Well tariffs is only bad when everybody is engaging in free trade and nobody is putting tariffs on anything; that's when the implementation of tariffs is a "lose lose game" and everybody loses in long term. But the problem is China has changed the game and decided not to participate in free trade by imposing huge punishing tariffs on foreign imports for years since it joined the WTO. On one hand, China makes huge profit by dumping cheap exports on its trading partners and keeping its local currency RMB value low vs. the USD but at the same time imposes huge tariffs up to 50% on foreign imports from its trading partners so to pay nothing back, not letting its trading partners earn anything. Trading is a two-way street; you can't just make all your money at the expense of your trading partners including the USA and not pay up and not let its trading partners to earn something in return as well. That's not trading; that's highway robbery. The West including the USA, adhering to the economic principle of comparative advantage has let China build itself from a third-world country to now the second largest economy in the world in just 10 years. Now it's time to even the playing field a bit, aka balance the trade a bit instead of always incurring a huge trade deficit (paying more to China than getting back from China). Trump's got the right idea. The trade must be balanced so US' local businesses can have a chance to make money again instead of closing down and leaving one bankrupt city after another across the country. If China doesn't like it, it can start by dropping its tariffs. And fear not, even if China drops its tariffs, trust me, the trade is still unbalanced against the USA; USA will still be paying more to China than getting back from it. China will still be winning. It's just that USA will be losing less. Trump for 2024!!!
If you are not supposed to put all your eggs in one basket, why put all your orders with one supplier? Do you buy all your stuff from only one store? If not, then why would you expect a country to buy all of its stuff from only one country? It doesn't make sense.
nah. They retaliate with tariff laws themselves. China has a massive market for goods and services. So it’s easy to demand that if ford wants to sell a car in China 50percent of it has to be built in China. So many jobs in the US get moved over. It happened to me. Domestic content law changes post trump tariffs costed us 10 US jobs. In the last eight years how many Chinese facilities were built in the US in response to tariffs? edit: tariffs exist now and it’s cheaper to make a maga hat in China than to use a domestic hat manufacturer (and there are many), and no Chinese hat manufacturer set up a shop in the US to make them.
OP has two issues; "loose vs. lose" and perpetually demanding a market rise. C'mon man. Pull it together. When things are wonderful at school but the bully (e.g, China) is taking everyone's lunch money, at some point there's going to be a big fight and a few bad days (25% drop). Long term it has to happen because it creates the balance that must exist. The US is probably the only kid capable of dealing with the bully and democrats would rather raise school fees to pay the bully more.
@poopy Daum even Des might be able to understand this = I would love to know how his mind got so fucked up in the first place? Is that just life in Vegas where everyone is either a whore, thief or homeless?
Those experts have the same opinion like me. Why I am quite alone here on this thread with my view ? I just got another confirmation, and IMF is not a nobody. So again my question: Huge tariffs are not a good thing for nobody or ? https://www.cnbc.com/2024/10/23/us-...ating-would-be-costly-for-everybody-imf-.html Economy U.S., China trade tariffs escalating would be ‘costly for everybody,’ IMF deputy director says Published Wed, Oct 23 202411:51 AM EDT Sophie Kiderlin@in/sophie-kiderlin-b327b914a/@SKiderlin Share Key Points An escalation of trade and tariffs tensions between the U.S. and China would have economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund said. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be pressure on inflation, so that’s not the direction in which we should be going,” she told CNBC. China has also announced higher temporary tariffs on some imports from the U.S. as the tit-for-tat measures continue. watch now VIDEO03:57 Trade tariffs escalating would be ‘costly for everybody,’ IMF’s Gopinath says An escalation of trade and tariffs tensions between the U.S. and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund told CNBC on Wednesday. “We are seeing geopolitically driven trade around the world, which is why when you look at overall trade to GDP that’s holding up fine, but who’s trading with whom is certainly changing,” she said. The U.S. and China are trading with one another less, and some parts of their trade is being re-routed through other countries, she added. Trade tensions between the U.S. and China and the European Union and China have been mounting this year, with both the U.S. and EU implementing higher tariffs on some Chinese goods over what they claim are unfair trade practices from Beijing. China has also announced higher temporary tariffs on some imports from the EU as the tit-for-tat measures continue. If tariffs were escalated, modelling from the IMF suggests it would be “costly for everybody,” Gopinath told CNBC’s Karen Tso on the sidelines of the agency’s annual meeting in Washington. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be pressure on inflation, so that’s not the direction in which we should be going,” she explained. watch now VIDEO02:30 Trump’s tariffs would ‘no doubt’ be inflationary: IIF’s Adams Gopinath’s comments come after IMF Managing Director Kristalina Georgieva said last week that international trade would no longer be the “engine of growth” it once was, and that “retaliatory” trade measures could hurt those imposing them as much as their targets. Tim Adams, CEO of the Institute of International Finance, also warned Wednesday that tariff proposals from U.S. presidential candidate Donald Trump would interrupt the path of disinflation and could lead to higher interest rates. The IMF’s Gopinath said it would benefit both the U.S. and China to have “good working relations,” noting that this was also important for the rest of the world. It is “in everyone’s self interest that these relationships are maintained,” she said. The IMF warned in its recent World Economic Outlook report that increasing protectionist policies were a downside risk to growth. “A broad-based retreat from a rules-based global trading system is prompting many countries to take unilateral actions. Not only would an intensification of protectionist policies exacerbate global trade tensions and disrupt global supply chains, but it could also weigh down medium-term growth prospects,” the report said.
I mean I do not care who is elected in the USA since I am European. But a growing worldwide Trade war can easily cause a bear market. I heard here some out of thin air arguments that money is not all and not so important. But most of my money is longterm orientated investments and bullish of course (and so most of the US households too and many other investors in the world too). So I do not want a self fabricated US bear market because someone thinks that huge tariffs are a clever economic steal or deal. When inflation is coming back a lot then the FED needs to raise the rates again, so again like end of 2018 we had a bear market with -25% drawdown because of US China tariffs then. The effect is the same. But the reason then is not the raised interest rates but the inflation coming with the trade war. And there will be no one time huge tariffs installed from any US president and others will clap hands and do nothing. There will be a growing and significant trade war nearly everywhere in the world. My fear is that a bear market in the next 12 to 18 months will come out of nowhere because some "genius" thinks he is smarter than everyone else in the world. And sees him to install huge tariffs across all. And then again raising and raising because of the reponses from other parts of the world, which are pretty sure to be expected. So what are your opinions on that ? Anyone has a deeper view on that here in this thread ?
You ought to be more concerned with hot wars breaking out across Europe, Middle East, and the South China Sea than trade wars. I can tell you without a shadow of doubt who you actually want to get elected.
trump, because when China moves a battleship towards Taiwan, he’ll hand them Alaska in exchange for some trademarks.