Naum said:
You do know that these tarffis wont hurt China much... in the end its YOU who will pay the increased tarrifs. |
Nope, that's not how this works. Just because companies and media outlets say something and push propaganda for their own corporate interest doesn't make it true.
"That’s the conclusion of a new paper from EconPol Europe, a network of researchers in the European Union. U.S. companies and consumers will only pay 4.5 percent more after the nation imposed 25 percent tariffs on $250 billion of Chinese goods, and the other 20.5 percent toll will fall on Chinese producers, according to authors Benedikt Zoller-Rydzek and Gabriel Felbermayr."
Also, you see that Nintendo has moved some of its switch production out of China. So the switches that Nintendo wants to send to the USA, will be made elsewhere while still manufacturing in China for other countries. That's what companies do, sure companies would rather stay in China, moving ain't free. But China manufacturing vs other countries in south east Asia isn't that big of a deal.
https://www.theverge.com/2019/6/12/18662508/nintendo-switch-new-models-china-manufacturing-trade-war
For 2 years most media outlets claimed that Trump tariffs would lead to higher prices for US consumers. That doesn't seem to be the case, partly due to lower fuel/energy costs. There's also the fact that China attempts to counter by subsidizing the industries affected and adopting monetary policies which devalue their currency.
"Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in May following a 0.2-percent drop the previous month. Import prices from China have not recorded a monthly advance since the index rose 0.1 percent in May 2018. Prices for imports from China declined 1.4 percent over the past year, the largest 12-month drop since a 1.6-percent decrease in February 2017."
https://www.bls.gov/news.release/ximpim.nr0.htm
Consumer pricing is very complicated, lots goes into. You also have inflation, price fixing and controlled markets which plays a substantial role. You know if a company selling a product for $5 closes up shop in the US and reopens in Mexico just to make some more $$, they're still gonna try to sell that same item for $5. Why pay John $8 an hour when you could pay Juan $5 a day instead?
The Chinese originally didn't want to seriously negotiate because they have such a great deal, why would/should they accept something worse? They just wanted to play delay games hoping nothing would really change/happen thinking that they can just wait out Trump. Tariffs seem to actually be bringing them to the table. Who knows.
If it were up to me, we wouldn't be trading with China at all, they would be heavily sanctioned.
My grievances with China - Slave labor(seems like people only care about domestic slavery and not when it happens overseas and makes them cheap junk), oppressive/controlling government, they have real concentration camps, are always breaking UN sanctions, supporting horrible anti-American regimes like Maudro in Venezuala and Kim in North Korea, Stealing IP, forcing companies to transfer over their IP to operate/sell in china and other horribly unfair trade practices, various substantial hacks like the one on the OPM, etc...
Imagine if the US demanded a reciprocal trade deal with super protectionist China. Yeah, we'll take the same deal you are giving us. Imagine how they would respond.
What am I saying here... I meant to say China is the best country in the world and we all need to stop bullying them and trying to block their success. It's not okay to act out against China because you are jealous of what they have accomplished, it's just a bad look for you. So, we should all feel ashamed and atone by taking an active roll in helping them achieve their Made in China 2025 objective.
