US Tariff War

I'm With Stupid said:
Full video isn't out till Sunday (on Youtube), but this looks like it'll be worth a watch.



South Korean economist Ha-Joon Chang. South Korea have a lot of experience using tariffs to build up industries. Safe to say he doesn't think Trump knows what he's doing.
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That's pretty much a given. Had he taken the fortune his father left him and invested in the US Stock market S&P 500, he'd have more money that he has now by simply doing nothing.
 
Bluesince1979 said:
Maybe this view is simplistic, i hold my hands up to being a million miles from any sort of expert..

With these worldwide tariffs that the silly **** is throwing about, wont the consumers ultimately seek alternatives and buy from other countries ?
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Not that easy. Many large American companies have their manufacturing facilities in China and other parts of Asia. Many of these manufacturing facilities are high-tech and to shift manufacturing can take years in the planning. The American public are going to get hit big times with these tariffs.
 
I'm With Stupid said:
Full video isn't out till Sunday (on Youtube), but this looks like it'll be worth a watch.



South Korean economist Ha-Joon Chang. South Korea have a lot of experience using tariffs to build up industries. Safe to say he doesn't think Trump knows what he's doing.
Click to expand...


Chang is wonderful and witty. Thanks for drawing my attention to that. Looking forward to watching the full interview.
 
Some fantastic understatement from DB...

"We worry this risks lowering the policy credibility of the administration on a forward-looking basis,” said George Saravelos of Deutsche Bank. “The market may question the extent to which a sufficiently structured planning process for major economic decisions is taking place.”
 
10% tariffs on McDonald island… only populated by penguins…. Well done with your “algorithm “ Orange buffoon
 

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It seems like maybe this is obvious but worth saying: the real issue here for Americans is that American companies who compete with importers now have free rein to raise THEIR prices as their competition is now far less, errr, competitively-priced. So not only do Americans end up paying more for imported goods, but for domestic goods. And even if a U.S. product provider wanted to simply gain market share by keeping pricing flat, the ultimate goal would be to gain share so that pricing power could ultimately increase long-run and/or domestic manufacturing efficiencies/productivity could be enhanced — which is the only real benefit I see. And that won’t always or even that often happen, and would be years away.
 
FogBlueInSanFran said:
It seems like maybe this is obvious but worth saying: the real issue here for Americans is that American companies who compete with importers now have free rein to raise THEIR prices as their competition is now far less, errr, competitively-priced. So not only do Americans end up paying more for imported goods, but for domestic goods. And even if a U.S. product provider wanted to simply gain market share by keeping pricing flat, the ultimate goal would be to gain share so that pricing power could ultimately increase long-run and/or domestic manufacturing efficiencies/productivity could be enhanced — which is the only real benefit I see. And that won’t always or even that often happen, and would be years away.
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The misalignment with how the American financial system works in practice is one of the points Chang makes in that video above.
 
vincent said:
Not that easy. Many large American companies have their manufacturing facilities in China and other parts of Asia. Many of these manufacturing facilities are high-tech and to shift manufacturing can take years in the planning. The American public are going to get hit big times with these tariffs.
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Yeah i thought it was a bit simplistic
 
Its rapidly becoming Brexit - "just trust President Trump to get it right" - the same as "if you want Brexit to succeed you just have to believe in it more"

 
threespires said:
Some fantastic understatement from DB...

"We worry this risks lowering the policy credibility of the administration on a forward-looking basis,” said George Saravelos of Deutsche Bank. “The market may question the extent to which a sufficiently structured planning process for major economic decisions is taking place.”
Click to expand...
Ha ha ha ha ha ha. Wait. Seriously?
 
Why has none of these journalists questioned Trump or any of his clown posse on the next phase of this masterplan yet?

Lets say we are in a world that he's imagining where America suddenly has all this manufacturing power, (ignoring the numerous years it would take to get all that set up) are say a Nike as an example going to employ Americans to work for a similar wage that they currently pay Vietnamese kids to make their clothes? I'm going to presume not so therefore they'll incur substantial increases in wages which will be reflected in the new much higher price they have to pay for the same stuff they currently have. And then if they try and sell it outside of the US, they could potentially see reciprocal tariffs which will raise the price even further to sell anywhere but the US and drive away demand. So who wins in his dream world? Unsurprisingly, there doesn't seem to be any actual goal it's just this line of "other countries have been taking advantage of America for too long" yeah they sure have... vietnam allowing a US company to pay peanuts for child labour exploiting that countries economic status to make cheap clothes to maximize profits for billionaire Americans is really not on those Vietnamese kids need to stop freeloading off America and allow for American child labour to grow.
 
Just had a back & forth with a former USA colleague - his exact words about what Trump is doing “The art of a deal”! He’s a VP of International Sales in a company based in Virginia but moved all manufacturing out to China & Mexico years ago - they supply a large volume of domestic goods via Walmart! He’s a very intelligent guy but they are completely deluded thinking Trump is fighting for USA! It’s like having Del Boy in charge of the economy!
 
Trevor Morley's Tache said:
That's pretty much a given. Had he taken the fortune his father left him and invested in the US Stock market S&P 500, he'd have more money that he has now by simply doing nothing.
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I expect that’s no longer true, or at least it won’t be by the time he’s done.
 
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