Current events discussion

[stocker08 10+ year member]

Here, I will show you.

Hello American business man. I will sell you 10,000 cars. The Price is $10,000 a piece.
Hello Chinese business man. What is the tariff on your cars?
Ahh, Orange man say 65%.
You want me to pay an extra $65,000,000 just because???
Yes, if you don't mind. We have been screwing Americans for long time. Now, Trump make us pay. Only way we make uh owa moneyis if you pay extra $65,000,000. We hava deal?
Keep your junk cars.

Again....missing the point. China isn't asking anyone to pay extra. The price they're charging has not changed. The only difference is that if the importer wants to bring the items into the country, they'll have to pay the tariff rate or the items will sit in a warehouse at customs. So, with a 125% tariff rate, it just means that importers will be buying way less from China because the tariffs will make the products more expensive than they are worth. Same goes for the other way around. China bumped their tariffs on US goods up to like 85% or something. Chinese companies buying stuff from America are going to stop doing that. A tariff war doesn't really benefit anyone.

 

[ThxOne Premium Member]

That's not how it works at all. Let's use Walmart as an example because they import tons of stuff to sell. If they're buying a product from China at a wholesale price of $100....in order to get it into the country....they'll need to pay the government the tariff percentage (which would be $125 if the rate is 125%). So in essence.....the Chinese manufacturer will receive the same $100 from Walmart regardless of the tariff rate. But Walmart's costs for that product are now $225 rather than $100 (with the excess going to the government). Walmart has to significantly raise the cost of the product or not import and sell it at their stores.

Exactly... or not import it. Which means Walmarts is losing money by not having a product to sell and China is losing money by not being able to sell. Walmart wants to make money so they will threaten to buy from some other supplier. Now China may lose future profits as well. Time to negotiate.

 

[stocker08 10+ year member]

Exactly... or not import it. Which means Walmarts is losing money by not having a product to sell and China is losing money by not being able to sell. Walmart wants to make money so they will threaten to buy from some other supplier. Now China may lose future profits as well. Time to negotiate.

You think so. Problem is that China is setting tariffs on the US too, which means that they are buying less from us as well. Not to mention that due to the political ideology of China, there's a much better chance that they'll be willing to suffer the consequences longer than we are. It's a game of chicken that Trump is unlikely to win.....as evidenced by his pause of tariffs on everyone else.

 

[ThxOne Premium Member]

You think so. Problem is that China is setting tariffs on the US too, which means that they are buying less from us as well. Not to mention that due to the political ideology of China, there's a much better chance that they'll be willing to suffer the consequences longer than we are. It's a game of chicken that Trump is unlikely to win.....as evidenced by his pause of tariffs on everyone else.

See, that is the problem I have with you all on the left. You are so blinded by hate that you put your faith in other countries over ours.

 

[stocker08 10+ year member]

See, that is the problem I have with you all on the left. You are so blinded by hate that you put your faith in other countries over ours.

No, you literally just do not understand this stuff very well. Setting a reciprocal tariff rate is entirely acceptable. If China sets theirs at 8%....it's entirely reasonable for Trump to set ours at 8%. That's not what's happening here. Trump has shot way past that amount and China is responding by increasing their tariff rates. Trump is trying to get some sort of win at the expense of everyone else. It's not well thought out and makes little sense.

 

[ThxOne Premium Member]

No, you literally just do not understand this stuff very well. Setting a reciprocal tariff rate is entirely acceptable. If China sets theirs at 8%....it's entirely reasonable for Trump to set ours at 8%. That's not what's happening here. Trump has shot way past that amount and China is responding by increasing their tariff rates. Trump is trying to get some sort of win at the expense of everyone else. It's not well thought out and makes little sense.

That is the other problem I have with you all on the left... you think nobody understands anything. I understand just fine.


With that said, apparently there is a 90 day pause now on most tariffs.

 

[AnthonyO 10+ year member]

In 2024, the US had a trade deficit with China of $295.4 billion, meaning China earned more from the US than the US earned from China, with the US importing $438.9 billion worth of goods and exporting $143.5 billion.
The difference between imports and exports, resulting in a trade deficit of $295.4 billion for the US.

Still think this is fair trade.

 

[stocker08 10+ year member]

In 2024, the US had a trade deficit with China of $295.4 billion, meaning China earned more from the US than the US earned from China, with the US importing $438.9 billion worth of goods and exporting $143.5 billion.
The difference between imports and exports, resulting in a trade deficit of $295.4 billion for the US.

Still think this is fair trade.

Do you feel like you're getting ripped off when you spend $100 on groceries.....but the grocery store owner doesn't come and buy $100 worth of stuff at your garage sale?

Trade deficit means next to nothing and assuming that we need to have balanced trade with every country is silly.

 

[ThxOne Premium Member]

Do you feel like you're getting ripped off when you spend $100 on groceries.....but the grocery store owner doesn't come and buy $100 worth of stuff at your garage sale?

Trade deficit means next to nothing and assuming that we need to have balanced trade with every country is silly.

Not balanced.... FAIR.

 

[Eggs 5,000+ posts]

 

[Eggs 5,000+ posts]

 

[AnthonyO 10+ year member]

Not balanced.... FAIR.

Exactly.

China has become the richest country by far. They did this by exporting goods.

 

[Eggs 5,000+ posts]

 

[Eggs 5,000+ posts]

 

[Eggs 5,000+ posts]