Chinese reversal prompts Trump to impose new tariff hike as markets fall

[Nyezhov]

8 minutes ago, candide said:

Interesting quote from your source:

"After a summit in Brussels last month, China agreed to grant European Union countries “improved” market access, stop the forced transfer of technology and discuss the possibility of curtailing state subsidies to Chinese companies, which, other governments say, gives them an unfair competitive advantage. "

 

If Trump did not have the stupid idea to aggressively deal with the EU, maybe an alliance USA + EU + others such as Australia Canada, Japan would have obtained more from China than they can get separately.

The best thing about Trump haters is that you can give them a sunny day and they will screech the world is ending due to Trumps policies on climate change.

[impulse]

11 hours ago, Nyezhov said:

12 hours ago, Tug said:

Oh I don’t know the other day I had to buy a piece of channel iron to fix a trailer that 12 foot long piece of channel cost me 70$ normally it would cost 20 to 30$ it’s just anything a guy does now costs more it is a direct result of Donald’s naive attempt to rectify an existing problem trade wars are not easy or good and the Chinese government is much better suited to Handle a financial downturn than ours 

Somehow your inability to source a reasonably priced piece of channel iron does not really bear on Worldwide Macroeconomics does it......

 

Yeah, it does.  Because the cost of raw materials in the USA is so high, I can get that trailer fabricated in China and shipped to the USA for about the cost of buying the raw material in the USA.  Unlike "steel", "trailers" aren't a strategic commodity and aren't under punitive tariffs.  So the steel companies don't gain, and I don't hire US welders.  I just hire low wage folks to do unskilled assembly.

 

Edit:  I'd point out that I'm using an example from my distant past- but it's indicative of how ill advised some of the tariffs are.  And how deep the unintended consequences go.

 

Edited May 7, 2019 by impulse

[emptypockets]

15 hours ago, Nyezhov said:

the Dragon is paper....They are a Paper Dragon

So were the Japanese until they said ' bugger this Pearl Harbor he we come!!'

[emptypockets]

You get the politicians you deserve. An old adage that has stood the test of time, unfortunately.

[impulse]

13 hours ago, connda said:

The US tossed American farmers under the bus.  Who's next?  

 

Until they fix the broken farm subsidy systems and the wasteful use of precious groundwater, that may not be a bad thing.  You call it "throwing them under the bus", I call it "make them think twice before depleting America's ground and surface waters for products not being consumed by Americans".  The USA in many places (wisely) has laws against exporting water.  But none against exporting the products that consume so much water to grow.

 

And don't get me started on the subsidies being enjoyed by multi-nationals.

 

Beside that, China has to get their food somewhere.  And the food they buy from S. America or Aus is now off the world market.   So someone else can't buy it.  That means they have to shop elsewhere.  Sure, it will take time.  But agricultural products are fungible and other markets will open up.

 

Edited May 7, 2019 by impulse

[Nyezhov]

33 minutes ago, emptypockets said:

So were the Japanese until they said ' bugger this Pearl Harbor he we come!!'

Ya saw what that got them LOL

[Traubert]

If anyone thinks that China hasn't got a Plan B, Plan C and Plan D, continue to the end of the alphabet and beyond, you might need to think again.

 

5.8% drop on Wall Street would have human showers coming down from tall buildings. 5.8% on the Shanghai Composite is a shrug of the shoulders.

 

 

[spidermike007]

12 hours ago, stevenl said:

And to achieve something he should have coordinated action with allies in stead of alienating them with tariffs.

Any president who goes out of his way, and makes an effort to alienate our closest allies, and coddles serial killing dictators like Putin, Kim, MBS, and others, is not working in the best interests of the nation. Trump is the most dangerous man in America. He is a national security risk, a traitor, and a fool. 

[zig]

23 hours ago, candide said:

The problem is not the fairness (or unfairness) of tariff sanctions. The problem is that it is completely inefficient. Imports from China have steadily increased in 2018 and the trade deficit has never been so high than in 2018.

For Trump and his fan base it looks good, because that's something easy to understand, but it's inefficient. The only outrage is about his moronic policy.

https://www.census.gov/foreign-trade/balance/c5700.html

 

I think it is actually very efficient - just not in the way Trump is trying to present it. Due to the his cuts in corporate taxes and increases in military spending the US is now having huge budget deficit that keeps getting bigger. What better way to fix it than by applying tariffs to imported goods and making all american people to pay for it... and yet somehow still keeping his voters happy?

[MaxYakov]

On 5/7/2019 at 8:47 AM, attrayant said:

 

And American manufacturers, seeing less competition from Chinese goods, will be tempted to raise their prices. Everybody wins.

Except the consumer (which is what a tariff is - a pass-thru-to consumer tax). Have you priced the Western foodstuffs in Thailand, especially some decent ice cream (Hagan Das, Ben and Jerry's)?

[candide]

28 minutes ago, zig said:

I think it is actually very efficient - just not in the way Trump is trying to present it. Due to the his cuts in corporate taxes and increases in military spending the US is now having huge budget deficit that keeps getting bigger. What better way to fix it than by applying tariffs to imported goods and making all american people to pay for it... and yet somehow still keeping his voters happy?

Well, figures just don't fit.

Tax cuts are expected to cost much more than $100 billion per year (in 2018, tax revenues fell $183 billion) and tariffs revenues on Chinese goods are expected to reach $32 billion.

https://www.nytimes.com/2019/01/11/business/trump-tax-cuts-revenue.html

https://www.reuters.com/article/us-usa-trade-tariffs-explainer/explainer-who-pays-trumps-tariffs-china-and-other-exporters-or-u-s-customers-idUSKCN1SB0UF

 

[Kasane]

That's the narrative that the fake  West MSM wants to float, but the world is now more aware of the American's rogue nation status. Trump is likely to get badly burned as the Chinese dragon breaths fire. About time too.

[mikebike]

13 hours ago, impulse said:

Until they fix the broken farm subsidy systems and the wasteful use of precious groundwater, that may not be a bad thing.  You call it "throwing them under the bus", I call it "make them think twice before depleting America's ground and surface waters for products not being consumed by Americans".  The USA in many places (wisely) has laws against exporting water.  But none against exporting the products that consume so much water to grow.

 

And don't get me started on the subsidies being enjoyed by multi-nationals.

I think you are basically referring to the same people in both paragraphs. The subsidy system was set up when family farms were still a thing. No need to subsidise profitable corporations...

[zig]

55 minutes ago, candide said:

Well, figures just don't fit.

Tax cuts are expected to cost much more than $100 billion per year (in 2018, tax revenues fell $183 billion) and tariffs revenues on Chinese goods are expected to reach $32 billion.

https://www.nytimes.com/2019/01/11/business/trump-tax-cuts-revenue.html

https://www.reuters.com/article/us-usa-trade-tariffs-explainer/explainer-who-pays-trumps-tariffs-china-and-other-exporters-or-u-s-customers-idUSKCN1SB0UF

 

It does not have to fit but it helps. By the way, the tax of 32 billion is the one calculated on the current tariffs. If it is raised to 25% for 200 billion more worth of goods then it shall become 60 billion or so.

[lannarebirth]

15 hours ago, Traubert said:

If anyone thinks that China hasn't got a Plan B, Plan C and Plan D, continue to the end of the alphabet and beyond, you might need to think again.

 

5.8% drop on Wall Street would have human showers coming down from tall buildings. 5.8% on the Shanghai Composite is a shrug of the shoulders.

 

 

 

You think they don't "invest" on margin in China?