Trade War with China
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AssassinsMace
Lieutenant General
A glimpse of what can happen when you think you can make it all in the US.
I guess the only thing they have left is to scare people into not buying DJI or Trump can just ban them from the US.
I guess the only thing they have left is to scare people into not buying DJI or Trump can just ban them from the US.
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Jura The idiot
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US is asking China to restart talks, and Trump is reportedly dropping 10% tarrifss (down from earlier proposed 25% tariffs) on $200 billion.
With RMB's recent decline of 8%, the proposed 10% tariffs is effectively negated. Basically, there is no underlying strategy behind Trump, it's all for Pomp and show for domestic distraction from his investigations.
With RMB's recent decline of 8%, the proposed 10% tariffs is effectively negated. Basically, there is no underlying strategy behind Trump, it's all for Pomp and show for domestic distraction from his investigations.
By simple mathematics, up till now 25% of tariffs has been applied to about $55 billion goods and that means the total is about $13.7 billion of tariffs. A 10% tariff on $200 billion goods is $20 billion. So not much more than $13.7B despite the total figure being four times as high.
China has already published the list for another $60B goods and if China keeps the rate at 25%, that would be $15B, which is not that much lower than what Trump imposed on Chinese goods.
There is simply no escaping the fact the more goods Trump applies these tariffs on, the greater the domestic resistance will be, as is apparent from the fact that he dropped the percentage from 25% to 10%. The resistance will be even higher if Trump tries to apply tariffs to all of Chinese exports to the US, which includes everything from apparels to toys to machinery to iPhones to industrial raw materials and components. I guess the average living-from-paycheck-to-paycheck American with little to no savings are going to celebrate Trump's decision as he just made their lives from bearable to on the verge of being broke.
This is supposing retailers pass on the costs to consumers. If they don't, they'll have to absorb that cost themselves. Not going to be good for Trump if Corporate America gets upset I guess?
The paradox here is, most American companies, especially those in the manufacturing industry, are in a competition-cooperation relationship with China. They use Chinese parts or materials to reduce costs, and face Chinese competition for finished goods. When they ask tariffs what they mean is tariffs on Chinese finished goods so that their goods can be more competitive. If Trump simply lashes out a wholesale attack on all Chinese imports, then both their costs hence prices and prices of Chinese counterparts are going to increase. So it's back to square one in terms of relative price, and the only difference is that American consumers pay more for the same goods, no matter Chinese or American, AND American companies' exports suffer as a result of Chinese tariffs.
He cannot afford having price increases hit the American consumer before the mid term elections.
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