Posted on 08/28/2019 7:19:35 PM PDT by mdittmar
WASHINGTON/DECATUR, Ill. (Reuters) - The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15, prompting hundreds of U.S. retail, footwear, toy and technology companies to warn of price hikes.
(Excerpt) Read more at reuters.com ...
A lot of small cap gold stocks have doubled and tripled the past few months.
They may still have a lot of upwards movement.
I own a number of them. But I didn’t get in at the beginning of the rise. Maybe 60 percent in by the time I bought.
Have a nice paper profit, which means nothing.
and trying to time when a trade agreement will come is a very dangerous game.
Price hike warning=fake news. China will eat the additional costs to stem, to the extent possible, what would otherwise be a catastrophic loss of U.S. consumer market share.
If we raise tariffs on China, Bad for Americans
If China raises Tariffs on America, Bad for Americans
It sure does seem like everyone talks out of both sides of their mouth a lot.
Chines imports make up about 3% of our economy.
Screw the chicoms to hell. They are no friends of ours. We should hope the president order every single American company out of China immediately. Then we should demand reparations for all of the IP lost to their theft and greed. Plenty of other countries could handle our demand for manufacturing without the chinese cultural traight of diminished quality over time.
America should start low, and gradually raise the tariffs until they hit 50%. That gives companies time to react. It gives China time to lower their Yuan exchange rate. Between the two Americans will pay very little. Or they can choose between Chinese products and those made elsewhere. I don’t mind them being raised past 50%. I just want tariffs on products coming from any unfriendly country. And China is very unfriendly. Every dollar going to China, is going to China’s military.
I walked past the shoe isles in WalMart and I couldn’t believe the low quality shoes on the racks and selling for an unbelievable price. They are probably emitting chemicals into “unsuspecting” feet given the materials they are made out of.
Actually, my wife says that what comes from my feet and goes into my shoes (and socks) is far more dangerous...
So, unless there is an alternative from any other country in the world (there must be), people will still pay for the Chinese good, so we are told.
And... Home Depot said that, including the shifting of sourcing to other countries including the US, the total effect on goods they were importing was about 1%. I suspect that additional tariffs might raise that just a bit, but I'd also guess that figure won't go a lot above 1% because more of the sourcing would go to other countries.
So, we are looking at maybe a 1.5% cost increase on 3% of our economy, to address a very large long term problem. Oh, the horror!
There aren’t going to be price hikes...or at least not drastic ones. If prices go up significantly on chinese goods consumers STOP buying Chinese goods. They’re in a bind. They either eat the cost OR or prices go up and chicoms lose income cause their products are too expensive.
I’ll lay odds that some of these retailers will up the prices just to hurt PDJT.
Another $1.5 billion per month of tariffs on Chinese goods - this weekend.
10% was designed to be a painful warning, that a new source had to be found, because the killing 25% was coming a few months later.
15% is enough to start killing some suppliers on the margin right away. The higher eventual tariffs are still likely on their way anyhow.
Communist China is getting pounded. The International postal Union and WTO are under heavy pressure to eliminate China’s favorable “Developing Nation” status in October - which would likely be on a global basis, rather than just with the USA.
They are going to have to resort to increasingly desperate and extreme measures - beyond even their past extreme measures. Their currency seems to edging lower. I think we can expect to see them printing money faster to stimulate their economy (but which will also put downward pressure on the value of their currency).
The lower their currency goes, the harder it is for them to pay their dollar based debts - and so many of their companies are barely able to make just the interest payments on their debts now.
Something is gonna break.
They are going to have eat 70% of their retail sales for the year...
LOL (By the way, I need to learn how to post pictures. . .I think there is a tutorial on FR)
(smile)
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