44.160 the, you know, White House moving faster than them.
00:06:46.480 But there happens to be an entrepreneur in the White House
00:06:49.040 who's accustomed to moving fast.
00:06:51.260 And they're not fans of that.
00:06:53.880 There's a lot of things that's going on right now in the marketplace.
00:06:56.320 Tomorrow night, the 19th,
00:06:58.700 Tuesday night, the 19th at 6 p.m.,
00:07:01.120 free webinar, 20 threats,
00:07:04.100 20 business threats you cannot ignore in 2025.
00:07:07.140 We do this every year,
00:07:08.680 and it's a new one every single year that we go through.
00:07:11.100 I highly, highly recommend,
00:07:13.220 if you're somebody that runs a small business,
00:07:15.800 you're an executive with a company,
00:07:17.300 or somebody that's an entrepreneur,
00:07:18.680 you're running a business,
00:07:20.200 you're planning on doing something for yourself,
00:07:22.200 whatever you do,
00:07:22.920 do not miss tomorrow night's webinar at 6 p.m.,
00:07:25.200 August 19th.
00:07:26.480 Again, 6 p.m.,
00:07:27.480 everybody at the end gets the white paper
00:07:30.040 of the 20 threats.
00:07:31.520 Everybody gets the white paper of the 20 threats,
00:07:34.860 and a couple other items that we'll be discussing on that.
00:07:37.380 Rob, the link for it is vtwebinar.com.
00:07:39.840 Go to vtwebinar.com to register for the webinar.
00:07:44.920 Again, vtwebinar.com.
00:07:47.580 If you enjoyed this video,
00:07:48.560 you want to watch more videos like this,
00:07:49.940 click here,
00:07:50.320 and if you want to watch the entire podcast,
00:07:52.640 click here.
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