Is that the sound of brakes being applied to this “surging economy”?
Trump once called himself , well he has called himself many things none of which are accurate but this time he was close, “Tariff Man”…..as of midnight a 25% tariff was placed on some Chinese imports.
The trade war is heating up: China said Friday it “deeply regrets that it will have to take necessary countermeasures” after the tariff hikes threatened by President Trump kicked in at 12:01am. American and Chinese negotiators met in Washington, DC, Thursday but were unable to reach a deal to prevent tariffs increasing from 10% to 25% on more than $200 billion in products China exports to the US, the Washington Post reports. The White House said that after a “working dinner,” chief US negotiator Robert Lighthizer and China’s Vice Premier Liu He “agreed to continue discussions.” The tariff hike only applies to products that left China after the deadline, which gives negotiators more time to work out a deal.
Trump said Thursday that he had received a “beautiful letter” from China’s President Xi Jinping and while a deal is still possible, he is pleased that tariffs are bringing in “billions” of dollars for the government, the New York Times reports. The tariffs, however, are paid by American importers, who pass the costs on to the consumer. “It’s going to be a big shock to the economy,” Deborah Elms, executive director at the Asian Trade Center, tells the BBC. “Those are all US companies who are suddenly facing a 25% increase in cost, and then you have to remember that the Chinese are going to retaliate.” Despite the escalating trade dispute, world markets rose on Friday, with analysts predicting that a deal will be reached.
How many Americans can define this economic tact?
No need for Google (but if you want to check my assertions then head to that magic button) the old professor will be glad to help with your refresher course.
What is a TARIFF?
The simple definition….. A tariff is a tax imposed by one country on the goods and services imported from another country.
How do Tariffs work?
Governments may impose tariffs to raise revenue or to protect domestic industries—especially nascent ones—from foreign competition. By making foreign-produced goods more expensive, tariffs can make domestically produced alternatives seem more attractive. Governments that use tariffs to benefit particular industries often do so to protect companies and jobs. Tariffs can also be used as an extension of foreign policy: Imposing tariffs on a trading partner’s main exports is a way to exert economic leverage.
Tariffs can turn into what some called a trade war…….
Tariffs can have unintended side effects, however. They can make domestic industries less efficient and innovative by reducing competition. They can hurt domestic consumers, since a lack of competition tends to push up prices. They can generate tensions by favoring certain industries, or geographic regions, over others. For example, tariffs designed to help manufacturers in cities may hurt consumers in rural areas who do not benefit from the policy and are likely to pay more for manufactured goods. Finally, an attempt to pressure a rival country by using tariffs can devolve into an unproductive cycle of retaliation,
But to help your education I have included a couple of short videos…..
One side effect that could come back to bite Trump in his massive ass is a bad jobs number and tariffs will produce that in most cases……
The tariffs will “drive down exports, and suppress job gains for the industry by as much as 400,000 over 10 years. It will also invite China to hit back at American businesses, farmers, communities, and families,” said Kip Eideberg, vice president of government affairs for the Association of Equipment Manufacturers, which represents more than 1,000 U.S. makers of farm, construction and mining machinery.
This is a TAX….do you get that? It is a TAX on the rest of us mere mortals…..then why is the entire GOP down with this attack on tax policies?
This is just a game to this president….he is trying to do something he promised so he has more to run on than his shaky positions elsewhere.
Hopefully his supporters are reading…..these tariffs are a TAX on you and your family.
Then GO VOTE!