Exactly even with a 100% tariff I'd image China is still competitive with their dirt cheap labour and operating costs.
Trump continues to cause chaos after chickening out.
- Thread starter SchlongConery
- Start date
Well I am of the opinion that IF he had any plan behind his tariffs it was to create an additional layer of taxation to balance out tax cuts for the wealthy, again.
I think the oligarch class has told him that it will hurt their business' more than any tax cuts might help them.
If it were about re-shoring, then any half-way halfwit Walmart Mens underwear Dept Manager level flunky would have realized that the gov't needs a plan to drive and support the re-shoring effort and provide adequate time and resources (grants/loans/tax breaks/deferrals/accelerated depreciation) to allow companies to properly plan for moving production back to the USA. Which Trump didn't.
I have a feeling that he is going to try some other attention grabbing stunt "to appeal to his base" and forget about tariffs like he seems to have about annexing Canada, Greenland and the Panama Canal.
The problem is that he has created well founded uncertainty in the global economy and is too much of an insecure coward to back out and admit that he thought it was a good idea but upon refection from his many ffriends in many countries that are friends to the USA, that he will withdraw the threat of tariffs. Being he is a lying cheating POS with no integrity, he can always bring them up again when his meds wear off. But in the meantime, there might be some semblance of stability that might casue consumers and business to have some reasont to feel a bit more secure and spend money.
Next week, Trump will announce a 150% tariff on China. And the Markets will go down again. He's manipulating the stock markets so his rich buddies can profit quickly.
Finally some agreement that we should be harder on the CCP
The US could embargo all Chinese products not produced for or on behalf of wholly owned US manufacturers.
So for example, Apple could still outsource production while Huawei and other Chinese owned companies that sell finished product into the US through wholesalers or simple white label branding could be subject to 100% tariffs. And any products infringing IP laws would be seized. The companies would be prosecuted under US Federal law (not civil litigation) and their owners/ principals blacklisted and any assetts they have anywhere in the world could be subject to seizure like collecting on a civil judgement is now.
Just a few ideas. I'm sure that any thinking group of people tasked with finding actionable solutions (not just sucking Trumps 'roids) to the big problems.
I don't think anyone is against enforcing unfair or illegal trade practices on the Chinese. But even here in Canada, where CSIS and the RCMP has more evidence on enterprise level spying than you can imagine. Yet they do fuck all. I'm sure there are CSIS agents and RCMP investigators who are seething with frustration that all their hard work and tax payer salaries have been wasted.
I don't pretend to have knowledge or even a clue why our government, and the past and present US governments have done fuck all.
I think further threats of increase of tariff will cease to have much
impact by next week. The market will have figured out Trump is just
bluffing by then.
10-year treasury yield has spiked. Yield actually dropped
on the prospect of tariff. Once the market was hit by details on
the size of Trump's tariffs 10-year treasury yield nosedived.
Trump may be a fool but he probably realized the stake was
too high for him to risk bankruptcy of the government. Hence
the pause on tariff on most countries.
How big is the market for such Chinese products?
I believe not much in the US. (apart from some laptops and phones).
So an embargo may not be as effective as intended.
Even with a 100% tariff on Chinese manufactured goods I dont think domestic manufacturing will be competitive against China.
Since the US imports several times more than they export to China, I think this would both increase costs and result in retaliatory actions that could severely affect US industry (such as ban on exports of rare earth minerals - the US imports 75% of its rare earth minerals from China).
And not like Trump hasn't pissed off everybody else in the world for them to step in to take China's place.
Last but not least, he isn't going to pass up the opportunity to manufacture cheap MAGA hats and sell them to his gullible base. lol.
Europe too.
The EU charges 10% import duties on US imported cars, but the US only charges 2.5% import duties on EU imported cars.
This needs to be fixed
There is nothing to be fixed.
3 things:
1. The US is the largest consumer.
2. They produce less than they consume and hence their need to import more than they export.
3. They have the largest corporations that would eat up any market they go to. So those countries have a need to protect their economies, but the reverse isn't true.
That's not true, because the EU exports significantly more cars to the US, than the US exports cars to the EU.
And the EU cars tend to be higher value too
Trump HUMILIATED TO HIS FACE as Reporter BRUTALLY CALLS HIM OUT!
Well, that's what I just said.
The US consumes more than it produces and it is the largest consumer.
And the reason the US exports less cars to EU is because of those EU import duties that they need to have in place to protect their local economies.
The reverse isn't true where even with less American import duties EU cars do not dominate the American market.
Doesn't the US have a point about an asymmetry in tariffs, such as the EU's 10% tariff on cars compared to the US's 2.5% tariff?
Tariff structures vary between economies, with some EU tariffs higher than those of the US and many others lower. Both the EU and the US have equally low tariffs overall.
While the EU applies a 10% Most Favored Nation (MFN) tariff on cars, it's important to note that the US imposes a 25% tariff on pickup trucks—the largest segment of the US auto market, accounting for about one-third of all vehicle sales. In fact, the best-selling vehicle in the US is a pickup truck, the Ford F-150.
The EU remains open to balanced negotiations that foster a level playing field for both sides.
More correctly they choose to import more than
they export. If I spend more than I earn and if a
good portion of my spending is for purchase of
non-essential items then I don't need to spend more.
Spending financed by growing debt is unsustainable for
both individuals and their government. Perpetual growth
of governement and public debt in more affluent countries
seems sustainable on the surface. In reality much of the west
(U.S., Canada, UK and most of Europe included) are just kicking
the can down the path to the day of reckoning when their
governments will no longer be able to finance public spending
on top of servicing existing debt.
Trump could have done the right thing by introducing tariffs in moderation
and in an orderly fashion. But being Trump he slapped horrendous tariffs on
imports from friends and foes alike like a maniac. Now he is going to lose face
big time.
Because Europe doesn't want Pick up trucks and SUV's that can't even fit on their roads and eat gas. It's that simple.
