How can companies, importers and ports even implement these tariffs so quickly?
Do these tariffs go into effect immediately?
US Administration announces 34% tariffs on China, 20% on EU
901–910 of 1001 posts
Re: US Administration announces 34% tariffs on China, 20% on EU
#902It's true that free trade is hugely beneficial to the US economy as a whole, particularly with the USD being the reserve currency. The flow of goods is balanced by a flow of US dollars to other countries, which are ultimately cycled back into the US financial system - enabling budget deficits and an abundance of capital to invest in high growth industries. The flip side of this is that it also drives inequality - the…
> The obvious solution is not to hurt the economy as a whole, but rather for the government to lower the cost of high-quality education, build out social systems, and invest into onshoring select strategic industries by raising taxes at the high end. Like... Scandinavia?
Scandinavia is using oil and gas reserves as a captive tax base. It doesn't really generalize to markets where capital is mobile.
Re: US Administration announces 34% tariffs on China, 20% on EU
#903It's true that free trade is hugely beneficial to the US economy as a whole, particularly with the USD being the reserve currency. The flow of goods is balanced by a flow of US dollars to other countries, which are ultimately cycled back into the US financial system - enabling budget deficits and an abundance of capital to invest in high growth industries. The flip side of this is that it also drives inequality - the…
> The obvious solution is not to hurt the economy as a whole, but rather for the government to lower the cost of high-quality education, build out social systems, and invest into onshoring select strategic industries by raising taxes at the high end.
You are assuming that this administration has the same goals as you, just different ("foolish") methods of arriving there. I'd posit that they have very different goals that these methods are solving for.
Re: US Administration announces 34% tariffs on China, 20% on EU
#904I don't see anyone mentioning that the United States needs to manage its massive national debt, currently in the trillions, by issuing Treasury securities. These securities mature at varying intervals and require continuous "rolling" or refinancing to pay off old debt with new borrowing. Significant rollovers are expected from April through September 2025, with additional short-term maturities due by June. Higher int…
» The country is at risk of a debt spiral. This is impossible by definition: The U.S. dollar is the world's dominant reserve currency.
And as history shows, printing money is a super fantastic way to get out of debt spirals. [Narrator voice: No, it's not.]
Re: US Administration announces 34% tariffs on China, 20% on EU
#905From what I understand, de minimis exemption has also been removed. That is a huge, huge deal. It effectively means that all goods imported from China will be slapped with a 30% import tax, as soon as said goods arrive the US border / customs. Usually what happens then, is that the courier will pay that tax, and then bill the recipient later on - as well as charge some fee/fees for the work done. This is why in some…
Sounds like a good idea, but how are they actually going to implement and enforce that?
Do they open every package? What stops Temu or whatever from just keep sending them? I mean drugs get through so ..
Re: US Administration announces 34% tariffs on China, 20% on EU
#906It's true that free trade is hugely beneficial to the US economy as a whole, particularly with the USD being the reserve currency. The flow of goods is balanced by a flow of US dollars to other countries, which are ultimately cycled back into the US financial system - enabling budget deficits and an abundance of capital to invest in high growth industries. The flip side of this is that it also drives inequality - the…
Yes! I've been consistently frustrated at both sides of the issue. It became salient for me when I read about how China had sanctioned three American drone manufacturers that were supplying Ukraine last year, and how it disrupted their supply chains and ultimately the war effort. It is unacceptable for any other country to be able to do this to any part of the western-aligned military supply chain. We needed a target…
I don't know why you are being down-voted, I think you raised some interesting points that add to the discussion.
National security / foreign interference hadn't occurred to me, and now I'm wondering what would happen to US economy and manufacturing if it was at war with China and or the EU over Taiwan and or Greenland.
How would US deal with Russian style sanctions? Can China simply ban all exports to the US?
In times of war, it probably is super important that a country and manufacture all essentials.
Re: US Administration announces 34% tariffs on China, 20% on EU
#907It's true that free trade is hugely beneficial to the US economy as a whole, particularly with the USD being the reserve currency. The flow of goods is balanced by a flow of US dollars to other countries, which are ultimately cycled back into the US financial system - enabling budget deficits and an abundance of capital to invest in high growth industries. The flip side of this is that it also drives inequality - the…
> but many on this very site would need to give up a little bit of their privilege to reduce the pain felt by many of their fellow citizens. Agreed. However, by imposing tariffs it is not the privileged who are going to be affected the most. The pain is felt most by the low-skill workers you mentioned earlier. If the solution was instead along the lines of changing tax-brackets to tax the 'privileged' more, that migh…
> However, by imposing tariffs it is not the privileged who are going to be affected the most. The pain is felt most by the low-skill workers you mentioned earlier.
I don't think this is necessarily true. 1 day into tariffs and things are probably the same for the low-skill workers. So far, the stockholders are the ones taking a beating. Sure, that includes some low income retirees, but for the working poor, I would bet that proportionally they consume fewer foreign made goods. They're not drinking imported booze.
Re: US Administration announces 34% tariffs on China, 20% on EU
#908It's true that free trade is hugely beneficial to the US economy as a whole, particularly with the USD being the reserve currency. The flow of goods is balanced by a flow of US dollars to other countries, which are ultimately cycled back into the US financial system - enabling budget deficits and an abundance of capital to invest in high growth industries. The flip side of this is that it also drives inequality - the…
Your problem statement is missing "national security" angle. As I understand the current administration sees US de-industrialization as a threat to it and tariffs as a soution.
Re: US Administration announces 34% tariffs on China, 20% on EU
#909Damn it was hard looking at my portfolio today... I hope thing's change in the long run though
Re: US Administration announces 34% tariffs on China, 20% on EU
#910I'm an American. I've generally benefited from the system here (which speaks to my privilege, of which I'm aware). I don't want to wade into political battles, but I'm genuinely concerned for my future and the future of my children from an economic standpoint, based on where things seem to be going. I am considering options on the spectrum with ends like: * Staying here, because this is where I was born and raised an…
If it continues on the current trajectory, literally all the OECD countries will offer a better life than the US. In every meaningful measure they already do