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Trump's Trade War Escalates as China Retaliates with 34% Tariffs

nytimes.com

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Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#21

Post by josefresco »

alephnerd wrote: post #7
akmarinov wrote: post #5

Wonder 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…

> $2-4k blow over the next year as supply chains react.

It's gonna take a lot longer, and cost Americans a lot more money for "supply chains to react" and move manufacturing to the US.

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#22

Post by Spooky23 »

boxed wrote: post #10

How 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?

It’s a war, man. You inflict pain on your enemy. Trump has a pattern of tucking tail when confronted.

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#23

Post by hello_moto »

drumhead wrote: post #4

No Hyper-economy, like China or the EU is going to stand about and take what seems like economic intimidation from the US. All the unaffiliated nations are going to be collateral damage in this clash of the economic titans. The best thing everyone can do is maintain low tariffs and try and strike free trade deals with each other. But the consequeces of Trumps Trade war are going to be disasterous for smaller developi…

And billionaires are still going to be rich.

I hope one day USA wakes up and realize the solution is wealth tax to these billionaires

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#24

Post by alephnerd »

stabbles wrote: post #17
hubraumhugo wrote: post #11

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.

31% tariffs on Switzerland will be felt.

Pharma is exempted from the tariffs regime, but in that list it should also be the EU and India as well.

Most medicaments in the US are sourced from EU (Ireland, Germany, Netherlands), EFTA (Switzerland as you rightfully noted as well as Denmark), and India

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#25

Post by rjtavares »

boxed wrote: post #10

How 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?

You can't be bullied and not respond - that's an invite for future bullying.

Besides, this isn't at all the same. China isn't adding tariffs on the whole world like the US are.

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#26

Post by alephnerd »

josefresco wrote: post #21
alephnerd wrote: post #7

Earlier quoted context omitted.

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…

> $2-4k blow over the next year as supply chains react. It's gonna take a lot longer, and cost Americans a lot more money for "supply chains to react" and move manufacturing to the US.

Manufacturing isn't returning to the US due to these tariffs.

Just like before the tariffs, the US is still too expensive.

On the other hand, it has killed cost-competitiveness for Chinese exports directly from China or via transshipment from Vietnam.

The tariff regime has now made Latin America (Brazil, Colombia), Turkiye, Philippines, parts of the EU (Poland, Czechia, Romania), and India cost competitive. And NAFTA/USMCA exemptions still remain and this was something Congress pushed back HARD on to ensure.

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#28

Post by [deleted] »

alephnerd wrote: post #24
stabbles wrote: post #17

Earlier quoted context omitted.

31% tariffs on Switzerland will be felt.

Pharma is exempted from the tariffs regime, but in that list it should also be the EU and India as well. Most medicaments in the US are sourced from EU (Ireland, Germany, Netherlands), EFTA (Switzerland as you rightfully noted as well as Denmark), and India

[deleted]

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#29

Post by Spooky23 »

apawloski wrote: post #13

Just 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?

Hope you have an opportunity to vote again, and that the coup is unsuccessful this time.

Re: Trump's Trade War Escalates as China Retaliates with 34% Tariffs

#30

Post by TheOtherHobbes »

alephnerd wrote: post #7
akmarinov wrote: post #5

Wonder 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…

Half of Americans say they live paycheck to paycheck, so no - the majority of households will not be able to survive for long if they have to spend an extra few thousand to stay where they are today.

Those that can will be cutting spending, which will ripple across the rest of the economy.

There's no sign that negotiation is even possible, never mind likely.

One tell is that tariffs have been applied to the Heard and McDonald Islands, which are inhabited by penguins and produce no imports or exports.

These are not the actions of a rational administration.

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