Earlier quoted context omitted.
A 25% tariff results in low-singe digits % price increase at in the store. The tariffs are on cost of goods, but cost of goods is usually a fairly small fraction of retail price.
Even a 5% increase in the monthly costs of a lower-income family is 5% too much in this era of stagnating real wages. And
China backtracked on almost all aspects of U.S. trade deal – sources
141–144 of 144 posts
Re: China backtracked on almost all aspects of U.S. trade deal – sources
#142Earlier quoted context omitted.
Another year and a half is a long time to make your people suffer. And a lot of the supply chains that moved out of China might not come back. Waiting is a hell of a gamble.
I'm not sure a year and a half of unfavorable trade means much to a dictator who declares themself dictator for life, imprisons millions of citizens in re-education camps and engages in mass censorship.
Re: China backtracked on almost all aspects of U.S. trade deal – sources
#143Earlier quoted context omitted.
If your currency is a reserve currency, this measure is unnecessary--you can just print more of it.
That has the unfortunate disadvantage of devaluing the currency your own citizens hold.
Re: China backtracked on almost all aspects of U.S. trade deal – sources
#144Earlier quoted context omitted.
Another year and a half is a long time to make your people suffer. And a lot of the supply chains that moved out of China might not come back. Waiting is a hell of a gamble.
Plus, there's a disaster brewing with the Chinese hog epidemic . Going to be lots of starvation in a year or two.
https://www.youtube.com/watch?v=EQ9bP6wo8rA&list=WL&index=49...