Get your goods while you can in the U.S. Chinese tariffs Jump to 25%

[ELSknutson]

https://www.cnn.com/2019/05/10/business/china-us-tariffs-trade/index.html

 

https://www.cnn.com/2019/05/09/business/iphones-toys-china-tariffs/index.html

 

Washington (CNN Business)iPhones. L.O.L. Surprise dolls. Nikes.

They could all get more expensive if President Donald Trump follows through on his threat to expand tariffs on Chinese imports to include an additional $325 billion in goods left out last year.

The administration is already moving ahead with plans to hike existing tariffs starting Friday on industrial components and other goods, from 10% to 25% — a warning shot to Beijing amid ongoing negotiations toward a comprehensive trade agreement.

Most consumer electronics, toys and shoes have so far been shielded, a strategic move that made the trade war almost invisible to American shoppers.

But Trump is running out of goods to tax, and the expanded tariffs he threatened over the weekend could result in a 25% tax on almost everything else the US imports from China.

 

That would hit 100% of the toys and sports equipment imported from China to the United States, as well as 93% of the footwear and 91% of textiles and clothing, according to an analysis by the Peterson Institute for International Economics.

 

An employee making stuffed panda toys at a factory in Jiangsu, China in 2017. About three-quarters of the toys sold in the United States are made in China.

 

"These goods were deliberately set aside before because they would be painful for us," said Phil Levy, a senior fellow at the Chicago Council on Global Affairs who served as a senior economist for trade under President George W. Bush.

The renewed threat has toy companies big and small worried that they will have to raise prices, dragging down sales this holiday season.

About three-quarters of the toys sold in the United States are made in China, including the top-selling L.O.L. Surprise dolls, said Toy Association President Stephen Pasierb.

"We're in a low-margin, price sensitive business. If the price goes up by 25% on a $10 toy, people aren't going to buy them," he said.

 

Why Trump upended the US-China trade talks

A long list of consumer electronics could also end up being hit by new tariffs, including smartphones, computers, televisions, fitness trackers, Bluetooth wireless headsets and even drones, according to Sage Chandler, vice president of international trade at the Consumer Technology Association, a major industry trade group.

Apple, which assembles its iPhones in China, declined to comment for this story. But the company triggered a market selloff earlier this year when it warned investors that the trade war has dampened demand for iPhones in China.

Moody's Analytics predicts that the tariff rate hike and new tariffs would slow GDP growth in China by 1.2 percentage points. It also predicts a slowdown in US GDP and an increase in the unemployment rate if both are imposed.

 

'We're freaked': Trump startles US businesses with fresh tariff hike

Trump has repeatedly claimed that China pays the tariffs. And while some Chinese companies may choose to eat some of the cost in order to remain competitive in the US market, several recent research papers show that American consumers and producers take on most of the burden.

The president's threat to put tariffs on more Chinese goods is not new. He said additional taxes were "ready to go on short notice" last September.

Industry groups have been trying to persuade the Trump administration to drop further tariffs for months.

The Consumer Technology Association and its members raised concerns over trade policy with the White House and Congress as recently as last week, when a number of the group's member CEOs visited Washington.

 

iPhones and other consumer electronics could be in line to become more expensive as tariffs are raised on Chinese exports.

Still, many policy analysts continue to believe the Trump administration's tariff threats are more of a bargaining tactic than a sign of a breakdown.

"I don't think we're at the point where people think the talks are completely dead," said Rob Atkinson, president of the Information Technology and Innovation Foundation. "People aren't there yet. They're more of the view that this is a method by which you'd force the Chinese to give more than they've given."

[lewdicrous]

"It's good for business!" - some idiot.

[thorhammerz]

Be grateful Trump hasn't decided (yet) he can block off a few key sea-lanes to outright topple the entire Chinese system like the house of cards it is.

[maartendc]

Long story short: This is just a "threat" so far, that would hit all electronics with a 25% tarrif "shortly".

 

So really nothing to see here.

 

The only change, effective May 10th, is an increase of the previously tariffed electronics (only certain items) to 25% from 10%.

[ELSknutson]

3 minutes ago, maartendc said:

Long story short: this will hit all electronics with a 25% tarrif "shortly",

and increase the previously tariffed electronics (only certain items) to 25% from 10%.

 

So now would be a good time to buy my new SSD?

Yep for all the people on here asking if they should buy now or wait. Well waiting is no longer an option. If this stays like this Black Friday prices are going to be higher then what we have now.  

[maartendc]

1 minute ago, ELSknutson said:

Yep for all the people on here asking if they should buy now or wait well waiting is no longer an option. If this stays like this Black Friday Prices are going to be higher then what we have now.  

Well I amended my post: if you read the article closely, it is just a threat for now, and likely a bargaining tactic.

 

The only real change is a tarrif hike on goods that were already tariffed. Most electronics were excluded from that.

[dizmo]

7 minutes ago, thorhammerz said:

Be grateful Trump hasn't decided (yet) he can block off a few key sea-lanes to outright topple the entire Chinese system like the house of cards it is.

I'm pretty sure that's not a possibility.

[Tristerin]

China owns majority of US debt

 

This is all a fucking game that we the People pay the price for.

 

If you are uncertain how Tariffs were used and how successful they were prior to the acceptance of the Federal Reserve in 1913, you will realize that this is backwards.

 

Tariffs used to fund the Government.  Then they started taxing us (cliff notes version). 

 

They are reinstituting Tariffs...but our taxes are still going up.

 

Think about it fellow Patriots.

 

[ELSknutson]

2 minutes ago, Tristerin said:

China owns majority of US debt

 

This is all a fucking game that we the People pay the price for.

 

If you are uncertain how Tariffs were used and how successful they were prior to the acceptance of the Federal Reserve in 1913, you will realize that this is backwards.

 

Tariffs used to fund the Government.  Then they started taxing us (cliff notes version). 

 

They are reinstituting Tariffs...but our taxes are still going up.

 

Think about it fellow Patriots.

 

There is only one thing I can think of to do. 

 

 

[Tristerin]

Just now, ELSknutson said:

There is only one thing I can think of to do. 

 

 

I don't get videos where I am at on the internet atm

 

The only thing we can do, is wait until the plebs are fed up as well because there are to few of me in my area

 

*whats the video of?*

[Bouzoo]

11 minutes ago, Tristerin said:

China owns majority of US debt

US has $22T national debt, but only $1.13T is debt to China. Around 5% that is. As an outsider, am I missing something?

[Tristerin]

Just now, Bouzoo said:

US has $22T national debt, but only $1.13T is debt to China. Around 5% that is. As an outsider, am I missing something?

We the people shoulder the burden through our Social Security "Trust Fund" - we "own" the majority.  However China holds the largest stake in it outside the US itself.

[Bouzoo]

1 minute ago, Tristerin said:

We the people shoulder the burden through our Social Security "Trust Fund" - we "own" the majority.  However China holds the largest stake in it outside the US itself.

Ah ok, then I got it right, tnx. 

[GoldenLag]

Tariffs have gone to a normal level for a nation that foesnt have a tradedeal.

[Delicieuxz]

52 minutes ago, thorhammerz said:

Be grateful Trump hasn't decided (yet) he can block off a few key sea-lanes to outright topple the entire Chinese system like the house of cards it is.

Putting aside that the US doesn't really have a military advantage over China, to which countries would those hypothetical blocked sea lanes be delivering goods, and who owns those sea lanes? Why would the countries, like Russia, India, Iran, Yemen, Saudi Arabia, etc, who own parts of the ocean that are valuable to shipping, allow the US to militarily blockade them? And how would the US blockade the open ocean?

 

China is the country with the most exports in the world. The US is China's biggest trading partner, but that goes both ways. And China exports about as much to its next 2 biggest export partners as it does to the US.

 

Also, what makes a country's economics a house of cards? China does a lot more trade than the US does, and China depends on imports a lot less than the US does. So, between the two, I would say that it's the US is closer to being a house of cards, though neither are that.

 

https://globaledge.msu.edu/countries/china/tradestats

https://globaledge.msu.edu/countries/united-states/tradestats

[poochyena]

What exactly is Trump hoping to accomplish with this?

 

20 minutes ago, Tristerin said:

However China holds the largest stake in it outside the US itself.

right, but again, its a small percent and japan is right behind them.

[Tristerin]

19 minutes ago, Bouzoo said:

Ah ok, then I got it right, tnx. 

Im not worried about my own Trust Fund pulling a loan - because it wont, Im worried about the largest population and army in the world demanding the money that doesn't actually exist with Gold that isn't there to back it.

 

 

[lewdicrous]

1 minute ago, poochyena said:

What exactly is Trump hoping to accomplish with this?

Some people think that those tariffs are good and help the consumer, but the same people don't understand how those things work.. Maybe he's trying to please said people.

[Tristerin]

5 minutes ago, poochyena said:

What exactly is Trump hoping to accomplish with this?

 

right, but again, its a small percent and japan is right behind them.

1% of nothing is nothing.

 

5% of 22 Trillion is quite something.  Its to the Tune of $1,100,000,000,000 of our debt.  Do you really think we have the gold to back that?  Laugh.

 

And since they have the largest population, and military in the world right now - you wouldn't want them to pull their loans eh? 

 

[cj09beira]

43 minutes ago, Tristerin said:

China owns majority of US debt

 

This is all a fucking game that we the People pay the price for.

 

If you are uncertain how Tariffs were used and how successful they were prior to the acceptance of the Federal Reserve in 1913, you will realize that this is backwards.

 

Tariffs used to fund the Government.  Then they started taxing us (cliff notes version). 

 

They are reinstituting Tariffs...but our taxes are still going up.

 

Think about it fellow Patriots.

 

if the point of the tariffs is to generate money to the government then there is no point in doing them, now as a way to force change in a market that needs it it can be a useful tool.

what i heard is that they are trying to get china to start enforcing patent law (which would actually be huge, it would help Africa a whole lot), they responded with something like: we will do it just for the Us, and Us said you pass the law nation wide or the talk is out.

 

[ravenshrike]

9 minutes ago, Tristerin said:

Do you really think we have the gold to back that? 

That you think we would pay with gold is the laughable part.

[Tristerin]

Just now, cj09beira said:

if the point of the tariffs is to generate money to the government then there is no point in doing them, now as a way to force change in a market that needs it it can be a useful tool.

what i heard is that they are trying to get china to start enforcing patent law (which would actually be huge, it would help Africa a whole lot), they responded with something like: we will do it just for the Us, and Us said you pass the law nation wide or the talk is out.

 

The point is to generate money to the Government - so you keep the money you earn every 1 week or 2 weeks you receive a paycheck rather than 27-30% of that income going directly to the Feds, States, and Social Security.

 

Since you aren't keeping that money, this go around with Tariffs - no only do you lose out on 30% of your income YOU earned, but now the goods you rely on are going to be even more expensive.

 

Prior to 1913, when the Federal Reserve was signed into law by Woodrow Wilson (who Id gladly go back in time and remove from existence) Tariffs supported your Government.  We had an army, roads, infrastructure - the boom of industry in the NE was amazing.  And kept our own incomes.

 

History.

[Tristerin]

Just now, ravenshrike said:

That you think we would pay with gold is the laughable part.

Im betting your young, Ill leave it at that.

[Tristerin]

History is SO important.  But alas we are doomed to repeat it, clearly.

[Taf the Ghost]

33 minutes ago, GoldenLag said:

Tariffs have gone to a normal level for a nation that foesnt have a tradedeal.

Should have banned China from trade with the USA ages ago, but a bunch of the Elites wanted to cripple US Infrastructure so everything got shipped to China. (It was very intentional, but never for the real reasons they said.)

 

China had the option to normalize smoothly. They were told, but they've chosen not to. Gets really fun if they go after the currencies. 

 

Just as a matter of reality, all Food Stuffs, Metals and Oil are denominated in US Dollars. Which means all contracts are rendered with them. China actually keeps their currency a lot stronger than it would naturally be, which exports deflation and keeps the food riots away. An "ungentle" normalization will double the cost of living in China, in local currency, overnight.  China made out great for a while via bribery and anti-American interests working together. They really should have played this all a lot cooler.