Pharma products were previously tariff-free under a WTO agreement that is based on the principle that life-saving items shouldn't face any tariffs. Looks like this exemption is now also being eliminated and will probably cause the prices of drugs and treatments in the USA to skyrocket.
Trump's Trade War Escalates as China Retaliates with 34% Tariffs
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Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#12Wonder whether Americans or the Chinese can weather tough times better. Chinese don’t get to protest or voice dissent and Americans can’t be bothered to
It will suck on both sides, but the majority of American households can weather a $2-4k blow over the next year as supply chains react. Congress stepping in to exclude Canada and Mexico and the NAFTA exemption cushions the blow significantly. Most of Latin America being placed at the lower end of the announcement means manufacturers who used to be competitive until China Shock set around 2014-16 can be cost competiti…
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Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#13Just yesterday people were trying to convince me that price hikes were good and would benefit Trump’s base. Now JP Morgan is predicting a global recession. I cannot fathom how this is good for America.
It just feels like a colossal own-goal that will weaken America on the global scale. Americans will suffer in a recession. And it was by choice that this administration put us here.
Is there any recourse?
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#14I hate to say it: this might be the thing that actually screws his movement.
Biden was uninspiring but ultimately did okay on a few things. The things that screwed him were inflation - some of which was Trump's fault - and his mental state, which can happen to anyone at that age. The inflation followed Harris in her run, as people were fondly remembering 2017-2019 and the era of lower prices. They thought putting Trump back in office would reverse the trend.
Well, now he's drastically kicking prices up left and right with no end in sight. It's not even macroeconomic factors doing this like it was with COVID; it's purely the strokes of his pen.
The bottom line is the ultimate thing that matters in American politics, as it is everywhere. The talk about democracy, institutions, rights, etc. are all window dressing. "It's the economy, stupid", and it's getting noticeably worse.
Of course, I could also be totally wrong like everything else has been for the last 10 years when it comes to predicting the downfall of that tyrant.
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#15[dead]
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#16Pharma products were previously tariff-free under a WTO agreement that is based on the principle that life-saving items shouldn't face any tariffs. Looks like this exemption is now also being eliminated and will probably cause the prices of drugs and treatments in the USA to skyrocket.
> Pharma products were previously tariff-free under a WTO agreement that is based on the principle that life-saving items shouldn't face any tariffs. Looks like this exemption is now also being eliminated
Pharma along with semiconductors is still exempted.
The biggest hit this has is on textiles and apparel as those were industries that have almost no NAFTA/USMCA presence anymore.
Electronics will be a mixed bag as most US origin electronics assembly was already returning to Mexico due to Zero COVID in China (20-23) and Vietnam (20-21), or moving to India (26% tariff) and Malaysia (20% tariff)
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#17Pharma products were previously tariff-free under a WTO agreement that is based on the principle that life-saving items shouldn't face any tariffs. Looks like this exemption is now also being eliminated and will probably cause the prices of drugs and treatments in the USA to skyrocket.
31% tariffs on Switzerland will be felt.
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#18Just yesterday people were trying to convince me that price hikes were good and would benefit Trump’s base. Now JP Morgan is predicting a global recession. I cannot fathom how this is good for America. It just feels like a colossal own-goal that will weaken America on the global scale. Americans will suffer in a recession. And it was by choice that this administration put us here. Is there any recourse?
>Is there any recourse?
Nope. The avalanche has begun, it's too late for the pebbles to regret their vote.
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#19How is it retaliation to destroy your own economy by making the same bad life choices? Isn't actual retaliation to just ignore the entire thing and thank the US for the extra percentage points in advantage you got for free?
Not if this doesn't actually destroy their economy and gives them even more percentage points. Also the USA has imposed tariffs on almost everyone whereas China has specifically targeted the USA with tariffs. They have much more scope to re-source their imports.
Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs
#20How is it retaliation to destroy your own economy by making the same bad life choices? Isn't actual retaliation to just ignore the entire thing and thank the US for the extra percentage points in advantage you got for free?
If you assume the US tariffs are unchangeable then you would be right but the hope of retaliatory tariffs is that they will get the US to update it's tariffs in response to the economic harm caused. It will also harm China of course but I would imagine they hope the harm caused to the US will reduce the tariffs and leave China better off in the long run. This is not totally unreasonable, the US is ostensibly more sensitive to the economic conditions of it's citizens so one could imagine China outlasting the US in this game of chicken.