they already got caught putting fake "Made in Vietnam" labels on stuff
Posted on 06/13/2019 11:53:01 AM PDT by House Atreides
The prices of goods imported into the United States fell in May even as tariffs increased on goods from China.
...Imports from Asian countries outside of China also fell in price, dropping by 0.2 percent in May for a 1.4 percent decline compared with 12-months prior. This suggests that companies that have shifted production out of China are not paying higher prices, undermining one of the key assumptions behind claims that tariffs would drive up prices for U.S. consumers.
Inflation in the U.S. has fallen below the Federal Reserve’s target of two percent, indicating that consumers have not been squeezed by tariffs. A close examination of prices of tariffed goods show that tariffs are being absorbed by importers and middlemen rather than being passed on to consumers.
Falling import prices are likely to hold down inflation in the U.S., making it more likely that the Federal Reserve will have to cut rates to achieve its price stability target.
(Excerpt) Read more at breitbart.com ...
The majority of Chinese still live like they did a hundred years ago. Out of 1.2 Billion, maybe 300 million live in the somewhat modern part of the country.
It’s also proof that the old saying, “Better half a loaf than no loaf at all” is correct. The Chinese and anyone else in the distribution chain who is absorbing the tariff cost realize that if they simply pass the cost along to consumers, their products will no longer be price competitive. Better to sell at a lower price than not to sell at all. I also think the Chinese realize they must keep the American consumer base addicted to their cheap products, and make sure they don’t defect to non-Chinese manufactured alternatives.
How the “free traders” miss this obvious dynamic is beyond me.
I did not go back there for two years between 2016 and 2018. In 16 there were cars in two yards in my town Cam Đức. In 18 there were many. The owners don't drive them much because the roads have not yet caught up with the increase in vehicles so the owners use them mostly to go up to Nha Trang or to go on vacation to Đà Lạt in the mountains. Finding a wife there is hard now. People are not anxious to leave or send their daughters to America as they were ten years ago. They see that the future for them is right there.
When post-war Japan was struggling with quality in their exports, a town in Japan named itself USA. Their goods went out as Made in USA.
Importers and middlemen are the point of subsidy and they also believe they can wait Uncle Sam out. Every company in China is partners with the Government so subsidy is just a matter of moving money from one account to another.
And Donald Trump is standing by with a flame thrower.
and with long term traditions and institutions that are inimical to at least an innovative economy. That is why they put tremendous effort into stealing tech.
“The majority of Chinese still live like they did a hundred years ago. Out of 1.2 Billion, maybe 300 million live in the somewhat modern part of the country.”
Yes, totally wrong, and I say that as a believer in free trade. It has to be conducted between friendly and fair nations. China is NOT one of those.
Nothing. But they lose jobs and revenue. They could also move to the US like BMW, Mercedes, Toyota, Honda, etc. did to avoid the 25% tariffs on light trucks and SUVs.
Oh I know. Here in Canada I notice some food products will say “packaged in Montreal”. Makes me wonder where the product itself came from. I think the same can be said, for example, with other food products, like jam. The jam may very well be made in Ontario, but where did the strawberries come from?
Sounds expensive for China. I wonder how long they’ll keep it up?
Never has, nor there will there ever be, real Free Trade.
It’s like Santa Claus and the Easter Bunny, figments of the imagination.
They already have been caught doing that.
“and with long term traditions and institutions that are inimical to at least an innovative economy. That is why they put tremendous effort into stealing tech.”
It takes more than two years to determine the success of tariffs, but I expect you are aware of that.
Trump’s stated goal is to remove every tariff in every nation.
Free trade is a model not an actual state of the economy. There never has been free trade and never will be.
What we have had for the last century is market-controlling monopoly (and crony) capitalism with state-managed trade. The sheer size of the fedgov shows that there is state control throughout the economy established to assist the monopolists.
I’m talking to a Vietnamese woman right now.
they already got caught putting fake "Made in Vietnam" labels on stuff
Goods for which a change in price does not quickly affect supply (inelastic supply) and for which a change in price very quickly affects demand (elastic demand) were the prime targets of the tariffs. Thus, when the price to the consumer went up on account of the tariffs, the amount the consumer bought went down; but then the suppliers were stuck with the goods, so to move them, they had to reduce the price. So to the US market the new lower price plus the tariff would be about the same as the pre-tariff price.
From what I have read, this was intentional policy on the part of the Administration.
It is sad but amusing to read knee-jerk comments by liberals who think that the importing consumers automatically pay the whole amount of any tariff.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.