Posted on 08/23/2019 3:00:51 PM PDT by mplc51
President Donald Trump said the U.S. will hike tariffs on most imports from China as his trade war with Beijing escalates. The U.S. will raise duties on $250 billion in Chinese goods to 30% from 25%, and increase tariffs on another $300 billion in products to 15% from 10%. Earlier, China announced new tariffs on $75 billion in U.S. goods — and Trump ordered U.S. companies to find an “alternative” to operating in China.
(Excerpt) Read more at cnbc.com ...
In 1972 my parents bought our first color TV. $350 dollars for a 19” with no remote. Today Samsung UN43NU6950 43” 4K UHD Smart LED TV $279.99
I’d happily pay more for a TV made here and not be supporting China.
Some of the generally accepted Macro is akin to astrology. Hocus Pocus BS. I am pointing at the likes of Krugman. They couldn’t find their own asses with both hands and a map.
That said, Trump fully understands the invisible hand and sees China’s thumb on the scale. Not much invisible handing when a merchantilist’s thumb is on the scale or do you disagree?
Good. Everytime they escalate, hit ‘em back even harder. IN the end they lose because they sell a lot more to us than we do to them.
Shame on these globalist!! They'd sell their mama's walking cane for the almighty $$$.
Betray the country of their birth for a buck. Now look at Chi-coms, increasingly arrogant and confident of their ability to take on America militarily and economically. It was our government leaders from both houses of congress and past presidents who allowed this nonsense.
Go get’em Trump.....Best president EVER.
There’s a difference between understanding the bottom line and understanding the “invisible hand” of the free market economy, as well as disruption it can cause from time to time which in a free market are growing pains in preparation for economic growth to the next higher level of wealth creation.
I’m also not convinced Trump understands the intrinsic threat the $4 trillion mostly unconstitutional government is as a HUGE (YUGE) drain on our economy.
Not how tariffs work. U.S. consumers who purchase Chinese made/grown/mined goods are paying the tariffs/duties. Unless the importer (WalMart, Target, Best Buy, Dollar General, etc, etc.) choose not to pass the tariff along. China only “pays” thru lost sales (if any) or voluntary price reductions (if any).
https://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf
I’m not talking about the Keynesian economic nonsense taught in schools. I’m talking about true macro economics seen in the voluntary cooperation between buyers and sellers in the marketplace free of government interference that without the participants’ intent, creates wealth not just for them but in the economy as a whole.
Usually the “thumb” that is on the scale is the loser in the free market, because in the long-run, sooner or later that “thumb” will go out of business as buyers will go elsewhere for their best price and quality. However, in our case, the REAL thumb on our economic scale that forces interference in our marketplace is our own very corrupt federal government.
Next step is to slow down the Cina shipping coming in by creating an inspection waiting line.
We need to find illegal drugs and counterfeit products. Inspect every container completely.
One of the COC Brothers died today, so I guess that's a start.
“Not how tariffs work. U.S. consumers who purchase Chinese made/grown/mined goods are paying the tariffs/duties. Unless the importer (WalMart, Target, Best Buy, Dollar General, etc, etc.) choose not to pass the tariff along. China only “pays” thru lost sales (if any) or voluntary price reductions (if any).”
Correctomundo. Of course, the higher the tariffs go on Chicom stuff, the more consumers will likely buy from alternate sources (goods sold at a lesser price made in Vietnam, etc. and reducing the difference in prices between Chicom and American goods, conceivably moving some U.S. purchasers to buy made-in-America products. China would lose a sale and some other country (maybe the U.S.) would pick up a sale. The higher the tariff, the more pain inflicted on China. (As noted by others, the Chicoms could prevent some of this by absorbing some of the increased price, but there again they are experiencing pain.)
And the undisputed winner in all of this is Vietnam. Lots of businesses moving from China to Vietnam. I’m beginning to think we didn’t lose that war after all.
CC
The squeeze could further be put on China by lowering any tariffs or trade barriers on other countries that are not hostile to us.
Yeah, forgot to mention the “other side effects”...thanks for the brief explanation of “moving supply chains”. Although moving some manufacturing is a lot easier (clothing) than other manufacturing (electronic “chips”).
Not all the Samsungs are made in China. Might want to check country of origin on that...
“President Trump is NOT weak.”
I agree.
But he is projecting weakness, for whatever reason.”
No. Trump is purposely being unpredictable. A very good negotiation technique.
They would, in effect, be ripping themselves off by doing that.
I remember when I was young a lot of my toys said "Made in Korea" rather than "Made in China" like the same toys do today. If not from America, I'd rather buy from a country not hostile to us like South Korea rather than China.
And 10/17/19 when the USA exits the Global Postal Union
I must have missed that one....
I will fastidiously avoid buying ANYTHING made in China. When you think of Chinese products, don’t just think tools and hardware. They ship foods, meats, seafood; all kinds of stuff. And most if not all is probably dangerous. THEY DON’T LIKE US!
You are talking comparative advantage. True, China has a comparative advantage. They cheat. There are no refs in trade so it is up to the players to police the game. Trump merely is saying quit cheating or we are taking our ball and going home. There are plenty of players who don’t cheat and we will play the game and China like one ball Lance can just go play with themselves.
heh.
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