Discussion in 'Markets & Economies' started by JulieW, Mar 23, 2018.
From The Age
Trade wars have historically led to real wars
If Americans like higher prices and lower living standards, the use of tarriffs to prop up inefficient industries will make everything great again.
On the other hand...
Preparing for a future war by increasing American production of steel and aluminium. Tricky to fight a war when your only source of critical metals is the county that you are fighting?
My main concern. US war machine is very frustrated after Clinton missed the Leader role. It will be interesting to see if Trump confirms his 'no foreign wars' stand. To date it's not encouraging.
China hits back at Trump, announces retaliatory tariffs on $3bn of US goods
China 'would fight to the end' in trade war with US – Embassy
China should man up and at least match the $50 billion.
Very weak retaliation if true.
You don't have to retaliate when you are making about $60 billion a year in interest from all the U.S. bonds you own.
.....and if you are really lucky, capital will flow to the U.S., the dollar will increase in value and your interest payments become worth even more every year.
knock on the door, and collect the interests cheques, will be back again in 6 months time
its just too early to tell how this wars will develop, remember China wants her gold back, the notice was on
Propping up domestic industries using tariffs and 'trade war tactics' just helps to underscore a weak countries weaker currency
China slaps US with up to 25% bigger import tariffs in trade war retaliation
Beijing is hiking up tariffs on more than 128 US imports, including fruit and pork, as part of a tit-for-tat response to US President Donald Trump’s $60 billion package of tariffs imposed against China.
The additional fares, which range from 15 to 25 percent, are taking effect on Monday, the Chinese Finance Ministry said on their website. It added that the measure, aimed at “safeguarding China’s interests,” was in response to Washington’s package of tariffs targeting more than 100 types of Chinese goods, from clothing to electronics.
Ill see your tarriffs and raise you.
WASHINGTON (Reuters) - The Trump administration on Tuesday raised the stakes in a growing trade showdown with China, announcing 25 percent tariffs on some 1,300 industrial technology, transport and medical products to try to force changes in Beijing's intellectual property practices.
The U.S. Trade Representative's office unveiled a list of mainly non-consumer products representing about $50 billion of estimated 2018 imports that would nonetheless hit supply chains for many U.S. manufacturers. The list ranges from chemicals to TV sets, motor vehicles and electronic components.
BEIJING—China retaliated swiftly to the Trump administration’s latest proposed penalties on Chinese goods, announcing 25% tariffs on critical American exports, including soybeans, airplanes and autos.
China’s cabinet, the State Council, said Wednesday that the tariffs will cover 106 categories of products and will affect $50 billion of Chinese imports of U.S. products. The tariff rate and the sum of goods targeted mirror the proposal unveiled by the Trump administration Tuesday to punish Beijing for what it says are unfair practices to acquire American technology.
Dow Jones futures are down 454 points / 1.89% in pre-market trading. This is not going to end well for the US Economy, but Trump will be the last to admit this.
Trump/GOP are being surprisingly short sighted and naive.
Trade war isn’t the end the world.
Just be flexible and position yourself to on the winning side.
Think back to 1960 to 1980 some things cost, some less.
Trade wars have always been happening, I don't know why everyone is only now making a big deal about it.
When China joined the WTO they threw away the rule book. China have been massively undervaluing their currency and massively subsidising most of their exports yet most didn't make a big deal about it. What Trump is purposing is a fraction of what China have been doing for the past 15+ years.
Anywho I bet both China and USA are happy to increase prices as both now want price inflation.
Because the world has been moving away from them.
Now Trump's brainfart threatens the prosperity of all. It is a big deal because it is a massive step backwards compared to what's been happening over the past decade or so. He's basically undoing all the good work he did in 2017, but we knew he was always going to be erratic.
The world has never moved away from trade wars. What do you think China was doing over the past 15+ years?? Unless you think China's government heavily undervaluing their currency and subsidising the cost of their exports to gain power is free trade?? You out of all people should hate government interfering with the market.
Trump's move is a reaction to China's action. You can either hate what both sides are doing or like what both sides are doing, but you can't like what one is doing and hate what the other is doing.
btw the DOW went up last night, so no one seems to care. Only the doom and gloom people are freaking out.
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