Posted on 04/30/2025 6:52:21 AM PDT by lasereye
On Wednesday, it was reported that China had quietly compiled a list of US-made goods exempt from its 125% tariffs, aiming to ease trade tensions without public concessions. Companies, particularly those reliant on US technologies — such as pharmaceuticals and chipmakers — are being discreetly informed about these exemptions, Reuters reported.
The list appears to be expanding: For instance, China recently waived tariffs on US ethane imports. This approach allows Beijing to maintain a firm public stance while offering behind-the-scenes relief. Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals.
Meanwhile, President Trump defended the 145% tariffs on Chinese imports, saying China "deserves it" and would likely "eat" the costs to shield US consumers. He dismissed inflation concerns, even as companies like Temu and Shein visibly pass costs on to shoppers.
His comments contrast with quieter moves inside the administration to consider phased tariff reductions and revive trade talks with Beijing — though no formal negotiations have begun.
But with 145% tariffs on China now in place for several weeks, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg. Experts are warning of coming supply shortages and layoffs in sectors like trucking, logistics, and retail.
Meanwhile, some tariff relief is on the way for automakers after Trump signed an order offering exemptions to certain car and parts tariffs.
The order clarifies that companies already paying tariffs on imported vehicles won't be charged other levies, such as on steel. The US also eased duties on foreign parts. The climbdown comes after intense lobbying from the auto industry, which warned of a huge hit to sales and price hikes for consumers.
(Excerpt) Read more at finance.yahoo.com ...
I don't think Trump's team had a well defined game plan. What are they going to do when parts shortages hit? I don't think they know. They're ad libbing the whole thing.
There are over 70 countries standing in line to sign free trade deals. China wants in before the door closes on them, financially. I’d say the Trump team has a well defined and effective game plan.
Your mother didn’t grab you by the ear for the purpose of ripping off your ear. She did it to guide you in a certain direction. It was much more effective than begging you to go in a certain direction.
EC
You make some valid points.
I have seen nothing about how the medicines and medical equipment which we are reliant on China for is going to be handled.
What's their plan when parts shortages kick in?
Indeed. I see tariffs primarily as a negotiating tool. Effectively, after imposing the blanket tariffs, it was “now that I have your attention, lets deal.” And the other countries said “OMG, he’s serious.”
Give them nothing until there is comprehensive and verifiable IP reform. They’re thieves and should be treated as such.
This is the problem with highly integrated supply chains. I think it’s clear that we need to decouple from China. But there will be disruption and short term chaos, even if this was handled flawlessly.
This is not being handled flawlessly, to say the least.
Again, I agree.
China is not a benevolent player in this game and it’s scary what they could do in regard to medicine.
So Trump has been advocating for this activity for 45 years minimum and you believe he is just “winging it” now that h e has opportunity to make changes? I hope you are a troll, cause the other option reflects poorly on your intellect.
please define “handled flawlessly”. I have a feeling that option has no basis in the reality of the situation.
There’s no clean way to do this.
I have no idea what you’re talking about.
So far there is no actual deal with anybody. Maybe there will be a few soon, but probably not many.
Part shortages will hit because a lack of domestic producers.
What’s going to happen, with an aging global population and lack of demand for global employment in manufacturing & agriculture?
Oh yeah, the robots, Santa’s elves, and Oompa Loompas are going to make and grow everything for me.(sarcasm)
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.