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Airbus hit as new US tariffs come into force

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Re: Airbus hit as new US tariffs come into force

#121

Post by chki »

syntaxing wrote: post #79

Let's just say hypothetically the French government was propping some serious money into Airbus and wine industry that makes the United States not able to compete at all. What is the most effective way for the US to respond? Prohibit imports? Slap tariffs like now? Buy a serious amount of Euros? Pump even more money into the US industry? Or some sort of other alternative?

Conflict resolution mechanisms in the WTO are a very sensible solution to trade disputes, if parties actually adhere to the rulings and do not sabotage the decision making bodies.

Re: Airbus hit as new US tariffs come into force

#122

Post by rhino369 »

r00fus wrote: post #82
evgen wrote: post #53

Earlier quoted context omitted.

Actually, most EU tariffs are rather poorly targeted. China is much better at making sure the pain is felt in very specific states and congressional districts to ensure that the message is delivered. Harleys, like wine, is generally considered a luxury good and so makes an easy target.

What's preventing the EU from being more targeted like this? Is it the collaborative deliberation (EU) vs. single-party rule (CN)? Is targeted tariffs something the G8/WTC doesn't like/promote?

Its unseemly to directly get involved in US politics by targeting specific congressional districts to send a message. That's the sort of stuff many Americans were outraged about after the 2016 election.

Re: Airbus hit as new US tariffs come into force

#123

Post by amheit »

Grimm1 wrote: post #100
rapsey wrote: post #50

Earlier quoted context omitted.

Freemarkets exist in fairytales.

Yawn. Sure, like any ideal. I feel like you thought this would be revelatory. There exists a spectrum, I'd like to see us lean freer. Or at least not do weird back handed crony capitalism and just come out and nationalize.

Yawn. Sure, like any ideal. I feel like you thought this would be revelatory.

Re: Airbus hit as new US tariffs come into force

#124

Post by rayiner »

addicted wrote: post #74
mytailorisrich wrote: post #48

Earlier quoted context omitted.

That's fine. With the tariffs China has slapped on American (93%) and Australian (200% !) wine Europeans have what is now the largest international market (and growing) all to themselves. In fact the US have tried to prop up (and placate) their wine producers since that because the Chinese market completely dried up for them. So I see these tariffs on European wine as killing two birds with one stone for the US gover…

The US has screwed itself so badly in the international arena it's not even funny. It's gone from leading the world to being able to barely find 1-2 supporters in UN resolutions. I mean, it can barely find 2 countries of the tens of countries with populations smaller than Staten Island to support its resolutions in the UN. The major problem for the US is that the administration has declared war on everyone, including…

The US is one of the least trade dependent countries: https://www.oecd-ilibrary.org/docserver/sti_scoreboard-2011-...

Exports make up a small percentage of the economy, so it can afford to place high tariffs on imports to help develop domestic industries.

Re: Airbus hit as new US tariffs come into force

#125

Post by rayiner »

grey-area wrote: post #34
TheAnswerMan wrote: post #28

Earlier quoted context omitted.

If you punch the US in the gut with tariffs you may get reciprocation.

Yes, because history shows that trade wars are good and easy to win!

Trade wars are great: https://www.bbc.com/news/world-us-canada-43336529

Re: Airbus hit as new US tariffs come into force

#126

Post by tibiahurried »

jdsully wrote: post #12
cmehdy wrote: post #8

"Among the goods to see an impact from the widened net of additional duty are European made wines, which will attract a 25% duty, and French and German-made aircraft parts, attracting a 15% tax." As a French person, I can't help but feel like there's some sort of personal attack happening there. Wine and airplanes? Hey, I think you guys forgot to tax cheese and sarcasm while you're at it! Let's hope that a new US adm…

They are upset at France taxing tech companies. The targeted attack is very much intentional and intended to be a tit for tat.

Unfortunately Europe pays for its inability to develop a strong tech echo system, so no matter what, Europe will always depend on US for any tech related product, there is no way out, but negotiate.

Re: Airbus hit as new US tariffs come into force

#127

Post by harg »

volta87 wrote: post #117

> The tariff will have a significant effect on production of the Airbus A320 in Mobile, Alabama, something which Airbus has claimed will only hurt US workers. How will this hurt US workers? Sounds like this is suggesting that either they will pay the workers less to compensate, or maybe even move the factory elsewhere to avoid the tariffs (moving the factory to mexico might mean the tariffs disappear until new tariff…

That’s assuming that all the planes manufactured in Alabama are not exported outside the USA. E.g. to airlines registered in Mexico, Canada, S America. I imagine that at least some are exported so moving manufacturing outside the USA would definitely hurt employment.

Re: Airbus hit as new US tariffs come into force

#128

Post by threatofrain »

ouid wrote: post #113
SllX wrote: post #92

Earlier quoted context omitted.

Trade wars aren’t about fairness, they’re about leverage. Fairness would be no tariffs at all and no taxes that effectively act as tariffs because there’s no comparable domestic competition. Life isn’t fair though.

I don't know about no tariffs beig the fairest model. One reasonable thing to impose tariffs on is products made with slave labor, or labor paid at less than the minimum wage in your own country. The benefits are twofold, disincentivizing slave labor in other countries, and incentivizing local supply.

But this is more of an issue of human rights than trade parity between nations. No tariff is the simplest ground case for discussing different parities.

Re: Airbus hit as new US tariffs come into force

#129

Post by MayeulC »

8note wrote: post #91
syntaxing wrote: post #79

Let's just say hypothetically the French government was propping some serious money into Airbus and wine industry that makes the United States not able to compete at all. What is the most effective way for the US to respond? Prohibit imports? Slap tariffs like now? Buy a serious amount of Euros? Pump even more money into the US industry? Or some sort of other alternative?

Take the free stuff?

That would create unfair competition for local production, though.

Starbucks, Amazon & other big chains/companies have used that strategy in the past: sell at a loss locally, turning a profit elsewhere, until there are no competitors left. Then ramp the prices back up (and above).

Re: Airbus hit as new US tariffs come into force

#130

Post by hindsightbias »

mytailorisrich wrote: post #48
cmehdy wrote: post #8

"Among the goods to see an impact from the widened net of additional duty are European made wines, which will attract a 25% duty, and French and German-made aircraft parts, attracting a 15% tax." As a French person, I can't help but feel like there's some sort of personal attack happening there. Wine and airplanes? Hey, I think you guys forgot to tax cheese and sarcasm while you're at it! Let's hope that a new US adm…

That's fine. With the tariffs China has slapped on American (93%) and Australian (200% !) wine Europeans have what is now the largest international market (and growing) all to themselves. In fact the US have tried to prop up (and placate) their wine producers since that because the Chinese market completely dried up for them. So I see these tariffs on European wine as killing two birds with one stone for the US gover…

It speaks to how politically unsophisticated the response was, it's not like Napa was some bastion of Trump support. I guess they like the valley products more than grapes.
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