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The farmers are being subsidized because they have been selectively targeted by China, who hopes that directing all the effects onto a small group will cause such hardship for that group that they will become symbolic of the entire issue. However, the subsidies given to farmers are less than the tariffs collected and the farmers are a wee tiny percentage of all Americans.
Props for the circular logic; China wouldn’t have targeted the farmers had we not slapped Tariffs on them.
Prices will continue increase on consumer goods, but I know from my own line of work that it’s pushing companies to move production from Chinese manufacturers to those in Vietnam, Mexico, etc.
No, it’s not causing a huge number of jobs to return to the US, but it is hurting China without a doubt and this is absolutely necessary unless we want them to eventually take control of the entire global economy. I will happily pay extra in the meantime. Things should settle down once a significant amount of production has shifted to other countries, and trust me it actually is happening.
Oh and regarding the whole farming thing.... Our farmers should only be growing food for US consumers. There is clearly an oversupply of farm produced food in this country. Farms should be allowed to fail, and the land repurposed until the supply is adjusted to meet domestic demand. Our economy doesn’t revolve around farming, we will be fine.
Props for the circular logic; China wouldn’t have targeted the farmers had we not slapped Tariffs on them.
Nothing circular here at all. The point is that we can subsidize the hit to farmers with a fraction of the revenues generated by the tariffs.
Listen not to what people say but watch what they do. If tariffs really hurt the consumers and businesses of the country imposing them, why is the response of the targeted country almost always to impose retaliatory tariffs?
Is Xi so outraged that Trump is harming American consumers and businesses that he is determined to equally harm Chinese consumers and businesses?
The farmers are being subsidized because they have been selectively targeted by China, who hopes that directing all the effects onto a small group will cause such hardship for that group that they will become symbolic of the entire issue. However, the subsidies given to farmers are less than the tariffs collected and the farmers are a wee tiny percentage of all Americans.
Ah, so those dozens of business people in various other industries that I have heard and saw interviews with (with names and company names) and all the articles with same....that is just being made up?
This is fantastic.
It's a "trade war" that Trump started and is by far the main aggressor in. When you opponent puts up a hand to defend himself he's not doing anything unexpected.
You are actually proving my point about Trump being incapable of most anything...or maybe you agree? He plays a weak game of checkers against the odds of Chess. That means he is incapable by a factor of millions...so it's not even close.
He lost the "trade war" before it even started because to accomplish any task involving China and Trade would have been done without bluster and threats.
Trump doesn't care who he hurts. The same famers exports lots of stuff to Cuba and wanted closer relations there. Obama gave it to them.....Trump is screwing that up too.
One simply cannot expect someone who plays a Realtor and Marketer on TV to be a Diplomat and International Trade expert in real life. It's fantastic on the face...let alone in reality. Would you hire a Realtor to perform surgery on you? To decide what is best for international affairs?
I wouldn't....unless I desired ineptitude and chaos.
Nothing circular here at all. The point is that we can subsidize the hit to farmers with a fraction of the revenues generated by the tariffs.
Listen not to what people say but watch what they do. If tariffs really hurt the consumers and businesses of the country imposing them, why is the response of the targeted country almost always to impose retaliatory tariffs?
Is Xi so outraged that Trump is harming American consumers and businesses that he is determined to equally harm Chinese consumers and businesses?
No, the point is that the US’s recent tariff implementation under the current president resulted in reciprocation by China, resulting in increased costs for American consumers, and significantly increased costs for farmers (leading to our subsequent subsidies).
It’s truly ironic that the party which idolizes the free-market and “small-government” are happily looking the other way.....
Prices will continue increase on consumer goods, but I know from my own line of work that it’s pushing companies to move production from Chinese manufacturers to those in Vietnam, Mexico, etc.
No, it’s not causing a huge number of jobs to return to the US, but it is hurting China without a doubt and this is absolutely necessary unless we want them to eventually take control of the entire global economy. I will happily pay extra in the meantime. Things should settle down once a significant amount of production has shifted to other countries, and trust me it actually is happening.
Oh and regarding the whole farming thing.... Our farmers should only be growing food for US consumers. There is clearly an oversupply of farm produced food in this country. Farms should be allowed to fail, and the land repurposed until the supply is adjusted to meet domestic demand. Our economy doesn’t revolve around farming, we will be fine.
Ain't gonna happen. China has a world market of 7 (and growing) Billion customers and 1.5 Billion of those are captive.
When a local Dam breaks your 5 gallon bucket dipping into the output and throwing it on a neighbor isn't going to slow the deluge...
You can pretend it's hurting China..tho. That's very short term thinking...IMHO.
It "hurts" you to lift weights and work out. But the results are increased strength and better health. So it is with China. They will turn 90% of any "hurt" we apply to their favor over the long term....
BUT, in doing that, it will hurt us for decades. They won't forget this easily.
Giving more business to Red Vietnam, where it has been going for two decades anyway (cheaper labor) isn't exactly a coup. It's a cost...to businesses here that have to set up new operations and then still have to deal with China for most of the supply chain to build what Vietnam puts together.
No, the point is that the US’s recent tariff implementation under the current president resulted in reciprocation by China, resulting in increased costs for American consumers, and significantly increased costs for farmers (leading to our subsequent subsidies).
It’s truly ironic that the party which idolizes the free-market and “small-government” are happily looking the other way.....
So exactly what costs have increased ? What am I paying more for today because of tariffs ?
So exactly what costs have increased ? What am I paying more for today because of tariffs ?
A few examples:
Among the losers in the dispute:
ENERGY COMPANIES
Energy stocks in the S&P 500 have plunged 10.2% since just before Trump sent his Aug. 1 tweet, the worst decline of the 11 sectors that make up the index.
National Oilwell Varco, for example, is based in Houston and gets most of its revenue from supplying drilling and other technologies in the United States, Saudi Arabia, Brazil and Norway. But its stock has plunged nearly 22%, seven times the loss of the overall S&P 500.
That’s in large part because the price of oil has sunk on worries that the trade war will do lasting damage to the global economy. If that happens, countries around the world will have less need to burn oil. The price of benchmark U.S. crude plunged nearly 8% on Aug. 1, its worst day in 4½ years.
BANKS
Financial stocks have been the second-worst performing sector in the S&P 500 in recent weeks as the prospect of less-profitable lending threatens banks’ profits.
Comerica, for instance, has been sucked into an industrywide downdraft. It is based in Dallas and has bank branches mostly in Arizona, California, Florida, Texas and Michigan. It has some businesses operating outside the country, but in Canada and Mexico, not China. Its stock has sunk 16.2% during the recent pick-up in trade tensions.
The escalation in the trade war has led a growing number of economists and analysts to warn about a possible recession. And those concerns have spread to the bond market, where interest rates have sunk sharply.
The market for interest rates has gone so haywire this month because of worries about a possible recession that long-term Treasury yields in some cases are lower than short-term yields. That’s trouble for an industry that relies on borrowing money at short-term rates, lending it out at long-term rates and pocketing the difference.
MICROCHIP COMPANIES
Companies that make microchips that go into laptops and other electronics have been some of the trade war’s biggest victims because of how dependent they are on China.
Consider Micron Technology, which got more than 57% of all its sales from China in its last fiscal year. Not only that, it needs China for rare earth minerals found there, and it also has significant manufacturing operations in the country.
Micron sank 2.9% on Aug. 1, when Trump announced he would extend tariffs to products that include laptops and mobile phones. That was more than triple the S&P 500’s loss.
Since Trump’s 2018 tweet that “trade wars are good, and easy to win,” Micron is down 8.5%, while the S&P 500 is up 7.9%.
INDUSTRIAL COMPANIES
Since Trump initiated the trade with China in 2018, the reaction in the market has been to sell big industrial companies whenever tensions rise. The temptation makes sense given how global the companies are, but it may be misguided, said Stephen Volkmann, an equity analyst at Jefferies who covers machinery and industrial companies.
“Every time there’s a tweet, I get a call and asked, ‘How does this affect CAT?’” Volkmann said, using the ticker symbol for heavy equipment maker Caterpillar. “CAT tends to make what they sell where they sell it.”
That means many of its products do not have to cross borders before they are sold, which offers some insulation from the effect of tariffs. Other industrial companies have also already absorbed tariffs and successfully passed the costs on to their customers. But “it’s a little like shouting in the wind to get anyone to care,” Volkmann said.
When asked if any of the industrial companies he follows is much more vulnerable than others because of this next round of tariffs, he struggles to name one in particular.
“The most important part is: Do we enter a recession because of them?” he said. “If that’s true, that’s true for all my companies.”
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