Trump Shoots Himself In Foot.

[Zacs-Master]

Trade war: Trump raises tariffs on $200bn of Chinese goods https://www.bbc.co.uk/news/business-48210313

I love the fact that the Beeb have chosen to show a picture of the Stars & Stripes being made.

[jim360]

Even with the tariffs it might be difficult to compete on price. Partly this is for sad reasons: average wages in China are shockingly low.

But basically this is a bad move because it runs completely counter to the way the US (and, more generally, the West's) economy has developed: moving away from primary industries and towards higher-skilled jobs. By definition, trying to undo this is taking a huge backwards step, will anyway take a long time to lead to US clothing, etc, industries re-establishing themselves, and in the meantime mainly just drives prices up for the customers.

All because Trump thinks that running a Trade deficit is somehow a bad thing.

[Zacs-Master]

Thanks, Jim. My point exactly. Trump has just increased prices of US goods imported from China, some of which are their own flags.

[jim360]

Oh, and another thing: this is also exactly the opposite economic model for running a country advocated by the same free-market economists who are the only group of people who want Brexit.*

Contradiction much? Do you like tariffs or do you want tariff-free trade?

*Just to be clear, the economic stance that's most sensible is in between the two. Tariffs should be neither zero (which wrecks local industries) nor sky-high (which kills competition and discourages innovation).

[Spicerack]

^ There. I said he'd be on your side, Zacs.
Hey, I must be a mind reader. Lol.

[ToraToraTora]

JM: "You really thing the US public care where their products are made? " - no they care about the price, the chinese versions of the goods concerned just got dearer, not too tricky is it?

[ToraToraTora]

gawd help us it's a Bromance!

[Zacs-Master]

Prove to me that Chinese imported flags are dearer than home made ones (you’ll probably struggle to find home made ones).

[Peter Pedant]

// Generally I am not a fan of this sort of protectionism but I can see the intention.//

intentions so what - as trump er trumpets it is the bottom line that ... counts

[bottom line is the amount of profit in case anyone on Ab wonders]

[Zacs-Master]

So,as a Chinese goods maker exporting to the US PP, what would your response to increased tariffs be?

[dannyk13]

Now wait and see how China will react by putting higher tariffs on goods imported from America.

[jim360]

The thing is, it doesn't work. Back when the British Empire was the world's only superpower, the debate over whether to have protectionist tariffs or not raged. The protectionists lost the argument, as they always will. It's just far too simplistic to think that raising prices on competitors alone will fix your own economic problems. In fact, the reverse is often true.

[ToraToraTora]

I don't know if they are, all I'm saying is that putting tarrifs on imported goods is a protectionist measure to make home manufactured goods more attractive. I even said at the start that I disagree with this sort of protectionism. I actually agree with a lot of what you say, I was merely trying to understand why it's a shot in the foot, if Obama had done it you'd be glowing.

[Ken4155]

When i saw the posting headline, i thought, just for a second, that Trump had actually.................................... Of course, that would mean he actually had to handle a weapon which, we all know, he can't do because of a verruca, or a corn or an ingrowing toenail or some such.

[Peter Pedant]

yes the trumpo administration has er trumpeted that the charges will be paid by American companies

who will pass on the extra cost onto the consumer....
only I have realised that last bit....

so tariffs will push up consumer prices in the US ...
allowing home grown flags to be sold cheaper so long as the US companies get spcis and gooks to sew at chinese rates .... which they clearly cant

[Zacs-Master]

I was no supporter of Obama either, as it goes. I doubt many of the home produced goods which are imported from China are actually made in the US. I doubt even more whether Trump has bothered to research this.

[Togo]

//The protectionists lost the argument, as they always will. //

Do you mean that the EUSSR protectionist policies are doomed to failure then?

[Peter Pedant]

No ..... Yes .....
I saw the headline - trump shoots himself in .....

and thought no he screwed it up and either shot himself in the goolies or shot someone else by mistake....

[Peter Pedant]

// Do you mean that the EUSSR protectionist policies are doomed to failure then?//

completely irrelevant to the wuestion as they are not changing. Except for us, because there is a change in tariffs - and we can expect decreased sales as a result of inflated prices

[jim360]

The EU's tariffs are not "protectionist" in the proper sense of the word, Togo. Protectionism = sky-high tariffs, not moderate ones.