Quote:So far it's been mostly foreign companies investing in manufacturing in the US.
Tariffs are paid by the importing companies, which would be those located in the US. The purpose of tariffs?
Try your hardest to follow, it's very simple.
Your products with either be more expensive than your US-manufactured competitors or you can also manufacture in the US.
Quote:
Quote:If other countries dropped all their tariffs on US goods, Trump would drop his retaliatory tariffs
No they won't. It's only leading to a trade war, with China, the EU, Mexico, and Canada all imposing their own tariffs on imported US goods. And that's not good for anybody.
They had existing tariffs on US goods before Trump's tariffs, moron. IOW, they were already waging a one-sided trade war. They just thought they could get away with it forever.
Quote:Your products with either be more expensive than your US-manufactured competitors or you can also manufacture in the US.
It takes on average 3-5 years and billions of dollars to build a manufacturing plant. Might as well tough it out till Trump leaves.
Quote:They had existing tariffs on US goods before Trump's tariffs, moron.
Trump's administration is lying about the tariffs of other countries:
"President Donald Trump announced an aggressive, far-reaching “reciprocal” tariff policy Wednesday, leaving many economists and U.S. trade partners to question how the White House calculated its rates.
Trump’s plan established a 10% baseline tariff on almost every country, though many nations such as China, Vietnam and Taiwan are subject to much steeper rates. At a ceremony in the Rose Garden on Wednesday, Trump held up a poster board that outlined the tariffs the administration contends are “charged” to the U.S., as well as the “discounted” tariffs the U.S. would implement in response.
Those reciprocal tariffs are mostly about half of what the Trump administration said each country has charged the U.S. For example, the poster said China charges a tariff of 67% and that the U.S. will implement a 34% reciprocal tariff in response.
However, a report from the Cato Institute said the trade-weighted average tariff rates in most countries are much lower than the Trump administration said. The report is based on trade-weighted average duty rates from the World Trade Organization in 2023, the most recent year available.
The Cato Institute said the 2023 trade-weighted average tariff rate from China was 3%, not the 67% the administration said it was.
The administration said the European Union charges the U.S. a tariff of 39%, but the Cato report said the EU’s 2023 trade-weighted average tariff rate was 2.7%.
In another example, the administration said India imposes a 52% tariff on the U.S., but Cato found that India’s 2023 trade-weighted average tariff rate was 12%."
Quote:Your products with either be more expensive than your US-manufactured competitors or you can also manufacture in the US.
It takes on average 3-5 years and billions of dollars to build a manufacturing plant. Might as well tough it out till Trump leaves.
Tell that to them:
"Today, Hyundai announced a $20 billion investment in the United States — including $5.8 billion for a new steel plant in Louisiana, which will create nearly 1,500 jobs.
...
Apple announced a $500 billion investment in U.S. manufacturing and training.
Nvidia announced it will invest hundreds of billions of dollars over the next four years in U.S.-based manufacturing.
Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment in U.S.-based chips manufacturing.
Eli Lilly and Company announced a $27 billion investment in domestic manufacturing.
United Arab Emirates-based DAMAC Properties announced a $20 billion investment in new U.S.-based data centers.
...
- https://www.whitehouse.gov/articles/2025...s-pockets/
stryderApr 5, 2025 11:19 AM (This post was last modified: Apr 5, 2025 11:33 AM by stryder.)
There seems to be some confusion in regards to how the Tariffs are currently going be applied, which would imply that there could be a lot of wrongfully filed transactions that could cause a legislative quagmire. (People over paying to the US and then asking for the excess to be return, or not paying enough etc)
Currently from the UK some companies pay 6% in US tax for goods. The UK is looking at 10% Tariffs generally. The question here is whether the Tariff's replace existing Tax, or are additive to it.
So 6% could raise to 10%, or the goods themselves are have the Tariff of 10% levied before 6% is applied (At which point the actual taxation and tariff combination becomes compounded at 16.67%) Or it could be that the Tax and the Tariff are just added together for 16%. Notably there is a discrepancy between these values of up to 6.67%.
If someone overpays will there be interest and at what rate?
If they underpay how much would they be fined and how long do they have to pay?
Are the Tariffs applied as a forecast (The future of what to expect) or grandfathered to be what should additionally be paid for goods or services up for the last tax year?
Further to that there is the question of the Tariffs themselves. For the most part I'd assume that the 10% Tariff is actually the BASE amount of Tariff that all countries are hit with. Any excess over 10% is then based upon the disparity between the value of goods imported/exported.
If that is the case it would imply that if a producer of a good was to reduce the amount of export by the percentage of the tariff, then the remain goods won't be tariffed.
For an example lets say we have a ratio where the US sends a country 600,000 cars and in return they get 750,000 foreign cars of the same base value per car. The disparity here is 25%. So with Trumps magic wand the country sending the foreign cars is now expected to pay a 10%+25% tariff (35%)
What that country could do though is reduce the number of cars it sends to 600,000 thereby the negating the additional tariff. (In fact the tariff would only be applied on whatever excess there is and that would gradually increase exponentially)
To negate both tariffs the company in question would actually have to send 510,000 cars at the price of 600,000. This negates both Tariffs by using a 5% margin to make sure they don't go over the quota, while increasing the price in relationship to the 10% tariff.
That means the car price if at $10,000 would increase to between $11,111.11 and $11,764.71 (which would likely require a rounding somewhere between those two figures like $11,500)
It would imply that a 10% tariff will be met by the prices of produce going up by 15%.
It would also mean that wages and salaries should also increase by 15% to cover the increase.
Considering most businesses can use a 3% per annum model for way increase, this is a 4 1/2 year price hike on wages in one year.
So does all these Tariff's equal a better off economy... well when you are at the top looking down you just see $$$'s, but when you look from the bottom up, you can see how the whole financial structure will shift and eventually cost a lot more.
(Apr 5, 2025 02:11 PM)confused2 Wrote: I'm not sure whether companies (like Apple) are preparing for trade war or actual (world) war. I suspect the latter.
Again, a leftist salivating for war. You know, in case there's a Ukraine ceasefire... they gotta keep their bloodlust satisfied.
"This is what tariffs are designed to address. Leveling the playing field such that the international trading system begins to reward ingenuity, security, rule of law and stability, not wage suppression, currency manipulation, intellectual property theft, non-tariff barriers and draconian regulation."
Like I said, labor exploitation requires wage suppression to be sustained in a manufacturing country, and China has been stealing intellectual property for decades.
"But what he essentially means is that due to everyone wanting to export to the US to obtain dollars, the US has a truly unique negotiating position in the trade war. Trump's first trade war failed because China just increased exporting to countries like Mexico and Vietnam, which is then exported to the US."
So more across the board tariffs are meant to keep antagonistic countries from doing an end-around on direct tariffs. Doing so allowed them to continue benefiting from US dollars while completely avoiding any renegotiation of trade. IOW, benefiting themselves at the cost of the US.
Syne Wrote:Again, a leftist salivating for war. You know, in case there's a Ukraine ceasefire... they gotta keep their bloodlust satisfied.
That's great! Just a few more weeks and everything will look better.
One of the US's 'features' is that US workers expect to be paid between 5 and 10 times (or more) than workers in the countries they are competing against - this was (and remains) the reason for the trend to outsource manufacturing to other countries. For people who are already rich this may not be a problem .. for others .. maybe rather more of a problem.
I'm pleased to see Apple investing $500 billion in the US .. that's $1,000 for the next 500 million items sold (about 2 years worth of iphones) .. longer term (10 years) just $100 per item.
Notice how the leftist deflects from his bloodlust. 9_9
If wages in the US were tied to manufacturing in the US, everything would balance out. Just like raising the minimum wage just forces employers to raise prices and earnings/prices end up relatively where they started. And no expects to earn anything relative to foreign workers. Do people in other countries think like that? US workers just expect to earn a decent standard of living commensurate to their skills.
"I believe he can negotiate freer trade deals, get those tariffs way, way down, much lower than they are now."
In the wake of dramatic tariff-driven stock market dips, Art Laffer laid out the blueprint on Tuesday for what he sees as a clear “win-win exit strategy” for President Donald Trump.
Laffer, who served as an economic adviser to the late President Ronald Reagan, explained that strategy in detail ... and argued that President Donald Trump’s initial plan — to use the tariffs solely as leverage for negotiating fairer trade relationships all around — was effectively an exit strategy from the start.
Apr 5, 2025 03:10 AM
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