US tariffs paid by US consumers, Not for Long!

S

smallfil

ET trolls reminding us how the Chinese are winning the US-China trade war with the tariffs, and US consumers paying for it? This article pretty much sums up what is actually, happening to Chinese companies. US tariffs on some Chinese products are now at 30%. It could go even higher! Depending on what the Chinese do in trade negotiations! It won't be long till other US companies still buying Chinese goods to demand Chinese suppliers eat up the increase in costs due to tariffs. Next step is finding another Asian country producing the same goods, if Chinese suppliers balk! Hilarious!

https://www.yahoo.com/finance/news/target-tells-suppliers-cover-costs-041526904.html
 
smallfil said:
ET trolls reminding us how the Chinese are winning the US-China trade war with the tariffs, and US consumers paying for it? This article pretty much sums up what is actually, happening to Chinese companies. US tariffs on some Chinese products are now at 30%. It could go even higher! Depending on what the Chinese do in trade negotiations! It won't be long till other US companies still buying Chinese goods to demand Chinese suppliers eat up the increase in costs due to tariffs. Next step is finding another Asian country producing the same goods, if Chinese suppliers balk! Hilarious!

https://www.yahoo.com/finance/news/target-tells-suppliers-cover-costs-041526904.html
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An international company where I used to work had manufacturing contracts with multiple companies located in several industrial areas throughout southeast Asia. Almost a decade ago production slowly began shifting away from China because their labor costs were becoming less favorable than those in other countries. People I still have contact with say that the tariffs have significantly accelerated that trend. The challenge for China is that once production moves away it tends to be "sticky" due to transfer costs, making it is increasingly difficult to get it back, even if the tariffs were eliminated at some point in the future.
 
zdave83 said:
An international company where I used to work had manufacturing contracts with multiple companies located in several industrial areas throughout southeast Asia. Almost a decade ago production slowly began shifting away from China because their labor costs were becoming less favorable than those in other countries. People I still have contact with say that the tariffs have significantly accelerated that trend. The challenge for China is that once production moves away it tends to be "sticky" due to transfer costs, making it is increasingly difficult to get it back, even if the tariffs were eliminated at some point in the future.
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Exactly. The tariffs were never intended to bring jobs to the US but, as a cudgel to make China play fair and sign a fair trade deal. Fair trade deals benefit both countries, a 50/50 split. Problem is China is used to getting a bigger cut and does not wish to give it up and trade advantages it gained in the past. US just needs to sign more fair trade deals which would benefit the US economy and generate more US jobs in the longterm.
 
Tariffs became weapons of financial destruction . A single tweet about the same thing (they want to come to the table - we're making good progress - they walked away and didn't comply with what we discussed - over and over...)literally moves markets more than non farm payrolls or the fed. I remember Greenspan having a similar impact once when I started trading, maybe around 2002 - but some of these moves make you wonder what is market manipulation and what's not (when the E-minis are down 50 bucks and back up 70 three days later there's a lot of money to be made) - not for me though - I'm having a hard time with my swing trade systems these days. Now as far as this article goes, I think realistically everyone will eat some, retailers, supplier and consumer will eat the biggest part. Since Trump's nomination avocados at my local store went from .99 cents to 2.99
 
Overnight said:
You need glasses. Tariffs are paid for by the exporting country, not by the consumer.
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And I need to expound upon that.

Folks, all consumers everywhere in the USA, any price increases you see now and that are incoming, have NOTHING to do with tariffs. NOTHING! Why? Because Trump said so. Your cost of goods, according to Trump, are going DOWN because of his trade war. If you are paying higher prices now, it has nothing to so with him and trade deficits, but your own local and regional manufacturers/producers/suppliers. It is the fault of everyone, including you the consumer, but not Trump's policies. Oh, and the Fed is to blame also.
 
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