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Trump's new tariff proposals include a 25% tax on video game consoles

Forums - Gaming Discussion - Trump's new tariff proposals include a 25% tax on video game consoles

Megiddo said:
Dulfite said:
Here's my take. It will only be temporary, and China cannot win a trade war with the U.S. so they will eventually break and then prices will be lower again and the U.S. will reap the benefits of having done it in the first place by having American made products purchased more because the tarrifs increase the cost of foreign imports and make them less of a steal. We import far more from China than they import from us, so they cannot win this fight. It's just a matter of time.

China can easily win a trade war with the U.S. They have far more buyers for their exports than just the United States. Whereas in the US many of our exports were sent mainly to China and we are having difficulty finding other partners. China is in a much, much more advantageous position to 'win'.

I disagree, but that's okay. In 15-30 years China is going to be dealing with a situation that makes our baby boomer social security problem look like a joke. That need as much money from us as possible, as quickly as possible, while they try to sort out their own mess. You can think what you'd like, that's fine, and you may be right in the end, but I think Trump will break China on tariffs just like he did Canada and Mexico.



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Dulfite said:
Here's my take. It will only be temporary, and China cannot win a trade war with the U.S. so they will eventually break and then prices will be lower again and the U.S. will reap the benefits of having done it in the first place by having American made products purchased more because the tarrifs increase the cost of foreign imports and make them less of a steal. We import far more from China than they import from us, so they cannot win this fight. It's just a matter of time.

China will easily destroy us in a trade war.  We are losing on three fronts.

First: China isn't paying the cost of the Tarrifs the US is. So the US is spending a ton of money paying the US to import items. A net loss for companies.

Second: The farmers are taking a massive beating which is why Trump keeps passing these bills to give them money. Which is why he just gave 16 billion to them. A massive net loss.

Three: The tax reform bill blew a MASSIVE hole in our budget and our deficit.  Meaning we have a lot less money.  Specially considering we have to keep bailing out the farmers.

That is why trump is desperately resorting to other things that aren't part of the trade war. Like banning Huawei.. then suggesting it would be part of the bartering process to unban it.

Which is awkward because how can you go from "Huawei is something that's very dangerous" to "It's possible that Huawei even would be included in some kind of trade dea" unless you are hopelessly, desperately, pathetically losing a massive trade war.



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Really? We're going to do this right now before next gen hits? Fuck Trump and his trade war



Dulfite said:
haxxiy said:

Or they just wait 20 months. Non-democracies can afford to play the long game.

I considered including that option in my post, but for some reason decided not to do so. You are right, they could just wait until a more pro-globality candidate wins office (in a year or 5 years) like Hillary Clinton, and Biden is certainly in that mold (and also by far the most likely Democratic nominee).

As a side note, China is the main exporter to most Asian countries, most of which are quickly joining the global middle class. In absolute terms, India alone adds more GDP per year than North America and the European Union combined. Demographically, they are some two decades behind South Korea and Taiwan, so I don't think they're that much in a hurry as you believe. They'll be fine.

Not that I agree with this whole global trade business, mind you. To buy and sell locally is much better to the environment. But we're going way off topic here.



 

 

 

 

 

Dulfite said:

I disagree, but that's okay. In 15-30 years China is going to be dealing with a situation that makes our baby boomer social security problem look like a joke. That need as much money from us as possible, as quickly as possible, while they try to sort out their own mess. You can think what you'd like, that's fine, and you may be right in the end, but I think Trump will break China on tariffs just like he did Canada and Mexico.

In 15-30 years during that time frame, China will become a technological leader and powerhouse so by then they'll be able to "cash in" on their invested human capital so to speak. I don't imagine social security to be much of problem when the world will likely subsidize their technology ... 

Bandorr said:

China will easily destroy us in a trade war.  We are losing on three fronts.

First: China isn't paying the cost of the Tarrifs the US is. So the US is spending a ton of money paying the US to import items. A net loss for companies.

Second: The farmers are taking a massive beating which is why Trump keeps passing these bills to give them money. Which is why he just gave 16 billion to them. A massive net loss.

Three: The tax reform bill blew a MASSIVE hole in our budget and our deficit.  Meaning we have a lot less money.  Specially considering we have to keep bailing out the farmers.

That is why trump is desperately resorting to other things that aren't part of the trade war. Like banning Huawei.. then suggesting it would be part of the bartering process to unban it.

Which is awkward because how can you go from "Huawei is something that's very dangerous" to "It's possible that Huawei even would be included in some kind of trade dea" unless you are hopelessly, desperately, pathetically losing a massive trade war.

Stopping China's rise isn't necessarily a bad idea since there's nearly bipartisan support for it! It's probably a good idea to restrict Huawei since they are a leader in 5G technology ... 

Trump's goal in a trade war is to stop the progression of China's self-sufficiency in technology due to these "five-year plans" that the Chinese keep producing. What are Americans going to do if their highest end of the industries from silicon valley deindustrializes because their goods or services couldn't compete with the Chinese equivalents ? 

You have to look beyond Trump's trade war because globalization also means putting the American economy at risk ...

Last edited by fatslob-:O - on 24 May 2019

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I generally favour trump because the left are batshit crazy communist loons but he has dropped the ball here, this decision is idiotic.



Dulfite said:
Megiddo said:

China can easily win a trade war with the U.S. They have far more buyers for their exports than just the United States. Whereas in the US many of our exports were sent mainly to China and we are having difficulty finding other partners. China is in a much, much more advantageous position to 'win'.

I disagree, but that's okay. In 15-30 years China is going to be dealing with a situation that makes our baby boomer social security problem look like a joke. That need as much money from us as possible, as quickly as possible, while they try to sort out their own mess. You can think what you'd like, that's fine, and you may be right in the end, but I think Trump will break China on tariffs just like he did Canada and Mexico.

Trump's deal with Canada did little more than reinforce the idea that picking a fight with them was an awful idea. The changes in regards to Canada are minor (especially for an update of a document that Trump called the worst trade deal ever made) and are mostly feel-good measures which do little more than give Trump a talking point he can use to tell people that he "won" and that is assuming it even gets passed in its current form.



Well I guess the sweet spot price point in the US is about to go belly up.



                                       

Shore said:

That wouldn't affect microsoft and sony consoles here where i live (they actualy produce them locally!) but nintendo products will be severely affected by this.

You wouldn't be affected by US tariffs on Chinese goods no matter where they are manufactured.  You live in Brazil. Tariffs are a tax paid by local import companies, not the actual nation the tariffs apply to. 

Dulfite said:
Here's my take. It will only be temporary, and China cannot win a trade war with the U.S. so they will eventually break and then prices will be lower again and the U.S. will reap the benefits of having done it in the first place by having American made products purchased more because the tarrifs increase the cost of foreign imports and make them less of a steal. We import far more from China than they import from us, so they cannot win this fight. It's just a matter of time.

1). You must not be too familiar with the growing Chinese economy.  They already passed the US GDP under purchasing power parity indicators and will pass the US by 2026 using non-purchasing power parity indicators.

Also, the reason we import a lot of products in not just for the sake of cost but because it's not manufactured in the US at all.  You can't just buy US manufactured Sony, MS or Nintendo consoles because they aren't manufactured here. And that's just talking final products.  When you start talking about components, we would get our asses kicked. Want US rare Earth minerals?  Good luck.  80% came from China.  And the 10% or so we do mine ourselves, we ship to China for processing...which is now subject to the tariff anyway.

By the way, we are not China's only export market. Not only can they win this trade war, but it could easily make their ties to other markets stronger making them and those other markets themselves stronger.  While we lose because we do not have the materials, infrastructure or markets to make up for the difference or lost access to minerals and products.

And finally, you (and Trump) need to recognize that we are a global market.  You cannot isolate yourself anymore.  That ship sailed decades ago. 



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spemanig said:
I'm stupid - do tariffs effect digital software or just physical products?

It won't affect games sales.  The games are produced in Japan, not China.  The consoles themselves for all three console makers are assembled in China, and therefore buying the actual console would be the only thing affected.

This tariff would only apply to China after all.



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