Author: pnp

Trump, The Tariff Man Is At It Again! [Copy link] 中文

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Post time 2019-5-15 12:04:27 |Display all floors
This post was edited by pnp at 2019-5-15 12:08

Trump the old dog is living in the past, when China was poor and weak and pushed around by the Western powers; he can't understand that China is now a superpower, the world's second largest economy,  with plenty of clout, a sleeping giant that has just awaken.  China is no pushover!  The sooner Trump realises that the better for him!

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Post time 2019-5-15 12:46:48 |Display all floors
cmknight Post time: 2019-5-15 06:43
Easy lesson here ... Don't mess with a Canadian soldier. Besides, you are the one who called Canadi ...

If a Canadian soldier kills an unarmed man who has surrendered and cannot fight back, how can the Canadian soldier not be cowardly furthermore disgraceful before the Geneva Convention? Are you saying underneath the skin of such Canadians lie the bullshito code of Japanese imperial killers who did no less to China's civilians in Nanjing 1937? Maybe that's why it has become so easy for Trudeau to lap it up to Trump now that Canada has risen up its rank as the US' second poodle after the UK in the fine tradition of closing its open eyes when Canadians were deliberately sacrificed by the UK/US Allied command at Dieppe in order to test its defenses. So much for US alliances if one wants to look really far back.

But then again this thread is about Trump the tariff man so trying to deflect attention from it by trying to talk about something else in order to save face on what's already shown of Canada's cowardly bend-over for the US is more the jibe of baldie 101. Unless cmknight is also that coconut head by another name. Alas, the same stink stays.

So..i am not going to waste my time on the likes of you but will now only REPEAT my earlier post now in bold to get back to the theme of this thread - let the whole world know even if Canada continues to wear ear plugs meant for dogs of the poodle kind:

The US delegation said it was a draft framework to facilitate candid and constructive exchanges. But when you read it carefully, it is actually a list of ludicrous demands on China with the purpose of severing China's lifeline and future. Nothing in the draft said what the US would also commit on its side. In fact, one clause said the US can impose tariffs on China but China cannot oppose, challenge or take any action against the US when it does so.  And since the demands continue to be made, the draft is what the US is demanding today and those demands are therefore actually an ultimatum on China from the very beginning of the talks.

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Post time 2019-5-15 13:10:07 |Display all floors
Trump's trade war with China has claimed another US victim, the tourist industry!
Ctrip CEO says trade war is putting Chinese tourists off US, with many opting for ‘more welcoming’ nations!!  

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Post time 2019-5-15 13:16:29 |Display all floors
pnp Post time: 2019-5-15 13:10
Trump's trade war with China has claimed another US victim, the tourist industry!
Ctrip CEO says tra ...

Come to Blighty instead...
Your own mind is a sacred enclosure into which nothing harmful can enter except by your permission. Arnold Bennett

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Post time 2019-5-15 13:53:36 |Display all floors
St_George Post time: 2019-5-15 13:16
Come to Blighty instead...

The Chinese are doing just that, and other EU countries, America is losing them!

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Post time 2019-5-16 10:49:36 |Display all floors
U.S. Steel Companies Face Downturn Despite Trump Claims of Revival
President Trump’s steel tariffs gave an initial boost to American manufacturers. But steel company stock prices have fallen, and employment in the sector remains stagnant.
NYTimes Jan 14 2019

President Trump has latched on to the idea of using steel to build his wall along the southern border, praising himself for fulfilling two campaign promises at once: keeping out illegal immigrants and resuscitating a struggling industry.

“They were doing very poorly when I took office, and now they’re doing very well,” Mr. Trump said of American steel makers before boarding Marine One this month. “Our steel industry was dying, and now it’s very vibrant.”

But in the 10 months since the Trump administration imposed 25 percent tariffs on steel imports, prices in the United States have now fallen back to levels last seen before the tariffs were announced on March 1.

Hiring in the steel sector remains stagnant, in part because new mills have become more reliant on automation. Even with the opening and restarting of several mills last year, direct steel industry employment was 146,300 as of November — 4 percent lower than it was four years ago, according to the American Iron and Steel Institute. Industry analysts estimate that steel companies made 50 announcements of plans for new mills and investments last year and that three dozen plants were built or restarted.

Investors are increasingly wary about the industry’s long-term strength. Stock prices for some of the nation’s biggest steel manufacturers dropped by as much as 47 percent in 2018 amid fears of slowing global economic growth and the potential for Mr. Trump to reach trade deals that remove the tariffs.

“We fully expect the players in the steel supply chain to have weaker years in 2019,” said Philip Gibbs, a metals analyst at KeyBanc in Ohio.

The Trump administration imposed sweeping steel and aluminum tariffs on trading partners like Europe, Canada, Japan and Mexico, saying it was trying to protect American security by preventing a flood of cheap metals into the United States. The tariffs, which went fully into effectin June, initially goosed steel prices in the United States, which jumped more than 50 percent after it became clear that the tariffs would really be put in place.

Mr. Trump has routinely pointed to the rising prices as a boon to American steel companies. But the price spike ultimately hurt demand as industries that rely on the metal, like automakers and homebuilders, struggled to absorb the rising costs or passed them on to customers.

Caterpillar, the farm equipment manufacturer, said last year that it would face $200 million in additional costs because of the steel tariffs. General Motors slashed its profits forecast for 2018 because of higher steel costs. Many businesses chose alternative materials or delayed investments, putting pressure on steel prices, which have since fallen.

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Post time 2019-5-16 10:49:59 |Display all floors
Who Pays the Trump Tariffs? We Do, These Americans Say
Customers of one inflatable-boat company bear most of its tariffs—which turns out to be typical.
WSJ May 15 2019

Escalating tariffs between the U.S. and China have fueled an acrimonious debate over who’s paying. President Trump says China; his critics say Americans.

      The answer isn’t straightforward because, as with any tax, the person paying the tariff doesn’t necessarily bear its burden. If the tariff is simply passed along to the importer, American businesses or consumers bear the burden. If Chinese exporters cut prices to avoid losing sales, they bear the burden. If imports shift to another country, no one pays the tariff—but Chinese are burdened by lost jobs and Americans by a higher price. And if production shifts to the U.S., some of what Americans pay in higher prices goes to other Americans as wages and profits.

When Cecil Hoge and his half-brother John Hoge were faced with tariffs on the inflatable boats they import from China, all these options came into play. Their 30-employee company, Sea Eagle Boats Inc., is a microcosm of how tariffs ripple through supply chains.

      The Long Island-based company began importing inflatable boats from Europe in the 1960s, then shifted to imports from China in the 1990s. There, three companies—one South Korean, one Taiwanese and one Chinese—made all of Sea Eagle’s models, from simple kayaks to 16-foot fishing craft.

They escaped Mr. Trump’s initial 25% tariffs on $50 billion of Chinese imports, but could see the writing on the wall. John Hoge persuaded their South Korean supplier to move production from China to a factory it owned in Vietnam. The other two, with no such backup, declined. “We are a small company,” Zhong Mengying, one of those suppliers, explained in an email to The Wall Street Journal. “It is not worth [it] to move to other countries.” U.S. sales are small, anyway, while sales to Europe and China are rising, she added.

      So Sea Eagle asked for discounts to offset the tariff, noting the Chinese yuan had fallen against the dollar, giving sellers some added profit margin. Ms. Zhong cut prices about 5%. The third supplier declined. “Our prices are already the lowest we can offer,” the third supplier explained in an email to The Wall Street Journal. Says Cecil Hoge: “There’s not much margin any of these companies have, because every company in the U.S.—ourselves included—will constantly ask for the best possible price.”

      In September, Mr. Trump imposed a 10% tariff on $200 billion of additional imports, including Sea Eagle’s boats, delaying an increase to 25% to give China a chance to resolve complaints of discrimination against American companies and technology theft. On Jan. 1, Sea Eagle raised prices on its Chinese-made boats an average of 7.5%.

      Sea Eagle has now paid $176,000 in tariffs to the U.S. government and recouped all of it by raising prices to customers, Cecil Hoge says. More than 70% are individuals ordering off the Internet; the remainder are resellers. Sales this year have dropped, though the brothers mostly blame unfavorable weather. Sales to               Inc.      have collapsed because the Internet giant won’t let vendors raise prices on items for which Amazon is the seller, John Hoge says. (Sales on Amazon for which Sea Eagle acted as the seller were unaffected.)

So Americans pay most of Sea Eagle’s tariff, one supplier pays some, and for boats now made in Vietnam, no one pays. The tariff means some sales will never happen—which everyone pays for. That turns out to be typical for all of Mr. Trump’s tariffs.
      David Weinstein, a trade economist at Columbia University, and two co-authors examined the six waves of tariffs Mr. Trump imposed last year and found prices exporters charged to American customers barely responded to the tariff. Once the duty is included, they estimate Chinese imports’ prices jumped 20% to 25%. Americans paid in two ways: U.S. importers’ profit margins absorbed some tariff, and some end-consumers paid higher prices.

Goldman Sachs                  economists found consumer prices of the nine most-affected goods have risen 3% since early 2018 while all other goods (excluding food and energy) have fallen 2%. They found some American manufacturers took advantage of the tariff to raise their prices, exactly as protectionist tariffs are meant to work.

Mr. Weinstein and his co-authors conclude Mr. Trump’s tariffs have been fully borne by Americans, at a net cost to the country of $1.4 billion per month.  Mr. Trump has claimed China has absorbed 21 percentage points of the 25% tariff, but that appears to be based on one study that used research Mr. Weinstein co-authored in 2006. Mr. Weinstein says that work wasn’t based on experience with actual tariffs, whereas his latest paper is.

      Mr. Trump hoped his tariffs on steel and washing machines would revive American production; his tariffs on China have a different goal: changing China’s behavior. John Hoge thinks Mr. Trump should only target those imports benefiting from stolen American know-how.

      Sea Eagle emailed thousands of customers explaining they were raising prices because of Mr. Trump’s tariffs. Several angrily replied, “How dare you criticize President Trump?” Cecil Hoge recalls. Others echoed Mr. Trump in demanding they make their boats in the U.S.

In fact, John Hoge explored just that two years ago when Congress was weighing a new tax code that would penalize imports. Because inflatable kayaks have never been made in the U.S., the inputs—machinery, fabric, components—would have to be imported, often from China. “We’d need to replicate all the tooling which would be very expensive,” he says. “And of course, we’re paying through the nose in tariffs, which doesn’t make it easy to get capital.”

      Last week Mr. Trump raised the 10% tariff to 25%, so the Hoges are bracing for a big drop in sales when they pass that on to customers, probably next year when current inventory is exhausted. They are contemplating selling only higher-end boats—where price is less of a constraint—which would leave them a smaller company. “Tariffs will kill the middle-class market,” says John Hoge. “There are only so many boats that can be sold to doctors and lawyers.”

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