Trade Wars and Tariffs

[n_huffhines]

Art of the deal, b!tches!

Good thing he's distracting everybody with the militarization of LA

 

[evillawyer]

Where's @kiddiedoc for his victory lamp?

 

[n_huffhines]

In 2018, Chinese tariffs on US goods were between 9-10% prior to the first Trump trade war.

In 2025, after 2 Trump trade wars + Biden tariffs, Chinese tariffs on US goods are at 10%.

 

[NorthDallas40]

The only notable long term implications changed here are 55% tariffs on US imports. That means either A) company profit margins are thinned and they must implement likely significant cost savings measures IE lower wage increases or outright layoffs or B) the cost of Chinese imports paid by US consumers is going up. Or a bit of both.

 

[hog88]

The only notable long term implications changed here are 55% tariffs on US imports. That means either A) company profit margins are thinned and they must implement likely significant cost savings measures IE lower wage increases or outright layoffs or B) the cost of Chinese imports paid by US consumers is going up. Or a bit of both.

Or companies move manufacturing out of China.

 

[NorthDallas40]

Or companies move manufacturing out of China.

that won’t happen immediately or if at all. Instead I’d guess there will be rampant reexport.

 

[CobbVol]

The only notable long term implications changed here are 55% tariffs on US imports. That means either A) company profit margins are thinned and they must implement likely significant cost savings measures IE lower wage increases or outright layoffs or B) the cost of Chinese imports paid by US consumers is going up. Or a bit of both.

I understand it is the opposite. The 55% tariff is on Chinese imports into the US and China tariffs US imports only 10%.

 

[NorthDallas40]

I understand it is the opposite. The 55% tariff is on Chinese imports into the US and China tariffs US imports only 10%.

Correct. And US companies and consumers pay those tariffs not China.

 

[n_huffhines]

We were at 3-4% tariffs on Chinese goods in 2018, and by May 2019, it was at 25%.

How did we like the inflation that followed? Are we ready for more of it?

 

[Thunder Good-Oil]

Correct. And US companies and consumers pay those tariffs not China.

China’s MO is to sponsor industries so heavily that US counterparts can’t compete and stay in business. The CCP already pays. Keeping US companies in the mix benefits US consumers in the long run. We wouldn’t have a domestic aluminum industry had China been able to attack without repercussions.

 

[hog88]

We were at 3-4% tariffs on Chinese goods in 2018, and by May 2019, it was at 25%.

How did we like the inflation that followed? Are we ready for more of it?

What inflation? We didn't experience any noticeable inflation until Covid.

 

[Velo Vol]

Where's @kiddiedoc for his victory lamp?

Congressional ratification. I'm sure they're busy in the White House drafting the legislation. LOL

 

[Vol since 77]

Where's @kiddiedoc for his victory lamp?

He's currently residing in between your ears

 

[Velo Vol]

LOL

 

[CobbVol]

Correct. And US companies and consumers pay those tariffs not China.

I guess everyone will have to reconcile any increases like they quietly did with Green Climate initiatives over the past couple of decades that increased cost across the board for everything.

 

[BeardedVol]

LOL

View attachment 748106

Seems legit.

 

[EasternVol]

We really need to be domestically producing most of the rare earth products that we depend on. It’s not good policy to expect China to supply us things that we need to keep our defense the world’s best.

Where can we find and mine them domestically?

 

[Velo Vol]

Where can we find and mine them domestically?

A number of them are available elsewhere, but it creates an environmental mess when you extract them.

 

[EasternVol]

A number of them are available elsewhere, but it creates an environmental mess when you extract them.

It does, like lateritic nickel for batteries. It's an environmental disaster.

 

[NorthDallas40]

China’s MO is to sponsor industries so heavily that US counterparts can’t compete and stay in business. The CCP already pays. Keeping US companies in the mix benefits US consumers in the long run. We wouldn’t have a domestic aluminum industry had China been able to attack without repercussions.

Irrelevant. Those 55% tariffs are paid by US companies and consumers.

 

[NorthDallas40]

I guess everyone will have to reconcile any increases like they quietly did with Green Climate initiatives over the past couple of decades that increased cost across the board for everything.

So it isn’t clear where in that deflection answer how the tariff cost isn’t transferred to US companies and consumers?

 

[TheDirector]

What inflation? We didn't experience any noticeable inflation until Covid.

Inflation was in fact very low pre Covid. Also currently Inflation is at a 4 year low. The media and Democrats had incorrectly predicted the opposite happening because of the tariffs but Inflation is going down and now they are anticipating further rate cuts as well.

 

[NorthDallas40]

US-China trade deal is 'done,' Trump says - https://www.reuters.com/world/china/us-china-trade-talks-resume-second-day-2025-06-10/

A White House official said the 55% represents the sum of a baseline 10% "reciprocal" tariff Trump has imposed on goods imported from nearly all U.S. trading partners; 20% on all Chinese imports because of punitive measures Trump has imposed on China, Mexico and Canada associated with his accusation the three facilitate the flow of the opioid fentanyl into the U.S.; and finally pre-existing 25% levies on imports from China that were put in place during Trump's first term in the White House.

 

[Velo Vol]

Inflation was in fact very low pre Covid.

In part because we imported a lot of stuff from Asian countries.

 

[n_huffhines]

Inflation was in fact very low pre Covid. Also currently Inflation is at a 4 year low. The media and Democrats had incorrectly predicted the opposite happening because of the tariffs but Inflation is going down and now they are anticipating further rate cuts as well.

The economy has too many variables to do simple math like "inflation rate was this and then it was this, so [conclusion]."

Trade with China is significant, but not so significant that inflation there is big enough that you would expect it to offset everything else that is happening.