Tariffs 101

[CaptainNJ]

Originally Posted by ChessieMom

I don’t believe that was the goal. From what I have read ( and admittedly not a whole lot) Trump’s irritation is the amount of the trade deficit itself. If it were more balanced...then there would not be a problem. But who knows...maybe it is just political huff&puff.

that would mean that the guy who wants to bring manufacturing back to the US was correct (which i dont agree with). its my understanding that china does the manufacturing because they have a ton of low wage labor. i dont think that is really something that we want to expand, low wage labor. he would probably be better served focusing on reducing other costs and challenges that make it undesirable to manufacture in the country. then maybe we could increase the amount of automated manufacturing with less low wage earners.

[ChessieMom]

Originally Posted by CaptainNJ

that would mean that the guy who wants to bring manufacturing back to the US was correct (which i dont agree with). its my understanding that china does the manufacturing because they have a ton of low wage labor. i dont think that is really something that we want to expand, low wage labor. he would probably be better served focusing on reducing other costs and challenges that make it undesirable to manufacture in the country. then maybe we could increase the amount of automated manufacturing with less low wage earners.

I don’t view them as the same thing.

But yes it’s the wages. We can’t have it both ways. We can forgo being able to afford much of what we easily purchase today....or we can agree to take minimum wages back to the 70’s. I don’t know anyone that wants either of those things. So, China.

[EDS_]

Originally Posted by 6oo9

The 25% tariff is on $200 billion of $500 billion imports from China. China exports to the US is only 20% their worldwide exports. 25% x 20% x 40% = 2% impact on China’s exports, they can easily manipulate own currency exchange rate lower by a few penny to get around this, which probably already done last year. This isn’t going to hurt China.

American consumers, on the other hand, will pay every dollar and cents of Trump tariff plus stock market jittering. China stop buying soybeans to zero, that’s $16 billion a year loss.

That's just not how this will shake out if push comes to shove. We sort-of need them. They absolutely need us.

[RationalExpectations]

Originally Posted by Quietude

Quietude thinks we need to deal with China in a rational way that accommodates reality.

I agree completely.

Originally Posted by Quietude

Not by pretending we can tell them to go away,

I agree completely.

Originally Posted by Quietude

... or that we can change their innate government/business culture.

I agree completely.

Originally Posted by Quietude

Neither has any chance of success

I agree completely.

Originally Posted by Quietude

But who listens to him, right?

I'm listening. Seriously. I'm not playing a game of "gotcha."

What the heck do we do?