• White House slaps 25% tariff on $50 billion worth of goods on china.
    27 replies, posted
http://money.cnn.com/2018/05/29/news/economy/china-tariffs/index.html Treasury Secretary Steven Mnuchin said a trade war with China was "on hold" less than 10 days ago. And Commerce Secretary Wilbur Ross is expected in Beijing on Saturday to help ease trade tensions between the two major trading partners. get ready for electronics to swell in price considering the consumer pays for the tariff majority of the time.
I place a 20 coin bet that this will be reversed in the next 10 days, by the floppy fish himself.
I wouldn't bet on it. The dipshit has been pushing for this/something like this almost as long as he's pushed for his stupid wall.
Though I am incredibly anti-trump. Tariffs and protectionism are what (and still is, we subsidize massively) made America so powerful before we started forcing everyone else to be free market so we could invade their markets with our developed industries. The thing is, China can’t just suddenly raise prices on all their exports involved in these new tariffs because it still has to be competitive with all the other economies in the world which can now undercut China. Now this isn’t to say China can’t fuck us up by doing their own tariffs on our exports but as it stands this is actually good economics for America.
America was incredibly strong because of being one of the only first world nations that still had an economy intact after ww2. Now thats no longer the case since other nations have recovered, and china is considered the center of the world trade wise. That and the immense public funding of education for specialization leads to more workers/trade/exports. America needs to realize this as have economist and see the path ahead is the high tech sector. Clinging onto factories is going to do nothing but be in the shadow of the red giant.
Tariffs aren't about recovering our factory and manual labor industries (at least for me) but about having China fairly compensate us for the massive amount of goods with import from them so we can use the tariff fees (taxes) to use in other industries and social programs (which Trump won't do). We will never be competitive with other Asian or Latin American countries because their ability to skirt human and labor rights gives them the ultimate competitive advantage in a capitalist economy, thats obvious and I agree technology and high skilled jobs are where our economy should go so we can stay competitive.
Since they're going to pass on the tariff costs to consumers (inevitably) what you're saying is they're essentially taxing the poor without out-right saying it. Great. So it's "good for the economy", so my question is "WHOSE economy is it good for?"
But now the the consumer will have to foot the bill. Tariffs historically do nothing but inflate the price of something with little gain other than the producer getting a net boon.
Since we don't know what goods are having tariffs imposed on them I don't think you can make that claim since if there are other countries who can outperform China in those industries than consumers won't see a price increase since China will have to capitulate to the global value of those goods. We'll see what the list is though because thats very important to what happens to consumers.
the world ripping itself apart twice while paying the U.S. for its expenditures and the Mississippi basin is why the U.S. is so powerful.
What does China make, that the US doens't make any of? OH I KNOW THIS ONE It's phones! And electronics, and microprocessors, and damn near everything we use in our daily lives!
meh. The only thing they have is developed rare earth metal infrastructure otherwise we'd just build automated facilities doing the same manufacturing processes here.
That would still take time, massive investment, and would likely not change the cost to consumers at all post-tarriff.
with the rising value of the Chinese worker its bound to happen sooner or later.
You care to substantiate that tariffs made AMERICA STRONG beyond platitudinous spasms? Also we export a lot to China. Especially agricultural goods. About $170 billion a year. And that's just goods, it says nothing of the supply chains you intend to disrupt (e.g. china's 2nd-4th greatest exports are iron, plastics, and copper.) It goes way beyond just one industry, and even if you're doing that, you're still making goods more expensive for the average american. https://piie.com/sites/default/files/publications/pb/pb12-9.pdf Here's one great example courtesy of Obama. The literature is pretty consistently against protectionism with the exception of a small amount of subsidies. Job-wise, you usually offset your gains with losses elsewhere. You'd be better off using welfare instead of protecting some rent-seekers jobs.
This is about economic theory not politics so chill, I gave my reasons for why placing tariffs on a country who's trade deficit with America is over 500 billion in the red is a good thing for America, the state not its people. Go read a history book, America became powerful because of protectionism enforced in their industries and then after our economy was advanced enough we indoctrinated the world with free market doctrine by forcing the global free market dogma which you are reciting on poor countries who were then invaded by foreign investors and have been devastated by capital outflow and flight ever since. Markets have never been more "free" but income inequality has grown exponentially because of it. Don't mistake my approval of the economic theory of tariffs for support for Trump.
I didn't imply you were a trump supporter? "Go read an history" isn't a substantiation. You don't even seem to know that due to basic accounting, a trade deficit coincides with an influx of capital which is good for Americans, as well as meaning Americans are able to purchase goods at a cheap price.
And cheap prices are pretty good, Lawd knows we certainly aren't getting paid much more money than we have been for years.
I really hope it doesn't affect all my cheap electronic components and things
Really.. You're going to make the claim that having a surplus of importation causes a "influx of capital" capital as in assets which create wealth? I want proof, source me. Cheaper goods are great when no one has jobs to buy them because of free market economics. Goods get even cheaper when post-Reaganomics began to cause rioting and looting.
It's in the definition and is a consequence of mathematics. To quote krugboi, the overall balance of payments... must always be zero. Do I actually need to provide a source that more money results in money being cheaper (i.e. cost of debt is cheaper.) Along with just cheaper assets, that gets used in investments, mortgages, etc. which do create jobs. The essay I linked contains an example using Mexico as well. The employment rate is really good and wages are fantastic for about the top 60-80%. It's the low-skilled workers not benefiting from surging productivity as a result of technology/skills gaps who need assistance. There's no need for ridiculous hyperbole. Going protectionist won't do shit for them. A large chunk of jobs that used to be great for these people are automated, e.g. US manufacturing output has pretty much returned to its peak, but people don't feel like it has. That's because waaay fewer people are needed to get the same work done.
Trade wars literally have no winners and everyones a loser, down to people in bumfuckistan. EVERYONE loses. It only serves to rile up shitty nationalism and encourage industry that is better outsourced because it can be done cheaper. We can mitigate the issues of globalism through domestic programs that give job retraining and easier access to college degrees instead of clutching onto jobs that are being artificially upheld by dumbshit trade policies.
china can win a trade war with the US. thanks to our poor poor oversight and great patriotic businesses, all of the precursors for drugs and many chemical processes come from china they can make pharmaceuticals scarce if needed.
http://www.bbc.co.uk/news/business-44346461 >But state news agency Xinhua carried a statement which warned against a trade war and said the two sides should meet each other half way. "Reform and opening up and expanding domestic demand are China's national strategies. Our established rhythm will not change," it said. "If the United States introduces trade sanctions including tariffs, all the economic and trade achievements negotiated by the two parties will be void. Even Canada are getting pissed. >Canada plans to impose tariffs of up to 25% on about $13bn worth of US exports from 1 July. Goods affected will include some American steel, as well as consumer products such as yoghurt, whiskey and coffee.
Here is the full list of tariffs being imposed on the US as of July 1st if they don't back down with that dumb shit, including the "we may impose further measures in the future" bit they left in at the bottom. So many of the assorted non-metal products come from primarily from red states.
The imposed tariffs on other people and gave the EU Canada and Mexico a little extra time to negotiate.
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