Blaming this USA plant's closing on Trump's tariffs is a lie.

Discussion in 'Economy' started by Supposn, Aug 8, 2018.

  1. Supposn
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    Supposn VIP Member

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    Blaming this USA plant's closing on Trump's tariffs is a lie.
    Element Electronics company is obviously lying.

    If the USA levies tariffs upon components, I would suppose and expect we would do so upon similar imported components and finished products from all foreign nations. USA producers are at disadvantages to cheaper foreign labor, but they're at lesser rather than greater disadvantages due to such USA levied tariffs.

    I don't doubt that the tariffs will to some extent reduce USA sales of the finished products. We all benefit from cheaper imports, but they don't fully compensate for USA's chronic annual trade deficits consequential reduction of our GDP and net numbers of jobs.

    I'm among the proponents of the improved unilateral trade policy concept as described in Wikipedia's “Import Certificates” article. It is superior to pure free trade, tariffs, or any other trade policy we're aware of.
    Google Wikipedia, Import Certificates .
    Refer to:
    https://www.nytimes.com/aponline/2018/08/07/us/ap-us-south-carolina-layoffs-tariffs.html
    Respectfully, Supposn
     
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  2. Jomama
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    Jomama VIP Member

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    I read the article, where's the lie? Why is it not believable that they sourced components from China and have no backup qualified, non-Chinese, supplier?

    Now what may be true is that Element has multiple plants, has some supply issues and just needs to consolidate production - and are over-blaming tariffs. Maybe.
     
  3. Supposn
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    Supposn VIP Member

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    Jomama, Element Electronics stated reason for closing the plant is a lie.

    If Element electronics does or will have any USA competitors, due to Trump's tariffs, Element will be of no less competitive advantage to any other USA producer.

    Element Electronics finished product prices increase due to the tariffs upon their imported components. Prices upon competing imported finished products are subject to greater tariffs levied upon their entire values of imported finished products. Trump's tariffs favor USA producers of any species of products that are subject to tariffs (to the extent that those tariffs are fully enforced).

    ////////////////////////////////////////////////////
    https://www.usatoday.com/story/news/politics/onpolitics/2018/08/07/south-carolina-element-electronics-plant-close-layoffs-trump-tariffs/927203002/

    "As we are the only USA assembler of televisions, we believe the inclusion of our parts on the list of affected products is accidental and resolvable," the company posted on Facebook. "Element is working hard to have our parts removed from the tariff list and we remain hopeful that the closure of our South Carolina factory will be avoided."
    /////////////////////////////////////////////////////

    Apparently, Element Electronics are unsatisfied with the tariffs that favor them. Element Electronics has laid off their employees to demand we waive the tariffs upon their imported components, but continue to levy tariffs upon all other competing imported finished products. I hope the Trump administration and the U.S. Congress does not submit to Element Electronics blatant extortion.

    Respectfully, Supposn
     
  4. Jomama
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    Jomama VIP Member

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    Is it possible 3 things;

    1. That Element is the only US producer, I think the article said that.
    2. That other tv companies selling in the US market are in non-affected countries like Mexico or Philippines or Vietnam?
    3. That Element is affected by price on Chinese components (as stated in article) and some other global producers are not?

    It seems plausible to me
     
  5. Syriusly
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    Syriusly Diamond Member

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    Other than you just not wanting to believe anything bad about Don the Con- why do you believe they are lying?
     
  6. Syriusly
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    Syriusly Diamond Member

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    I was recently asked about whether a supplier's price increase due to the steel tariff was above board.

    I checked- yep- they make their product in the United States- and because of the steel tariffs the cost of steel- imported or domestic- has gone up 25%-30%- so our vendor wants to pass those costs onto us.

    I checked further- and the product they make in the United States is not subject to any special duties- I advised our staff to try to source the product from a supplier outside the United States, such as Mexico.

    Yeah- there are lots of American business's hurting from these tariffs. Is Don the Con going to be paying them all off like he is the soy bean farmers?
     
  7. Supposn
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    Supposn VIP Member

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    Jomama, among Import Certificate policy's attributes that are superior to tariff policies, are although certificate policy favors USA producers of goods, it doesn't discriminate among foreign nations or anything else.

    If the Trump tariffs are not fully applicable to nation's other than China and Element Electronics are subject to competing producers from other nations, President Trump has again done our nation (and now particularly Element Electronics,) a disservice.
    If my supposition is incorrect, (i.e. if the tariffs are not applicable to all of Element Electronic's foreign competitors, then the tariffs will likely be detrimental to them.

    Respectfully, Supposn
     
  8. Supposn
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    Syriusly, if Trump's tariffs are applicable to imported steel but not to imported products containing steel, they're of no benefit to any USA enterprise that purchases steel or steel products produced by steel producers.
    In such a case, Trump's tariffs will likely increase prices of steel sold in the USA, increasing costs to any USA enterprises purchasing steel to be used in the USA, while not increasing the prices of other competing imported products containing steel.
    Trump's steel tariff would thus be detrimental to any USA enterprise that's a potential customer for a USA steel producer.

    What's the point of a tariff on imported steel, if it induces purchasers of USA produced steel, to cease using steel? Those USA enterprises must do something else or go out of business.

    If the tariffs are applicable only to Chinese steel, we'll soon be purchasing our steel from some low-wage nation other than China. For the steel tariffs to work in our favor, the tariff should be applicable to all imported products to the extent that they contain steel.

    Respectfully, Supposn
     
  9. Syriusly
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    Syriusly Diamond Member

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    Respectfully duh.

    Syriusly, if Trump's tariffs are applicable to imported steel but not to imported products containing steel, they're of no benefit to any USA enterprise that purchases steel or steel products produced by steel producers.

    Duh. That is exactly what is happening right now.

    In such a case, Trump's tariffs will likely increase prices of steel sold in the USA, increasing costs to any USA enterprises purchasing steel to be used in the USA, while not increasing the prices of other competing imported products containing steel.
    Trump's steel tariff would thus be detrimental to any USA enterprise that's a potential customer for a USA steel producer.

    And again duh- that is exactly what is happening right now.

    What's the point of a tariff on imported steel, if it induces purchasers of USA produced steel, to cease using steel? Those USA enterprises must do something else or go out of business.

    The point of the tariff on imported steel is to make American steel companies wealthier, and provide jobs to American steel workers at the expense of the jobs of those American manufacturers that use steel. The customers of those American manufacturers can source products made out of steel from other countries such as Mexico or Taiwan.

    If the tariffs are applicable only to Chinese steel, we'll soon be purchasing our steel from some low-wage nation other than China. For the steel tariffs to work in our favor, the tariff should be applicable to all imported products to the extent that they contain steel.

    The tariffs are applicable for imported from almost every country- now Don the Con has just doubled them against Turkey- because Turkey has imprisoned a Christian cleric.

    When you say for the tariffs to work you 'our favor'- who is 'our'?

    The price of American manufactured washing machines is already going up. American automakers have announced plans to raise domestic prices. I don't know about you- but I will not be helped if the price of everything I buy that contains steel or aluminum goes up. Nor will it help my employer if we have to raise the prices of a large portion of what we sell.

    So who does it work in favor of? Some steel manufacturers and some steel workers.


     
  10. HereWeGoAgain
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    HereWeGoAgain Diamond Member

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    The company made shitty products and had piss poor customer service.
     

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