Politics Tariffs/Trade Wars

[Chazman]

Yuan continues to slide tonight.

 

[Chazman]

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[Mark Sman]

Yuan continues to slide tonight.

Don't stay up all night watching that.

 

[HorniePonie]

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This whole art of the deal reminds me of the good old "Panokset kovenee" by Kummeli.

 

[HorniePonie]

Genuine question: Why doesn't the US admin like to calculate the service trade with EU in their trade deficit calculations?

 

[Chazman]

Don't stay up all night watching that.

Thanks mom!

No I won't, way less action tonight. Things appear to have calmed down globally - except in China.

 

[Junglejim]

The stocks were fine before with tariff on Mexico, Canada and the EU, which still holds by the way. The issue here is that the US has become a chaotic trading partner, by the way none of those 3 I mentioned has rescinded the counter tariffs they imposed, unless I missed something. The final results here would be seen as it unfolds down the line... it takes two to tango, and before I would celebrate, I'll wait for China's response.

Heard that China might pull out IP/copyright protection on American goods and products. So did some searching as I thought they had none of those rules, but apparently they have one and the west are actually winning in their courts. So if rumors were true and they decide to just openly infringe on American products and flooding the market with it, thats a huge step back.

Anyway, I guess they are blaming some of you know on the reversal....

https://finance.yahoo.com/news/trump-says-he-decided-on-90-day-tariff-pause-because-people-were-yippy-and-afraid-181126787.html

 

[Telmar]

Donald Trump is the black knight in that Monty Python movie:

"Just a flesh wound"

 

[madmax17]

Genuine question: Why doesn't the US admin like to calculate the service trade with EU in their trade deficit calculations?

It doesn't fit their narrative, there wouldn't be a deficit anymore.

Services are Usa strong point, Europe buys that.

 

[Picanha]

We love your cars here. We buy them by the millions. BMW, MB, VW, Porsche. In fact, the US may be the biggest market for German cars. Some are already made here, I expect more will be.

I already asked that but got no answer.

What percentage and how do you calculate that percentage of manufacturing must be done in the US?

Body works, developing, locally sourced subassemblies, supplied components, assembly?

You know how much enthusiasm engineers have to go that road?

Much will be impossible and lead to very long development circles.

Maybe even simplifying the product for the US market.

 

[PEMM]

The US is taking in $2 billion per day on tariffs.

From Americans.

 

[Picanha]

So then giving tips to buy stocks and then postpone the tariffs for 90 days so stocks go up again...smells like insider trade to me.

Trump apparently rejected the EUs 0 % tariff proposal.

In reality the tariff difference between the EU and US is 1%.

 

[Picanha]

Another advice regarding VAT and EU if you reside outside of the EU you can get a VAT refund for goods bought here.

There is a whole complicated system with VAT returns already abused by gangsters and foreign clans.

We call it a gateway tax as it's only collected by the sellers and must be channeled to the tax authorities.

Applies to everyone with differences in VAT levels for example necessities like food are charged less.

 

[Chazman]

I already asked that but got no answer.

What percentage and how do you calculate that percentage of manufacturing must be done in the US?

Body works, developing, locally sourced subassemblies, supplied components, assembly?

You know how much enthusiasm engineers have to go that road?

Much will be impossible and lead to very long development circles.

Maybe even simplifying the product for the US market.

I don't know.

 

[Chazman]

From Americans.

I don't believe that's how it works.

 

[Chazman]

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[Junglejim]

I dont think one is hated more than the other, but if they can make China a bit weaker and let the US take the brunt of this war, then why not. Trust me those countries you listed would not blink when it comes to increasing their trade with China, if it means a better economy. If the US wants to burn its economy to take down China, I'm sure most countries would have no issues watching the S**t show.

 

[PEMM]

I don't believe that's how it works.

It's not a matter of belief.

How do you imagine it works?

The whole point of tariffs is to increase the price of imports to make local goods more competitive.

 

[Chazman]

It's not a matter of belief.

How do you imagine it works?

The whole point of tariffs is to increase the price of imports to make local goods more competitive.

The manufacturer eats some of it, the importer eats some of it, the importer pressures the manufacturer to eat more of it. This is IF they want to still be competitive and sell their product in the US. The end US consumer barely sees any increase. The manufacturer continues to eat the increase or decides it's better to produce in the US to avoid the cost.

 

[HorniePonie]

The manufacturer eats some of it, the importer eats some of it, the importer pressures the manufacturer to eat more of it. This is IF they want to still be competitive and sell their product in the US. The end US consumer barely sees any increase. The manufacturer continues to eat the increase or decides it's better to produce in the US to avoid the cost.

Maybe true to an extent in the case of a large companies buying from smaller companies. Smaller importers rarely have the leverage especially in specialized products. Even less so, when a consumer is importing directly.