Trump’s WAR on China: Can India Turn the US-China Trade War to become a SUPERPOWER?

hi everybody there is a war erupting in the geopolitics of 2025 again and the reason why this is scary is because this war is happening between two of the most powerful countries in the world the world's leading superpowers are locking horns came on here trade war between the United States and China is here China never paid 10 cents to this country they ripped us off we're putting on a 25% tariff without exception they don't take our cars they don't take our farm products they take almost nothing and we take everything from them what would you

do what can you do so easy I drop a 25% tax on China we urge the US to correct its action and stop weaponizing trade issues the country is finance ministry announcing a 15% tariff on us coal and liquefied natural gas you this is the beginning of making America Rich again for decades the United States has dominated the global economy it made the rules build the world's biggest corporations and control the world with blood debt technology and also bombs the American people in their righteous might will win through to Absolute Victory let me tell you

something the United States of America is the most powerful Nation on Earth the dollar came to dominate trade after World War II the US was the biggest economy in the world but now China is the new gangster in town China is engaged in a whole of State effort to become the world's only superpower by any means necessary I think China's playing the long game here if they want to be the number one economic power in the world while the US built a propaganda machine to look down on China China built a manufacturing Empire so powerful

that it is holding America by the throat while America once laughed at Maiden China China is now laughing at America with almost 20% of the world economy in its pocket so what did Trump do Donald Trump declared a war a war not with soldiers or tanks but with the most powerful weapon of the 21st century which is economics and the world is calling this the trade War of the US and China but you know what guys while most people think it is an economic Master stroke The Wall Street Journal is calling the tarist strategy the

dumbest trade war in history there may be some better justification for what the journal's editorial board has called the dumbest trade war in history this executive order the I did not lose but I totally won the trade War order Donald Trump is doing so many stupidly bad things so badly stupidly that it's difficult to keep up starting the world's dumbest trade war is an accomplishment to add to a very long list uh with with first of all world's dumbest trade War they really want America Americans to pay more for this Mega hat it's made in

China of course just like almost everything else these days so the question is what is this trade war between us and China will this bold move of trump slow down China will it send the world economy crashing down again and most importantly with China being at war with America how will India benefit in this Crossfire before we move on this video sponsor Ed by small case people small Cas has partnered with banks to offer High interest fds on 7th of February RBI lowed the repo rate by 25 base points this will likely lead to Banks

reducing their interest on fixed deposits so if you're looking for stable fixed R Investments like fds now may be the time to invest and lock your investments into higher interest rates on the small case app you get fixed deposits offered by multiple RBI regulated Banks where you can earn up to 99.3% interest on your fixed deposits the best part is that you don't need to have or open a savings account to invest in these fds and your deposits up to 5 lakhs with each Bank are insured by dicgc also the entire process is digital with

no physical paperwork so whether you're planning for retirement or simply seeking a safe investment option fds can become a stable component to your Investment Portfolio the link to the app is in the description and just a small disclaimer guys always remember interest rates are subject to change [Music] CH let's start by understanding why does Trump hate China well Donald Trump has three strong reasons firstly Donald Trump thinks China is a thief and he's not entirely wrong because during his tenure in 2018 America discovered something absolutely shocking about China president Trump has been a fierce critic

of China accusing it of stealing us technology that's used in the military trillions of dollars intellectual property nearly all of them somehow now connected to China we also see a coordinated effort across the Chinese government to lie cheat and steal their way into unfairly dominating entire technology sectors we are now making it clear to China that after years of targeting our Industries the theft of American jobs and wealth has come to an end you see everybody knows that semiconductors are the lifeblood of the world economy and a company called Micron Technology was a semiconductor Titan

who had spent billions of dollars in decades of research into building the best semiconductors in the world they are Cutting Edge memory chips powered everything from Apple's iPhones to NASA's spacecrafts and the fun fact was that China was micron's biggest customer accounting for 50% of its Revenue so business was booming and Micron was Unstoppable but then something terrifying happened to Micron in 2018 some Micron Engineers were clearing cleaning the storage room and while cleaning they found a laptop that was left by a former employee who had just left Micron but when they opened the laptop

they were shocked to see that the laptop contained the files of the secret blueprints of their most valuable chips it was the most spine chilling thing they had ever seen in their life so with no time to waste Micron activated an emergency response task force millions of dollars were immediately funneled every digital footprint was analyzed every communication was was traced and every possible lead was followed to find these engineers and finally what they uncovered was far worse than they imagined these group of Micron Engineers had stolen these designs and hand delivered them to a Taiwanese

firm called fujin Juna and here's the real shocker this company fujin Juna was backed by the Chinese government and just when you think it couldn't get worse it does instead of facing the punishment or feeling guilty about it China flipped the script they started gaslighting Micron you know what they did the Chinese courts banned Micron from selling in China and accused Micron of stealing their technology Us justice department Prosecuting companies based in China and Taiwan accused of stealing its Secrets out of Taiwan and acting as a conduit to try and help the Chinese China has

banned an American company a memory chip giant called Micron Technology the action stepss up their ongoing feud with the United States over technology and security that really went to war against the Chinese many years ago saying that they've been steal the intellectual property this was so bad for micron that within some time Micron lost billions of dollars in value its stock plummeted and the company was locked out of its most profitable Market meanwhile China prepared to mass produce Micron stent technology without spending a dime on research and when this case was taken to court the

Chinese vent free due to lack of evidence but China has done this to American companies again and again and again I was sentenced today in Cincinnati to 20 years in prison for conspiring to steal GE Aviation trade secrets for China the accused man is Mo halong or known as Robert Mo in the US he's accused of stealing at least 30 to4 million worth of seed technology from both DWP Pioneer and Monsanto this is the first reason why Donald Trump hates China secondly Donald Trump thinks that us and China are like to toxic people in a

toxic situationship where the US keeps buying cars iPhones and semiconductors from China while China just keeps collecting cash and barely buys anything in return look at this in 2024 the US imported approximately $525 billion worth of goods from China and what did China Buy in return well China just bought $164 billion worth of American products and that's it so that's a 361 billion dollar trade Gap so every time Americans fill their carts with made in China Goods they're essentially paying for jobs in China while the American manufacturers are going bankrupt and lastly Donald Trump believes

that China is slowly strangling the United States in such a way that when the war comes China is capable of paralyzing the US Army and the best case to prove this was Huawei Huawei began a concerted effort to steal information about a robot that T-Mobile used to test mobile phones Huawei to steal us technology Huawei is very dangerous Huawei the Chinese Tech Giant of criminal activity in the US Huawei was famous in their developing years for taking other people's technology you mean steal it technically yes did you know that in 2019 the US Department of

Justice exposed a chilling truth Huawei had been stealing secrets from six American tech companies and they were not just stealing ideas they were stealing Source codes Blueprints and confidential manuals then in 2022 the FBI uncovered something even more scary hua's Telecom equipments were quietly installed near the US military bases and nuclear missile silos and these equipments had the capability to intercept and even disrupt highly classified defense department Communications in fact huawe was such a dangerous company that the United States ended up Banning Huawei altogether on May the 15th President Trump had effectively banned Huawei and

turned it a threat to National Security anything having to do with National Security we're not dealing with Hua these are the reasons why Donald Trump is waging an economic war against China which the world is calling the trade war between us and China and here's how it works out let's take a real world example of an electric vehicle a Chinese made eveve like byd or Neo costs around $30,000 to manufacture in China and it is sold in the US for 35 ,000 after shipping and dealer markups a similar americanmade Eevee like a Ford Mustang Maki

costs around $40,000 to manufactured in the US and is sold for $45,000 in the market so without tariffs the Chinese car will cost $35,000 and the American car will cost $45,000 so clearly the Chinese car is $10,000 cheaper and most price conscious American consumers would prefer the Chinese car or the American car right this is the reason why American manufacturers go bankrupt and the Chinese end up fueling their economy with more exports and more jobs so what does Donald Trump do to protect the American automakers let's say Donald Trump imposes a 25% tariff on Chinese

cars now the Chinese car gets a hit with an extra 25% tax on its $335,000 selling price that adds $8,750 to the price TCH so now the new price of the Chinese car is $335,000 + $8,750 equal to $43,750 now the price gap between the American and the Chinese car shrinks dramatically Chinese car costs $43,750 and the American car cost $45,000 and now with only a $1,250 difference the American car makers have a much better chance to compete with Chinese inputs this helps keep American manufacturing alive and prevents China from flooding the US market with

cheaper Vehicles this is how tariffs are supposed to work so this looks pretty great right Trump is out there flexing his economic muscle and he's slapping Taris on Chinese companies and making them pay so the Chinese will lose business and the Americans will win right wrong because like I said while most people think it is an economic Master stroke The Wall Street Journal is calling this strategy the dumbest trade war in history there may be some better justification for what the journal's editorial board has called the dumbest trade war in history Donald Trump is doing

so many stupid L bad things so badly stupidly that it's difficult to keep up and when we did our analysis it did make sense so let's break it down to understand how the Tariff strategy might actually fail look at this before Trump's tariffs an American bought a Chinese made smartphone for $1,000 and now Trump decides to punish China and slaps a 10% tariff on Chinese electronics sounds great right China should be paying for this except they don't instead the Chinese company just increases the price to $1,100 so now that same smartphone cost $1,100 and guess

who pays this extra $100 it's not some Uncle sitting in Beijing guys it's Bob from Texas and Karen from New York who was standing at the store thinking why the hell is this phone costing $100 more and if you multiply this across millions of products from laptops to washing machines to car parts suddenly you will see that the Americans are selling out billions of dollars just to punish the Chinese so yes Americans are paying the money and they're expecting that the Chinese will be punished and what is China doing nothing it is still selling the

same stuff just at higher prices and here's where you need to understand the might of the Chinese power you see guys firstly the American Products can't replace the Chinese products overnight because the labor and resource cost of China is far lesser than the US look at this a Tesla Model 3 is 65% cheaper to be made in Shanghai than in the US secondly even made in America Products import Chinese raw materials to produce them in America so if China increases its taxes on raw materials automatically the American Products in America will get costlier and lastly

even with additional taxes the American Products still can't beat the Chinese products and in certain sectors China's price Advantage is absolutely mind-blowing for example in Footwear and headwear Goods China was the lowest cost supplier for 59% of the products and in Metal Products this number stood at 54% so in short economists say that even if heavy tariffs are imposed on the Chinese products it will take money out from the Americans but it won't punish the Chinese in fact according to Peterson's Institute for international economics Trump's tariffs will cost the average American household an additional $1,200

a year this is the reason why China has America by its throat and even the mighty superpower of the United States of America is not able to shake up China so if the Chinese products aren't going anywhere who gets these extra $100 it's the government of the United States of America so will the terce kill Chinese jobs or the American jobs well we don't know yet because economists say that even if the American companies try to move back to the US for manufacturing it'll be a nightmare for them for example if Apple made iPhones in

the US instead of China the price could jump from $1,000 to $2,400 and why is that it is because of the labor cost us workers earn $24 per hour compared to just $3.6 in China similarly Key Parts like screens and cameras are still made in China which will add import costs if assembled in the US on top of that just like the Indian government even the US business regulations are too bad which could weaken manufacturing infrastructure and push the cost of the iPhone even higher in fact even Elon Musk spoke about this at the Jan

podcast Trump likes to talk a lot about a lot is tariffs yeah what what are your thoughts on tariffs so when there are sudden changes in tariffs then you're like well we've got a factory like somewhere else that's making a part that goes into the car now suddenly if that part's suddenly twice as expensive it like messes everything up I'm I'm against like sudden sudden giant tariffs if you've got to you know move a thousand tons of equipment collectively millions of tons of equipment you just can't do that overnight it's impossible so all in all

this makes it impractical to move from China all the way to us secondly the Tariff could cause a job crisis you know president Trump loves to say that tarff could create jobs but the economists argue at what cost because if you look at the 2018 case study of the washing machine tariffs after being imposed with 20% tariff washing machines made in China became very costly so companies like Samsung and LG they opened us factories and created 1,800 new jobs well it sounds great until you realize that those 1,800 jobs cost American consumers $1.5 billion a

year in additional prices so Americans paid $800,000 per job created and here's where it gets worse tffs don't just create jobs they also destroy them for example in 2018 Trump's steel and aluminum tariffs were supposed to protect American manufacturers but you know what actually happened steel got more expensive car and Machinery manufacturers got crushed by the high cost of Steel and studies estimate that 75 ,000 manufacturing jobs were lost because of the rising prices so yes some jobs were created but more jobs were lost because of terce and lastly The Economist of America fear that

when China responds by taxing back the US Goods in China it could cause a nightmare for American Industries look at this the last time this tariff War happened during the Trump tenure by 2019 China had levied 8 to 25% tariffs on most us Goods that it Imports and this move was so devastating that it began eroding the American agriculture Market if you know soybean is the single most valuable us export crop to China but after tariffs soybean saw the exports drop by almost 75% and not just soybean even pork and sorghum was so badly hit

that in total the American agriculture Market lost $26 billion similarly China said American cars sell in America but their components go from China right so they raiseed their tari on Chinese components in the US because of which American manufacturers faced higher costs and they again had to cut back on profits eventually they had to restrict expansion and even cut wages so now what remains to be seen is how will China respond in 2025 to the second round of Trump's sanctions and while these Americans and Chinese are engaged in this tariff War the good thing is

that for India this presents a wonderful opportunity because if Chinese products get more expensive Indian Goods should become more competitive in the US market so as American companies are moving away from China India is the next alternative right so will India become a superpower because of this trade War well unfortunately just like many other golden opportunities we are not even capable of utilizing this trillion dollar Economic Opportunity why because we have three major issues guys firstly we have the bureaucratic nightmare of setting up a business in India every file requires four or five signatures in

in particular order of sequence if one guy's on leave or sick or traveling somewhere on duty or whatever the file just sits until he comes back and signs that file while registering a company in Vietnam takes 6 months in India it could take up to 5 years in fact Elon Musk wanted to bring Tesla to India but India slapped 100% import duties and drowned them in policy RP now this is fine if they were luring Tesla to come to India but even after 5 years of negotiation nothing concrete has come out and it's not just

Tesla over 1,000 projects in Gujarat alone are stuck due to environmental clearances meanwhile Samsung set up an entire smartphone Factory in Vietnam in just one year with $22 billion in investment this is a first problem that we have which are sari baboos and their procedures the second problem is the land acquisition issue did you know even when foreign investors want to set up factories in India it is very difficult to get a piece of land in India look at this in 2005 a South Korean steel giant named posco announced a12 billion investment in odisha which

could have been India's biggest foreign investment ever but after 10 years of legal battle over land PCO walked away in 2017 PCO stall project to build a steel mill in the Indian state of adisha the biggest foreign direct investment ever in India is yet to take off the project was launched in 2005 but has been delayed for roughly 9 years due to land acquisition issues and environmental concerns largest foreign direct investment project fosco is paralyzed by protesters who are determined not to allow the Takeover of their land and thirdly we have a skill Gap look

at this only 2% of India's Workforce is formally skilled whereas in South Korea it's 96% in Japan it's 80% in China it's 40% and even in Vietnam it is 12% this is what the skill India initiative was supposed to fix but even after years of efforts only 5% of India's Workforce has formal training so even in Industries where India could dominate like automobile manufacturing textiles in electronics we simply don't have enough trained workers to capitalize on this opportunity and while China and South Korea invest heavily into AI Automation and R&D India is still struggling to

train her people for basic manufacturing so even though this is a big opportunity for India India unfortunately is too slow too bureaucratic and too unprepared to to capitalize on it we have become better in the past 10 years but not good enough so Vietnam is winning Mexico is winning and even Bangladesh is winning so until India fixes its business climate simplifies regulation and closes its skill Gap the dream of becoming China's replacement will always remain a distant dream so the question is how do we fix this well we've made a detail playlist on this which

you can watch from the link in the description this is what completes our analysis of Donald 's tariff strategy now you tell me in the comments what are the lessons that India is supposed to learn from this tariff war and how can we capitalize on this opportunity that's all from my side for today guys if you learned something valuable please make sure to hit the like button in order to make YouTube happy and for more such insightful business and political case studies please subscribe to our Channel thank you so much for watching I will see

you in the next one bye-bye [Music] n