Tariff Watch

[Bud]

So it seems the Asian Tiger is not that great (which I always suspected). Everyone has been screaming China China the worlds leader economy. Not so much eh... The day the West will stop feeding job orders to China will be the day China will fall apart.

[MT]

Yes, but China has to fight, even losing is inevitable. Losing the trade war means opening door to western economy, then western culture, then the fallen of communist dictatorship follows. For this reason, China will do anything to resist, even if it means hot war, even nuclear war, at the very end.

As mentioned many times they are not communists nor socialists its just an pretext they are Checkists oligarchs.
XI is about money just as Putain, Dumpf, Makkaroni,Bleir etc.

Look Modi and Xi happy!

[MT]

If he loses his power, he will not be happy anymore. He has already done too many horrible anti humanity things, and he knows exactly he has no way out if his political power gets turned over. He will be hang if he loses power.
That's why he will do whatever to stay in power. Trump has grossly underestimated the desire of surviving from a dictator.

Have any Chinese emperor done humane things through past 5000 years? Dumpf tries to be a dictator.
Xi is an Confucianist not Maoist. Mao pretended he was a communist but was isolationist.Deng is the dude
behind China economical boom. He knew and said: with money not guns we can win the war against USA imperialists!

Tarriff WAR!

[innkeeper]

Remember, the US is holding all the chips when it comes to China ... hope this drives some of this home to those that still doubt the validity the directions being taken.

Yes, but China has to fight, even losing is inevitable. Losing the trade war means opening door to western economy, then western culture, then the fallen of communist dictatorship follows.
For this reason, China will do anything to resist, even if it means hot war, even nuclear war, at the very end.

Great propaganda for inside China, but we all know it means nothing of the kind.
Though it does make me wonder why behaving fairly on the world stage is now considered "loosing"

[innkeeper]

As for me, I certainly don't fault China for doing what is in their best interest.

the USA could learn a lot from China in this regard.

[Mr. Scram]

So it seems the Asian Tiger is not that great (which I always suspected). Everyone has been screaming China China the worlds leader economy. Not so much eh... The day the West will stop feeding job orders to China will be the day China will fall apart.

We don't have an industry to back ballsy talk like that up. Almost all our stuff comes from China. Stuff we need to run our society. Sometimes it's stuff we don't want to produce here because it's nasty to make.

We simply can't afford to stop ordering.

[innkeeper]

most of the large commodities China buys from the us, like natural gas and soybeans in example,
China buys at the cheapest rate they can. the USA happens to be the cheapest supplier and the largest exporter and China imports 70% of the world's soybean exports.

adding terrif's  will make those goods less attractive to buy from the USA and China will likely buy up other sources in the word before buying from the USA and incurring their own tariffs.
which, by the way, is an artificial tariff considering the Chinese government sponsors many of the companies.  china has a tariff re-emergent program too for all tariffs up to 18% I believe.  there already increasing that too see this article as an example https://www.bloomberg.com/news/articles/2018-07-09/china-is-said-to-reimburse-tariffs-for-state-reserve-soybeans

even if China goes elsewhere for the goods,  all this means for the USA is markets were soybeans and natural gas sells higher will open up to them as supplies become unavailable to them because China is buying up the supply.

in short, the retaliatory tariffs China puts on will have no impact other than increasing the number of goods the USA will tariff.  it's an interesting bluff. but it is backfiring on them.

[Mr. Scram]

most of the large commodities China buys from the us, like natural gas and soybeans in example,
China buys at the cheapest rate they can. the USA happens to be the cheapest supplier and the largest exporter and China imports 70% of the world's soybean exports.

adding terrif's  will make those goods less attractive to buy from the USA and China will likely buy up other sources in the word before buying from the USA and incurring their own tariffs.
which, by the way, is an artificial tariff considering the Chinese government sponsors many of the companies.  china has a tariff re-emergent program too for all tariffs up to 18% I believe.  there already increasing that too see this article as an example https://www.bloomberg.com/news/articles/2018-07-09/china-is-said-to-reimburse-tariffs-for-state-reserve-soybeans

even if China goes elsewhere for the goods,  all this means for the USA is markets were soybeans and natural gas sells higher will open up to them as supplies become unavailable to them because China is buying up the supply.

in short, the retaliatory tariffs China puts on will have no impact other than increasing the number of goods the USA will tariff.  it's an interesting bluff. but it is backfiring on them.

"Them" denoting both countries is correct.

[innkeeper]

them being China.

As I posted earlier, the positive impacts are already being felt in the USA and negative impacts are being felt in China.
i invite you to go back and read that post.

jobs that were supposedly never coming back, according to the prior administration are coming back.  its about time the USA played Chinas game don't you think?

[donotdespisethesnake]

I see Trump didn't put a tariff on Kool-Aid. 

[innkeeper]

just goes to show... there is no competition for kool-aid 

[cdev]

Rest assured, (IMHO) 'trade wars' are "shambolic".  Intended as a diversion more than anything else.

 "Yes, we care about your jobs".  When they really don't. But the oligarchs can't say that.

[Eka]

I see Trump didn't put a tariff on Kool-Aid. 

That's because he knows all his supporters drink the Kool-Aid.

[Mr. Scram]

them being China.

As I posted earlier, the positive impacts are already being felt in the USA and negative impacts are being felt in China.
i invite you to go back and read that post.

jobs that were supposedly never coming back, according to the prior administration are coming back.  its about time the USA played Chinas game don't you think?

The problem is that protection schemes and tarriffs have historicallly rarely, if ever worked. It's remarkable how some people think that taxing US citizens more will increase their living standard or purchasing power.

Besides, the whole thing is based on a false premise. Trading surplusses or deficites don't actually mean what they're made into in this discussion. It's not a metric that means good or bad. That either means Trump doesn't understand the basics of economics, or that he's banking on the constituents not understanding economics enough to call this bluff. Economists don't tend to agree with the notion either. '“The trade deficit is a terrible metric for judging economic policy,” said Lawrence H. Summers, a Harvard economist'. See the link below.

When you're referring to any earlier posts, please post a link. The same goes for posting sources when making claims.

https://www.nytimes.com/2018/03/05/us/politics/trade-deficit-tariffs-economists-trump.html

[helius]

Turkey is already blaming its currency crisis on Trump's steel and aluminum tariffs. As the Turkish Lira plummets, overseas investors flee to US bonds for stability, which strengthens the dollar. A strong dollar means greater purchasing power for US residents.

[Moshly]

It's started

Element Electronics, a consumer electronics company in South Carolina, says it will be closing its plant in Winnsboro due to tariffs imposed by President Trump.

http://thehill.com/policy/finance/400761-south-carolina-manufacturer-says-its-closing-plant-over-trump-tariffs

[Mr. Scram]

Turkey is already blaming its currency crisis on Trump's steel and aluminum tariffs. As the Turkish Lira plummets, overseas investors flee to US bonds for stability, which strengthens the dollar. A strong dollar means greater purchasing power for US residents.

I'm not sure that the words of an ever more absolute ruler who's steadily driving his own country into the ditch should be taken to have much value. Of course he's not going to say it's his own actions that are causing the Lira to plummet.

[Bassman59]

Turkey is already blaming its currency crisis on Trump's steel and aluminum tariffs. As the Turkish Lira plummets, overseas investors flee to US bonds for stability, which strengthens the dollar. A strong dollar means greater purchasing power for US residents.

How many investors have been putting money into Turkey in the last, oh, decade? My guess: not enough to make any difference in the strength of the dollar.

[shteii01]

We don't have an industry to back ballsy talk like that up. Almost all our stuff comes from China. Stuff we need to run our society. Sometimes it's stuff we don't want to produce here because it's nasty to make.

We simply can't afford to stop ordering.

You are completely misunderstanding the situation.

Nobody is stopping trade.  We, the US of A, will continue to trade with China.  They, China, will continue to trade with US of A.  What is being attempted is to adjust the balance of the trade.  The trade itself will not stop and is not being stopped.  The trade will continue.  What is being desired is that:
1.  China buys more from us.
2.  China sells less to us.

In a few years a new trade balance will develop.

Remember.  Today's trade balance did not develop this year.  It took 30 years for us to arrive at the current trade balance between US of A and China.  This trade balance thing is not set in stone.  Politics, economics, technologies, they all have effect on trade. 

[helius]

How many investors have been putting money into Turkey in the last, oh, decade? My guess: not enough to make any difference in the strength of the dollar.

There are several countries that face similar headwinds, like Argentina, Brazil, South Africa, Colombia, Egypt, and Vietnam, and pressure has been increasing on all of them as the US bond yields go up. These countries are very exposed to changes in US monetary policy because they have large dollar-denominated debts.
https://www.wsj.com/articles/turkey-crisis-puts-spotlight-on-emerging-markets-foreign-currency-debt-1534248002

[DerekG]

With our production facility being based in Australia, we are starting to shift some of our purchasing of components from Digikey (Thief River Falls USA) to Mouser (Hong Kong) as www.octopart.com are now showing up better pricing for the Hong Kong based supplier.

Digikey have sent us a letter indicating they are keeping abreast of the situation, however it looks like the new USA import tariffs are beginning to take effect.

[ProBang2]

[...] overseas investors flee to US bonds for stability, which strengthens the dollar. A strong dollar means greater purchasing power for US residents.

[...] What is being desired is that:
1.  China buys more from us.
2.  China sells less to us.

Think logically...

The strong dollar increases the price of exported american goods and decreases the price of imported foreign goods.
What is been achieved is that:
1. USA buying more.
2. USA selling less.

Purchase power and trade with countries involving tariffs (...China...):

Tariffs are a tool to protect the own manufacturers. How it works? Simple...
To make the own products competitive, the cheaper foreign goods are artificially made more expensive.
So, customers in the USA should get used to the pricing calculation for an iPhone, laptop, TV etc. that is built in the own country. The former cheaper (imported) device reaches after the tariff the same level. Is the grown purchasing power equalizing that?
And... Yes! You got it right! Tariffs are making the goods more expensive for people in the importing country!

At least: The incoming money from the tariffs should be enough to built a, for sure urgently needed space force... 

BTW: Somehow strange... Imagine the following cases.
1. Trump press-conference message on twitter: "My fellow americans. You have to pay a 30% tax on stuff from China. How great is that!"
On the sudden he would be called a motherf..king bastard.
2. Trump press-conference message on twitter: "My fellow americans. I have raised a 30% tariff on stuff from China. How great is that!"
On the sudden he is called a patriotic hero.
Now tell me, please: What is the precise difference for the american customer or the manufacturer in need of parts from China???
What is the exact advantage of the farmer in the US, if he is not able to sell his goods because
a. they are to expensive in other countries (Yeah, the strong dollar).
b. there is an ongoing trade/tariff war. 

 

[helius]

Tariffs were the original source of government income, long before there was an income tax. They are desirable from an economic perspective because they apply to consumption rather than value creation. The problem is that, for political reasons, they don't get applied to finished manufactured goods, which hurts domestic manufacturers.

The "space force" is simply a bureaucratic stunt to take certain programs away from the air force.
Much more important are the modernization of defense networks such as the JEDI project, which will add autonomous weaponized drones to the Pentagon's 4C systems.

[shteii01]

[...] overseas investors flee to US bonds for stability, which strengthens the dollar. A strong dollar means greater purchasing power for US residents.

[...] What is being desired is that:
1.  China buys more from us.
2.  China sells less to us.

Think logically...

The strong dollar increases the price of exported american goods and decreases the price of imported foreign goods.
What is been achieved is that:
1. USA buying more.
2. USA selling less.

Purchase power and trade with countries involving tariffs (...China...):

Tariffs are a tool to protect the own manufacturers. How it works? Simple...
To make the own products competitive, the cheaper foreign goods are artificially made more expensive.
So, customers in the USA should get used to the pricing calculation for an iPhone, laptop, TV etc. that is built in the own country. The former cheaper (imported) device reaches after the tariff the same level. Is the grown purchasing power equalizing that?
And... Yes! You got it right! Tariffs are making the goods more expensive for people in the importing country!

At least: The incoming money from the tariffs should be enough to built a, for sure urgently needed space force... 

BTW: Somehow strange... Imagine the following cases.
1. Trump press-conference message on twitter: "My fellow americans. You have to pay a 30% tax on stuff from China. How great is that!"
On the sudden he would be called a motherf..king bastard.
2. Trump press-conference message on twitter: "My fellow americans. I have raised a 30% tariff on stuff from China. How great is that!"
On the sudden he is called a patriotic hero.
Now tell me, please: What is the precise difference for the american customer or the manufacturer in need of parts from China???
What is the exact advantage of the farmer in the US, if he is not able to sell his goods because
a. they are to expensive in other countries (Yeah, the strong dollar).
b. there is an ongoing trade/tariff war. 

 

Strangely... I don't see you complaining about Chinese tariffs. 
I think I will be Ok buying South Korean and Taiwanese goods.

As far as US farmers... In case you don't know, China is desperate for food.  The farmers will sell their produce because Chinese government does not have a choice.  If Chinese government fails to provide food to its people, there will be another revolution in China.

[ProBang2]

[...] The problem is that, for political reasons, they don't get applied to finished manufactured goods, which hurts domestic manufacturers.

I´m somehow much more confused now...
Making foreign parts for the own manufacturers more expensive but import final products without tariffs can make american factories more competitive? Hurting them protects them?   
Sorry, I´m out. My brain can´t decide right now if it will twisting, twirling or cooking...   

[...] modernization of defense networks such as the JEDI project, which will add autonomous weaponized drones to the Pentagon's 4C systems.

Nice. Sounds like: They will built SKYNET version 0.7...