Trade wars

[dtbach]

I don't see how increasing tariffs will be good at all for the market. Will this be the straw that breaks the camels back?

 

[copyright1997reloaded]

I don't see how increasing tariffs will be good at all for the market. Will this be the straw that breaks the camels back?

[Let me say up front that as a Econ major and investor, I don't like that it is being proposed/done.]

It't not, unless the market is US Steel et al.

Not necessarily. Remember the game of chicken in the 50's? It depends on who blinks first....unless neither blink. It also helps (potentially) in terms of the voters of PA, OH, MI, WI - which are key to the 2020 election.

 

[USGrant1962]

I don't like the tariffs but I'm wondering if this is just a first negotiating position - the art of the deal and all.

 

[mpeirce]

I don't like the tariffs but I'm wondering if this is just a first negotiating position - the art of the deal and all.

Exactly

 

[easysurfer]

Newton's third law of motion:

"When one body exerts a force on a second body, the second body simultaneously exerts a force equal in magnitude and opposite in direction on the first body."


Read an article that if others retaliate, no one wins in the end.

Might see soda or beer served in paper cups (well, maybe not to that point just yet) .

 

[timo2]

The world has been down this path before. Trade Wars are not uncharted territory. Trade wars are bad for everyone. This has not happened recently because of all the international mechanisms set up to prevent trade wars (trade negotiations, treatys, international trade courts, etc.). Does no one with influence read history?

 

[harley]

My biggest concern is the price increase in soda, which I drink a lot of (diet, so don't give me a hard time). I drink beer out of bottles, but I'm sure when they have to raise the price of cans, they'll spread it to the bottled beer too smooth the increase.

I know one of the main reasons given for the tariffs is a national security issue, that we need to be producing the materials for our weapons instead of importing it from potential enemies, but the major trading partner for aluminum is Canada. As someone else said, if it gets to the point where they are an enemy, we've got bigger problems than aluminum imports. I hope this doesn't go through. Nobody wins a trade war.

 

[Nemo2]

How does GATT (Article 6) 'Anti-Dumping' feature in this, vis-a-vis steel?

 

[easysurfer]

European Union (EU) responding by weighing with tariffs of their own. On Harley-Devidson motorbikes, bourbon whiskey and Levi's jeans.

 

[Meadbh]

My biggest concern is the price increase in soda, which I drink a lot of (diet, so don't give me a hard time). I drink beer out of bottles, but I'm sure when they have to raise the price of cans, they'll spread it to the bottled beer too smooth the increase.

I know one of the main reasons given for the tariffs is a national security issue, that we need to be producing the materials for our weapons instead of importing it from potential enemies, but the major trading partner for aluminum is Canada. As someone else said, if it gets to the point where they are an enemy, we've got bigger problems than aluminum imports. I hope this doesn't go through. Nobody wins a trade war.

You sell us more steel than we sell you. Two can play at this game.

 

[flintnational]

IMHO, trade is over rated. We make all of our own stuff including the computer I am typing on. Just this morning the misses was making bread, soap and clothes. I am splitting roof shingles this afternoon and then I am going to roast my own coffee beans (which I grew) and plow the back forty (which I cleared with my bare hands). Tomorrow I may fire up the smelter and smelt some ore (which I mined). I am really dreading next year. It will be time to build a new car.

 

[harley]

Where do you have your clean room for producing your circuit boards and chips?

 

[harley]

European Union (EU) responding by weighing with tariffs of their own. On Harley-Devidson motorbikes, bourbon whiskey and Levi's jeans.

I don't know about the bikes, but the other two are going to piss off a lot of European consumers. I guess that's why it's called a trade War.

HFWR, since you're going to Italy and Paris, you might want to wear a dozen pairs of Levis on the trip over. Black market sales could pay for your trip.

 

[GrayHare]

"What we learn from history is that we don't learn from history."

 

[candrew]

"What we learn from history is that we don't learn from history."

+1

And those who don't learn from history are destined to repeat it. Or so said someone much wiser than me.

 

[flintnational]

Where do you have your clean room for producing your circuit boards and chips?

The clean room is fairly easy. It just takes a lot of plastic wrap. The hard part for us do it your selfers is slicing the home made plastic wrap as thin as the comercial stuff.

 

[MichaelB]

I highly recommend Michael Pettis’s book “Global Rebalancing” for a discussion on trade. He is one of the world’s top economists on economic growth and trade policy. “Global Rebalancing” is not a textbook, it’s more a series of essays that explain current trade imbalances and discuss different policy measures. You can find the book here.

 

[frayne]

I don't like the tariffs but I'm wondering if this is just a first negotiating position - the art of the deal and all.

Exactly and if this is just an opening shot across the bow, the timing does seems a little goofy in light of the on going NAFTA trade talks.

 

[MichaelB]

This can be an interesting discussion on global trade and the impact of tariffs, but there’s no need to get into election related themes.

 

[Chuckanut]

I have read suggestions that in the past foreign governments have aimed their 'retaliation' at businesses located in states that have politicians that favored the tariffs.

This may be even more complicated than it seems. Overall, I am in the camp of those who generally oppose tariffs. OTOH, If some countries with unfair tariffs and restrictions on our products won't play fairly......

Like my old grand-pappy used to say "When you want a donkey to get moving, the first thing you do is hit it over the head with a 2x4 to get its attention".

 

[joeea]

I don't see how increasing tariffs will be good at all for the market.

It won't be good for the market as a whole.

Trade wars are the kind of wars that neither side wins.

Will this be the straw that breaks the camels back?

It depends on the camel, and the strength of the back.

 

[joeea]

My biggest concern is the price increase in soda, which I drink a lot of (diet, so don't give me a hard time). I drink beer out of bottles, but I'm sure when they have to raise the price of cans, they'll spread it to the bottled beer too smooth the increase.

If that's truly your biggest concern, you needn't worry. The price increases on those products are unlikely to matter a whole lot.

My biggest worries are the stock market and jobs. I can afford to pay a little more for my soda and beer.

 

[frayne]

I can understand the need to restrict or penalize a country that dumps materials such as steel and aluminum because of their government subsidies and over capacity but why use a shotgun when a rifle would be so much more effective in punishing the perps. It seems like a rather knee jerk reaction even if it is a negotiating tactic.

 

[Mr._Graybeard]

[Let me say up front that as a Econ major and investor, I don't like that it is being proposed/done.]

It't not, unless the market is US Steel et al.

Not necessarily. Remember the game of chicken in the 50's? It depends on who blinks first....unless neither blink. It also helps (potentially) in terms of the voters of PA, OH, MI, WI - which are key to the 2020 election.

This is not good news for Wisconsin. Harley-Davidson needs to expand exports as its domestic fanbase ages away. Several builders of heavy mining machinery rely heavily on exports. And we can't eat all that cheese ourselves!

 

[capjak]

Here is link to all the trade tariffs/agreements etc I think:

https://wits.worldbank.org/CountryP...ear/LTST/TradeFlow/Import/Partner/by-country/