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Topic: Who is paying for the tariffs on China?

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harvestalvol

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Re: Who is paying for the tariffs on China?
« Reply #70 on: August 07, 2019, 01:24:59 PM »
The US is experiencing about 2% inflation overall, year after year, since 2010 or so.  Those figures have not gone up after tariffs started that one can notice.

Items like food and energy bounce around a lot, so often the CPI is reported without food and energy to get an idea of the underlying level of inflation.  The figure is impacted by some things like electronics which have decreased in price.  Appliances have tended to go up more than other items.  If there is an extra charge for some Chinese appliance, it can enable a South Korean supplier to increase wholesale prices as well.  We have a LOT of Korean appliances in the market now, I'm sure everyone has noticed that.

But inflation overall is quite modest, often below what the Fed views as "healthy" for the economy.

Correct, there has been relatively little consumer price inflation since 2010; however we have seen enormous asset-price inflation. Asset price inflation generally means risks are building up in the financial system.

mcwterps1

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Re: Who is paying for the tariffs on China?
« Reply #71 on: August 11, 2019, 08:32:06 AM »

roadvol

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Direct Evidence Of The Impact Of Tarriffs
« Reply #72 on: August 11, 2019, 09:07:02 AM »
I'm mostly retired but still do some consulting work for a few select clients.
Recently I was contacted by a company in California who was manufacturing 350,000 units of a high end item in China each year.
He asked if I could help him source this item in the states due to the increased cost of doing business in China basically due to the tariffs Trump was imposing.
In order to do this is it was necessary to work with a machine manufacturer to customize automats to make it feasible to manufacture in the US and contract with a US manufacturer in the US.
The result was ..jobs were created in two companies
Bottom line......close to a hundred jobs will be created and millions of dollars generated in GNP for the US thanks to Trump.
People who complain about the short term increase of cost should look at the long term effects of equalizing trade with China.

mcwterps1

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Re: Direct Evidence Of The Impact Of Tarriffs
« Reply #73 on: August 11, 2019, 10:00:21 AM »
I'm mostly retired but still do some consulting work for a few select clients.
Recently I was contacted by a company in California who was manufacturing 350,000 units of a high end item in China each year.
He asked if I could help him source this item in the states due to the increased cost of doing business in China basically due to the tariffs Trump was imposing.
In order to do this is it was necessary to work with a machine manufacturer to customize automats to make it feasible to manufacture in the US and contract with a US manufacturer in the US.
The result was ..jobs were created in two companies
Bottom line......close to a hundred jobs will be created and millions of dollars generated in GNP for the US thanks to Trump.
People who complain about the short term increase of cost should look at the long term effects of equalizing trade with China.
How many bankruptcies have there been this year?

Hundreds of jobs?

Wow. 

2500 jobs lost just in 2019 in shipping. 

https://www.businessinsider.com/trucking-companies-bankrupt-list-truckers-react-to-industry-bloodbath-2019-7

Retailers bankrupt.... 

https://www.google.com/amp/s/amp.businessinsider.com/bankrupt-companies-retail-list-2019-3

Borrowing money from China to pay farmers for the trade war?  Genius. 

I've seen articles claiming China can outlast us in the trade war. 

https://www.google.com/amp/s/www.wsj.com/amp/articles/china-braces-itself-for-protracted-trade-dispute-with-the-u-s-11565091208

Markets rebounded by the end of last week, but more problems are on the horizon.


https://youtu.be/PRm0eUhRZX8

roadvol

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Twerp : Since You Asked
« Reply #74 on: August 11, 2019, 01:32:30 PM »
Number of bankruptcies since 2014

United States Bankruptcies

roadvol

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Twerp : Job Losses
« Reply #75 on: August 11, 2019, 01:42:55 PM »
"2500 jobs lost just in 2019 in shipping. "


According to the US Dept Of Labor there are 7.9 million job openings as of August 6th which is holding steady over the last few months. I have no idea if there were job losses in shipping  but if someone needs a job he / she should have no problem finding one.
You can quit worrying now about workers losing jobs.

https://www.bls.gov/news.release/jolts.nr0.htm

mcwterps1

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Re: Who is paying for the tariffs on China?
« Reply #76 on: August 11, 2019, 04:33:29 PM »
Alright Toad Stool 

Keep diluting the trade "war" and the rest of the post. 

It's easy, remember? That's what the thread is about. 

We're all paying for it. Borrowing money from China to pay farmers for the losses they are accumulating. 16 billion for bailouts. The economy he insured was chugging along just fine the way it was. 

Again, hope no one loses the farm, or loses chunks of money, because it's pouring into the chip and semiconductor sector. 


HK_Vol

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Re: Who is paying for the tariffs on China?
« Reply #77 on: August 11, 2019, 10:00:27 PM »
Borrowing money from China to pay farmers for the losses they are accumulating.

FWIW - the US has not borrowed any money from China in the past year and China actually now owns less debt ($73 Billion less) than it did a year ago....

https://ticdata.treasury.gov/Publish/mfh.txt



katmai

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Re: Direct Evidence Of The Impact Of Tarriffs
« Reply #78 on: August 12, 2019, 12:54:23 AM »
I'm mostly retired but still do some consulting work for a few select clients.
Recently I was contacted by a company in California who was manufacturing 350,000 units of a high end item in China each year.
He asked if I could help him source this item in the states due to the increased cost of doing business in China basically due to the tariffs Trump was imposing.
In order to do this is it was necessary to work with a machine manufacturer to customize automats to make it feasible to manufacture in the US and contract with a US manufacturer in the US.
The result was ..jobs were created in two companies
Bottom line......close to a hundred jobs will be created and millions of dollars generated in GNP for the US thanks to Trump.
People who complain about the short term increase of cost should look at the long term effects of equalizing trade with China.
There may be some individuals and companies that may benefit from the Chinese tariffs, but there are many more that are suffering from the tariffs, and some in unexpected places, such as the unexpected negative impact on steel production in the US.  I would also guess that your client was not happy with the overall impact of the tariffs on their business. 

I realize that we haven't really had true free trade with China, but any true conservative should desire a move towards free trade, not away from it.  If Trump gets us there, then I will congratulate him and be glad.  I just have seen nothing from him that leads me to believe that he has the ability to get us there.  And in the meantime, we have all of the Trump apologists making all kinds of wild claims and excuses, like there is no cost to the US consumer, the impact of China on our economy is negligible, we don't need to worry about lost jobs because we have too many open ones anyway, etc.  Any objective, intelligent person should realize that Trump is making a big gamble that has the potential for a big positive impact, but also carries substantial risk to do significant damage to the US economy.  

I also think Trump completely lacks empathy.  He may think this is the best approach to get what he wants, but he doesn't really care about the consequences to people along the way, as long as he gets what he wants.   You saw the same type of thinking when he talked about just letting the ACA die, which would create a good political environment to replace it with something else, even though he still has no clue what that replacement would look like.  That type of think overlooks the fact that millions of people would be negatively impacted by the complete repeal of the ACA with no replacement.  Thankfully someone must have talked him out of that type of approach, but it just shows he really doesn't think about the consequences of his actions.  
« Last Edit: August 12, 2019, 01:00:45 AM by katmai »

roadvol

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Re: Who is paying for the tariffs on China?
« Reply #79 on: August 12, 2019, 09:18:38 AM »
I think everyone realized there would be short term pain in order to solve the long term problem.
The unfair trade practices of China has been ignored for multiple presidential administrations and Trump is the first president to even attempt to take on the problem. A problem he inherited rather than created.
Do you not think Trump was showing empathy toward the farmers that are shouldering most of the burden of the tariffs? He's doing everything possible to assist farmers get thru the present trade war.
I note you said nothing of the theft of intellectual property China is engaging in.
My son-in- law who is a computer engineer for an international company just returned from China after closing one of their plants down. His company builds hardware and software for various corporations including the military.
A few months ago one of their major clients contacted them to  inform them that a Chinese company was selling their products and had the nerve of using  technical brochures( produced by his company as a sales tool. ( the Chinese company had simply made a copy and used the same brochure) .
I have no doubt that Trump could have done something better to solve the problem but until someone else comes up with a better solution I'm thankful he's at least attempting to do something to protect American workers.
Which is more than anyone else has done.

Cincydawg

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Re: Who is paying for the tariffs on China?
« Reply #80 on: August 12, 2019, 09:41:05 AM »
I think the right answer is "all of the above", in varying proportions.


roadvol

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Re: Who is paying for the tariffs on China?
« Reply #81 on: August 12, 2019, 09:54:38 AM »
The more accurate answer would be that no matter what Trump does or says he will never be able to please some people.
I've stated many times that Trump was probably my last choice as the GOP presidential nominee in 2016 but have to give him credit where it's due.
He's tackled an assortment of problems he's inherited from prior administrations from the border, unfair trade practices, unfair treaties,tax reduction and the list goes on.
It's easy to sit back and criticize and nit pick everything he does . Trump is like a bull in a china shop sometimes but I would prefer that approach than to sit back and watch our national treasure and security eroded for another 20 years until we are just another 3rd world nation that's bankrupt and willing to appease terrorist and predator  nations.

Cincydawg

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Re: Who is paying for the tariffs on China?
« Reply #82 on: August 12, 2019, 10:34:17 AM »
That is a reasonable perspective.

BrownCounty

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Re: Who is paying for the tariffs on China?
« Reply #83 on: August 12, 2019, 01:08:00 PM »

Currently, it's the shareholders and executives of companies that put too many eggs in the China basket.

 

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