The "Peasant" Problem: US-China Trade War Gets Personal. Will Meta Prevail Against The FTC? (with Tom Merritt)

It was just last week when the Trump administration hit pause on its Liberation Day tariffs — except when it came to China. Not only were they excluded from the pause, they got slapped with additional hikes, escalating what had already started to look like an all-out trade war. Then came Saturday morning’s Customs and Border Patrol announcement, which seemed to undercut all of that: nearly 60% of Chinese exports, including smartphones, laptops, and semiconductors, were apparently exempt from the new tariffs. So, what happened? Did the White House backtrack? Was this a walk-back in disguise? The administration scrambled to clarify. Their explanation: those goods are being set aside into their own “buckets” — alongside other key industries like cars and steel — for future, tougher action. These aren’t exemptions, they insist, just part of a long-term plan. The reason for the sudden PR push? According to Axios’ Mark Caputo, Trump simply doesn’t like the words “exemption” or “exception.” He felt too many were granted in his first term and didn’t want the headline suggesting he’d lost his edge. But let’s be honest: This is hair-splitting. Whether you call them buckets or carveouts, the reality is a significant chunk of Chinese goods aren’t being hit right now, and the market knows it. The real question is whether the administration is buying time, recalibrating, or trying to thread the needle between tough-on-China optics and economic stability. Saber Rattling, Delistings, and Peasant Talk In the meantime, tensions are ramping up. The U.S. is now considering delisting nearly 300 Chinese companies from American stock exchanges — a move that’s part economic pressure, part political theater. The legal foundation? The Holding Foreign Companies Accountable Act, which requires financial transparency from foreign firms. Treasury Secretary Scott Bessent and Senator Rick Scott are reportedly behind the push, with Trump expected to lean on executive orders to expedite the process if necessary. Naturally, China isn’t taking this lightly. In response, they’ve begun blocking deliveries of Boeing jets, and the rhetoric has turned acidic. China's Hong Kong and Macau Affairs Office issued a statement saying, in part, “Let those peasants in the United States wail in front of five thousand years of Chinese civilization.” That’s not diplomatic posturing — that’s a full-throated nationalist flare-up, made more surreal by the fact that JD Vance himself had recently referred to Chinese laborers as “peasants” on Fox News. And through all of this, both sides are playing the “we’re open to talks, but we won’t be the first to call” game. It’s juvenile, it’s geopolitical theater, and it’s exactly the kind of posture that leaves markets — and companies — dangling. What Happens Next? Here's where I land: I don’t think we’re going back to “normal” with China anytime soon. The issues the U.S. wants addressed — IP theft, forced joint ventures, restricted market access — aren’t things China’s going to give up easily, if at all. So yes, the tariffs might eventually get reshuffled or reduced. But the era of posturing, of economic nationalism, of strategic decoupling? That’s here to stay. The polling shows Americans are broadly in favor of being tougher on China — until, of course, it hits them in the wallet. That’s where this whole thing could flip. For now, though, the administration seems fine dragging this out. Tariffs, carveouts, buckets, delistings — it’s all part of the same dance. And we’re still in the first few steps. At least that’s this peasant’s opinion. Chapters 00:00 - Intro 02:14 - US-China Trade War Continues 11:45 - Update 13:13 - AOC Fundraising Record 15:15 - Andrew Cuomo NYC Race 17:22 - Brian Kemp’s Senate Potential 22:22 - Interview with Tom Merritt 49:59 - Wrap-up This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.politicspoliticspolitics.com/subscribe