Tariffs on Chinese goods?

[SheepDog4Life]

China has placed, since the start of the trade war about $100B in tariffs on US goods. $37.5B less means what? I don't see how we can call that a win, when we are still paying WAY more in tariffs that we did when this whole thing first started.... but ok, baby steps, maybe it's a trend that might pay off eventually.

First, China had increased tariffs ON $110B in US exports. In most cases increasing from 5% to 10%. It was NOT $100B in tariffs.

Second, "we" don't pay the tariffs China imposes, Chinese consumers do (and vice versa on US tariffs on Chinese goods).

Third, China is reducing the tariffs on $75B in goods. This is a roll-back of their retaliation last fall.

WSJ: China to Cut Tariffs on $75 Billion of U.S. Goods
https://www.wsj.com/articles/china-to-cut-tariffs-on-75-billion-of-u-s-goods-11580967540

Finally, China agreeing to increase imports of US goods by over 50% in the next two years is HUYGE!

Look at the above graph from BLOOMBERG of all places.

ETA: BugI was quicker in responding than I

 

[Kutnupe14]

I guess by eventually, you mean next week

https://www.wsj.com/articles/china-to-cut-tariffs-on-75-billion-of-u-s-goods-11580967540
China to Cut Tariffs on $75 Billion of U.S. Goods
Levies on some American products to fall to 5% from 10%, beginning Feb. 14

I think you may be missing my point. If China tacked on $100B during the trade war, and now they are halving $75B, we still are behind the eightball. You follow?

 

[Kutnupe14]

First, China had increased tariffs ON $110B in US exports. In most cases increasing from 5% to 10%. It was NOT $100B in tariffs.

Second, "we" don't pay the tariffs China imposes, Chinese consumers do (and vice versa on US tariffs on Chinese goods).

Third, China is reducing the tariffs on $75B in goods. This is a roll-back of their retaliation last fall.

WSJ: China to Cut Tariffs on $75 Billion of U.S. Goods
https://www.wsj.com/articles/china-to-cut-tariffs-on-75-billion-of-u-s-goods-11580967540

Finally, China agreeing to increase imports of US goods by over 50% in the next two years is HUYGE!

Look at the above graph from BLOOMBERG of all places.

ETA: BugI was quicker in responding than I

Mea Culpa, the sentiment is still the same.

 

[SheepDog4Life]

They are halving the tariffs, from 10% back to 5% pre-trade war, on $75B in US goods. Reduced tariffs on those goods from $7.5B to 3.75B.

That wasn't the "big" concession... agreeing to import way more US goods this year and next is the big win. Here's the graph again:

 

[Kutnupe14]

They are halving the tariffs, from 10% back to 5% pre-trade war, on $75B in US goods. Reduced tariffs on those goods from $7.5B to 3.75B.

That wasn't the "big" concession... agreeing to import way more US goods this year and next is the big win. Here's the graph again:

View attachment 83790

We can be hopeful, but it's the Chinese. I would be surprised if they followed through, especially now with the Coronavirus.

 

[SheepDog4Life]

Mea Culpa, the sentiment is still the same.

I'll agree with you, up to a point. The Chinese tariffs (except perhaps on US autos) was never the real ballgame... looked big, but that wasn't what really "hurt". This tariff roll-backs just take us back to where we were last summer before China retaliated/escalated.

Part of the deal increasing imports this year is soybeans... that was the dagger China really pointed at Trump, halting the buying US soybeans... attempting to target his support from farmers.

One of Trump's goals out of all of this was for China to substantially increase what it buys from us... they've signed up to do exactly that in a big way (the graph). No idea what an increase of approx. $120B in increased goods annually means in terms of jobs, but a million-ish plus sounds reasonable.

IP protections, ending forced technology transfers, currency manipulation, etc remain to be worked out, so yeah, it's not everything Trump sought.

 

[BugI02]

We can be hopeful, but it's the Chinese. I would be surprised if they followed through, especially now with the Coronavirus.

You know, I almost posted a 3 ... 2 ... 1 ...count-down to this canard. So, are you saying we shouldn't do deals with countries that may not follow through on their commitments? Looks bad for Germany, the EU and NATO just to name a few

You're becoming predictable

 

[BugI02]

I think you may be missing my point. If China tacked on $100B during the trade war, and now they are halving $75B, we still are behind the eightball. You follow?

If China tacks on 10% tariffs but only has $160 billion in imports to tax, and the US tacks on 10% to $300+billion in imports from China, who's on first?

$30billion > $16billion and it is absolutely a zero sum game. You follow?

 

[SheepDog4Life]

We can be hopeful, but it's the Chinese.

Absolutely... but this is political points for Trump... few will doubt that HE would resume tariffs if the Chinese reneged.

I would be surprised if they followed through, especially now with the Coronavirus.

Hopefully, Coronavirus gets under control, or the world has problems bigger than trade.

As it stands, the quarantines of people and certain products coming OUT of China makes China more economically disadvantaged. They cried "uncle" prior to this... IMO they could not sustain reimposition of US tariffs on their goods to the US... and they have trillions of US dollars in the bank, so I think they'll comply... unless Trump loses, then that calculation changes.

 

[SheepDog4Life]

Short answer, if the Trump tariffs were not hurting China, they had no reason to make ANY deal until after the election... let allow giving Trump any WIN going into the election season.

 

[Kutnupe14]

You know, I almost posted a 3 ... 2 ... 1 ...count-down to this canard. So, are you saying we shouldn't do deals with countries that may not follow through on their commitments? Looks bad for Germany, the EU and NATO just to name a few

You're becoming predictable

I'm missing how that weakens what I said. But the short answer, unless there's not some other benefit, from those nations, not associated with those commitments, no, we shouldn't be doing deals.

 

[BugI02]

Short answer, if the Trump tariffs were not hurting China, they had no reason to make ANY deal until after the election... let allow giving Trump any WIN going into the election season.

Now, now. You know that where Trump is concerned, some people will only accept the final outcome of a conflict (whether of ideas or something more substantial). Unless, of course Trump can be said to be losing.
We'll have to wait until after WWIII to determine whether the US won the trade war, but we can be declared the loser anytime the numbers can be interpreted to go against us, even if that is ephemeral

 

[Thor]

The Kung Flu is the perfect opportunity to shut down all trade with the ChiComs (our enemies) and reassess our trade relations. Turn the container ships around and shut down all other travel until the death toll sorts itself out. Then we can reassess what we want to do with the ChiComs (our enemies) on a basis that is not detrimental to our economy and capital.