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The president just keeps introducing more chaos.
Archived version: https://archive.is/newest/https://gizmodo.com/trump-threatens-104-tariffs-on-china-as-the-mad-king-plays-chicken-with-the-global-economy-2000585944
Disclaimer: The article linked is from a single source with a single perspective. Make sure to cross-check information against multiple sources to get a comprehensive view on the situation.
TBH idgaf about USA tariffs on China specifically.
It doesn’t help either country but fuck China, so yeah.
It fucks America a lot more than it fucks China.
Yes. The US is the largest global consumer.
Basically the US says to China “we’re not buying your stuff anymore!” and China is like “Ok, I guess we’ll sell it to someone else. Best of luck to you. Don’t let the door hit you in the butt on your way out.”
China is still selling to US, they don’t care since they are not the ones paying the tax. In reality what is happening is Trump Threatens 104% “GST” tax (tariffs) increase on American for buying imports from China. China is not paying the tax, americans are.
This tariff thing was just a way for trump to tax americans more while making it look like he is not, most people see tariff on china thinking it is china being attacked. lol. It is actually tax on Americans, the money collected from tariffs is tax paid on goods by Americans.
Good. The entire reason US is in this situation is because it has forgotten the last time it got fucked.
I think at some point we can all agree demand will fall proportional to the tariff, effectively an embargo.
No, it is not effectively an embargo. The reason American economic punishments work is because they impose penalties on countries and companies that do trade with embargo/sanction targets, so even though it’s only America attacking these countries Chinese, European and other firms avoid trade due to the threat of secondary penalties. Tariffs only work on American soil, so they have none of these secondary effects and the result will be that China will simply sell their stuff to someone else. To repeat, American embargoes work because they also prevent the target from simply doing business with someone else.
Embargo means no more trade. Extreme high price means no more demands means no more trade. Effectively, at some point it becomes an embargo.
Yes, China can sell elsewhere. That is also the case with a US Embargo. Idk why people are so dead set on not mincing this word.
It’s not. Look up the US embargo on Cuba.
Not only did Cuba trade with other nations, but they managed to get Nuclear Missiles shipped in from Russia.
No, increased prices never “effectively” become an embargo. An embargo is no sales full stop. Selling a single Polo mint for $500000000000000000 is still not an embargo.
That’s like saying 1.999999999999999999999999999999999999999999999999999999999 is not the same as 2.
in fact at that price it become a status symbol, the manufacturer just need to make 1 sale. Or people will just travel to mexico to buy it cheap.
China will still sell to America, the demand will still be there. Americans will just pay the higher “GST” (tariff) tax on the products.
They’re probably a magat so they’re probably fine with that as long as China is also getting fucked cos that’s their fucked up logic
Yeah the OP commenter on this thread regularly has bad takes from my relatively short time here
Is this a cut off your nose kind of thing again?
The way I see it: US consumer wants Chinese thing, pays China. With tariffs US government goes: “Hey, we don’t do that over here, pay me” - US customer also pays US government.
US customer ends up paying more for the same thing.
Now to the tricky part:
If economic theory works and thing costs what it’s worth, this means tariffed consumer is overpaying and leaving margin for others to fill. A domestic producer could then make a profit even when not as efficient as the Chinese, cool.
But, a lot of things China does aren’t currently made in the US, factories have to be built, some things won’t be viable at higher prices (maybe not many enough would pay $99 for a phone cover), and some things will never be able to be produced cheaper (no child labor, expensive adult labor).
So it would take quite some effort to first figure out if it’s viable to produce in the US and then to build the production in the US. It also takes quite a lot of time, years probably. Will the tariffs stay that long? If unsure, why risk wasting the effort. If sure, how will the years of punishing prices affect consumers?
that is why I think this tariff thing is not an attack on other countries but just a way for trump to collect more tax from americans, since they have no choice but to buy from china. Trump collects more tax from Americans while making them think he is attacking foreign countries. lol.
In reality, Trump Threatens 104% “GST” tax (tariffs) increase on American for buying imports from China. It is just a fancy GST/VAT tax that discriminate based on country.
you need to stop wearing underwear on your head while thinking.
You talk a lot about Economic Theory considering you completely ignored one crucial detail: consumers won’t buy it if the price gets high enough. This could effectively become an Embargo, and it should because Fuck China.
US Consumer will still buy it if it is essential/critical. If it gets high enough they will travel out of US to buy it. Example people travel overseas for medical treatment/surgery/medication/products. Because even after including ticket price and hotel stay it is still cheaper overseas than in US. It might even open up new smuggling trade. Everyone bags are going to be checked more thoroughly in US.
Because of how cheap thing are outside US people may start traveling to SEA/china/Samerica and etc more for shopping, boosting their travel industries and economies. These countries can charge special (tax) on american tourist to collect more money, it will still be cheaper than buying in US.
You need to learn how to put on your shoes.
I seem to have mentioned this.
If that is the case it’s kind of an own goal; China is still free to trade with anyone, including US consumers that pay more. It’s just the US consumers gwtting worse access to thw products they want. Closer to a self embargo, no?
It’s like a much more expensive “Buy American” campaign, only it also makes the US utterly untrustworthy in any future trade deals or investments.
If the USA embargoes have no effect as you claim then certainly a lot of hooting and hollering over the last century about the exact topic seems pointless in hindsight.
Lately the US has been working overtime to destroy its own China-bad propaganda and our good will to go along with it. We’re probably gonna go with “fuck the US” this time around.
It’s shorter to just call China-bad propoganda as “good journalism.”
The problem is that the US and China are the two largest economies in the world. Everyone else kind of orbits around them. Conflict between them will have a lot of collateral damage.
Yeah, thats fair, but China allowed free reign with no consequences for all their modern atrocities and hostile actions including US election interference would also give the world collateral damage.
Limit trade with them, embargo them, whatever we can do lets do it. I want the 1990s sociopolitical drama on repeat like its my favorite show.
You have a hard time tying your shoes while thinking about something else, don’t you?
China sales to US will remain the same as there is no alternatives. This was just a way for trump to tax American but make it look like other countries are being harmed. In fact many companies in china and other countries are making record sales to US due to stockpiling in US.
In truth, Trump Threatens 104% GST tax (tariffs) increase on American for buying imports from China. China is not paying the tax, americans are.
You’re arguing against statements I haven’t even made lmao