Record trade surplus with China due to impending tariffs

Discussion in 'Economics' started by Here4money, Oct 12, 2018.

  1. Here4money

    Here4money

    This just gives Xi Jing Ping more leverage to tell Donnie to take a hike and come back after November.

    https://www.bloomberg.com/news/arti...t-growth-stable-imports-robust-amid-trade-war

    Rush to Beat Tariffs Fuels Record China Trade Surplus With U.S.

    China’s export trade growth accelerated in September, signaling that producers expedited sales abroad to avoid fresh tariffs imposed by the Trump administration.

    Economists said the surge, which contributed to a new record trade surplus with the U.S., can’t last.

    Exports in dollar terms rose 14.5 percent in September compared to the same period last year, the customs administration said Friday, defying expectations for a slowdown to 8.2 percent. Imports climbed 14.3 percent, leaving a trade surplus of $32 billion.
     
  2. zdreg

    zdreg

    In general, the constant trade surplus is because China is becoming richer and is buying the best quality available, This means Japan and Germany.
     
  3. Can't read your post as I have you on ignore.

    However, there won't be "record trade surplus with China". Trump is trying to "even up" the trade balance with China... currently running nearly $1 TRILLION negative for the US. Of course, China loves this advantage... mostly given to them by Odumbo... and sqeals like a little girl at the thought of having it go away.
     
  4. DaveV

    DaveV

    From: https://tradingeconomics.com/united-states/current-account-to-gdp

    U.S. trade balance in 2008 (the year before Obama took office): -4.7% of GDP
    U.S. trade balance in 2016 (Obama's last year in office): -2.4% of GDP
    U.S. trade balance in 2017 (First year Trump in office): -2.4% of GDP

    It appears that Obama actually cut the trade deficit in half, and that Trump has failed to improve on that.
     
    Here4money and kwayker22 like this.
  5. Ldeyana

    Ldeyana

    I don't know who is right or wrong in this trade war but i know this that China will the ultimate winner of this war. Every country wants to trade with China because they have political stability and they give the best price for their products and services. What do you think guys?
     
  6. Overnight

    Overnight

    That is it in a nutshell. In the USA, 90% of all products sold here proudly wear the label "Made in China". Why? Because they are CHEEP! And because we, the richest county in the world, are populated mostly by people who live paycheck-to-paycheck, and so are forced to buy CHEEP in order to live our lives without being homeless. We as Americans cannot afford to pay American prices to pay for the American wages to produce the American goods so our American workers can stay employed. After all, China does not have union labor. It is a vicious cycle.
     
    Here4money likes this.
  7. smallfil

    smallfil

    Since, the Chinese export so much to the US in goods but, buys very little, they will suffer the most in a tit for tat trade war. If China exports $200 billion to the US, the US exports $50 billion to China, assuming a 25% tariffs on both sides, the US would collect $50 billion in tariffs from Chinese goods, China would collect $12.5 billion from US goods in tariffs. The US has leverage and the longer they hold out instead, of signing a fair, trade deal with the US, China risks losing market share to other Asian countries like Vietnam, Indonesia, Malaysia, Thailand who produce the same goods that China does. Only, now with tariffs, Chinese goods will be more expensive and US consumers will buy the cheaper goods assuming the same quality! Huge economic damage is being done to China as they continue to resist signing that fair trade deal! The US can wait out China since, we are the number one country they have huge surpluses with!