Posted on 05/15/2019 12:27:29 PM PDT by SeekAndFind
President Donald Trump’s trade war with China could cost the average American family of four up to $2,300 a year, according to a report on the effect of tariffs on the U.S. economy and workers.
The study, by the economic consulting firm Trade Partnership Worldwide, assesses how tariffs will affect American consumers and the economy. According to the report, an average American family of four would pay $2,300 more in goods and services each year if Trump imposes a 25% tariff on all goods from China, as he has repeatedly threatened. If tariff levels remain where they are today, the average American family is expected to pay about $770 in higher costs each year the tariffs remain in place, says Laura Baughman, a co-author of the study and president at Trade Partnerships Worldwide.
The findings come as Trump and China have both escalated the trade dispute in recent days. As U.S. and Chinese negotiations met in Washington last week, Trump announced that he was raising tariffs from 10% to 25% on $200 billion worth of Chinese goods. China responded with a plan to increase tariffs on $60 billion in U.S. exports.
Then, on Monday, the Trump Administration outlined plans to impose additional tariffs on another $300 billion worth of Chinese imports, providing a list of products that include apparel, children’s toys, crafting products, sports equipment and shoes. That amounts to tariffs on virtually all Chinese imports.
The U.S. imported almost $540 billion in goods from China in 2018, while exporting $120 billion. Meanwhile, the U.S. imported $18 billion in services from China in 2018, while exporting almost $59 billion, though services are not directly affected by tariffs.
(Excerpt) Read more at time.com ...
Foreigner opinion, recognized as conflicted, discarded.
“Conservative” deficit hawks should absolutely love tariffs. Their silence is deafening.
RE: Foreigner opinion, recognized as conflicted, discarded.
How do you know the author is a foreigner?
RE: We are even in the process of replacing anything of stainless steel(usually made in China or with steel from China) with stainless that was made in the USA
I’m curious to know how much more you have to pay for these Made in America products...
“Applying static economic analysis to a most dynamic situation is foolish.”
Yepper, sometimes it pays to remember to “ground” your connections for safeties sake.....
“Are you saying that there will NOT BE job losses, slower economic growth and a drop in exports due to China’s retaliatory tariffs?”
I don’t know and neither does whomever wrote that silly report.
First of all it assumes all tariffs will be passed along to consumers dollar for dollar. That is nuts since the Chinese exporters will be hammered from all sides to eat the increases. The pressure will come from the leadership in China which has a stake in so many businesses and is not interested in seeing exports take a hit due to their cost becoming noncompetitive. The exporters also face pressure from the importer here to lower the price of the imported goods to offset the increases brought by tariff increases. Next the wholesaler who buys from the importer will also be demanding a lower price so his price to the retailer remains competitive. Last but not least the retailer will likewise be pressing the wholesaler to either lower his price or lose his business.
To my knowledge anything we buy from China can be bought elsewhere, perhaps for a bit more but also perhaps for the same price we paid before tariff increases.
Since tariffs are placed on the low end of the product cost chain and not the retail end the % is equal to far less a dollar amount. So where a manufacturer may produce a t-shirt for 50 cents and it may retail for $6.00 the 25% tariff goes on the 50 cents cost which amts to 16 cents.
Add to all this the probable fact that the end purchaser will see little or no increase in price.
Looked at his Twitter feed
It is all a matter of perspective when considering ending China’s manipulation and tech thievery.
Liberal Dem Mouthpiece Time says “$2300, that much!”
Everyone else who does not live in a cardboard box on a heated grate outside says “$2300. Is that all!”
“The importer pays the Tariff, not the retail customer.”
and the money flows into the treasury.
TIME.
Pick up your copy for free and get a coupon for a Big Mac.
Services? Are we importing Chinese refrigerator repairmen?
The China-US trade relationship is unique and may call for a unique bilteral trade solution to cure the toxicity.One nation-the US- accounts for 90% of China’s global surplus. The EU although a substantial trade partner for China has a more balanced trade picture with Germany actually maintaining a trade surplus with China. On the other hand, China accounts for 61% of the total US global trade deficit.One of the solutions A solution Trump might be considering is a self adjusting scaled tariff in which the annual tariff rate is scaled up or down based on the annual trade deficit.This would be key in the future to keep the balance of trade deficit from getting out of line with China’s manipulation. A simple objective measure that works like an accordian raising or lowering rates based on the trade imbalance.This mechanism would impel China to buy more from their number one trading partner even if it is a little more than competitors to keep the deficit from getting out of alignment and to discourage them from manipulating markets and currency to their advantage knowing such efforts will be offset by a predetermined sliding scale of tariffs based on trade deficit ratcheting up.It is not responsive to China’s theft of trade secrets but it is responsive to their markets and currency manipulation and getting more balanced trade through getting more US product into China.Yup, we may have to pay a few bucks more for some product from that country but that’s the small price one pays for an overall solution.I doubt one is going to file Chapter 11 because they paid $300 more for an iPhone or a quarter more for that dollar Chinese can opener in Walmart
$2300? Crumbs
What happens to other economic factors too? Like employment rate and in/deflation?
Quote: “Are you saying that there will NOT BE job losses, slower economic growth and a drop in exports due to China’s retaliatory tariffs?”
It is a War and there are casualties on both sides. So let me ask, who wins wars? Usually the side with less casualties. China sells a crap load more to us than we do to them.
As far as the cost of manufactured goods. Yes, it will increase costs on any company that manufacturers in China and imports into the U.S. But consider this, sooner or later those manufacturers are going to move their operations if they get no advantage for selling into the worlds biggest market. The savings on labor costs will be eaten up by the added cost of import.
As Trump has said, make your stuff in America.
Time Magazine aka Slime Magazine.
* Estimate the total value of the increased price of goods and services after the tariffs are implemented
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Assumes businesses and individuals continue to buy the exact same product from the exact same source and that the Chinese don’t “eat” any of the tariff costs. That’s NOT what has happened or will happen.
Money is fungible and can move to producers in other countries (including domestic US producers). And THAT is happening.
Absolutely!!! Not once does TIME give a poop about the cost of open borders, the additional taxes, programs and “New Deals” that every 2020 democrat candidate espouses.
And the president uses the income to offset losses by the farm sector created by Chinese tariffs. China is thoroughly boxed in by this policy.
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