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Trump approves tariffs on Chinese goods including $1 billion in bike products
Effective Monday!
Can we talk about this without going crazy? https://www.bicycleretailer.com/indu...s#.W6B3Yv5KjOQ |
#2
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https://cyclingtips.com/2018/09/cycl...iffs-on-bikes/
CyclingTips boys had a nice discussion on this a week or two back.. Sent from my Pixel 2 XL using Tapatalk
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Io non posso vivere senza la mia strada e la mia bici -- DP |
#3
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Only thing I currently want to buy that comes from there is a pair of H+Son rims. I assume, given the seller's location, that they're already in this country and thus I wouldn't pay any extra... but maybe this adds some time pressure.
But, maybe someone here can give me some International Business 101: when they say "Tariffs on $XYZ billion dollars of imports", what exactly is that supposed to tell us? If we all buy stuff like crazy and exceed that amount, is there no tariff charged on the overage? Are tariffs imposed on A, and B, and C items, and at the rate those items are being imported, that'd total XYZ billion in... what, a year? In other words there must be a more specific way the situation could be expressed. Also: who pays, and who gets the money? If this is meant to damage China, then do they pay? And if all the revenue winds up in the US budget, then does it go toward disaster relief, or does it go toward defense? |
#4
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2. The $200b number is just the current value of the targeted products. If we import 2x $200b of the products, the tariffs will be applied to the 2x amount. The tariff is versus a product not a notional amount. 3. The tariff tries to dissuade US consumers from buying Chinese and to buy American. In the end, it will probably just raise prices for US consumers. You can look back at Reagan trade wars with the Japanese automobile manufacturers in 1980's. The Japanese agreed to voluntary redunction of cars exported to the US in lieu of tariff. The US automobile manufacturers just raised prices and had record profits without really addressing any of the underlying issues plaguing the their industry. I have no idea how this ends except the US consumer will pay more for manufactured goods. On the plus side, our food prices should come down. |
#5
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#6
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#7
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One small point.... it isn’t just corporate greed that comes into play in the short term thinking that goes on regarding reinvestment in new equipment and such. The structure of many of our corporations encourages them to fight for the quarterly return to investors. The mark of success is quarter on quarter gains.
The development of new corporate structures that encourage positive benefits for society, whose structure enables a stable environment for the enterprise, while allowing competition to carry on vigorously, could be a big deal. We need both outcomes in the country to be successful over the long term. |
#8
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There is wallet pain now..In an era of flat wage growth...I don't disagree with the general idea...intellectual property, etc., but the 'process' being followed is clumsy, often inept, confused.
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Chisholm's Custom Wheels Qui Si Parla Campagnolo |
#9
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Agree. There is also another aspect that really hasn't been addressed: "overconsumption" of the US society. People buy more stuff because its cheap, not because they need it. Joe SixPack goes to Walmart and buys 3 MIC tee shirts because he has $20 in his pocket. If he had to buy US made tees for $10/ea, he would only buy two. After awhile, this would become normal behavior.
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BIXXIS Prima Cyfac Fignon Proxidium Legend TX6.5 |
#10
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Actually this is not how it works. It is less Walmart needs China, but China needs Apple and Apple needs China.
1/2 of the trade deficit with China is computers and electronics. It is something like 167b in deficit. https://www.marketwatch.com/story/he...cit-2018-03-23 As you can see US really only exports ag and transportation (Boeing mostly). If you really want to replace China, you need to replace the Pearl River Delta manufacturing hub and build the equivalent in the US. Foreign investment has taken 20+ years to make the Pearl River Delta what it is, to replicate that is going to take time. The idea that China sells cheap products through walmart is outdated. It is your Iphone, the Intel chips in your computer, the smart devices in your home, etc. |
#11
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I don't think it's possible for me to discuss this without blowing my top, but...short version...
Tariffs don't work. China has been in a recession for 7-8 years after a lot of artificial and unsustainable expansion, so doing this now makes very little sense to me. This is being coupled with aggressive stimulus policy during a period of 0% economic unemployment, so those price hikes are going to be coupled with inflation. Will likely not respond further, other than to say this is asinine. |
#12
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For the sharper minded folks here, whst’d going to happen to interest rates and treasury yields?
Say the whatever amount of treasuries held by China gets off-loaded, what would others demand in terms of bonds to be issued? |
#13
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I'm gonna watch this too and not say something that will get me a PM..the whole political DC clown car these days just makes me angry.
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Chisholm's Custom Wheels Qui Si Parla Campagnolo |
#14
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When China has a recession is when it gets really interesting politically. |
#15
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I'm keeping terminology simple...but the underlying issue is that this is not the time. |
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