Trade Wars

JulieW

JulieW

Well-Known Member
Silver Stacker
President Donald Trump will slap import quotas on Australian steel and aluminium and the tariff exemption he granted Prime Minister Malcolm Turnbull may only be temporary.

US Trade Representative Robert Lighthizer and Mr Trump's policy adviser Peter Navarro offered new details on the tariffs on Thursday, US time.

Australia, Europe, South Korea, Canada, Mexico, Argentina and Brazil were named by Mr Lighthizer as the nations that will initially escape America's 25 per cent steel and 10 per cent aluminium tariffs, which come into force on Friday.

The Trump administration, however, was quick to remind Australia and the other exempted countries pressure would be applied to secure better trade deals for the US.

"Here's what's going to happen," Mr Navarro told CNN.

"They're temporary exemptions conditioned on the ability of these countries to come to the table and give us more fair and reciprocal trade
Australia and other exempted nations will be saddled with steel and aluminium quotas to prevent non-exempted nations attempting to find backdoor entry points to America.

"This is an important thing," Mr Navarro said.

"Every country that is not facing tariffs that we are going to negotiate with will face quotas so that we protect our aluminum and steel industries.

"For all countries there has to be a quota.

"If you don't put a quota on then any country that can do whatever they want will become a trans-shipment point for any other country."

The tough words came as Mr Trump heightened fears of a US-China trade war by announcing plans to hit Chinese goods with $US60 billion in tariffs.

World stock markets plummeted, with the Dow Jones plunging 724.42 points and shares of US airline manufacturer Boeing, likely to be a victim of retaliatory trade action from China, dropping 5.2 per cent.
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From The Age

Views?
 
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.
 
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
 
https://on.rt.com/92bn


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.
https://finance.yahoo.com/news/u-un...orth-chinese-imports-213758552--business.html
 
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.
 
whinfell said:
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.
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touche!
 
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. :confused:

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.
 
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leo25 said:
Trade wars have always been happening, I don't know why everyone is only now making a big deal about it. :confused:
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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.
 
mmm....shiney! said:
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.
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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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leo25 said:
The world has never moved away from trade wars.
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You’ve misquoted me, I said the world "has been moving away", not “has moved away”.

From the WTO 4 December 2017 data:

In its latest trade monitoring report, WTO said in the year to October, 108 new trade-restrictive measures—like new or increased tariffs, customs regulations, restrictions on quantities and local content measures—were put in place, which amounts to an average of nine new measures per month, according to the WTO.

As WTO director-general Roberto Azevêdo said, it’s a “marked reduction” from the average of 15 per month in the report’s prior year period.
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https://sourcingjournalonline.com/wto-trade-measures-2017/
 

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