91–100 of 148 posts
I'm guessing a ton of new companies will pop up overnight in India, Taiwan, Vietnam, S Korea that simply purchase components from China and resell them to the US. Not exactly helping anyone.
The executive order came with threats against any country doing that
And, y'know, eh, Trump says a lot of things.
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Yeah and it has no effect because its done by companies not countries. This is gonna continue for a long time. Its an incredible time to be a middle man
I thought a majority of Chinese businesses are state owned. Their neighbors understand the stakes though and have demonstrated eagerness to have low US tariff rates. I assume their customs agencies will be on the lookout for this relabeling strategy. It's going to occur, as it already does occur, for all kinds of reasons, but it's not going to be as simple as you make it out to be. There is a limited capacity to perf…
Where'd you get that? The state has a significant (though usually less than controlling) ownership stake in about 1.5% of Chinese businesses, and at least _some_ ownership in about 2%.
"The state owns some of this" is, of course, not equivalent to "the state meaningfully controls this".
But in any case for this sort of activity you'd probably just establish new companies, which the state wouldn't have any share in anyway. And, also, this is kinda academic, because you wouldn't be doing it in China, you'd be doing it in some third country and transhipping goods originating in China.
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It offsets the cost of cheaper Chinese labor and material costs. With the goal of making "made in the USA" products price competitive where they were not before. In the abstract this possibly makes more jobs in the USA for manufacturing these items. It also keeps the entire process conducted in US Dollars that stay entirely within our borders which is theoretically better for currency stability and value.
In Theorie of a crazy orange men and a spaced out tech billionaire
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In a way it's worse since, you can't make plan to move if they become obsolete in 2 months but can you afford/survive waiting ...
Hah, so Trump II is comparable to the start of the Covid pandemic: "we'll just have to hunker down and wait".
Could someone explain to an idiot like me what the benefit of this is to the americans?
If they had bought American floodlights they had saved 255k in tarrifs. So if they had paid 200k for the floodlights they would have still been better of. One could argue, that there might be no American Floodlight Company - well here is the incentive to build one. Secondly the money isn't lost, it goes to the state. Like a tax, but it is called differently. With this 255k more the state can now subsidise the local f…
Ha! State wants to cut taxes for corporations and billionaires. That’s where the money is most likely going to go.
Inflation go brrrr!
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A Tariff Holiday in Cambodia you say? heavy surf punk guitar squeals in
https://www.youtube.com/watch?v=vatNMshZVfU
edit: decades ago, I worked in a lab that was sequencing the genome of the Dengue virus (back when sequencing DNA was a Herculean task)
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Hah, so Trump II is comparable to the start of the Covid pandemic: "we'll just have to hunker down and wait".
Oh, yeah, that is _very_ much how the markets are treating it. The idea that these tariffs might be _permanent_, is very much not priced in, at least not for the moment.
Could someone explain to an idiot like me what the benefit of this is to the americans?
But the elephant in the room is that the American-made products are now so expensive that you cannot profitably export them to any other country. So you have effectively limited the market size to purely the internal American market. And that means Chinese companies might have much better economies of scale. Because they can capture customers worldwide and not just inside America.
But most likely, the house of cards will fall over before you ever ship the first American-made product: Headlights need injection-molded parts. Since this was historically almost fully outsourced, the U.S. has almost no production capacity in this area. Building these factories takes 2 to 5 years. That means, unless everyone is fully convinced that these taxes will stay in effect for at least 5 years, nobody is going to build the necessary manufacturing capacity. And good luck finding US investors who are happy to invest millions into a factory with a predicted 5% profit margin.
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In the same sense any company still operating in a environment like this and not moving their operation to a stable country is foolish to begin with
Are you suggesting moving operations to the US with this comment? It's the US adding all the uncertainty and instability to this environment. Having your operation based in the US makes this worse. You still have tariffs being applied to most of the components you need to assemble your product. You're now subject to more laws and rules changing overnight without the ability to plan ahead for them. If you're a company…
Could someone explain to an idiot like me what the benefit of this is to the americans?