Trump wants to impose a 33% tariff on US company imports (Al Gore, legal)
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Going back to presidential authority to impose taxes/tariffs on imports, the president does have such authority, but it seems it is limited to 15% and for 150 days to combat balance of payments deficits. Therefore Trump would not have the authority to impose 35% for Mexican or 45% for Chinese imports.
Ford and GM are doing very well in China and it is a huge market for them. If they are shut out of this market, they are finished. It will massively hurt Michigan and the rest of the rust belt. Progressives (New Deal democrats) are the only ones who have consistently opposed NAFTA and other trade deals without input from labor so if you have not voted for progressives like Sanders and instead voted for puppets of the donor class, you only have yourself to blame.
You say "free trade" as if it is an article of faith. Look at the results. If free trade is so good why is the flow of goods just one way. How can you be blind to $500 billion deficits year after year? How many jobs is that?
Free trade improves the efficiency of markets. While the trade deficit is high, that number alone is unimportant (and ignores that US interests own a large portion of the imports that create those deficits--interests which include 401k funds and pension plans in addition to US corporations and Wall Street financiers). Cutting the trade deficit is not going to create $500 billion of US jobs. It's going to raise consumer prices and decrease real GDP growth.
Every year our economy produces about $16 trillion. The entire trade deficit is just ~3% of the US economic production. It is not a top priority.
Of that, you can be certain. Let them protest. Their protests will fall on deaf ears.
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Originally Posted by oberon_1
Just wait for US congress to react. And let's not forget the financial markets worldwide. As I said, I'm looking forward to such unilateral steps. It will be interesting.
I'm hoping Trump withdraws the US as a signatory to the TPP (a horrid agreement that has sections shrouded in secrecy), and renegotiates NAFTA. There are a couple of sections of NAFTA that are harmful to the US, one being the section on agriculture, especially corn. The US tax-payers end up subsidizing corn farmers in the US.
As far as currency manipulation, China has had more than two decades to get their financial affairs in order. If they cannot deal with it, that's just too bad for China.
Skyrocketing consumer prices and trade war are only some of the consequences of Trumps proposes policy. Since his penalties target only US companies, many will simply leave the country and open up under another flag.
Exactly right, not to mention that when you impose a tariff, they will pass the same or steeper tariffs against you. In 2012 we exported $15 billion in soybeans to China, our farmers aren't going to be very happy if that gets scaled back due to tariffs.
Of that, you can be certain. Let them protest. Their protests will fall on deaf ears.
I'm hoping Trump withdraws the US as a signatory to the TPP (a horrid agreement that has sections shrouded in secrecy), and renegotiates NAFTA. There are a couple of sections of NAFTA that are harmful to the US, one being the section on agriculture, especially corn. The US tax-payers end up subsidizing corn farmers in the US.
As far as currency manipulation, China has had more than two decades to get their financial affairs in order. If they cannot deal with it, that's just too bad for China.
What do you dislike about TPP? US taxpayer subsidies for corn come not from NAFTA, but from the Farm Bill (plus ethanol subsidies in energy bills). Don't blame international trade for our ag subsidies, blame domestic politics.
If you want to limit currency manipulation, then TPP is your best chance to get there. It would have a process to wind down currency manipulation. The alternative, RCEP, that Asia-Pacific nations will pursue has no mechanism to crack down on currency manipulation, because it is driven by China.
If they don't absorb the cost of the tariff and keep the product competitive , we shop elsewhere for a cheaper product. It can't always be passed onto the consumer at a higher price. No one will buy when the product can be found at a cheaper cost. We have choices.
If tariffs increase prices of goods, everything we buy will have massive price increases. People will stop purchasing stuff. I will.
I don't want to pay more for everything I buy. I would be subsidizing the paycheck of someone working in a factory for wages that are above market for the job they are doing. Instead, the overpaid factory worker should retrain for a different job if they want to earn a higher wage. Or move to a different area that has better paying jobs . Don't expect everyone else to subsidize your salary because you want to stand on an assembly line for $35/hr. The factor worker chooses not to move or chooses not to retrain/reschool for a better paying job. Why should everyone else pay for their decision to stay in a rust belt town with 3 stoplights and a Wal-mart and no other jobs other than the 50 year old factory?
Yet high paying tech jobs(service sector) making $100k+ keep getting offshored and these companies get a free pass because Trump is only targeting manufacturers.
Not everybody has the skills or innate potential to just train for a high paying IT job. If it was easy, everyone would do it. If we have no jobs for the working class, guess how they will get by? Crime or welfare.
And companies like Nike for instance would have a lot of nerve raising prices. They get hundreds of dollars for a ten dollar sneaker.
The US imposed a rather large tariff on Chinese steel because of dumping and illegal trade practices but it is very unusual to just impose a tax because we want something in our own country. Tariffs are not meant to solve the problems of the world.
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A trade spat between the U.S. and China boiled over on Wednesday, with Beijing demanding the removal of a new 500% duty on some of its steel products.
The escalation follows a ruling by the U.S. Department of Commerce on Tuesday that dramatically increases duties on Chinese cold-rolled steel, which is used to make appliances, cars and electric motors
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