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Trump temporarily drops tariffs to 10% for most countries

cnbc.com

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Re: Trump temporarily drops tariffs to 10% for most countries

#531

Post by Animats »

hello_computer wrote: post #342
Animats wrote: post #315

Possibly because lawsuits challenging the power of the President to impose tariffs under the Emergency Economic Powers Act are underway.[1] GOP support for Congress taking back control of tariffs is building.[2] At some point, Congress or the courts will take his toys away. [1] https://www.newsweek.com/trump-tariffs-hit-lawsuit-group-his... [2] https://thehill.com/homenews/senate/5236142-congress-tariff-...

Seems kinda crazy that so much power was ever vested in the president. https://www.congress.gov/crs-product/R48435

How to handle emergency authority in a democracy has been a hard problem back to the Roman Empire. Read up on Roman dictators.[1]

[1] https://en.wikipedia.org/wiki/Roman_dictator

Re: Trump temporarily drops tariffs to 10% for most countries

#533

Post by johnnyanmac »

Vivtek wrote: post #38

Threaten people with a 49% national sales tax, and suddenly they celebrate when it's only 10%.

I'm only "celebrating" congress getting more time to reel this chaos in. Hopefully we have 20 pissed off enough GOP senators to realize that they never should have let Trump singlehandedly start yet another tarriff war.

Re: Trump temporarily drops tariffs to 10% for most countries

#534

Post by Dylan16807 »

Vivtek wrote: post #38

Threaten people with a 49% national sales tax, and suddenly they celebrate when it's only 10%.

It's not like people stopped being mad or are calling this good. Starting with a big number and dropping lower (temporarily!) was not a good negotiating strategy here.

Re: Trump temporarily drops tariffs to 10% for most countries

#535

Post by ianferrel »

compumike wrote: post #305

Is it just the historical legacy of international trade that tariffs apply only to physical goods, but not to something like software-as-a-service subscriptions, digital media, or intellectual property? As the latter categories are more representative of US exports, it would surely be an interesting escalation if other countries were to start including them in their “retaliatory” tariffs.

I think partly the historical legacy, but also the ease of enforcement and the fact that lower tariffs and services have trended together.

Collecting taxes on goods flowing through a limited number of physical locations is much much easier than trying to audit the client list of a huge number of foreign service providers.

Agreed that other countries are considering this.

Re: Trump temporarily drops tariffs to 10% for most countries

#536

Post by bluGill »

NooneAtAll3 wrote: post #27
bgirard wrote: post #9

Earlier quoted context omitted.

Lots of stocks are up 10-15% instantly after this announcement. Curious if we'll get reports of suspicious options volume capitalizing on this information.

why do people still trust stock markets if manipulating them is that easy?

I trust the stock market only after at least 5 years have passed, preferably 10. Short term (less than that) the stock market has always been about popularity, but long term the most profitable companies always rise to the top.

Re: Trump temporarily drops tariffs to 10% for most countries

#537

Post by piva00 »

kansface wrote: post #507
davidguetta wrote: post #469

Earlier quoted context omitted.

I still wonder why this was not done instantly by EU. US has an imbalance on goods that was used to calculate the tariff amount, but it has the opposite imbalance on service from what I've read

The EU effectively backdoors tariffs against US software vendors via fines and the occasional if ineffective subsidy for local competitors in the local language.

No, fines are for breaking the law, if they don't break the law there's no way for the EU to collect the money. It's like speed traps, people can be mad at them because they broke the law and were caught, it doesn't alleviate the fact they could have just followed the rules.

Re: Trump temporarily drops tariffs to 10% for most countries

#538

Post by throwaway20174 »

magicloop wrote: post #397

"It’s the T-bills wot dun it." That’s my read on why the U.S. just paused the global tariff hike to 10%. From the beginning, I’ve believed the executive branch's real goal was to push down the yield on the 10-year Treasury. Why? Because Uncle Sam has to refinance a mountain of debt this year, and the cost of that depends heavily on Treasury yields — especially the 10-year. That’s the rate that sets the tone for every…

The refinance is a real issue, but it doesn't matter too much cause the Fed can (and will) always intervene. They can soak up any supply to push the 10 year down.

Same reason why it doesn't matter if China etc.. wants our treasuries. Fed is always there to buy them.

Re: Trump temporarily drops tariffs to 10% for most countries

#539

Post by kkarakk »

some_random wrote: post #235
sampton wrote: post #138

Earlier quoted context omitted.

It also makes it easy for Chinese manufactures to circumvent tariffs. Completely pointless theater for the MAGA crowd.

How though? Obviously there will be tariff evasion but doing so at scale is impossible.

China has already been transshipping saying they assemble in vietnam with the only thing being done is stuff like taking labels that say made in china off the products. Vietnam does not care as long as vietnamese people are getting paid something.

https://redarrowlogistics.com/international/dodging-tariffs-...

Re: Trump temporarily drops tariffs to 10% for most countries

#540

Post by foepys »

davidguetta wrote: post #469
compumike wrote: post #305

Is it just the historical legacy of international trade that tariffs apply only to physical goods, but not to something like software-as-a-service subscriptions, digital media, or intellectual property? As the latter categories are more representative of US exports, it would surely be an interesting escalation if other countries were to start including them in their “retaliatory” tariffs.

I still wonder why this was not done instantly by EU. US has an imbalance on goods that was used to calculate the tariff amount, but it has the opposite imbalance on service from what I've read

Easy: because next to 100% of EU government computers run Windows and MS Office.
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