Posted on 08/01/2019 10:56:29 AM PDT by Monrose72
WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday he would impose an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, as talks aimed at easting tensions between the world’s two largest economies continue. “Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%,” Trump tweeted.In a string of tweets, Trump also faulted China for not following through on promises to buy more American agricultural products and personally criticized Chinese President Xi Jinping for failing to do more to stem sales of the synthetic opioid fentanyl.
(Excerpt) Read more at reuters.com ...
Yes
Meanwhile they are ramping up space war tech via up theft
How much of DC do they own again? And who?
•intellectual property
Not up
Dang phone
Yes by all means let the stock market have $1T correction over a $30B annual tariff. MAKES TOTAL F-—ING SENSE IN THE INSANE ASYLUM.
“Should be 25% but I’ll take it.”
10% tariffs have become the three month warning that 25% tariffs are coming on those products - better find a substitute supplier quick.
These increases are coming in a pretty regular pattern. Those announced in May (25% on $200 billion) effectively started being collected around 1 June (start of the third quarter). This next huge tariff (10% on $300 billion), will start right on the first day of the fourth quarter. I expect they will bump up to 25% on January 1st, first day of the next quarter - at which point we will have come to 25% across the board.
The tariffs on China started with a much smaller move in the fourth quarter of 2018 - and that led to a noticeable slowdown in China during the first quarter of 2019. The President held fire on increasing tariffs that quarter, while negotiations went on, but he has ratcheted them up big time every quarter since - one on top of the other.
We have not yet even seen the effect of the last (June 2019) huge tariff increase in the quarterly reports - but the Administration has seen the accumulating data, and knows what is happening so far. They went ahead and dropped this bomb anyway, which indicates that the tariffs are having their desired effects. The tariff increases from June 2019 and onward are much bigger than the previous ones. These are on a strategic scale.
Trade balance numbers with China are going to show a wrenching change in the next two quarters, when the reports come out. Some of the change might be briefly masked with currency manipulation (Chinese devaluation), but we are now well into the major muscle movements of ripping our supply chain out of communist China.
The risks of an economic crisis of some sort in communist China are climbing - one on top of another.
Why? A tariff is not an embargo. LOL.
Have to laugh at drama queen Shep telling us we will have to pay more. Not me, just don’t buy stuff made in China. I’ve been pretty serious about buying American for a long time.
I am noticing more Made in USA goods at the top of the lists on Ebay. Used to be the opposite.
“I believe that is what caused the Dow to drop.”
The market drops from previous tariffs have been temporary (short term) effects so far.
The interest rate cut will likely more than make up for it, over the space of months. Maybe we will get another quarter point rate cut next quarter, when I expect these 10% tariffs will bump up to 25%, bringing us to 25% across the board on China.
On the bright side, it’s become a great time to refinance the old mortgage as the economy goes into the can.
“better find a substitute supplier quick. Why?”
Because the price (tariff) is likely to go up even more.
The 10% is a warning. The Chinese devalue their currency a little and discount a little, and can still keep the business.
25% is basically too much for them to eat the cost. Chinese suppliers get priced out of the market, and customers need to find another supplier.
The Trump Administration is now very credible - the 10% tariffs have consistently been going up to 25%, just a few months later.
“as the economy goes into the can.”
Tariffs on Chinese imports themselves will have little direct impact on the US economy.
We imported about $540 billion from China last year, out of a $20 trillion US GDP. The tariffs have been gradually ramping up, allowing businesses time to transition to substitute suppliers for many (most) of those products.
The pace of tariff increases shot up sharply starting in June, but even so, it is unlikely ever to much exceed a rate of $100 billion/year in tariffs (25% across the board), as we substitute non-Chinese suppliers - only about one half of a percent on GDP, at its theoretical worst.
Most of that potential drag on our GDP will never be realized though, as Chinese suppliers cut prices and their Government devalues their currency. They are estimated to eat about 80% of the cost of tariffs actually paid. So we are really looking about a potential drag on our GDP closer to one tenth of one percent - lost in the noise, more than offset by a quarter of a point interest rate cut.
In a year or two, the great bulk of the products that were coming from China, will either be coming from somewhere else, or be made here.
The real risk however, comes from a a potential crash of the Chinese economy, that might cause a global slowdown (which would hit Asian economies a lot more than ours).
“Our enemies being US farmers and manufacturing.”
Nope. Would be more than happy to debate the stupidity of US economic policy over the past few decades, and how you can’t have ‘free trade’ with countries who aren’t ‘free’ - unless you hold their feet to the fire.
Only 10% Why not 100%. Starting to agree with progressives that Trump isn’t serious in fighting China.
I think 10% is WAY too small, but it is a start.
A very tiny, very hesitant start, but a start none the less.
Except none of those restrictions apply to China.
That is what NOBODY is saying a single word about.
Once something is PRODUCED in China, it has another, completely independent set of rules in China.
It is now Chinese.
Completely. That is a fact.
I agree, which is why you can’t play softball with China, and you absolutely can’t have fair ‘free trade’ with China.
You have to take what one reads on FB with a grain of salt, I know, but the retort is that tariffs are just a tax on American consumers.
Very simplistic, that.
First off, there are a lot of other places WITHOUT tariffs, which just got more competitive.
Every other country, in the entire globe, for example.
Just got 10% cheaper, compared with China.
Could go to 25% cheaper, depending on what China does next. Or 50% cheaper.
Even more.
Trump is doing what every American leader should have been doing, for the last 30 years.
There is also the fact, that China will also try to adjust their exchange rate, which will also bring down their profit margins.
I don’t know why in the world, every president has been so completely inept about this huge issue, for so very long.
I agree. Why other leaders did not is either IMVHO, they were complicit, in a sinister way, or not so sinister, in enabling China to scour the US manufacturing sector. Some did it in a sincere belief I suppose they really believed it would change China into a great human rights respecting Republic.
So what you are saying is that the US consumer will not end up necessarily switching to American products. They will switch from Chinese to Taiwanese, Indian, South Korean, Vietnamese, ect, products, with some coming back to the USA. Not what economic nationalists are hoping for but I still, from a moral, point of view, think it is a better outcome. I rather buy from India, a nation moving closer to the US in allegiance and outlook, than China.
From a practical point of view, it really shouldn’t change prices at Walmart all that much ( I don’t know why so many pick on Walmart, but I will still use it as an example ).
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