The Great Trade war of 2018


#308

All of a sudden libs are concerned about flyover country residents.


#309

Not me.

I hope they all go bankrupt. They deserve it for voting for Trump.


#310

Agreed.

It isn’t like they weren’t told what was going to happen.

Trump said it the whole campaign.


#311

Here is an interesting article about how because of the way the tariffs are structured, they hurt American small business and help large multinationals.

https://www.bunniestudios.com/blog/?p=5349

Blockquote New Tariffs Reward Offshoring, Encourage IP Flight

Some of the most compelling jobs to bring back to the US are the so-called “last screw” system integration operations. These often involve the complex and precise process of integrating simple sub-assemblies into high-value goods such as 3D printers or cell phones. Quality control and IP protection are paramount. I often advise startups to consider putting their system integration operations in the US because difficult-to-protect intellectual property, such as firmware, never has to be exported if the firmware upload operation happens in the US. The ability to leverage China for low-value subassemblies opens more headroom to create high-value jobs in the US, improving the overall competitiveness of American companies.

Unfortunately, the structure of the new tariffs are exactly the opposite of what you would expect to bring those jobs back to the US. Stiff new taxes on simple components, sub-assemblies, and tools like soldering irons contrasted against a lack of taxation on finished goods pushes business owners to send these “last screw” operation overseas. Basically, with these new tariffs the more value-add sent outside the borders of the US, the more profitable a business will be. Not even concerns over IP security could overcome a 25% increase in base costs and keep operations in the US.

It seems the intention of the new tariff structure was to minimize the immediate pain that voters would feel in the upcoming mid-terms by waiving taxes on finished goods. Unfortunately, the reality is it gives small businesses that were once considering setting up shop in the US a solid reason to look off-shore, while rewarding large corporations for heavy investments in overseas operations. Blockquote


#312

The problem with Trump’s tariffs is the lasting impact of lost contracts.


#313

i agree with that. once a contract is gone you may never get it back. it’s complicated for many businesses to change vendors/suppliers/etc. think about switching from one grocery supplier(s) to another. or an aircraft parts supplier. they may even have to go in with a dirt cheap prices to try to win the business back.

Trump is screwing american businesses. those harmed won’t forget it either.


#314

The Americans wanting to renegotiate deals is fine. But what they are doing during negotiations is stupid. But the again most Americans are clueless what can be fixed with a free trade deal.


#315

Related. With the US focusing on so many different “trade deals” at the same time, and multiple trade wars, they are getting outflanked in other trade issues. The rest of the world can figure out how to leave the US out.



#316

It is also trade deals without any direction.

Kinda like killing TPP without having a plan in place to start new trade negotiations the very next day.

It is almost like there is a lot of intentional incompetence or something.


#317

Now Trumpsters, turn off your brain and read this!


#318

I remember back in the campaign when the President said that he would borrow money to fund infrastructure and if the economy didn’t improve enough to pay for it… he would renegotiate the debt.

It was then that it was truly shown that he has no idea what he is talking about.


#319

Funny it was mentioned that TPP was a good deal based on facts. Pulling out hurt farmers in the US and closed more markets to them. One of the complaints have been about the Canadian dairy market being too protected and TPP opens it up more.


#320

That seems like an Onion parody.


#321

There were absolutely some benefits that would have come from staying in TPP, both for specific industries in the US, but also in our need to stem China’s influence across emerging markets in Asia. By pulling out and not immediately engaging in bilateral negotiations, I believe the Trump administration was derelict in their duty, and the ramifications to many industries that stood to gain will be severe. Further, we essentially ceded power to China, who gladly filled the void left by us.


#322

Looks like plenty of Americans understand this issue better than our own President.


#323

The TPP was imperfect… but so is everything.

It did open up countries to new avenues of trade while penning in China.

Now that is all thrown away… and for what?

A temper tantrum.


#324

China becomes more influential. Canada and South American countries will grow their exports of ag and lumber and when the pipeline west to the Pacific is done oil to Asian and European countries and the US will lose out on those markets.


#325

WINNING!!!

10char


#326

Absolutely. And all for some shortsighted declaration of “winning” which assumes undoing anything Obama did automatically equates to such nonsense.


#327

The biggest problem is the failure on the part of the government and population to realize the opportunity and adapt in a global economy.

For instance right after the trade agreements such as NAFTA were signed I realized North America would be less about manufacturing of certain goods and more about service. The problem is people thought service meant nothing but low wage jobs. Which on the tourist and retail side may be true to a degree. The service sector include education something that the US has a trade surplus in. The financial and medical sector also gave the US opportunity on the global stage. Then there was repairman and building as well as engineering. If there is one thing that the Asians are proud is their engineering accomplishments I was recently in Hong Kong and they are constantly displaying how the are improving skyscrapers elevators etc.

Americans have dumped themselves down so much reality tv stars are politicians and YouTube videos are serious evidence for some.