Trump is wrong on how China tariffs work

[Hutch Starskey]

jesus h whats stoppin the chinese from eating the ten percent on their end? apparently according to some reports not much!
if the chinese are covering the ten percent what does it matter if myself or a freight forwarder , a chink warehouse stuffed with chink nationals operating at of redhook ...OR goddamn ford pays the friggin duties...youre still not out the 10% and the consumer feels ungotz

China isn't eating anything, dope.

The 25% import tarriff is applied when the goods come in to the US. China has already sold the goods to some US buyer who has already paid for the shipping to the US and who now must pay an additional 25% to import from China. That additional cost will be passed to consumers through higher prices.

The only way this hurts China is if buyers find cheaper suppliers elsewhere. Not likely.

Yup, most of us understand how tariffs work. And finding cheaper products than the ones from China is difficult. Although what happens when a cheaper product from China costs the same (or close to the same) as a higher quality product from the USA or elsewhere? Chances are the consumer will buy the higher quality product. Which means the US buyer that purchased those Chinese products will have considerably more inventory and less likely to purchase the same volume as he/she has in the past. Thus lower sales. Get it?

Yup, most of us understand how tariffs work. And finding cheaper products than the ones from China is difficult. Although what happens when a cheaper product from China costs the same (or close to the same) as a higher quality product from the USA or elsewhere? Chances are the consumer will buy the higher quality product. Which means the US buyer that purchased those Chinese products will have considerably more inventory and less likely to purchase the same volume as he/she has in the past. Thus lower sales. Get it?

No. I don't "get it". Not at all. That made no sense whatsoever.

By your logic, the economy will do better because we pay more for everything?

people with jobs being able to afford groceries because the price of goods has risen to the point that they make them here instead of there is a good thing. I don't mind paying more for Chinese imports if it means we make them here and pay Americans to make them.

That's what I don't get. Why is it important or necessary to pay more to make things here?

We are at full employment.

 

[DigitalDrifter]

Chuck Schumer, tweeted earlier this week saying -- quote -- "Hang tough on China, President Trump. Don't back down."

 

[Siete]

Goldilocks is already crawfishing about Chinese tariffs paying for whatever the **** he imagined they would pay for -

and Mexico would pay for his wall --

see a pattern there?


the poor old derelict doesnt know his ass from his elbow ....

 

[edward37]

Chuck Schumer, tweeted earlier this week saying -- quote -- "Hang tough on China, President Trump. Don't back down."

Yeah Trump will fight until the last drop of your blood and if no deal is made Trump loses the election and don't you think China knows this??? Maybe Biden should call out to China ""China don't give in until the moron is gone??

 

[edward37]

Goldilocks is already crawfishing about Chinese tariffs paying for whatever the **** he imagined they would pay for -

and Mexico would pay for his wall --

see a pattern there?


the poor old derelict doesnt know his ass from his elbow ....

He sure knows how to con the dotards

 

[SweetTea]

Consumers pay for Tariffs

Trump is charging working Americans in his trade war

Nope.....Not only are Americans forced to buy crap because nobody makes good stuff anymore, but now they can buy from a new American company (not crap), who employs Americans, pays taxes to our IRS, and has to stand up to any lawsuits because their product injured somebody....that should make your ambulance-chasers and venture capitalists happy....did you know Schumer is supporting Trump on these tariffs?

Another ignorant Trumpbot who has no clue about macroeconomics.

Okay dufus - I'll try to make it so simple even you can understand it.

If you have two widgets sold in America and of equal quality. One is made in China and costs $10. One is made in America and costs $12. Now, thanks to Trump's tariffs...that Chinese made widget costs $15. So, naturally, people start buying the American widget...but not for $12.

You see, the American corporation knows they can jack the price up to $13.50 and still be undercutting the Chinese widget nicely. So that is what they will do. That is how business operates.

Result?

American consumers - many of whom are poor/on fixed incomes and depended on that cheap Chinese widget to make ends meet - now have to pay 35% more for the same product. So that means they have less money to spend on other things. That's called 'inflation'. And that could hurt the poor a TON.

And what about these jobs you think will result?

They will only be temporary. Since the extra sales are SOLELY based on the tariffs and since the tariffs could be removed at any time, there is NO WAY that a company is going to build a new factory for the added production. So they will just add another shift or something similar.

Finally, the tariffs will cost jobs as many American companies depend on cheap Chinese imports so that they can manufacture their products cheaper. With that source gone, they will have to use more expensive components. This will raise the price of their products (more inflation) and cause layoffs as they lose competitiveness.

Trump’s lumber tariffs to cause job losses, higher home prices
Trump's massive new tariffs could end up costing America 146,000 jobs
Here's How Many Jobs America Could Lose Because of the Trump Tariffs

So what is the result?

Some temporary, added US jobs. Much higher prices for consumers and US jobs losses.


I realize you Trumpbots either cannot or will not read anything negative against your messiah. But Trump's tariffs will not help the US economy ONE LITTLE BIT.

That is why the markets are tanking every time the trade deal rumors are bad.


School is out.

And since you obviously learned nothing (because Trumpbots NEVER seem to learn)...you get an 'F'.


We are done here (for now).

Have a nice day.

So does raising corporate taxes increase the price of their products and services? Just curious because this what Democrats want to do.

Smaller businesses and new startups will look for new pipelines for producing their products to compete in the market. If a widget made in China cost 4$ before the new tariffs and 6$ after, do you think the company that makes that widget will still be able to compete with another company whose similar widget is made in another country free from the tariffs? How many widgets do you think are solely produced in China? Do you think it is possible that many have competitors whose products are currently being produced in another country that is currently competitive with China. You might want to think on that a bit. Production WILL leave China so companies can be competitive with those already producing products in Mexico, Honduras, etc. Apple and some of the larger companies who have a LOT invested in China, they will be hurt the most.

Trump's tariffs will ultimately help the economy because China will fold. Mark it down. Save the post. It will happen. We may have a few bumps on the way, but it will be WELL worth it. As I heard a commentator say, Trump haters are saying tariffs are a bad idea is like saying I am not going to take chemo for cancer because it will be uncomfortable. BTW, if tariffs aren't the answer, how would you bring China to the table and make them abide by the same rules that every other country in the WTO does?

 

[edward37]

Consumers pay for Tariffs

Trump is charging working Americans in his trade war

Nope.....Not only are Americans forced to buy crap because nobody makes good stuff anymore, but now they can buy from a new American company (not crap), who employs Americans, pays taxes to our IRS, and has to stand up to any lawsuits because their product injured somebody....that should make your ambulance-chasers and venture capitalists happy....did you know Schumer is supporting Trump on these tariffs?

Another ignorant Trumpbot who has no clue about macroeconomics.

Okay dufus - I'll try to make it so simple even you can understand it.

If you have two widgets sold in America and of equal quality. One is made in China and costs $10. One is made in America and costs $12. Now, thanks to Trump's tariffs...that Chinese made widget costs $15. So, naturally, people start buying the American widget...but not for $12.

You see, the American corporation knows they can jack the price up to $13.50 and still be undercutting the Chinese widget nicely. So that is what they will do. That is how business operates.

Result?

American consumers - many of whom are poor/on fixed incomes and depended on that cheap Chinese widget to make ends meet - now have to pay 35% more for the same product. So that means they have less money to spend on other things. That's called 'inflation'. And that could hurt the poor a TON.

And what about these jobs you think will result?

They will only be temporary. Since the extra sales are SOLELY based on the tariffs and since the tariffs could be removed at any time, there is NO WAY that a company is going to build a new factory for the added production. So they will just add another shift or something similar.

Finally, the tariffs will cost jobs as many American companies depend on cheap Chinese imports so that they can manufacture their products cheaper. With that source gone, they will have to use more expensive components. This will raise the price of their products (more inflation) and cause layoffs as they lose competitiveness.

Trump’s lumber tariffs to cause job losses, higher home prices
Trump's massive new tariffs could end up costing America 146,000 jobs
Here's How Many Jobs America Could Lose Because of the Trump Tariffs

So what is the result?

Some temporary, added US jobs. Much higher prices for consumers and US jobs losses.


I realize you Trumpbots either cannot or will not read anything negative against your messiah. But Trump's tariffs will not help the US economy ONE LITTLE BIT.

That is why the markets are tanking every time the trade deal rumors are bad.


School is out.

And since you obviously learned nothing (because Trumpbots NEVER seem to learn)...you get an 'F'.


We are done here (for now).

Have a nice day.

So does raising corporate taxes increase the price of their products and services? Just curious because this what Democrats want to do.

Smaller businesses and new startups will look for new pipelines for producing their products to compete in the market. If a widget made in China cost 4$ before the new tariffs and 6$ after, do you think the company that makes that widget will still be able to compete with another company whose similar widget is made in another country free from the tariffs? How many widgets do you think are solely produced in China? Do you think it is possible that many have competitors whose products are currently being produced in another country that is currently competitive with China. You might want to think on that a bit. Production WILL leave China so companies can be competitive with those already producing products in Mexico, Honduras, etc. Apple and some of the larger companies who have a LOT invested in China, they will be hurt the most.

Trump's tariffs will ultimately help the economy because China will fold. Mark it down. Save the post. It will happen. We may have a few bumps on the way, but it will be WELL worth it. As I heard a commentator say, Trump haters are saying tariffs are a bad idea is like saying I am not going to take chemo for cancer because it will be uncomfortable. BTW, if tariffs aren't the answer, how would you bring China to the table and make them abide by the same rules that every other country in the WTO does?

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

 

[SweetTea]

Consumers pay for Tariffs

Trump is charging working Americans in his trade war

Nope.....Not only are Americans forced to buy crap because nobody makes good stuff anymore, but now they can buy from a new American company (not crap), who employs Americans, pays taxes to our IRS, and has to stand up to any lawsuits because their product injured somebody....that should make your ambulance-chasers and venture capitalists happy....did you know Schumer is supporting Trump on these tariffs?

Another ignorant Trumpbot who has no clue about macroeconomics.

Okay dufus - I'll try to make it so simple even you can understand it.

If you have two widgets sold in America and of equal quality. One is made in China and costs $10. One is made in America and costs $12. Now, thanks to Trump's tariffs...that Chinese made widget costs $15. So, naturally, people start buying the American widget...but not for $12.

You see, the American corporation knows they can jack the price up to $13.50 and still be undercutting the Chinese widget nicely. So that is what they will do. That is how business operates.

Result?

American consumers - many of whom are poor/on fixed incomes and depended on that cheap Chinese widget to make ends meet - now have to pay 35% more for the same product. So that means they have less money to spend on other things. That's called 'inflation'. And that could hurt the poor a TON.

And what about these jobs you think will result?

They will only be temporary. Since the extra sales are SOLELY based on the tariffs and since the tariffs could be removed at any time, there is NO WAY that a company is going to build a new factory for the added production. So they will just add another shift or something similar.

Finally, the tariffs will cost jobs as many American companies depend on cheap Chinese imports so that they can manufacture their products cheaper. With that source gone, they will have to use more expensive components. This will raise the price of their products (more inflation) and cause layoffs as they lose competitiveness.

Trump’s lumber tariffs to cause job losses, higher home prices
Trump's massive new tariffs could end up costing America 146,000 jobs
Here's How Many Jobs America Could Lose Because of the Trump Tariffs

So what is the result?

Some temporary, added US jobs. Much higher prices for consumers and US jobs losses.


I realize you Trumpbots either cannot or will not read anything negative against your messiah. But Trump's tariffs will not help the US economy ONE LITTLE BIT.

That is why the markets are tanking every time the trade deal rumors are bad.


School is out.

And since you obviously learned nothing (because Trumpbots NEVER seem to learn)...you get an 'F'.


We are done here (for now).

Have a nice day.

So does raising corporate taxes increase the price of their products and services? Just curious because this what Democrats want to do.

Smaller businesses and new startups will look for new pipelines for producing their products to compete in the market. If a widget made in China cost 4$ before the new tariffs and 6$ after, do you think the company that makes that widget will still be able to compete with another company whose similar widget is made in another country free from the tariffs? How many widgets do you think are solely produced in China? Do you think it is possible that many have competitors whose products are currently being produced in another country that is currently competitive with China. You might want to think on that a bit. Production WILL leave China so companies can be competitive with those already producing products in Mexico, Honduras, etc. Apple and some of the larger companies who have a LOT invested in China, they will be hurt the most.

Trump's tariffs will ultimately help the economy because China will fold. Mark it down. Save the post. It will happen. We may have a few bumps on the way, but it will be WELL worth it. As I heard a commentator say, Trump haters are saying tariffs are a bad idea is like saying I am not going to take chemo for cancer because it will be uncomfortable. BTW, if tariffs aren't the answer, how would you bring China to the table and make them abide by the same rules that every other country in the WTO does?

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

We shall see. China is in a much tougher spot than us as there are other countries available to use to produce cheap stuff. We are the largest consumer market by a large margin for China.

 

[WillPower]

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

By November 2020, China is DEAD MEAT without a deal....especially when the President hits them with another 25% on the rest of their $325B of exports.....this ends next month in Japan at the G-20....just admit you were wrong about a market crash and get behind your President for once.

 

[McRocket]

'Hey MORON...it's an import tariff.

McCratchet doesn't get it that an import tariff is like raising the price on a product. When you go shopping, if the price of something goes up, you are less likely to buy it, buy as much of it, or will go looking for it cheaper somewhere else. Or make it yourself.

China has been winning the market for years by undercutting what others (including us) can make it for. A tariff stops that undercutting from taking place. By doing so, it makes other markets (including ours) MORE competitive.

When we buy less, China loses money. Down goes their GDP. They are vitally dependent on our trade.

There, I've made that to where any 6th grader can understand it. Now maybe you might too.

Are you stupid or just have a reading disability?

The OP is NOTHING to do with cause and effect of tariffs...DUH.

It is to do with what a tariff actually is and the fact that Trump (and probably also you) have not a clue how they actually work.

How can you miss that?


As for this nonsense that you just made up (or heard from Trump/Fox/Breitbart and took as gospel) - China 'are vitally dependent on our trade.'?

No they are not, ignoramus.

Their GDP was $12.2 trillion in 2017 (noticeably higher now).
And their trade surplus with America in 2018 was only $419 billion.

China GDP | 2019 | Data | Chart | Calendar | Forecast | News
Foreign Trade - U.S. Trade with China

Hello? How can China be 'vitally dependent on our trade' when it only makes up 3.4% of their entire GDP?
DUH.

And their economy grew at a 6.6% clip in 2018.
China's economy grew 6.6% in 2018, the lowest pace in 28 years
So even if you minus ALL U.S. trade, they are still growing at a 3.2% rate..which is higher then America grew in 2018.

 

[edward37]

Consumers pay for Tariffs

Trump is charging working Americans in his trade war

Nope.....Not only are Americans forced to buy crap because nobody makes good stuff anymore, but now they can buy from a new American company (not crap), who employs Americans, pays taxes to our IRS, and has to stand up to any lawsuits because their product injured somebody....that should make your ambulance-chasers and venture capitalists happy....did you know Schumer is supporting Trump on these tariffs?

Another ignorant Trumpbot who has no clue about macroeconomics.

Okay dufus - I'll try to make it so simple even you can understand it.

If you have two widgets sold in America and of equal quality. One is made in China and costs $10. One is made in America and costs $12. Now, thanks to Trump's tariffs...that Chinese made widget costs $15. So, naturally, people start buying the American widget...but not for $12.

You see, the American corporation knows they can jack the price up to $13.50 and still be undercutting the Chinese widget nicely. So that is what they will do. That is how business operates.

Result?

American consumers - many of whom are poor/on fixed incomes and depended on that cheap Chinese widget to make ends meet - now have to pay 35% more for the same product. So that means they have less money to spend on other things. That's called 'inflation'. And that could hurt the poor a TON.

And what about these jobs you think will result?

They will only be temporary. Since the extra sales are SOLELY based on the tariffs and since the tariffs could be removed at any time, there is NO WAY that a company is going to build a new factory for the added production. So they will just add another shift or something similar.

Finally, the tariffs will cost jobs as many American companies depend on cheap Chinese imports so that they can manufacture their products cheaper. With that source gone, they will have to use more expensive components. This will raise the price of their products (more inflation) and cause layoffs as they lose competitiveness.

Trump’s lumber tariffs to cause job losses, higher home prices
Trump's massive new tariffs could end up costing America 146,000 jobs
Here's How Many Jobs America Could Lose Because of the Trump Tariffs

So what is the result?

Some temporary, added US jobs. Much higher prices for consumers and US jobs losses.


I realize you Trumpbots either cannot or will not read anything negative against your messiah. But Trump's tariffs will not help the US economy ONE LITTLE BIT.

That is why the markets are tanking every time the trade deal rumors are bad.


School is out.

And since you obviously learned nothing (because Trumpbots NEVER seem to learn)...you get an 'F'.


We are done here (for now).

Have a nice day.

So does raising corporate taxes increase the price of their products and services? Just curious because this what Democrats want to do.

Smaller businesses and new startups will look for new pipelines for producing their products to compete in the market. If a widget made in China cost 4$ before the new tariffs and 6$ after, do you think the company that makes that widget will still be able to compete with another company whose similar widget is made in another country free from the tariffs? How many widgets do you think are solely produced in China? Do you think it is possible that many have competitors whose products are currently being produced in another country that is currently competitive with China. You might want to think on that a bit. Production WILL leave China so companies can be competitive with those already producing products in Mexico, Honduras, etc. Apple and some of the larger companies who have a LOT invested in China, they will be hurt the most.

Trump's tariffs will ultimately help the economy because China will fold. Mark it down. Save the post. It will happen. We may have a few bumps on the way, but it will be WELL worth it. As I heard a commentator say, Trump haters are saying tariffs are a bad idea is like saying I am not going to take chemo for cancer because it will be uncomfortable. BTW, if tariffs aren't the answer, how would you bring China to the table and make them abide by the same rules that every other country in the WTO does?

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

We shall see. China is in a much tougher spot than us as there are other countries available to use to produce cheap stuff. We are the largest consumer market by a large margin for China.

Maybe a tougher spot ,,, but ,they can endure more downfall imo Already Trump is giving billions to farmers who are in dire straits

 

[WillPower]

Maybe a tougher spot ,,, but ,they can endure more downfall imo Already Trump is giving billions to farmers who are in dire straits

I told you earlier Trump was keeping the farmers afloat and he's doing it with TARIFF money collected from dirtbag importers who screw us bringing in China crap. There was a time China could have outlasted us because they don't care about their citizens....those days are gone. The Chinese have become Americanized...they want things...take away their few simple pleasures and they'll revolt. We did the same thing to Vietnam....Coca Cola and rock & roll won that war twenty years after we stopped shooting them.

 

[SweetTea]

Nope.....Not only are Americans forced to buy crap because nobody makes good stuff anymore, but now they can buy from a new American company (not crap), who employs Americans, pays taxes to our IRS, and has to stand up to any lawsuits because their product injured somebody....that should make your ambulance-chasers and venture capitalists happy....did you know Schumer is supporting Trump on these tariffs?

Another ignorant Trumpbot who has no clue about macroeconomics.

Okay dufus - I'll try to make it so simple even you can understand it.

If you have two widgets sold in America and of equal quality. One is made in China and costs $10. One is made in America and costs $12. Now, thanks to Trump's tariffs...that Chinese made widget costs $15. So, naturally, people start buying the American widget...but not for $12.

You see, the American corporation knows they can jack the price up to $13.50 and still be undercutting the Chinese widget nicely. So that is what they will do. That is how business operates.

Result?

American consumers - many of whom are poor/on fixed incomes and depended on that cheap Chinese widget to make ends meet - now have to pay 35% more for the same product. So that means they have less money to spend on other things. That's called 'inflation'. And that could hurt the poor a TON.

And what about these jobs you think will result?

They will only be temporary. Since the extra sales are SOLELY based on the tariffs and since the tariffs could be removed at any time, there is NO WAY that a company is going to build a new factory for the added production. So they will just add another shift or something similar.

Finally, the tariffs will cost jobs as many American companies depend on cheap Chinese imports so that they can manufacture their products cheaper. With that source gone, they will have to use more expensive components. This will raise the price of their products (more inflation) and cause layoffs as they lose competitiveness.

Trump’s lumber tariffs to cause job losses, higher home prices
Trump's massive new tariffs could end up costing America 146,000 jobs
Here's How Many Jobs America Could Lose Because of the Trump Tariffs

So what is the result?

Some temporary, added US jobs. Much higher prices for consumers and US jobs losses.


I realize you Trumpbots either cannot or will not read anything negative against your messiah. But Trump's tariffs will not help the US economy ONE LITTLE BIT.

That is why the markets are tanking every time the trade deal rumors are bad.


School is out.

And since you obviously learned nothing (because Trumpbots NEVER seem to learn)...you get an 'F'.


We are done here (for now).

Have a nice day.

So does raising corporate taxes increase the price of their products and services? Just curious because this what Democrats want to do.

Smaller businesses and new startups will look for new pipelines for producing their products to compete in the market. If a widget made in China cost 4$ before the new tariffs and 6$ after, do you think the company that makes that widget will still be able to compete with another company whose similar widget is made in another country free from the tariffs? How many widgets do you think are solely produced in China? Do you think it is possible that many have competitors whose products are currently being produced in another country that is currently competitive with China. You might want to think on that a bit. Production WILL leave China so companies can be competitive with those already producing products in Mexico, Honduras, etc. Apple and some of the larger companies who have a LOT invested in China, they will be hurt the most.

Trump's tariffs will ultimately help the economy because China will fold. Mark it down. Save the post. It will happen. We may have a few bumps on the way, but it will be WELL worth it. As I heard a commentator say, Trump haters are saying tariffs are a bad idea is like saying I am not going to take chemo for cancer because it will be uncomfortable. BTW, if tariffs aren't the answer, how would you bring China to the table and make them abide by the same rules that every other country in the WTO does?

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

We shall see. China is in a much tougher spot than us as there are other countries available to use to produce cheap stuff. We are the largest consumer market by a large margin for China.

Maybe a tougher spot ,,, but ,they can endure more downfall imo Already Trump is giving billions to farmers who are in dire straits

Our economy is in MUCH better shape that China by virtually all measures.

If tariffs on China harms the US consumer, why did China counter with tariffs on our imports to China? Using this logic, tariffs on our imports would only hurt their consumer's, right? Evidently they know something many of the leftists in our country don't.

 

[McRocket]

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

By November 2020, China is DEAD MEAT without a deal....especially when the President hits them with another 25% on the rest of their $325B of exports.....this ends next month in Japan at the G-20....just admit you were wrong about a market crash and get behind your President for once.

Wrong.

Trump is wrong on how China tariffs work

 

[Harpy Eagle]

Our economy is in MUCH better shape that China by virtually all measures.

and yet somehow we are supposed to believe that China is ******* us over...even though we are kicking their ass economically.

 

[SweetTea]

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

By November 2020, China is DEAD MEAT without a deal....especially when the President hits them with another 25% on the rest of their $325B of exports.....this ends next month in Japan at the G-20....just admit you were wrong about a market crash and get behind your President for once.

Wrong.

Trump is wrong on how China tariffs work

Believe what you will. I will make money in the market, in part due to uninformed folks. You should put all your money in cash to protect it from the impending doom.

 

[McRocket]

Consumers pay for Tariffs

Trump is charging working Americans in his trade war

Nope.....Not only are Americans forced to buy crap because nobody makes good stuff anymore, but now they can buy from a new American company (not crap), who employs Americans, pays taxes to our IRS, and has to stand up to any lawsuits because their product injured somebody....that should make your ambulance-chasers and venture capitalists happy....did you know Schumer is supporting Trump on these tariffs?

Another ignorant Trumpbot who has no clue about macroeconomics.

Okay dufus - I'll try to make it so simple even you can understand it.

If you have two widgets sold in America and of equal quality. One is made in China and costs $10. One is made in America and costs $12. Now, thanks to Trump's tariffs...that Chinese made widget costs $15. So, naturally, people start buying the American widget...but not for $12.

You see, the American corporation knows they can jack the price up to $13.50 and still be undercutting the Chinese widget nicely. So that is what they will do. That is how business operates.

Result?

American consumers - many of whom are poor/on fixed incomes and depended on that cheap Chinese widget to make ends meet - now have to pay 35% more for the same product. So that means they have less money to spend on other things. That's called 'inflation'. And that could hurt the poor a TON.

And what about these jobs you think will result?

They will only be temporary. Since the extra sales are SOLELY based on the tariffs and since the tariffs could be removed at any time, there is NO WAY that a company is going to build a new factory for the added production. So they will just add another shift or something similar.

Finally, the tariffs will cost jobs as many American companies depend on cheap Chinese imports so that they can manufacture their products cheaper. With that source gone, they will have to use more expensive components. This will raise the price of their products (more inflation) and cause layoffs as they lose competitiveness.

Trump’s lumber tariffs to cause job losses, higher home prices
Trump's massive new tariffs could end up costing America 146,000 jobs
Here's How Many Jobs America Could Lose Because of the Trump Tariffs

So what is the result?

Some temporary, added US jobs. Much higher prices for consumers and US jobs losses.


I realize you Trumpbots either cannot or will not read anything negative against your messiah. But Trump's tariffs will not help the US economy ONE LITTLE BIT.

That is why the markets are tanking every time the trade deal rumors are bad.


School is out.

And since you obviously learned nothing (because Trumpbots NEVER seem to learn)...you get an 'F'.


We are done here (for now).

Have a nice day.

So does raising corporate taxes increase the price of their products and services? Just curious because this what Democrats want to do.

How would I know...I am not a Dem (or a Rep)?
And I agreed with Trump's corporate tax reduction (though NOT with his trickle-down, primarily wealthy, income tax reduction).

Smaller businesses and new startups will look for new pipelines for producing their products to compete in the market. If a widget made in China cost 4$ before the new tariffs and 6$ after, do you think the company that makes that widget will still be able to compete with another company whose similar widget is made in another country free from the tariffs? How many widgets do you think are solely produced in China? Do you think it is possible that many have competitors whose products are currently being produced in another country that is currently competitive with China. You might want to think on that a bit. Production WILL leave China so companies can be competitive with those already producing products in Mexico, Honduras, etc. Apple and some of the larger companies who have a LOT invested in China, they will be hurt the most.

Trump's tariffs will ultimately help the economy because China will fold. Mark it down. Save the post. It will happen. We may have a few bumps on the way, but it will be WELL worth it. As I heard a commentator say, Trump haters are saying tariffs are a bad idea is like saying I am not going to take chemo for cancer because it will be uncomfortable. BTW, if tariffs aren't the answer, how would you bring China to the table and make them abide by the same rules that every other country in the WTO does?

Fine. You think it will happen.

As I pointed out above...the entire US trade deficit amounts to only 3.4% of China's GDP. They do not need the U.S. REMOTELY as much as Trump and his cronies seem to think.

And if China - the largest foreign holder of U.S. debt - decide to start dumping dollars...that WILL hurt America for certain (and China as well).

Plus, Trump has NEVER been over 50% in the major polls during his first two years of office (a POTUS record for unpopularity over that time frame). China knows this. All they have to do is wait him out 18 months until he goes bye bye. And whomever takes over for him will almost certainly end the trade war.
And China has no election to worry about and their leader recently was made 'President for Life'...so he is under little pressure.
China approves 'president for life' change
Plus, China can just dump as much money into their economy as they need to keep it propped up. Trump has far less options on that front.

 

[McRocket]

I think you're dead wrong If no deal is coming Trump is dead in the water and China knows it For a deal to be made Trump will need to eat a lot of what his good deal is

By November 2020, China is DEAD MEAT without a deal....especially when the President hits them with another 25% on the rest of their $325B of exports.....this ends next month in Japan at the G-20....just admit you were wrong about a market crash and get behind your President for once.

Wrong.

Trump is wrong on how China tariffs work

Believe what you will. I will make money in the market, in part due to uninformed folks. You should put all your money in cash to protect it from the impending doom.

I think you are wise (in being liquid right now)...but possibly for different reasons.

And I already have liquidated my portfolio for many months now...cash and precious metals.

And thanks for the tip (if you were sincere).

 

[Thinker101]

jesus h whats stoppin the chinese from eating the ten percent on their end? apparently according to some reports not much!
if the chinese are covering the ten percent what does it matter if myself or a freight forwarder , a chink warehouse stuffed with chink nationals operating at of redhook ...OR goddamn ford pays the friggin duties...youre still not out the 10% and the consumer feels ungotz

China isn't eating anything, dope.

The 25% import tarriff is applied when the goods come in to the US. China has already sold the goods to some US buyer who has already paid for the shipping to the US and who now must pay an additional 25% to import from China. That additional cost will be passed to consumers through higher prices.

The only way this hurts China is if buyers find cheaper suppliers elsewhere. Not likely.

Yup, most of us understand how tariffs work. And finding cheaper products than the ones from China is difficult. Although what happens when a cheaper product from China costs the same (or close to the same) as a higher quality product from the USA or elsewhere? Chances are the consumer will buy the higher quality product. Which means the US buyer that purchased those Chinese products will have considerably more inventory and less likely to purchase the same volume as he/she has in the past. Thus lower sales. Get it?

Yup, most of us understand how tariffs work. And finding cheaper products than the ones from China is difficult. Although what happens when a cheaper product from China costs the same (or close to the same) as a higher quality product from the USA or elsewhere? Chances are the consumer will buy the higher quality product. Which means the US buyer that purchased those Chinese products will have considerably more inventory and less likely to purchase the same volume as he/she has in the past. Thus lower sales. Get it?

No. I don't "get it". Not at all. That made no sense whatsoever.

By your logic, the economy will do better because we pay more for everything?

people with jobs being able to afford groceries because the price of goods has risen to the point that they make them here instead of there is a good thing. I don't mind paying more for Chinese imports if it means we make them here and pay Americans to make them.

That's what I don't get. Why is it important or necessary to pay more to make things here?

We are at full employment.

Really!? How about a higher labor rate and higher quality product.

 

[McRocket]

'Hey MORON...it's an import tariff.

McCratchet doesn't get it that an import tariff is like raising the price on a product. When you go shopping, if the price of something goes up, you are less likely to buy it, buy as much of it, or will go looking for it cheaper somewhere else. Or make it yourself.

China has been winning the market for years by undercutting what others (including us) can make it for. A tariff stops that undercutting from taking place. By doing so, it makes other markets (including ours) MORE competitive.

When we buy less, China loses money. Down goes their GDP. They are vitally dependent on our trade.

There, I've made that to where any 6th grader can understand it. Now maybe you might too.

not this time -

China can buy soy beans from several other countries - ALL THEY WANT OR NEED.

You have soybeans on the brain. We're after a lot more than mere beans. Meantime, we'll compensate the farmers until it all works out. When finished, we'll be selling more beans than before.

Really?

And is Trump going to compensate ALL the other Americans who lost their jobs thanks to his tariff policies with other countries?

Under Trump's Tariffs, The US Lost 20,000 Solar Energy Jobs
Over 146,000 Americans will lose their jobs to Trump's trade tariffs
The U.S. job losses from Trump’s tariffs are starting to pile up

There are more then just farmers who are getting screwed thanks to Trump's insane protectionism.