Are tariff wars easy to win in the same way losers get participation trophies and everyone's a winner? https://www.cnbc.com/2019/09/20/chi...ese-products-to-be-exempted-from-tariffs.html Many Chinese products will be freed from tariffs that the Trump administration imposed last year, CNBC has confirmed, according to documents to be published on Friday by the Office of the U.S. Trade Representative. The exemptions stem from more than 1,100 exclusion requests made by companies and other entities in the United States. Single-cup coffee filters, plastic straws, dog leashes, patio torches, Christmas lights and skateboards are among the products to be exempted from tariffs One set based on the Sept. 24, 2018, implementation of tariffs on $200 billion worth of goods. This exemption will expire on Aug. 7, 2020. Another based on the Aug. 23, 2018, implementation of tariffs on $16 billion worth of goods. This exemption will expire one year from the publication of the notice, at this time next year. The other set of exclusions is based on tariffs on $34 billion worth of goods that took effect July 6, 2018. This exemption will also expire this time next year. BEIJING — The U.S. is temporarily exempting more than 400 types of Chinese products from tariffs that President Donald Trump’s administration imposed last year, CNBC has confirmed. Other items the Trump administration is set to free from tariffs include: A kind of paper filter for single-cup coffee brewing systems Dog harnesses and retractable dog leashes A certain kind of laminated wood flooring panel Steel wire barbecue grills Printed circuit assemblies for enhancing graphics performance of automatic data processing machines Refrigerated and heated vending machines for dispensing live bait and fishing tackle Aluminum radiators for motor vehicles Miniature lighting sets for Christmas trees Garden, patio and tabletop wick-burning torches for outdoor use Plastic drinking straws Certain electric-powered skateboards and motorcycles Indoor tabletop water fountains Pet water drinking fountains Parts of swimming pool vacuum cleaners Electronic scales for continuous weighing of quartz, powder and resin on conveyors Animal feeding machinery
I don't have a cite, but I read yesterday that the reason was because China is having a 75th Anniversary (CCP? Don't know...) and V.Prem Hu requested it. "Whaaaaaat?"
70 anniversary of the People's Republic of China. actually this is easy to understand... the Chinese culture has heavy regard of 'face'... in other words putting on the tariff on the country's 10/1 birthday is like a face slapping.
Politics aside, that seems like an opportunity for leverage - not concessions. So no, not all that easy to understand.
perhaps just due to cultural difference... but really no leverage as putting it on 10/1 doesn't really buy anything, well, other than getting it done 2 weeks earlier... but it will sure enrage the Chinese... Trump has shown strategic savvy here... the give and take. The nationalism brain washing has been running high since this trade war thing started, but at the moment the dovish side seems to be taking control.... after all the tariff has hurt the economy bad.... so give face for a small price is the logical move here... don't want to give the hardliners' side any more ammo.. if that makes sense..
Hmm. After the gist of his rhetoric on this topic has been "the Chinese always take and never give; time for us to get some back and not give up anything w/o a return", that doesn't seem likely. If for no reason but his own "face", to whatever degree that applies here. But hey, not much point guessing on this - it's not exactly a strategic event. Grab the popcorn and find a comfortable armchair (and maybe with a Winnie the Pooh toy and a bunch of long pins, if you're inclined thataway); we'll get to watch the whole show one way or another!
so... market has made new highs after both rounds of tariffs... basically it has already looked past the trade war.. my pro boys have been using the trade war to shake the tree and collect shares. back to this particular thing about 10/1... I wouldn't worry about the rhetoric.. it's biz savvy to be flexible in complex negotiation like this one... just trust the president... he knows what he's doing.
I like to simplify things.... in terms of keeping score. Mr. Trump has been successful in real estate/show biz/politics... all else is noise. as for my pro boys shtick - the scoring in trading is just profit... multiple 7 figures.. that's enough proof.. all else is noise.
Tariffs affect American consumers by raising cost of living. It's simplistic to think that tariffs hurt China only.