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Apple Stock Falls as Trump Tariffs Target Supply Chain
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Still are Fox News just doesn’t give up with their blatant lies!
You have zero idea! Tariffs are to protect what is made in your country… Say if Canada produces the most amazing hormone free dairy and meats… which they do. We don’t want those nasty unregulated… hormone fill cheaper American dairy and meat products flooding our market! That is why tarrifs exist.
Why would they want to?
There's a relationship between and sales and as the prices go up, sales go down.
I presume they know their market well enough to know what they will support so any increase in price would see a fall in sales.
Or just have a law that says beef sold in Canada can't have been raised using artificial growth hormone.
The trouble is that means there's likely a trade deficit when it comes to beef. The US probably buys more Canadian beef than they sell to Canada. In Trump's eyes this means Canada needs to be tariffed because it is taking advantage of the US. In reality it's just that Canada has higher standards for their beef, but I believe Trump thinks his American beef is just as good and wants Canada to lower its standards to accept it or else it'll be tariffed.
um... you have never heard of supply and demand or the price elasticity of products?
What stops a company from increasing prices is that demand will go down and consumers will increasingly turn to competitors who offer better value for money
He singled out Australia for this. the US buys Australian beef because domestic supplies cannot satisfy domestic demand. So the tariff just punishes people wanting to eat beef with no advantage to the US farmers.
He mentioned about US beef not being allowed into Australia but Australia has super strict quarantine laws, and once again US supply can’t fill demand so why would you even want to export it?
Cheap offshoring is over. America first. Get on board, Apple.
There’s no domestic smartphone manufacturing in the US afaik. Therefore Apple has very little incentive to onshore as consumers can’t buy a cheaper ‘American made’ smartphone.
The big issue is that it’s all been done at once to practically everyone. When you do that what is the incentive for any company to change where they manufacture?
For example, if iPhones go up 25%-50% so do Samsung phones and Google phones as they are all assembled overseas.
Same with laptops. Same with pretty much all electronic goods in the USA.
So if your competitors all have the same tax (essentially that’s what it is, a tax on the consumer like a sales tax here). Then consumers will either pay more or buy less.
Any taxes raised from these tariffs the govt say will be used to reduce taxes is kind of obtuse. As the money used is consumers money here, not from company profits.
It’s perverse, they will be taxing the consumer and redistributing that money to pay for tax cuts is actually massive socialism no? What the right think is terrible.
At the end of the day, this is going to see inflation beyond anything Americans have experienced in the short term at least.
My feeling is that he may exempt some companies who “pledge” to move manufacturing within 5yrs or something (-mas it will take a long time). But if these companies are smart they will all hold firm because the US consumer has no choice. It can’t buy non tariffed equivalents for many things. So the very premise of this tariff stuff can’t actually work. You cannot buy an American built smart phone. So why tariff it?
For example, if iPhones go up 25%-50% so do Samsung phones and Google phones as they are all assembled overseas.
Same with laptops. Same with pretty much all electronic goods in the USA.
So if your competitors all have the same tax (essentially that’s what it is, a tax on the consumer like a sales tax here). Then consumers will either pay more or buy less.
Any taxes raised from these tariffs the govt say will be used to reduce taxes is kind of obtuse. As the money used is consumers money here, not from company profits.
It’s perverse, they will be taxing the consumer and redistributing that money to pay for tax cuts is actually massive socialism no? What the right think is terrible.
At the end of the day, this is going to see inflation beyond anything Americans have experienced in the short term at least.
My feeling is that he may exempt some companies who “pledge” to move manufacturing within 5yrs or something (-mas it will take a long time). But if these companies are smart they will all hold firm because the US consumer has no choice. It can’t buy non tariffed equivalents for many things. So the very premise of this tariff stuff can’t actually work. You cannot buy an American built smart phone. So why tariff it?
That's only half the story. The other half is that in the tech and software sector Germany here the surplus. If you look just at produced goods, your number will hold up.
Also note that through that America bought some softpower.
As the politics currently stand it's not America first, it's America alone. The current administration is relinquishishing a lot of global softpower. That are things you need to gain access to crucial resources. Especially since the US does not have them all themselves.
Apparently the percentages they came up with is the trade deficits divided by the exports.
For example:
USA has a $17.9 billion trade deficit with Indonesia. Their exports to USA are $28 billion. $17.9/$28 = 64%, which Trump claims is the tariff rate Indonesia charges us. Then he divided that number by 2 to be "kind".
It boggles the mind how this in any way would be a basis for tariffs.
But in either case, true - these tariffs are completely unrelated to any existing tariffs against USA.
This is not what Trump said, but that's the thing, he's doing something completely different now that he said he would do. I can only repeat once more - what he is doing now is not a response to any tariffs against USA.
Finally, the target countries do _not_ pay tariffs. The American people does when purchasing goods and services. So it's more like Trump taxing his population. Surprisingly many don't understand this part. He's penalizing _you_ for buying stuff from the outside world. This is what is supposed to be what is "making America great again". The American stock market futures do not seem to agree.
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According to ChatGPT price on iPhones as a percentage of median wages is cheaper in US, so not much scope to do that
The fixation on trade balances and manufacturing jobs is extremely stupid. The US's most profitable export is services, and I never see them mentioned in the discussion about tariffs. Services are much higher margin than any physical good or commodity. It's true, that Europeans largely don't buy American cars and prefer their chicken without chlorine. But we love consuming high margin services. Think about entertainment, social networks, advertising, financial services and IT services like cloud computing.
If trading partners really want to hit the US hard, they will come up with ways to raise trade barriers on these kinds of transactions. The US might get some manufacturing jobs back, but they will lose very well paying jobs in the services sector.
This decoupling, and that's what it is, will make people poorer on both sides of the Atlantic.
If trading partners really want to hit the US hard, they will come up with ways to raise trade barriers on these kinds of transactions. The US might get some manufacturing jobs back, but they will lose very well paying jobs in the services sector.
This decoupling, and that's what it is, will make people poorer on both sides of the Atlantic.
Yes and I 100% approve of tariffs to level the playing field
The richest country on the planet crying about leveling the playing field 😂
This is the world America built.
