SoylentNews is people
SoylentNews
President Trump has signed a presidential memorandum directing the U.S. Trade Representative Robert Lighthizer to draw up a list of Chinese products on which tariffs could be imposed. The list will be made public in 15 days, and tariffs will take effect after a 60-day comment period:
The US plans to impose tariffs on up to $60bn (£42.5bn) in Chinese goods and limit the country's investment in the US in retaliation for years of alleged intellectual property theft.
The White House said the actions were necessary to counter unfair competition from China's state-led economy. It said years of talks had failed to produce change. China said it was ready to retaliate with "necessary measures". Beijing also said it would "fight to the end" in any trade war with the US.
US stock markets closed lower on Thursday, as investors responded to the announcement. [...] The White House said it has a list of more than 1,000 products that could be targeted by tariffs of 25%. Businesses will have the opportunity to comment before the final list goes into effect.
Reuters portrays the action as "far removed from threats that could have ignited a global trade war". Bloomberg notes that many industry trade groups and companies are opposing the tariffs.
Related: US Government Puts Tariffs on Imported Solar Cells, Solar Modules, and Washing Machines
Major US Solar Company Blames Job Cuts On Trump's Solar Import Tariff
U.S. Steel and Aluminum Imports to Face New Tariffs
(Score: 3, Interesting) by Bobs on Friday March 23 2018, @11:22AM (12 children)
Serious question: I haven’t found a clear explanation of what he is expecting China to do differently.
Is this another one of his thoughtless actions, where he wants to do something to look tough, or has somebody thought this through with a specifc end goal that will benefit the US?
I agree there are many issues with China, and with US economy, but how is this supposed to make things better for anyonei other than Trump?
(Score: 2, Funny) by Anonymous Coward on Friday March 23 2018, @12:35PM (1 child)
Has somebody else thought this thru?
Those that have are not named Trump.
Trump just knows. Like BDO and my redneck neighbor loves him for it. Stick to your guns Donny!! Damn liberals trying to fuck you up!!
Can’t wait til Alex Jones gets his cabinet position.
(Score: 2, Touché) by Anonymous Coward on Friday March 23 2018, @04:18PM
Not til he's had a position at Fox News.
(Score: 4, Insightful) by c0lo on Friday March 23 2018, @12:40PM (3 children)
If there's a rational explanation to what he does, the only one I can find is to put the global(ized) capital market to make a choice where it is going to invest - US or China.
It is clear that, assuming status-quo, he doesn't have enough leverage to make capital market to unconditionally prefer US (in spite of China asking for the control share in enterprises and know-how transfer and what-not), the bean-counters still prefer to go China - no offense meant, but there's the quarter-after-quarter growth that the shareholders like, long-term be damn'd.
Trump gave already what carrot he had - took a hit of $1T+ in US budget over 10 years, demolish consumer and environ protection legislation, etc; and yet the response has been lukewarm.
He hopes that the stick - a war-like situation - will polarize the situation enough to force a pro-US choice and decided to start a trade-war.
If I'm right (and that's a big if), I'm afraid to think what will happen when the capital market will still prefer China as an investment destination
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 2, Funny) by Sulla on Friday March 23 2018, @01:39PM (2 children)
I have some sweet sweet securities I would like to sell you if you are looking for year after continual growth and security. 16% average over 14 years, for details contact Bernard L. Madoff Investment Securities LLC.
Ceterum censeo Sinae esse delendam
(Score: 2) by c0lo on Friday March 23 2018, @02:22PM (1 child)
Madoff was a patriot, all the squandered money was spent into the American economy.
Unlike the others with accounts in Cayman and other such places.
(grin)
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 3, Informative) by khallow on Friday March 23 2018, @05:06PM
He certainly played to his audience. Can't find the story now, but supposedly he had some nice art in his office for prospective investors to gawk at. But it went into hiding when auditors were about. I think the above shtick you mention was a real thing that helped him rope investorsof the patriotic sort, but it was only one of many tricks he employed. Here's another article [npr.org] speaking of his approach:
[...]
(Score: 1, Insightful) by Anonymous Coward on Friday March 23 2018, @02:48PM (1 child)
Serious answer, China has been doing the exact opposite of Tariffs for a long time. China disguises DUMPING (selling below cost of production) by allowing the regional governments to give "rebates" to the manufacturers. This artificially lowers cost of production for a variety of products, and gets around the pesky anti-dumping rules of WTO. It is the only way China has been able to gain share in a lot of the most competitive industries, and the only way they can lure foreign investment at this time (because cost of labor is rising steeply).
How does China finance these rebates? I don't really know, I'm not an economist, but I'm sure it involves a house of cards with walls thinner than the US Treasury Bills. When faced with such obvious malfeasance, I think Tariffs are the only response.
(Score: 3, Interesting) by bob_super on Friday March 23 2018, @04:31PM
> It is the only way China has been able to gain share in a lot of the most competitive industries
Because using US/Euro greed with tax-free zones, cheap labor, lax regulation enforcement, giant market, in exchange for the designs of every product we used to make, wasn't enough?
The "first world" sold its mojo for a few quarters of profits, and didn't manage to overturn the Chinese government to keep it going forever. Chickens coming home to roost now.
Well, at least until the Trump International Biggest Luxury Beijing gets approved. China will get back to being a partner and friend, then, jobs be damned.
(Score: 5, Insightful) by requerdanos on Friday March 23 2018, @05:36PM (3 children)
I don't think that's the right question to ask; President Trump may not expect China to change a thing.
I don't keep up with his daily antics (for which I apologize on behalf of my birth country to the civilized world), but when he was campaigning, one of his most cohesive messages was that American factories can't compete because of cheap imports, mostly from China, and if there were tariffs on Chinese products, that would "level the playing field" or some such so that it would be profitable to open and operate American factories making Made In America American goods; the factories would then be able to sell these goods to happy Americans who can't buy cheap imports instead, any longer.
Basically, this:
1. Problem: Cost of American goods is higher than that of Chinese goods, so American factories are not profitable.
2. Solution: Make Chinese goods cost more with tariffs.
3. Result: American Products are now cheaper than Chinese ones and so American factories are now profitable.
4. Secondary Result: America Is Made Great Again.
5. Expected Change On China's Part: Nothing, we are taking care of everything on this end with points 2-4. Just keep doin whatcher doin.
This plan seems simple, but it leaves a lot out.
Like 2.1, all products become more expensive for all Americans.
And 2.3, American factories can't afford their imported raw materials anymore.
And 3.1, sure, while domestic products would be relatively less expensive than artificially inflated Chinese ones, both of them would still be too expensive for anyone to really afford, making the profitability (and entire economy) questionable.
And 4.1, possibly heading for recession/depression from isolationism, but "Great" nonetheless.
Just as your question is serious, I give this answer in all seriousness. Further, I believe that such a plan could actually work if implemented gradually, quietly, and intelligently, but that's three things that the President tends to eschew.
A comparison: It's like saying it's intolerable for imported oil to be cheaper than domestic, so we will tax imported oil, making domestic oil cheaper by comparison. Requires nothing from OPEC -- we just tax their oil and theoretically buy less of it.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @06:56PM
I think the continued success of certain American companies makes it clear that Americans will pay more for quality goods. Shitty shit will be too expensive, regardless of origin. High quality US stuff will be worth the price, like it has always been.
(Score: 0) by Anonymous Coward on Saturday March 24 2018, @02:02PM (1 child)
Except the competition isn't between China and the US. If China is too expensive, Americans will buy from the next cheapest source, unlikely to be America.
(Score: 2) by requerdanos on Saturday March 24 2018, @03:49PM
That's true across many markets, but specifically in the area of certain manufactured goods, China is such a world leader that it's priced basically all others out of the market. Though the price difference would be local and artificial, on products where "nobody beats China" this could at least theoretically work.