Americans still pay price for Trump's trade deal

Discussion in 'Politics' started by Omar's Coming Yo!, Jan 16, 2020.

  1. Omar's Coming Yo!

    Omar's Coming Yo! Gator til the grave
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    Trump’s tariffs on Chinese products were fully passed on to U.S. consumers and corporations in all industries except steel, according to a recent paper by the National Bureau of Economic Research.

    To be sure, U.S. tariffs remain on about $370 billion of Chinese goods. That could further weigh on costs for American manufacturers that use Chinese components to assemble products, economists caution.

    The tariffs in 2018 led to job losses in the manufacturing sector, according to a Federal Reserve report. And there are signs of lingering effects. U.S. factory activity contracted last month to its lowest reading since June 2009, data from the Institute for Supply Management showed.
    Trump trade deal with China: USA won’t feel reprieve in Phase one
    US-China trade deal: Winners and losers

    Losers: American companies and consumers
    The new deal halves tariff rates on $120bn worth of goods, but most of the higher duties - which affect another $360bn of Chinese goods and more than $100bn worth of US exports - remain in place. And that's bad news for the American public.

    Economists have found that the costs - more than $40bn so far - are being borne entirely by US companies and consumers . And that figure does not even try to measure lost business due to retaliation.

    Overall, the Congressional Budget Office estimates that tariff-related uncertainty and costs have shaved 0.3% off of US economic growth, while reducing household income by an average of $580 since 2018.

    The CBO's estimates take into account all new tariffs imposed since January 2018 - not just those involving China - but analysts say a more limited look would yield similar findings.

    Losers: Farmers and manufacturers
    The new deal commits China to boost purchases in manufacturing, services, agriculture and energy from 2017 levels by $200bn over two years.

    Mr Trump has said that could include as $50bn worth of agricultural goods a year.

    But the official figures are lower, analysts are sceptical those are attainable and China has said the purchases will depend on market demand. So far, the primary effect on business has been pain.

    Farmers, who have been targeted by China's tariffs, have seen bankruptcies soar, prompting a $28bn federal bailout.

    Among manufacturers, the Federal Reserve has found employment losses, stemming from the higher import costs and China's retaliation.

    Over the long-term, American firms may reroute supply chains away from China to avoid the tariffs - but that's an expensive prospect.


    This is just like Trump's NK "deal"
     
    • divits

      divits A Muffin of the Studly Variety
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      You better get all of your $785 out of the stock market now before the Great Recession!
       
      • alcoholica

        alcoholica Well-Known Member

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        I'll say it again. The only farmers hurt by these deals are the ones on the gov't tit. There is absolutely no reason for the american taxpayer to be subsidizing exports.
         
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        • wrpgator

          wrpgator Well-Known Member
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          Govt subsidies support farmers like a rope supports a hanging man.
           
          • alcoholica

            alcoholica Well-Known Member

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            Like it, going to steal it
             
            • Durty South Swamp

              Durty South Swamp doodley doodley doo!
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              I knew I should have made the terms 2 years.
               
              • g8r.tom

                g8r.tom Well-Known Member
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                November is going to suck for you.
                 
              • AugustaGator

                AugustaGator Junior Member
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                Cheaper than what we paid for Obama’s.
                 
                • gatorev12

                  gatorev12 Banned
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                  What must be done eventually should be done now.

                  China isn't interested in playing by the rules and a full accounting of economic damage they've done to US companies, workers, and market would probably stretch into the trillions--with no end in sight. Make no mistake: their forced technology transfers and widespread state-sanctioned IP theft is expressly designed to supplement us as the dominant global power.

                  If that's the case, then we should absolutely disentangle our economic relationship with them and shift supply chains elsewhere. China isn't that cheap anymore and by increasing economic benefits to other countries in Asia, South America, and Africa, we hopefully gain allies interested in keeping the status quo as opposed to a competitor trying to put us out of business.

                  It's not like I don't recognize that US businesses and consumers are hurt by this: I do. As does everyone. But it's going to hurt a lot more in 10-40 years if China succeeds in their ambitions and the US becomes what Russia looks like today.
                   
                  • Taco Gratis

                    Taco Gratis Clear eyes. Full hearts.

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                    • PCGatorAlum

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                      Omar's post is ripe with fake news links.
                       
                    • secgator

                      secgator Well-Known Member

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                      Shocking isn't it? :rolleyes:
                       
                      • gatorev12

                        gatorev12 Banned
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                        That's a good article and a pretty objective take (the Bloomberg article Taco posted).
                        It is early to make sweeping conclusions/judgments, but first impression here is that the US emerges as the winner--and Trump by extension. And yes--it signals renewed American resolve and focus on confronting China.
                         
                      • divits

                        divits A Muffin of the Studly Variety
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                        This whole thread and Democratic hopes.....



                        :snicker:
                         
                        • Zambo

                          Zambo Poo Flinger
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                          Amazing how an obviously necessary economic reality that causes a little pain for some consumers buying some products is a slam on Trump, but if we're talking about the economic pain of making everything cost more so we can battle climate change, well hey no biggie.
                           
                          • PCGatorAlum

                            PCGatorAlum Well-Known Member
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                            Excellent point.
                             
                            • Bushmaster

                              Bushmaster Well-Known Member
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                              I have several clients who understand more about this tariff business with China than most of the people on TV.

                              They KNOW its going to hurt in the short term, but when we can get thru this (if our pansy ass politicians don't wilt under pressure), they also KNOW it will benefit them and the US long term. We should have never let China get us over a barrel.

                              We can live without buying their cheap plastic toys. They can't live without our soybeans and pork. They can't feed themselves. In the end, we can get downright nasty in our negotiations with them that could see 2 BILLION + of their people on the brink of starvation. THink of Venezuela where over the last year, the average citizen has lost 20 pounds of weight due to food shortages. The average chinaman doesn't have 20 lbs to lose.
                               
                              • AugustaGator

                                AugustaGator Junior Member
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                                Hell, brazil will buy it and consume it and ship their production to China.
                                 
                              • gatorev12

                                gatorev12 Banned
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                                While few countries can ignore China's investment carrots...it's refreshing that so few actually have many illusions about what they're after as they go about things. The US may irritate a lot of people in a lot of countries, but just about everyone prefers us to them. It's an advantage we still hold over the Chinese. Ask a Brazilian where they'd prefer moving to bw the US and China and 95/100 would say the US (with only the hardcore communist types actually picking China).
                                 
                                • Gator By Marriage

                                  Gator By Marriage A convert to Gatorism
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                                  "Pansy ass politicians" is redundant. And FTR, I have no confidence in them not wilting under pressure.
                                   

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