Posted on 05/09/2019 10:09:09 PM PDT by BeauBo
The Trump administration is hiking duties on $200 billion worth of Chinese products to 25% from 10%... Industries and businesses affected by the tariff hike will not feel the effect right away: it will apply to goods exported after May 10, according to the Office of the U.S. Trade Representative. It will not affect products already in transit to the United States. Trump has prepared to put even more pressure on China as he pushes for an agreement. The president has threatened to slap 25% tariffs on $325 billion in Chinese goods that remain untaxed.
(Excerpt) Read more at cnbc.com ...
Actually, the postal access is free.
I received some small plastic wash bottles shipped via USPS from Hong Kong. The postage label was originated by the shipper in China. The amount of postage indicated as paid was 0.00.
Apparently since it was a foreign, that is USA, mailing the shipper paid nothing into the China Postal system. The USA postal system carried the burden of transport and delivery.
The purchase was two 250 ml polyethylene. The price on ebay was $1.43 with free delivery.
You are completely wrong.
The 25% tariffs imposed are a China Tax paid by American consumers on products purchased from China. Americans pay all of the 25% and china pays not a single dime.
The revenue Trump is promoting is a pure tax on american consumers.
China merchants pay nothing. If Americans purchase the china products at the tarrifed price, the china merchant benefits and the trade imbalance continues at the rate as before.
The deep state must be having a cow (guess their bottom line is threatened at the thought of their garbage not being made in China anymore) because the news media is playing this as the worst thing that could happen in the history of the world.
As usual, though, Trump is 100% right.
Screw China. I can’t think of one thing there we can’t do without or build here better.
Thanks, but I am not the President, those are HIS tweets that I posted.
Tell HIM that he’s wrong, not me.I’m sure he’d be happy to hear from you.
“Americans pay all of the 25% and china pays not a single dime.”
In theory, theory and practice are the same.
In practice, they are not.
For the 10% tariffs, China devalued the Yuan 5.5%, and Chinese businesses shared most of the rest, with some compensating favors from Government. Price impact in the US was difficult to detect (Except for steel and aluminum, which were tariffs on all foreign imports).
For the 25% tariffs, we are going to see a wholesale substitution take place, because it is beyond the profit margin of manufacturers in Global competition. They must source elsewhere. The communists might try to defray the costs somehow like further currency devaluation, but they are unlikely to achieve 25% (if they do, it can just be moved to 50%, or higher)
These tariffs are not a surprise - businesses were warned well ahead of time. The biggest single component of today’s tariff increase are cellphones ($45 billion of the $200 billion). Foxconn began preparing to move their Apple production to India in 2017.
Lots of competitors with substitutes have been preparing to take this business from China. Market competition will set the price - these tariffs will just block out one competitor.
In some cases the increased cost will be passed along to the consumer, but mostly just partially, and only until the substitutes come on line. So it will be a transient cost, buffered by other factors (like the Chinese working things to keep their business).
Even in the mathematical worst case, where every dollar of new tariff was perfectly passed on in entirety to consumer, it would be $30 billion per year, in a $20 trillion dollar economy - not a showstopper, or a strong inflationary pressure. About the equivalent of twenty cents a gallon on gas.
It will go a long way toward saving the US and our allies from a future Military conflict with China, or a world effectively dominated by oppressive communist dictators operating a Global Police State of intrusive monitoring.
Priceless.
The subject is tariff revenues, not effective costs to China.
As you have noted, China will ultimately pay in various ways.
People like to talk about Chicoms. I like to think of Chicaps...... the business people. In the end, the Chicaps will exert enough pressure to persuade Xi to deal in a positive and meaningful manner. That might actually happen today. However, Chicoms are crooks so Trump must be vigilant
Bert the point is to STOP American consumers from purchasing products from China, we have many options on products from other countries AND our own country!!! Why in the HELL would we purchase a product made in China when it will now cost more than a similar product from elsewhere!! American consumers NOT purchasing China goods is HOW WE HURT CHINA!!! Americans have so many choices when purchasing ANY product the only damn reason to purchase anything from a cheating communist country is because it is cheaper, WELL NO MORE!!! God Bless this POTUS Americans now will no longer be supporting these communist bastards with their hard earned dollars!!!
“They could recall the US debt we have to them. That would do some damage.”
They won’t. The last time they tried that they dumped 10% of their T-bills on the market and in doing so devalued the remaining 90% which hurt them more than it hurt us.
No doubt about that.
> “I like to think of Chicaps...... the business people. In the end, the Chicaps will exert enough pressure to persuade Xi to deal in a positive and meaningful manner. “
You give Xi too much credit as a leader open to reform, while overlooking the Chinese communist party’s long record of ruthless crushing of any dissent. They are only interested in continuing their totalitarian rule and won’t hesitate to kill their own people to achieve that end.
Not only are businesses never in a position to be able to put any pressure on Xi, now they have to worry about how the authorities will now try to squeeze more money out of their pockets, and, if their assets are substantial, even fear for their lives, given the numerous disappearances and untimely deaths of some wealthy businessmen. In fact, Jack Ma’s early retirement from Alibaba was believed by many to be a smart move to get out with his life while he still could.
From your #82:
> “China merchants pay nothing. If Americans purchase the china products at the tarrifed price, the china merchant benefits and the trade imbalance continues at the rate as before.”
So you think the many businesses contemplating and actually relocating out of China, among them Foxconn, Oracle, and Warren Buffet’s Brooks Shoes, are making irrational business decisions?
Will they be fixing the postage problem?
Yes, that problem is being worked.
The favorable postage rates for China, come from our membership in the Switzerland-based Universal Postal Union. China gets this subsidy under a provision granted in 1969 to encourage growth in poor countries, that remains in effect despite China’s emergence as an economic juggernaut.
President Trump’s announced last October that the United States would withdraw from the organization (basically over this issue with China). Withdrawal is a year-long process however, and the State Department is negotiating for better rates for U.S. shippers, so the subsidies remain in place in the meantime.
The tariffs on $200 billion in goods from China are going from 10% to 25%...so let’s see:
$200 billion x 0.15 / 320 million Americans / 52 weeks per year = $1.80 per American per week.
No, I was not thinking of Foxconn, I was considering much lower grade products. I was thinking of paint brushes and socket sets and colanders and cooking pans. Mundane stuff
My question is always “how ya goin to keep them down on the farm after they’ve got Daisey Mae’s? There has been tremendous change. There can be no return
I am in total agreement with you.
Our Treasuries really hold them hostage and they know it. They aren’t dumb, they’re scared as hell and holding a lit fuse of dynamite stuck to their hand.
Very few Americans understand how much they need dollar-based accounts.
TRUMP 2020!!! - MAGA!!!
Cant wait to see the market reaction to this tomorrow.
Is the US debt callable?
Sorry but your comments do not make any sense. A review of the basics should help.
For tariffed goods, the importing company will have to pay the tariff within about 10 days after clearing customs. Importing companies are usually US companies or foreign companies operating in the US. They will naturally look for ways to defray the tariff cost, and there are two ways they can do it (well in advance, not after the goods have arrived):
1. Negotiate with the supplier to get a more favorable price to offset the tariff;
2. Find another supplier not subject to tariff.
Which approach they take depends on the nature of the goods in question. If the merchandize has to come from China and is hard to source from another supplier, then the importing company and ultimately the consumer will bear most of the tariff cost. Otherwise, the supplier pays most of the cost. Simple as that.
If you’re thinking of “paint brushes and socket sets and colanders and cooking pans. Mundane stuff” when you said, “China merchants pay nothing. If Americans purchase the china products at the tarrifed price, the china merchant benefits ….”, then you are saying the mundane stuff manufacturers are better able to weather the impact of the tariffs than relocating companies like Foxconn. Makes no sense at all.
One report I read cites analysis from the Economist which categorizes all the 25% tariffed goods and comes up with the result that China will pay 20% and the US (importers and consumers) will pay 5%, and that Chinese exports could fall by 42% as a result. Another estimate out of the European Union puts the numbers at China paying 20.5% and the US paying 4.5%.
Hope we have measures in place to prevent China from cheating by routing shipments through a third country.
> “how ya goin to keep them down on the farm after they’ve got Daisey Mae’s? There has been tremendous change. There can be no return”
It is indeed a formidable task but luckily we have a president who is up to the challenge and who is not afraid to use a powerful tool we have to reverse the 30-plus-year-tide. It was great news when he upped the ante by increasing it to 25%. I think this is the best and maybe the last chance we have to defeat the communists using only economic means. I’d like to see even higher tariffs across the board though I don’t think it will happen during the president’s first term.
I can’t understand how anyone can oppose the tariffs seeing how communist China has been spreading its influence and corruption everywhere, propping up our enemies while doing us great harm through its theft, spying, and hacking programs - all financed by us.
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