Posted on 06/19/2018 5:20:46 AM PDT by reaganaut1
In recent weeks, several major rounds of tariffs have moved from proposals to realities, and major new tariffs have been threatened—shifting the stakes for President Donald Trump’s trade actions on the U.S. economy.
Tariffs raise the price of imported goods, increasing costs to consumers, and making domestic producers (who don’t face the tariff) more competitive.
Examples of how new tariffs might ripple through the economy have already been provided by earlier, smaller rounds of tariffs. These earlier examples also show why broad effects from tariffs, on the otherwise booming U.S. economy, might be hard to detect.
One of the first to go into effect under Mr. Trump came in January, with the imposition of 20% tariffs on washing machines.
While tariffs are formally paid by whomever imports the goods, the importers can pass their costs along to consumers. In the case of washing machines, that happened quickly: The index for laundry equipment in the Labor Department’s consumer-price Index, the nation’s main gauge of inflation, shot up by about 17% over the past three months.
...
Mr. Trump’s steel and aluminum tariffs were announced March 1. For some countries they went into effect quickly. The European Union, Canada and Mexico were given more time to negotiate, but those extensions expired at the beginning of this month.
Prices for different types of steel and aluminum began to climb almost immediately, posting the biggest three-month price increase that has been recorded in years. While clearly inflationary and unwelcome for metal consumers, the jump in prices isn’t that much larger than typical volatility in the metals. And only a small portion of the metals ends up in consumer goods.
(Excerpt) Read more at wsj.com ...
I check in everyday so visitors will know that all Freepers are not insane
Hmm, increased cost of goods or no job at all?
Gosh that’s a hard one...
LOL! I read your stuff and it certainly doesn't make me feel idiotic.
Your red side is showing.
Economics is an offshoot of Astrology. It’s an exercise in taking strands of catchy observations and weaving mind manure.
It is not science, it never was and never will be.
Econ 101 is an introductory course leading to more advanced courses such as ‘How To Lie With Statistics’.
Now here are truthful facts:
1. The President said that tariffs will inflict ‘temporary’ pain.
2. The PRC Chinese ‘party members’ will also feel this pain (the proletariat are in constant generational pain not knowing anything else but pain).
3. The tariffs will make other goods and services more price competitive to those of the PRC Chinese.
4. The PRC Chinese will face loss of market share.
5. President Trump has prepared countermeasures to the recurring and anticipated currency manipulation by the PRC Chinese in response to tariffs.
In fact, The Trump Administration’s tariff rollout is a counter to China’s historical currency manipulation.
Never make an investment based on Econ 101, or Econ 201, or Econ 501, or Econ anything.
Millions of people have had their investments wiped out by investing in Econ nonsense such as ‘prices will rise as shortages grow’. They get wiped out because the real principle is ‘prices will rise temporarily in accordance with temporary shortages while markets backfill supply and stabilize’. In other words, they get wiped out because they can’t time the market.
Timing is everything.
The BLS would disagree with you. Link
Tariffs are inevitably bad for a global economy, however reasonable trade agreements are appropriate
I check in to make sure everyday visitors know not all Freepers are Free Traitors™.
All true, do one degree or another, depending on the product.
Again you show your economic ignoracne. The PER UNIT labor cost is not very different in the USA than in the 3rd world. It’s maybe 3% higher PER UNIT. You don’t even know what per unit means because you are plain stupid.
There is no way to know if price increases are due to tariffs or the strong economy which allows retailers to raise prices due to demand.
It is doubtful an increase in tariffs would be passed along to consumers in its entirety. There is still competition which must be dealt with so far more likely the importer, the wholesaler, the retailer and possibly the customer would share in the increase. Then we have inflation which also adds to the pricing.
There are no tariffs on goods produced in America and since the tax reform many foreign countries are setting up production here to take advantage of the tax break and to avoid tariffs. One of them is Samsung another is LG.
These factories re bringing 1000’s of jobs to America.
Says the man who spells it "ignorance".
Forgot one thing. The enormous tax reduction enjoyed by businesses here allows them to easily absorb tariff increases.
It might be more correct to say we don't know if price increases are due solely to the tariffs. I agree that there are other factors that play into pricing, but it's certainly a given that business will pass on cost increases when they can. And there is no reason for them to eat the cost of a tariff. It will be passed on to consumers.
It is doubtful an increase in tariffs would be passed along to consumers in its entirety. There is still competition which must be dealt with so far more likely the importer, the wholesaler, the retailer and possibly the customer would share in the increase.
But since competition is faced with paying the same tariff then there is no incentive for an importer to eat even a part of the cost.
There are no tariffs on goods produced in America and since the tax reform many foreign countries are setting up production here to take advantage of the tax break and to avoid tariffs. One of them is Samsung another is LG.
But only if they can produce their goods less expensively hear than in Korea. Both Samsung and LG are talking about manufacturing their high-end products here. Products that already sell for a premium and which only form a small part of their overall product line. The bulk of their product will still be manufactured overseas.
It Sure is....MAGA
Misleading headline. It’s not that tariffs are “like” a tax increase. They ARE a tax increase. And they are taxes on American consumers and American businesses. Foreigners don’t pay them. Period.
>> We’re in a trade war <<
Yeah, but always remember,
“We’ve gotta destroy the village in order to save it.”
>> it will increase the price of imported goods <<
Yes, and that means it will also increase the price of locally produced goods that compete with imports. The logic is ironclad. It can’t be explained away.
>> I will gladly pay more for American made quality products <<
That’s your choice. More power to you. No problem.
On the other hand, I submit that you don’t have a right to force your choice on me.
I think you mistake a trade war for ordinary international business.
In ordinary international business there are those that prevail and those that do not. It happens all the time continuously.
The current efforts by our persident are sepcifically directed at removing the edge of unfair competition.
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