Trade War begins: US and China exchange $34 billion in tariffs

I don't see how another Chinese revolution would help if that's what you mean.

 

If farmers take fire in this war we need to help them dig in.

 

Maybe we can plant fir trees in Iowa to make up for it. Might help us with our trade war with Canada.

 

The most important market in the world is the US market. That is why the US government is concentrating on gaining control of the US market instead of making efforts to gain market share in Gambia or Ecuador as you seem to be suggesting we should do.

 

It would take ruin the Chinese economy and industrial base. It would cripple Chinese efforts to build a large military power. It could possibly lead to change of government toward democracy. It could even lead to the division of China as it has in the past. Any of these outcomes are positive for the US.

 

Perhaps it is best to first stop our hemorrhaging of capital through trade deficits and rebuild our industrial base, which we have been shipping to China, rather than build things in Canada and Mexico so we have things to sell to emerging markets.

I find it encouraging that US Steel is reopening a steel plant.

https://www.cnbc.com/2018/03/07/us-...-bringing-back-jobs-ceo-on-trump-tariffs.html

 

In fact chines law demands 51% ownership of any foreign business in China and that is one of the things Trump is fighting here. Unfair trade practices like this by china.

 

Even if this were successful the only thing it would accomplish is higher prices for US consumers and reduced sales of US goods to other countries.
I'm not sure you or Trump actually knows what the end game is.

 

That might work if it was only a trade war with China,you seem to have forgotten the fact that he's also started a trade war with Canada,Eu and Mexico,who might have helped to put pressure on China if he hadn't done so.
No one wins a trade war especially if they are fighting on 4 fronts.

 

What we need is new "stuff." that we can make at our higher wages. We could have spent the corporate tax cut on R&D tax credits for example.
The problem we have is that half of our corporate revenues are made in foreign countries, so every time we hurt them we hurt ourselves and every time we just make "stuff" more expensive in the US we make our exports less attractive.
The answer to this point has been automation.
Edit:
Have a look at the price of American steel now to see what we are paying for those 500 jobs. I can post it if you like, but it is several million per job.

 

The end game is the negotiation of more favorable trade deals for the US.

 

Wrong as usual.

Most important Market is EU. USA follows 2nd and China 3rd.

 

Let me se if I can put real life on that statement.
You want to make steel more expensive so the US can make more? Is that a good example? Or did we just make a mistake by putting tariffs on steel?

 

You dont win, you lose.

Trump has the wrong Idea, that American Cars are not bought because tariffs. Reality is, american car market Share in Germany is below 0.4%. thats not because tariffs. It is because american Cars do not Match German taste. When tariffs fall in Zero, more americans buy German Cars but Germans still wont buy American Cars.

 

So why in your opinion are tariffs being applied to US produced cars?










Germans will either start buying foreign goods, or be unable to continue selling their goods in foreign countries.
This is an inescapable inevitability. Trade = an exchange. Goods must be exchanged.

The German economy is FUBAR.
Weak.

In an EU US trade war, Germany folds first. It's the weakest link. An export dependency.
Neither Germany nor America have trade balances. It's not just a problem for America. It's one for Germany too.

All a country like America has to do is close it's market you and you will starve. Mass starvation.
That is how weak you are.

Start a trade war with America and your country will collapse. There will be no Germany any more.
And they will barely even notice lol. Buy Japanese cars instead.

 

I could be wrong, but I think it may have been in response to US tariff of 25% on trucks from 1962.
I think the EU would probably trade our truck tariffs for their car tariffs in a heartbeat.

 

And this will help the US how?

 

There was no EU in 1962. It was formed in 1992.

The EU is a protectionist trade block.
They tariff more than America because they do not believe in "free trade" ideologically.

 

It won't make any particular difference to the US. (But it will wipe Germany off the map, so you can see how this "trade war" is going to play out).

What will help the US is if country's drop their market protectionism. Open their markets to US producers.

So the goal of US tariffs is twofold.
No.1 protect domestic industry.
No.2 a bargaining chip to reduce global tariffs on American exports. To enhance America's global trade.

 

The obvious end game is to create an equal playing field for US exports to China and the EU and permanently lowering the US trade deficit. Now you know.

 

You forget almost all German cars bought in the US, which is a small number given the size of the US market, are built in the US. The number of people interested in buying German cars will remain about the same as it is now regardless of where the tariff goes.

 

Same here. There is Zero interest in American Cars in Germany. So what is trumps Problem?

 

What's your problem? You tariff more than he does.
Are you afraid your own people will prefer to buy American?

Clearly you are and that's why you do it.

Getting a taste of your own medicine and not liking it much.
Boo hoo for you.

 

Not correct.
If I add 10% to the price of a Porsche in my showroom, many customers will choose to save £10,000 and buy a different car.
It makes a difference.

Now imagine a 25% tariff and my buying decision becomes Porsche vs Aston Martin.
So I will have an Aston for the same price.

Cars are big ticket items. Small percentage changes in price equate to thousands of pounds at the point of sale.

Price matters. Even in the luxury goods market.

 

Save this comment until the start of the last quarter then tell me "I" lost.