Trump to impose additional 10% tariff on $300 B of Chinese imports
Trump has just announced today that starting September 1st, he will put an additional tariff of 10% on the remaining $300 B of imported goods from China coming into the country. He emphasized that this does NOT include the 25% tariff already imposed on $250 B of Chinese goods. This has just been announced in the midst of China and the U.S. engaged in serious trade talks.
https://www.cnbc.com/2019/08/01/trump-says-us-wil…
What do you all think about this increase generally, and do you think Trump is moving in the right direction with these additional tariffs?
I repeat: Despite what Trump thinks, tariffs are a tax on the American consumer.
This is an unwinnable war against Xi who will never have to face a competitive election again in his lifetime.
If Obama had started an international anti-free trade tax on consumers that were causing American farmers' soybeans to rot in their fields, the GOP would have had him impeached before the day ended.
Trade is only beneficial to both countries if the trade amount lies in between the opportunity cost of producing the goods. Obviously this is extremely simplified in econ, but as for the China-US trade war, do you think that Trump is charging too high of a tariff? Also we have to remember that Chinese goods tend to be low quality compared to products manufactured in the U.S. so while the unit cost might be lower, the lifetime cost to the american consumer is going to be much higher. Of course consumers don't think that way in advance, so it requires action by others to steer them on the right path.
It looks like the trade talks are going very well.
US companies are actively pursuing alternative suppliers both domestic or internationally. Tariffs will just expedite this process since wage inflation is so huge in China that they are becoming less competitive with other countries all of the time. Some of the damage to China’s manufacturing industry is permanent, but the longer this drags on the worse off their manufacturing will be impacted.
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