The Foreign Trade Thread

[Thunder Good-Oil]

If tariffs are good because it will bring companies back to America, why don't we just go ahead and put a 50% tariff on all imports? Imagine all the jobs it will create for the piggy bank.

I think that a bigger issue is making trade fair in both directions. Also tariffs are valid when selectively putting pressure on countries that won't act civilized. Better than blockades and bombs. Stemming the border bum rush from the south is a legitimate concern. Hasn't happened yet, but the Asian countries that are raping the environment might could be fair targets as well. It's an easy form of economic pressure that can be quickly enacted and avoids having the obstructionistic Congress get in the way.

 

[Thunder Good-Oil]

Access to our consumer market is extremely valuable and shouldn't be given away for free to countries that are problematic.

 

[AM64]

Access to our consumer market is extremely valuable and shouldn't be given away for free to countries that are problematic.

The part that amazes me is that people think that just because China has a lot of people, it is a big market. With few exceptions we have little to offer the individual Chinese "consumer", and the Chinese have been stealing technical know how from everywhere and copying what we might actually sell them. China as a consumer is pretty much a dead end for anything not manufactured there.

 

[Thunder Good-Oil]

The part that amazes me is that people think that just because China has a lot of people, it is a big market. With few exceptions we have little to offer the individual Chinese "consumer", and the Chinese have been stealing technical know how from everywhere and copying what we might actually sell them. China as a consumer is pretty much a dead end for anything not manufactured there.

IMO we're in a flat out, undeclared war with China. Their intent is to crush us, so we need to push back hard while we still can.

Mexico isn't the same type of threat and can actually be great partners.

I'd like to see our demand for cheap stuff from China be shifted to Mexico as much as possible.

 

[AM64]

IMO we're in a flat out, undeclared war with China. Their intent is to crush us, so we need to push back hard while we still can.

Mexico isn't the same type of threat and can actually be great partners.

I'd like to see our demand for cheap stuff from China be shifted to Mexico as much as possible.

That's the other part I don't understand ... why people think China is an ally rather than an enemy. They are attempting to do to us economically what they likely can't do militarily ... at least for now. A country that can't produce what it needs to survive cannot stand militarily ... both the Germans and Japanese (among others) have proved that. Yet we are willingly giving up our industry ... having it sold out from under us by globalists and others who only see short term profits as a way of life.

 

[n_huffhines]

I never thought I'd be getting updates about trade policy from this ecommerce newsletter I subscribe to, but there it is.

 

[IPleadInsanity]

Trump: If President Xi does not attend G-20, more China tariffs will go into effect immediately

LOL. If he doesn't get paid his homage by XI, more tarrifs!

Trump is an arrogant, self important, idiot.

He is the President fo the United States, I heard thats a pretty important job. Only arrogant people apply for this job as proven by the last Prick in Charge.

 

[n_huffhines]

He is the President fo the United States, I heard thats a pretty important job. Only arrogant people apply for this job as proven by the last Prick in Charge.

Say what you will about W, Clinton, and Reagan, and they may even be "pricks" in their own way, but arrogance is not a quality I'd associate with any of them. I do think HW and Obama were pretty arrogant, but nowhere near Trump level.

 

[Velo Vol]

I think that a bigger issue is making trade fair in both directions. Also tariffs are valid when selectively putting pressure on countries that won't act civilized. Better than blockades and bombs. Stemming the border bum rush from the south is a legitimate concern. Hasn't happened yet, but the Asian countries that are raping the environment might could be fair targets as well. It's an easy form of economic pressure that can be quickly enacted and avoids having the obstructionistic Congress get in the way.

What you're saying is that you want the U.S. government to step in and tell Americans where they should and shouldn't buy products from.

 

[IPleadInsanity]

What you're saying is that you want the U.S. government to step in and tell Americans where they should and shouldn't buy products from.

The US government has been controlling where we purchase goods from for decades via the harmonized tariff system. These have changed thousands of time based on deals countries make with the US government officials. Scratch my back here and I will lower tariffs there. The same type goods can be charged 15% if from Turkey and 5% if from Indonesia.

 

[Velo Vol]

The US government has been controlling where we purchase goods from for decades via the harmonized tariff system.

Is that a good thing?

 

[IPleadInsanity]

Is that a good thing?

World politics, each country trying to protect its turf. Every country has them. China goes a step further and does not allow a range of products to be imported at any cost. If you don't have tariffs in place you will soon find foreign entities running YOUR economy. It's a security issue.

 

[Bjorn_Yesterday]

Is that a good thing?

It was horrific for me in 2016.

You have to think of American oil&gas, their margin & roa.

Let's summarize here:
1. Ag getting hammered
2. Enormous corporate leverage, many banks spreading the risk via derivatives.
3. Consumer economy still stagnant, individuals still debt burdened.
4. China & US in a tarrif death spiral.
5. Oil market potentially cratering.
5. Tech startup bubble, looking ridiculous to people with common sense.

I do not like where this is headed...

 

[Velo Vol]

World politics, each country trying to protect its turf. Every country has them. China goes a step further and does not allow a range of products to be imported at any cost. If you don't have tariffs in place you will soon find foreign entities running YOUR economy. It's a security issue.

Some of China's "sins" aren't trade related, per se, and yet Trump is trying to fix them with his tariff hammer because that's the only tool he knows.

 

[Hunerwadel]

World politics, each country trying to protect its turf. Every country has them. China goes a step further and does not allow a range of products to be imported at any cost. If you don't have tariffs in place you will soon find foreign entities running YOUR economy. It's a security issue.

Can you elaborate? The only thing I can find that they won't take is our plastic trash for recycling. They used to do that. And of course they're not going to import anything they cannot sell to their people because they can make it cheaper themselves like furniture, clothing, tools and more.

 

[BigOrangeD]

 

[BigOrangeD]

 

[n_huffhines]

World politics, each country trying to protect its turf. Every country has them. China goes a step further and does not allow a range of products to be imported at any cost. If you don't have tariffs in place you will soon find foreign entities running YOUR economy. It's a security issue.

This is absurd, unfounded alarmism.

 

[n_huffhines]

Our auto industry boomed after the implementation of NAFTA, but the truth never mattered

 

[Velo Vol]

1. Ag getting hammered

Silver?

Is this a bellwether?

 

[Velo Vol]

LOL. Who falls for this stuff?

 

[85SugarVol]

LOL. Who falls for this stuff?

lolz have mercy

 

[NorthDallas40]

Foxconn willing to move Apple mfg out of China if they have to.

Foxconn Says Prepared to Move Apple Production Out of China if Necessary

 

[AM64]

Some of China's "sins" aren't trade related, per se, and yet Trump is trying to fix them with his tariff hammer because that's the only tool he knows.

MacArthur was a one trick pony. Wait til the enemy over-extended his supply lines and then jump in in the middle; it works. Tariffs have a similar kind of effect; the country you are trying to deal with has built a lot of whatevers (and built the means to produce them) and then sees the market go flat ... or has to subsidize the tariff; either way it's an economic hit to get their attention. Not as belligerent as an embargo, but a very useful tool. Sure it's painful for us, but generally retaliatory moves are ... better than letting another country continue to eat our lunch.

 

[AM64]

I don't think the US auto market is going to be competitive until the UAW gets it's sails trimmed. One union can represent workers across multiple companies, but companies cannot work together to reduce union clout. Unions priced a lot of our manufacturing out of business by striking one company, funding it by dues of workers in competing companies, and then forcing the competing companies to match what they forced on the company whose production they halted. To make it worse other unions are free to aid a striking union. Antitrust laws have to work both ways. That's the only way we will again be competitive in the world market.