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First we are direct benefactors of the dollar being a world reserve currency. Everything is priced in dollars and it limits our impacts from a form of inflation as our currency swings from the ups and downs. It gives us a huge advantage and something we don't want to go away. Especially given our enormous debt load and more importantly the speed which that debt is growing with the Republican congress and President spending money like they are. Since after all, if the rest of the world starts dumping dollars or even just doesn't prefer dollars, I don't have to tell you where our currency is going to head.
Who is "we" and "us"?
Inflated valuing of US currency is necessary to support our perpetual trade deficit. And what is that doing for us? We get depressed domestic production and wages, depressed infrastructure investment, and private and public debt escalation to fill the hole.
There is a reason it happens. Higher profits for corporations who have moved operations overseas. But it's been a disaster for our domestic economy, and the living standard of the great majority of citizens. If the US$ value dropped we'd be much better off.
From the list of products subject to the tariffs, Trump is targeting the Made in China 2025 initiative. The announcement also coincides to the day with the launch of China's crude oil exchange. The US has been vociferous in its criticism of 2025. It makes China less dependent on outside sources for the chip-related components which are important to national security as well as consumer electronics.
China plans tariffs on 3B worth of US goods after Trump order.
Quote:
Originally Posted by lchoro
From the list of products subject to the tariffs, Trump is targeting the Made in China 2025 initiative. The announcement also coincides to the day with the launch of China's crude oil exchange. The US has been vociferous in its criticism of 2025. It makes China less dependent on outside sources for the chip-related components which are important to national security as well as consumer electronics.
China plans tariffs on 3B worth of US goods after Trump order.
Ichoro & Artillery77, I'm among the proponents of USA adopting the trade policy described within Wikipedia's “Import Certificates” article. It would if not entirely eliminate, significantly reduce USA's chronic annual trade deficits of goods.
Our current and no other existing or proposed national trade policy could accomplish this as well for the USA, and with lesser increases of prices to USA purchasers of imported goods, and with no net costs to U.S. federal budgets. Regardless of other nation's responses, this policy would increase USA's GDP and numbers of jobs more than otherwise.
Annual trade deficits are always net detrimental to their nations' GDP and drag upon their numbers of jobs.
Unlike tariffs, a USA Import Certificate policy could not be used to enable our federal government to discourage a particular foreign nations' or any enterprises' types of goods from being imported into the USA. The policy cannot effectively prevent any goods for which there's an effective USA demand, from being imported into the USA. Within Import Certificate laws, all foreign nations and all types of globally traded goods are treated equally.
Nations' are effectively driven to respond against insulting tariffs with less or no regard even for consequences to their own economy.
Refer to Wikipedia's “Import Certificates” article.
It should have been done years ago before China had any real leverage.
Still not too late, China is heavily dependent on the outside world for manufacturing (as in it is the outside world setting up shop in China or through Chinese companies) and innovation.
If the US declared no US business can conduct business there, nor can any company sell to the US if they operate in China, China would collapse.
Possibly but manufacturing would most likely switch over to places like Indonesia, Malaysia,
and maybe India.
Manufacting goes to where the cheap labor is.....
perhaps ultimately Africa....would be good for them to get a slice of the pie.
Remember before China it was Japan that made all the cheap stuff,
back in the 60s and 70s people would joke “made in japan”.
China is kind of high on Boeing's list especially since it is possible that as many as 100 of the "Unidentified" orders could be from China.
Ireland has a big leasing company. That little country is not going to use all those planes. USA includes leasing companies as well as airlines. UAE is actually a bigger issue as their orders are for much more expensive planes. They might cancel and go to Airbus if the dispute over Freedoms of the Skies keeps going.
5805 Total Unfilled Orders for Boeing
1252 Total Unfilled for USA
1077 Total Unfilled for Unidentified
485 Total Unfilled for United Arab Emirates
428 Total Unfilled for Ireland
301 Total Unfilled for China
248 Total Unfilled for Indonesia
211 Total Unfilled for India
192 Total Unfilled for Singapore
125 Total Unfilled for Canada
122 Total Unfilled for Brazil
118 Total Unfilled for Norway
113 Total Unfilled for Turkey
106 Total Unfilled for United Kingdom
101 Total Unfilled for Qatar
100 Total Unfilled for Vietnam
75 Total Unfilled for Cayman Islands
70 Total Unfilled for Japan
62 Total Unfilled for Panama
59 Total Unfilled for Mexico
58 Total Unfilled for Russian Federation
48 Total Unfilled for Australia
40 Total Unfilled for Kuwait
40 Total Unfilled for South Korea
34 Total Unfilled for Ethiopia
33 Total Unfilled for Spain
25 Total Unfilled for France
25 Total Unfilled for Iceland
25 Total Unfilled for Malaysia
24 Total Unfilled for Oman
22 Total Unfilled for Taiwan
21 Total Unfilled for Hong Kong
20 Total Unfilled for Germany
17 Total Unfilled for Nigeria
16 Total Unfilled for Bahrain
10 Total Unfilled for Iraq
9 Total Unfilled for Argentina
8 Total Unfilled for Chile
8 Total Unfilled for Czech Republic
8 Total Unfilled for South Africa
8 Total Unfilled for Thailand
6 Total Unfilled for Israel
6 Total Unfilled for Poland
6 Total Unfilled for Romania
5 Total Unfilled for Pakistan
5 Total Unfilled for Papua New Guinea
4 Total Unfilled for Bangladesh
4 Total Unfilled for Colombia
4 Total Unfilled for Jordan
4 Total Unfilled for Morocco
4 Total Unfilled for Uzbekistan
3 Total Unfilled for Algeria
3 Total Unfilled for Kazakhstan
2 Total Unfilled for French Polynesia
1 Total Unfilled for Brunei Darussalam
1 Total Unfilled for Congo, Republic of the
1 Total Unfilled for New Zealand
1 Total Unfilled for Switzerland
1 Total Unfilled for Tanzania, United Republic of
This is still forgetting the law of supply and demand.
1.The businesses that operated in China shut down shop there. They lose access to that market. Hell GM is selling more cars in China than in the U.S.
2. The price of goods will increase. Yes whenever a minimum wage hike or increasing corporate taxes are brought up we are told time and time again that those hikes will be passed to the consumers. What makes people think that this will be different? If these companies move their entire manufacturing base here yes they hire American workers but unlike Chinese or Mexican or other workers in developing countries, Americans don't work for cheap not just in terms of wages but in terms of benefits, labor laws and safety regulations. Even our low-skilled workers are more expensive than those in China, Mexico and Korea.
3. As prices increase demand may decrease defeating the purpose to bringing manufacturing plants back here in mass. Some plants are already either laying off workers or are idling due to weak demand for their products.
What people don't know about China is that there is an emerging consumer market over there. Companies haven't just gone over there to exploit cheap labor and export products back to the U.S. but they want to sell to that market.
That market IS on back of fiction housing bubble unprecedented in world before, much worse than US housing bubble. To deflate the bubble will cause the market crash overnight.
That market IS on back of fiction housing bubble unprecedented in world before, much worse than US housing bubble. To deflate the bubble will cause the market crash overnight.
Possibly but manufacturing would most likely switch over to places like Indonesia, Malaysia,
and maybe India.
Manufacting goes to where the cheap labor is.....
perhaps ultimately Africa....would be good for them to get a slice of the pie.
Remember before China it was Japan that made all the cheap stuff,
back in the 60s and 70s people would joke “made in japan”.
Yeah, China's no longer the cheap manufacturing place. Their 2025 plan launches them firmly into the heat of the tech race....magically engineering the last 100 years of tech from just the last 10 years of producing the base components.
From the list of products subject to the tariffs, Trump is targeting the Made in China 2025 initiative. The announcement also coincides to the day with the launch of China's crude oil exchange. The US has been vociferous in its criticism of 2025. It makes China less dependent on outside sources for the chip-related components which are important to national security as well as consumer electronics.
More than two-thirds of the products targeted were on the Made in China 2025 list.
"According to research from investment bank Natixis, released Wednesday, more than two thirds of the items targeted by the tariffs are listed in the Made in China 2025 strategy, which outlines how China intends to move up the economic value chain by investing in strategic technologies. China’s plan to become a dominant player in industries such as semiconductor manufacturing and artificial intelligence goes to the heart of the vision leaders in Beijing have laid out."
“History teaches us that the capacity for things to get worse is limitless.” Chalmers Johnson
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China plans tariffs on 3B worth of US goods after Trump order.
