So he's basically hitting the Far East - all of whom will surely reciprocate - but that's not the main problem - inevitably means that US consumers will have to pay way more for clothing, trainers!!! and electrical goods ...
Thats the point, he wants the US to stop using foreign manufacturing and to make their own clothing, trainers and electrical goods. Am not sure this was the way to do it. Its too much, too soon, and, in the short term at least, is going to lead to recession in a lot of US states for a short period.
It's stupid - no way will US 'workers' accept the wage levels that equate to a 'living wage' in the countries he's targeting and where the raw materials are also much cheaper...
Well no, the point of the tariffs is to make it more expensive for the manufacturers abroad to ship their stuff to the US, which means the prices will be driven up, that way, the cost of US made goods will seem competitive in comparison. The only problem is, this means the US consumer either way, is the one who will pay the price, unless Trump can figure out a way to make US manufacturing costs far cheaper than they currently are. Not sure how he is going to achieve this. It makes sense to want to bring manufacturing back to your own country, it will mean more jobs, and a bigger economy boost, but in the short term, with the hike in costs for, pretty much everything, how will the US consumer cope? We will see.....
This is the nub of it that Trump seems oblivious to. There's no way you can make all American products at the same prices they are produced for in Asia and other places. I get his rationale, he wants to drive up prices from abroad so that people choose US products instead, but either way the US consumers are going to pay more. And if it drives up inflation in other areas of the economy too, which it's likely as all prices are basically linked, then the US could be looking at recession.
I think the problem with this, is that it drives up inflation. If stuff starts costing more, then everybody in the chain is eventually affected and prices start to rise across the board. Wages can't keep up with inflation (especially if you're trying to lower manufacturing costs) and you end up creating the opposite to what you're trying to achieve. Which is people with less money in their pockets, not spending on products that cost more.
I initially thought that as well with manufacturing but I read something the other day that i found quite insightful. Yes, the u.s. import cheap goods which means less manufacturing in their own country. What it does do though for the u.s. though is that they pay these other countries in USD which means that other country then needs to spend or lend the usd to someone who will spend it on whatever the u.s produce.
Does it work that way? Surely when a US company pays for something it leaves their bank, and goes into the recipients bank abroad at the current exchange rate that the USD payment was worth in the local currency. The benefit of choosing to pay for Chinese goods in USD is because of the favourable exchange rates that USD has against the Chinese Yuan. My company is UK based, and for all the goods we buy from China, we are billed in USD, but again thats due to it being favourable to us. If we were billed in GBP we would pay more. They dont pay for imported goods with suitcases full of American Dollar bills like in the movies when they do a big drug deal!! or am I missing something here!
Trump is just shorting the stock market in plain sight…. I have watched a few episodes of Billions so can see the signs.
I understand what the point is - but it's counter productive ... increased prices to consumers is economic suicide ... sales will just decline ...
54% on china though just listening to Faisal Islam who is speculating that the goods that China would have imported into the US will now head to Europe, which could mean lower prices for European consumers US consumers are ****ed.
We should invade Washington and set fire to the Whitehouse imo. We'll have Canada on our side again, just like we did 200 years ago. https://en.wikipedia.org/wiki/Burning_of_Washington
I had a look at this gaff when down in Key West.... Conch Republic seems more appropriate and it's warmer! please log in to view this image Motto: The motto of the Conch Republic is "The mitigation of world tension through the exercise of humor"
