I don't have an answer to your question. But I would say tariffs above 100%
are not the punishments I would want to levy on China. It makes more sense
to cease trading with China altogether.
Trump wants to make a deal with China. Here’s how he’s trying to make that happen.
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are not the punishments I would want to levy on China. It makes more sense
to cease trading with China altogether.
Same thing China does.
Add 'quality control' or 'human rights abuses' to products you think are unfairly taking care of competition.
You do it slowly, targeting specific companies or products as you think they can be replaced locally or elsewhere.
I don't disagree. Once tariffs get over a certain level trade has been ceased anyways.
But I think outright declaring that we are ceasing trade probably also creates a massive global uproar, uncertainty with supply chains and definitely wipes trillions off the stock market and people's pensions. It is unfortunate, but a lot of our pensions (US and Canada) are littered with emerging markets, aka Chinese companies which would most likely collapse.
I mean I don't know the right answer on how we can decouple but seems like most of the options to try to do that lead to the same result that we are experiencing right now.
The 245% tariff is a cease trade with China, but when the hillbillies of West Virginia and the po crawdad fishermen of Louisiana do not get the Dollar General and Walmart merchandise the become Mad MAGA, not to put Trump in office but to lynch him. It is too late, 'Merica is already addicted to the crack cocaine of low priced merchandise.
I totally agree. This is why Chinese EV companies are tariffed so severely (basically banned). Because they are breaking rules, i.e. receiving subsidies, having 0 labour laws, breaking environmental laws with their lithium mining, also their QC is horrendous, etc. Also the de minimus clause that was just enacted is directly targeting companies like Shein and Temu, where QC is severely comprised, slave labour is employed, many of the products sold on those platforms engage in IP and trade secrets theft which can't be litigated in China, etc. Agricultural products like garlic also uses slave labour as well as many of the green tech that is being built. It is almost like all industries within China have these QC and human rights abuse issues.
But if you are doing this slowly while it gives you time to create new supply chains, it also gives China time to create new supply chains to once again circumvent and abuse the rules. I think capitalizing on some of the momentum he regained from American tech companies who are now switching their allegiances back to the U.S. vs clamoring to try to get into the Chinese market and endangering national security, that road has been severed with those tech companies having no choice but to work with the US government. I think we can all agree that you want your smartest minds working for you and not for China
Agreed.
Another good avenue would be demanding all Chinese products fit the 'right to repair' mandate, that they aren't just landfill if there are issues. That's another way to start up Canadian repair shops and build tech to start Canadian products.
Sure, there are probably plenty of ideas for that would be beneficial to trade for North Americans with China for a more prosperous relationship and get China to hopefully try to comply with the rules based order.
But I feel like its been almost a quarter of a century since China joined the WTO. They have had massive growth since then spurred by a variety of factors, i.e. their demographic dividend, huge foreign investment, opening up trade with everyone, and an incredibly hard working culture, but also due to breaking many of the promises it made in order to join the WTO. They have had 25 years to get their house in order and start making good on those promises and haven't. So how many chances and concessions do you want to give them in the hopes that they will start playing by the rules? When do punishments start to get levied that match the economic gains and leverage they have cheated their way too?
I think the time is now to apply that pressure although in a perfect world it should've happened awhile ago. However, most people were blinded by the potential of China eventually opening up and participating fairly within the WTO. It was definitely going a bit more in that direction with the Hu Jintao years. However, since Xi Jinping has taken power, it is pretty obvious he is not really interested in cooperation with the West. There is actually a Chinese idiom, 你死我活 . It means "you die, i live." I guess the west has its own version, "Kill or be killed."
Realistically, Chinese production is cheaper from lower wages and less worker safety and environmental regulations. That's also lead to more expertise in building manufacturing. If you want to lessen their advantage you either have to lower domestic wages and protections, which will get you booted from office, or you have to legislate ways to influence wage and safety rules on imports.
But that takes the long game and we only get politicians who think in terms of 4 years as their future.
Young kids do not want to go into the dirty/greasy car repair business. They want to be entrepreneurs, tech moguls, or have a stable of ho's and drink Crystal at the club at night. The mechanic schools can not get enough entrants to fil a class. Jobs like plumbing, electrical and brick laying are not what kids want to do, even thought it pays $60K on the first day of the job.
I have not heard of any situations where there is not a 'right to repair' on Chinese EVs. I have only heard of several situations with Tesla cars where parts and materials are restricted, and warranties are voided even if the car receives unauthorized paint.
China has been trolling the US with these AI videos, but the central thesis is correct. Americans don't really want those factory jobs.
If they do not want the $60K starting salary plumbing, electrical and brick laying jobs ( going up to $95K after 5 years ) The do not want the $22-25k jobs assembling toasters.
Or find different supply chains which are not as adversarial and more likely to follow the rules based order. I think the key is not being so dependant on one nation for your entire supply chain
China is going through the same problems right now. You have 20%+ youth unemployment, the lying flat movement or professional children (kids whose job is basically do nothing except take care of their aging parents.)
Some of the youth (many with university degrees) are finding it incredibly difficult to get into China's fiercely competitive workforce and are simply choosing to do nothing. Add to this that their workforce is shrinking, and will be at 2 workers/retirees in just a couple of years.
