It's Almost As If Trump Doesn't Know How Tariffs Work

  • Thread starter Thread starter ChuckB
  • Start date Start date
Status
Not open for further replies.
Senator Rubio says it needs to be done. China is taking advantage of us. Just look up his twitter.
 
ChuckB said:
Well, if Little Marco says it needs to be done, on Twitter no less, I guess that settles it.
Click to expand...
He says that in the Senate all the time and I’m sure there are Democrats one can find who says the same thing.

And what’s your suggestion? The economy is booming. China is no one to trust.

How is the economy doing? Pretty good, all time low unemployment rates for blacks and Hispanics.
 
This past week even Chuck Schumer says we need to do this.
 
Last edited:
I would suggest to attend an Economics 101 class to understand how bad the concept trade wars and tariffs are. No serious economist would endorse these practices. They always hurt both sides. To be more precise they hurt the populations, since the tariffs will be passed on to the consumers.
 
I already saw a bunch of economists say it will work, we are helping so far a corrupt regime who has a much better hand in all of this than us. We are losing jobs. We will see. We’ve got the best economy in 50 years, the proof is in the pudding.
 

This U.S.-China trade dispute is the first skirmish in what is likely to become the epic economic battle of our lifetime. The future of free and fair trade is much better enhanced if Trump wins. If China forces the United States to back down, free trade will suffer a mortal wound. This would be very bad news for free traders and for global prosperity. And it is why Trump must win — and will.
 
angel12 said:
Almost?”
If only.
Click to expand...
Always these sorts of remarks? What’s your objection to Trump? All time low rates of unemployment for minorities? Saving Christianity in the Middle East? I’m absolutely astounded someone has such remarks ever. Booming economy too.
 
Throughout this country’s history there have been times when Americans had to give a lot more and received a lot less.

Now is one of those times.
 
Then there is this little matter of a trillion dollars of Treasuries China is holding. Yes Gates called them out for pirating our software but if they reach a point of having nothing to lose they will pound the bonds and damage our economy, and more than just the farmers.
 
The Chinese have to keep most of their Treasuries, otherwise they risk crashing their economy. Have to remember the yuan trades within a pegged range relative to the dollar, the yuan is not traded freely the way the dollar is and the yuan does not have the capital and debt markets the dollar does. Then there is the fact that no one trusts them, not even their own richest people. What’s forgotten is the degree to which they need us more than we need them. However there can be no doubt they have been taking advantage of us all these years. Trump is simply trying to level the playing field but the Chinese are balking at giving up any of the advantages they’ve been using for the last 40 years. In the end they will have no choice but to come to the table. In the meantime we’ll be treated to the spectacle of seeing them kicking and screaming.

Free trade only works if it is truly free trade. When one side takes advantage as the Chinese do, it really isn’t free trade anymore and tariffs are a legitimate tactic to counteract a mostly one-sided trade advantage.

Finally about tariffs, we have to remember that the US once financed its federal government almost entirely through tariffs. Lincoln attempted to ram through an income tax to pay for the Civil War, but the Supreme Court shot him down. which is why it took a constitutional amendment (the 16th) to make the income tax legal. Until then the federal government ran on tariffs for the first 125 years of its history.
 
Zzyzx_Road said:
The Chinese have to keep most of their Treasuries
Click to expand...
Well, yeh, to collect interest income in US dollars. And if interest rates drop, their net worth increases. As does everyone else holding bonds. My portfolio has gained bigtime since the start of the year and I don’t hold much stock.
 
finance.yahoo.com

China hikes tariffs on U.S. goods after Trump warning

China said on Monday it would impose higher tariffs on most U.S. imports on a revised $60 billion target list, hitting back at a tariff hike by Washington on $200 billion of Chinese goods in a further escalation of a bitter trade war. The retaliation comes as U.S. President Donald Trump signals...
finance.yahoo.com finance.yahoo.com

China to impose tariffs on $60 billion of U.S. goods​

HONG KONG (Reuters) - China plans to impose tariffs on $60 billion worth of U.S. goods, the finance ministry said on Monday, after the United States escalated a bitter trade war with a tariff hike on $200 billion of Chinese products.

China will impose tariffs on a total of 5,140 U.S. products from June 1, the ministry said in a statement on Monday.
 
Economist said:
I would suggest to attend an Economics 101 class to understand how bad the concept trade wars and tariffs are. No serious economist would endorse these practices. They always hurt both sides. To be more precise they hurt the populations, since the tariffs will be passed on to the consumers.
Click to expand...
You’re assuming worldwide trade wars. That’s not what this is.

Lots of our shoe manufacturing has gone to China. However, the shoes I have worn for years are now made in El Salvador (having moved from Maine). There are lots and lots of El Salvadors on the planet. We don’t need China if we want cheap products made by workers on starvation wages.

But it ought to be reciprocally beneficial. China imports mainly commodities from the U.S. while selling us manufactured goods. That’s classic economic imperialism on China’s part. It needs to end. And frankly, I think Trump did Mexicans a big favor in insisting that a percentage of manufactured auto parts coming from Mexico be from companies who pay their workers at least $15.00/hour. He should have insisted on 100%.
 
Let’s see. If we go to other countries like most of the world where labor is cheap to replace Chinese goods, I’ll bet we can negotiate deals where they buy that $60 billion in products too. Imagine how countries like Vietnam, Philippines, Bangladesh, Malaysia, and any number of African countries would love to have the deals we have given the Chinese. And they would probably buy, e.g., Caterpillar products without requiring that Caterpillar relocate from Moline to Hanoi.
 
Status
Not open for further replies.
Back
Top