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Trump Suggests Tariffs Could Be Placed on iPhones and Laptops Imported From China
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You could also call this price fixing
Funny how we use the term “Free Trade” only when it is to our likings.
Trump makes it sound nice by saying “We like this because we are going to start getting paid for this. $100 Billion “ all this money (what ever amount it is comes out of the pockets of American consumers”. When prices go up that mean retail prices go up and when retail prices go up that mean the government now collects money on the new retail price so they get even more money out of this. Say an item before sold for $10 and government collected $.90 sales tax bringing it to $10.90 the new price will now be $12.50 before taxes and $13.62 after taxes. At first the government collected $.90 but now it collected $1.12 in taxes which means that they also collected 25% more in sales tax from the dummies that supported Trump on this but unfortunately all others have to pay this now as well. So in reality the government now collects and extra 25% at customs raising price by 25% for consumers then the government collects an additional 25% from the consumer as well from sales tax (difference being from $.90 to $1.12). In reality one could say we got two additional 25% increases on cost. One that raises product cost before taxes and one that raises sales tax amount paid from new higher price sold at.
https://www.reuters.com/article/uk-usa-trade-china-vicepremier-idUKKCN1SG2I8
Some of these so called principles are what I talked about before. We know what those are and they are not related to tariffs..
Some of these so called principles are what I talked about before. We know what those are and they are not related to tariffs..
WSJ: China Holds Fire in Latest Trade Skirmish with U.S.
While Beijing has met previous volleys of tariffs from the U.S. by raising duties on American goods—and the government has promised to retaliate—it held its fire. Though China has more limited tariff options, since it imports fewer products from the U.S. than the other way around, the Chinese leadership is also constrained by an economy that is in a shaky recovery from a sharp slowdown.
The tariff escalation is worrisome for Chinese officials, who are watching potential ripple effects, from weakening of the currency to crimping future foreign investment. Raising existing tariffs or imposing new ones could hit products China’s economy needs, like semiconductors, pork, oil and passenger jets.
https://www.wsj.com/articles/china-...kirmish-with-u-s-11557571638?mod=hp_lead_pos1 (paywall)
While Beijing has met previous volleys of tariffs from the U.S. by raising duties on American goods—and the government has promised to retaliate—it held its fire. Though China has more limited tariff options, since it imports fewer products from the U.S. than the other way around, the Chinese leadership is also constrained by an economy that is in a shaky recovery from a sharp slowdown.
The tariff escalation is worrisome for Chinese officials, who are watching potential ripple effects, from weakening of the currency to crimping future foreign investment. Raising existing tariffs or imposing new ones could hit products China’s economy needs, like semiconductors, pork, oil and passenger jets.
https://www.wsj.com/articles/china-...kirmish-with-u-s-11557571638?mod=hp_lead_pos1 (paywall)
Chinese companies brace for tariff hike: 'If the tariffs rise to 25%, then we're done for'
The tariffs have devastated many factories in Chinese coastal regions that serve the U.S. market. Industries such as electronics have seen sales to the U.S. plummet up to 40%. Overall Chinese exports to the U.S. dropped 13% in April from a year earlier.
But sales managers of five Chinese companies that depend heavily on exports to the U.S. told The Associated Press that while they have managed to adjust to current tariff levels with minimal trouble, a jump to a 25% tariff would make doing business with the U.S. virtually impossible for most of them.
https://www.marketwatch.com/story/c...e-done-for-2019-05-09?mod=MW_home_top_stories
The tariffs have devastated many factories in Chinese coastal regions that serve the U.S. market. Industries such as electronics have seen sales to the U.S. plummet up to 40%. Overall Chinese exports to the U.S. dropped 13% in April from a year earlier.
But sales managers of five Chinese companies that depend heavily on exports to the U.S. told The Associated Press that while they have managed to adjust to current tariff levels with minimal trouble, a jump to a 25% tariff would make doing business with the U.S. virtually impossible for most of them.
https://www.marketwatch.com/story/c...e-done-for-2019-05-09?mod=MW_home_top_stories
China has been doing that for a while so people in China have been buying anything that they can outside China leading to various kinds of bubbles around the world. China did clamp down on buying foreign assets a while ago. China wants to be a reserve currency participant in at least a basket form and deliberately weakening their currency would imply that they're not being serious about maintaining a stable currency.
They have been selling off Treasuries this year too. Would they start buying them now?
https://edition-m.cnn.com/2019/05/0...ermining-his-dpm-scuttling-talks-6043342.html
I don’t like Trump, but part of me does wonder if he really is on to something here. Nothing the previous presidents have done in the past have worked, and maybe he’s the right kind of crazy to throw the Chinese government off their game and rewrite the rules of the game.
I don’t like Trump, but part of me does wonder if he really is on to something here. Nothing the previous presidents have done in the past have worked, and maybe he’s the right kind of crazy to throw the Chinese government off their game and rewrite the rules of the game.
The Faustian bargain is required technology transfer and our companies are paying for that today. Apple is a very good example.
Larry Kudlow admits consumers are the ones who will pay these tariffs.
https://video.twimg.com/ext_tw_video/1127574174036320256/pu/vid/640x360/N91uET57WzyPCZCB.mp4?tag=9
https://video.twimg.com/ext_tw_video/1127574174036320256/pu/vid/640x360/N91uET57WzyPCZCB.mp4?tag=9
Broad Support for Trump's China Fight Faces Test as Tariffs Escalate
WASHINGTON—President Trump has enjoyed rare bipartisan cheering for his brass-knuckle trade fight with China, but that support will now be tested as U.S. businesses and consumers shoulder higher tariffs on Chinese imports.
The yearlong conflict has barely dented the U.S. economy so far, but new 25% tariffs imposed Friday, along with the administration’s steps to expand levies to virtually everything from China, are raising concerns even among some Republicans.
https://www.wsj.com/articles/broad-...tariffs-escalate-11557658801?mod=hp_lead_pos2
WASHINGTON—President Trump has enjoyed rare bipartisan cheering for his brass-knuckle trade fight with China, but that support will now be tested as U.S. businesses and consumers shoulder higher tariffs on Chinese imports.
The yearlong conflict has barely dented the U.S. economy so far, but new 25% tariffs imposed Friday, along with the administration’s steps to expand levies to virtually everything from China, are raising concerns even among some Republicans.
https://www.wsj.com/articles/broad-...tariffs-escalate-11557658801?mod=hp_lead_pos2
Give it time for the sheep to realize that it cost them a lot of money out of their own pockets to support a Trump policy that does not benefit them in any financial way. In fact it will be a burden on their financial status just to help Trump implement his tariffs policy. Trump sure did sell it to the fools to get them to pay more money out of their pockets to the government. The con-artist managed to con people in to forking over more of their income to the government for nothing in return.
Did you read the article?
Of course it will cost. Have you ever thought about sacrifice for future goals and well-being? The idea that China abuses other countries is not new and is a bipartisan idea.
Wealth is built off of savings and not off of higher expenses. China also has competition from neighboring countries as well for manufacturing. The only reason the others were not called out was because they did not call for oil futures in their own currencies and call out for trade with other countries via their own new banking system which would no longer require all financial transactions to be processed via New York in the US. Majority of the companies listed on Wall Street would not have their current valuations had their profit margins not been where they are now due to products manufactured overseas.
I'm aware of how you build personal wealth. That's different from strategic economic policy where you want to benefit the whole country and generations down the road.
I don't have a problem with lower stock prices either. We're taking the short-term approach. As many have lauded China about - they're taking the long road. Don't you think that we should do the same thing? Or do you not care about the next generation. And those that follow?
Are you tired of winning yet?You could also call this price fixing
Funny how we use the term “Free Trade” only when it is to our likings.
Say an item before sold for $10 and government collected $.90 sales tax bringing it to $10.90 the new price will now be $12.50 before taxes and $13.62 after taxes. At first the government collected $.90 but now it collected $1.12 in taxes which means that they also collected 25% more in sales tax from the dummies that supported Trump on this but unfortunately all others have to pay this now as well. So in reality the government now collects and extra 25% at customs raising price by 25% for consumers then the government collects an additional 25% from the consumer as well from sales tax (difference being from $.90 to $1.12). In reality one could say we got two additional 25% increases on cost. One that raises product cost before taxes and one that raises sales tax amount paid from new higher price sold at.
Problem is that fighting the symptoms just won't work.
The US is addicted to debt both government and private and the $ is the worlds reserve currency so all that debt will be easily swallowed by other countries or (foreign) companies.
The only way they get those $ is by sending goods over to the US.
If the $ wasn't a reserve country it would have already entered freefall like the currencies of Turkey or Argentina resulting in a much lower standard of living for the average US citizen.
Same result if you'd stopped taking on more debt.
Now the (mis)handling of IP in China for sure is a real problem, but it is just not that directly connected to the trade deficit.
We've misused Exorbitant Privilege but we've also built quite an empire though it.
The technological gains made in many areas probably benefited somewhat from reserve currency status but we've done a lot of pretty remarkable things despite all of our other financial mistakes. Well, mistakes is not the word I was looking for but I have to go hit tennis balls now.
If these items have not yet been tariffed in the dispute that means MacBook Prices and smartphone prices could rise 25% from where they are at now. Students will take a nice hit from Trump this year.
https://www.yahoo.com/finance/news/china-names-trade-deal-price-060802514.html
https://www.yahoo.com/finance/news/china-names-trade-deal-price-060802514.html
Reality is kicking back in now in Futures. The unrealistic gains to squeeze out shorts on Friday is now getting a wake up call for what is to come on Monday
Futures now
Gains from last Friday
[doublepost=1557710340][/doublepost]
Keyboard quality depend on importer/buyer China has cheap quality keyboards and high quality keyboards.
Futures now
Gains from last Friday
[doublepost=1557710340][/doublepost]
Keyboard quality depend on importer/buyer
China has cheap quality keyboards and high quality keyboards.I exited my risk positions last week and am mainly in defensive positions. I do not believe that this will resolve in a short period of time and that there could be damage to the markets.
The action on Friday was pointed out to me by technician Helene Meisler as a gap fill. The candle tails were also within standard Fibonacci Retracements.
A very talented technician that I chat with expects new highs on the $SPX before it plunges. It's something that I keep in mind because the guy is a magician.
I was referring to 2016-2018 MacBook Pros on keyboard quality.
The action on Friday was pointed out to me by technician Helene Meisler as a gap fill. The candle tails were also within standard Fibonacci Retracements.
A very talented technician that I chat with expects new highs on the $SPX before it plunges. It's something that I keep in mind because the guy is a magician.
I was referring to 2016-2018 MacBook Pros on keyboard quality.
That strong retrace on Friday where options expire was pretty rigged if you ask me. It should not have gone up on Friday but the opposite always happens first then it goes the way to should after which we see now in US Futures. We have already had a triple top but it depends on which candle time frames he is looking at.
Will Trump have FED intervened and manipulate Index back up again or let her rip on Monday back to below 25,500..?
I left a few open SPY Puts on Friday. Wish I bought more and let them run
I left a few open SPY Puts on Friday. Wish I bought more and let them run