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 ...
I know Trump is probably doing the right thing here, but on the other hand, doesn’t China know that at worst, they just have to wait 5 years? I know that may seem like an eternity, but their civilization is 5,000 years old, I think they know patience.
What confusion. The “refs” in the free market are the self interests of both the buyers and the sellers who don’t need government “refs” to tell them what’s good for them.
Socialist arguments abound around here.
Simple question:
Are patents good or would you prefer a system where guilds have secrets?
You see, China doesn’t care.
They will violate your patent or steal your secret.
It makes no difference to them.
They will subsidize the hell out of industries they don’t want others to have in their quest for global hegemony. Free trade and the invisible hand only work if there is equity.
Our government doesn’t try to manage our trade by manipulating our system (much). It is all they do. The only reason our steel industry all but disappeared is they subsidized the hell out of theirs. we make better steel and often at or below their cost with transport but their subsidies destroyed our mills ability to compete.
Airbus is the EU pulling the same kind of crap.
I get tired of yelling at the TV when so-called "experts" talk on the MSM news, saying that the tariffs on China are only hurting American consumers and that these consumers are paying the tariffs, not China. Idiots!
Let's say China is selling a product for $1.00, and it costs $1.03 for the same product to be sold by Vietnam or Taiwan. Now there's a tariff of 25 percent, so the Chinese good now costs $1.25. The American consumer won't pay that, because Walmart or Dollar General will switch to buying the produce via Vietnam, Taiwan or other countries. Americans aren't paying 25 percent more, they're not dumb, they'll shop around for the product that is only 3 percent more - because Walmart is going to shop around for the best price.
Hope President Trump keeps up the pressure on China so we stop buying their crap.
China is doing what they can to make sure that the added cost for companies to import goods remains the same otherwise the cost would have to go up for the company to keep it’s profit margin. If that happens and the price goes up the consumer would pay for it. At a certain price the consumer says, “I’m not paying THAT price” and they go to another product. This again hurts the company that brought in their cheap Chinese goods. The company will start losing business to competitors who don’t have that added tariff and the company says, hmm..maybe we need to get our stuff from non tariffed countries. They then move their manufacturing from China to compete and have the same price point with the same profit margin. China, knowing this, has to make sure that the company doesn’t have to raise their prices because of the tariffs. To do that it seems as though they’ve been devaluing their currency by the percentage of the tariffs. 10%, their currency is worth 10% less so the company can get more bang for their buck (needs a more detailed explanation here I know). This is why things aren’t going up by 10 and 25 percent. The company can eat it or China can. To date China has been eating the cost. Good luck with that as a long term strategy though. If I were on a computer I could have given a better explanation.
Exactly
The markets don’t like uncertainty.
The fact that the G-7 is happening this weekend raises the possibility that maybe face-to-face talks with China will result in some reprieve before Monday morning.
But that’s not how you’d bet: These summits with European allies have become more adversarial, not less, over the course of Trump’s presidency, to the point that he’s reportedly told aides over the past few weeks that he’d prefer not to go.
He’s more likely to pitch other G-7 members on joining with him in a united western front to teach China a lesson on unfair trade practices. Given how tense European relations are with the White House, how’s that likely to go? What would their price be for an alliance of that sort, given that they’re now going to panic that a prolonged U.S./China trade war will destabilize their own economies?
Here’s a question. Will China capitulate and take it like a man? They’ve been screwing us and we can’t go on like it’s nothing. Fair is fair and they should not act threatened unless it’s their way. That’s what Democrats do.
China total debt to GDP 300%
USA debt to GDP 106%
I don’t see how they survive this. We shouldn’t be happy with our situation, but China is going to be hurting. Banks are going to go under.
Could be happening that way (don’t forget Yuan devaluation making their stuff cheaper)...but I haven’t dug enough to find out the current cost of items at the port of entry vs. a year ago for example (probably a WalMart secret). In any case, “direct to consumer” items like Christmas lights/decorations, toys, etc. would have been affected in price starting Sep. 1...that is why Pres. Trump delayed the tariffs on items like that until December...until after the ships have unloaded all that Christmas stuff and it is in the supply chain already....he knows the consumer would pay. I was initially responding to an assertion the “China is paying the tariffs/duties directly”...which is incorrect.
As far as shifting the manufacturing to another communist country...that really shouldn’t be the goal either...not a “win” in my book even tho it may hurt China. The goal is USA manufacturing...but with our labor costs people are going to have to get used to paying 50-100% more for their Christmas lights, etc, etc, etc..
I do not think he’s projecting weakness at all.
We’re just at a point of time where it appears so to the impatient.
Frankly, he sounded pretty pissed off today. The next few days, I expect he’ll start hammering.
Which brings me to the 'bottom line'. Each business person operates and makes decisions for their own and their business's benefit. They are not concerned with the 'invisible hand' and that is where it comes into effect. That is why it is invisible.
Thanks for that example.
[But he doesn’t have to stand for reelection next year so he’s raising the stakes.]
https://en.wikipedia.org/wiki/Zhao_Gao#Coup_following_Qin_Shi_Huang’s_death
https://en.wikipedia.org/wiki/Emperor_Yang_of_Sui#Late_reign
https://en.wikipedia.org/wiki/Hua_Guofeng
If you’re looking strictly at communist countries, there’s also the examples of:
https://en.wikipedia.org/wiki/Nur_Muhammad_Taraki#Assassination
https://en.wikipedia.org/wiki/Nicolae_Ceau%C8%99escu#Death
But I’d argue that *all* communist countries merely replaced absolute dictatorships/monarchies with the fig leaf of Marxim/Leninism - an excuse to gain and retain the royal scepter more than anything else.
Nonetheless, these tariffs are a good thing. What we have now can't and shouldn't go on.
Works for me. I want to focus on spending money here rather than on Chicom crap.
Bought a Kimber a few weeks back, added a few (5) Case knives handmade here is Pennsylvania, and also bought a handmade stag knife, a handmade stag handled knife from Tennessee, and stag grips from Texas.
Not one cent to the Chicoms. Feels damn good.
Good for you, Diana. Few of us have that kind of fortitude. But I am smart - I have a Smart Phone!
You are spot on.
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