superstriper

Tariffs

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It would be nice if our  politicians understood ow they worked- China is not paying big tariffs as trump and others keep saying - the tariffs are paid by the USA companies that are importing these goods- they face two options raise prices or lose money- most companies just pass the cost on to USA consumers resulting in higher cost of goods. At the same time our politicians will pick and choose which companies should be given corporate welfare at the expense of our debt

 

it is like the stupid woman from ny aoc that helped kill the Amazon deal stating ny should not write a check to amazon

 

 

 

 

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And tariffs are a tax that is paid mostly by the consumers regardless of they income level, like a national sales tax. You may think that is good or bad, but it is revenue to the government.

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Funny - our market strategists and economists (not Trump fans) at first panned the tariffs and now they point to efficacy.

 

Maybe US consumers shouldn't be patronizing so much Chinese business. We can replace their steel with India and other countries as well as our own, albeit at a temporary price increase.

Chinese consumer electronics are garbage. You get what you pay for and if you are willing to pay extra for low-quality Chinese TV's Phones, Etc... you deserve it.

Vietnam is already filling the void in the crappy China textiles.

 

As was remarked several years ago by our friends on the Left: Why do we need to purchase anything from China?

Did that tune change?

 

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1 min ago, SallyGrowler said:

 

 

As was remarked several years ago by our friends on the Left: Why do we need to purchase anything from China?

Did that tune change?

 

The keyboardist changed.

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I deal with them, and they have had an impact - and it gets rather complicated.

If an imported item receives a tariff which makes the domestic item competitive, then you switch to domestic, the price does go up, but the benefit is US jobs (and of course the fallacy of national security). 

But, if the tariffed import is still cheaper than the domestic or there is no domestic source, the net result is just a higher cost to the consumer without the benefit of onshoring the item. 

Both scenarios play out everyday.

You'd probably be hard pressed to find a window AC made here, will tariffs bring them back?

I don't know - the devil is in the details.

I have seen companies that were using foreign steel switch to domestic, and I have also seen some lose the whole job to a foreign supplier who can make the part cheaper with the same foreign steel that they used to be able to buy.

There's winners and losers for sure, and leaving it as it was sucked too.

The whole thing does add uncertainty when it comes to planning and Capex. 

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3 mins ago, Billybob said:

But, if the tariffed import is still cheaper than the domestic or there is no domestic source, the net result is just a higher cost to the consumer without the benefit of onshoring the item. 

Does this not open up an entrepreneurial opportunity for a domestic source if it makes economic sense?

 

Blanket policies always have anomalies, and can be adjusted at a later date.  

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8 mins ago, zybathegeek said:

Does this not open up an entrepreneurial opportunity for a domestic source if it makes economic sense?

 

Blanket policies always have anomalies, and can be adjusted at a later date.  

Sure, but it depends on what it is.

Do you know how much capital and time it would take to make a window AC factory?

What if you did and Trump removed the Tariffs?

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1 min ago, Billybob said:

Sure, but it depends on what it is.

Do you know how much capital and time it would take to make a window AC factory?

What if you did and Trump removed the Tariffs?

Understand, but better to start with this ambit tariff block, then any punitive anomalies can be appealed.

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Posted (edited) · Report post

We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!

— Donald J. Trump (@realDonaldTrump) May 10, 2019

 

"...this is incorrect. The trade deficit has never been $500 billion. If, for some reason, he’s talking about “losing” $500 billion because we import that much from China, imports from China only passed that mark in 2017 and 2018 — years when he was president...

 

..."Talks with China continue in a very congenial manner — there is absolutely no need to rush — as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S.” he wrote [Trump Tweet]

 

No, they don’t. As we’ve noted before, there are some customs duties that are paid directly to the government when products are imported. In 2017, the government earned about $35 billion that way. But tariffs on imports are often added to the price of the imported product, meaning that the tariffs are being paid by the people who buy the product — in this case, American consumers.

 

One study estimated that higher tariffs on products from China could cost American households $767 a year. The tariffs also hurt American businesses by making them either charge more or absorb more of the cost of imported products, both of which threaten profitability..."   WP "Trump’s explanation of the trade fight with China is wrong in a remarkable number of ways"  10 May

 

 

(Think Sammy Davis Jr)    

 

Who can take some tariffs

sprinkle them with BS

Tweet out all his tweets

and make the world (economy) go south...

 

 

Edited by KnewBee

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Just now, Gotcow? said:

Poking fun at Trump aside...... :D

 

How would you address the China trade issues?

I ain't an economist, not sure, but what I am sure of is the average American will be hit with increased costs (estimated by WP at $767 per year).

 

 

 

 

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Your not quite right- tariffs and duties are both paid directly to the Dept of Commerce, and they are both paid by the consumer ultimately.

So, of course tariffs cost the population. The intent is to bring some of that back, and they are, idled plants have been reopened.

Any positive effect will take years.

Frankly, I can see the big picture, and I'm not sure.

There's no easy answer, quotas are problematic too.

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