trumps tariffs costing america big time

[aubiefifty 17,492]

yahoo.com

 

Trump's tariffs have cost US businesses $3.4 billion in June

Krystal HuReporter

5-6 minutes

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Trump's tariffs cost US businesses $3.4 billion in June

President Trump's tariff fight is hitting U.S. businesses hard — to the tune of $3.4 billion last month alone. That's according to a trade coalition fighting to stop the tariffs. Yahoo Finance's YFi AM panel discusses the latest.

As President Donald Trump doubles down on tariff threats against China, the price tag of the year-long trade war is climbing for U.S. businesses.

U.S. importers have paid $6 billion in tariffs in June, a 74% jump compared to a year ago, despite a slight decline in the value of imports. And $3.4 billion of that total came from tariffs imposed by President Trump. This is according to research released on Wednesday by the business coalition “Tariffs Hurt the Heartland” in conjunction with The Trade Partnership, a Washington-based trade and economic consulting firm.

The June data highlights the first full month’s impact of Trump raising tariffs on $250 million worth of Chinese goods to 25% from 10% on May 10.

“June was our biggest month yet there in terms of punitive tariffs made,” said Dan Anthony, vice president at The Trade Partnership.

Despite the removal of steel and aluminum tariffs from the 232 Investigation in May, American companies paid about $3.1 billion in tariffs on products subject to Section 301 remedies on China in June, compared to just $411 million in June 2018. Meanwhile, the value of imports from China declined sharply by 36%, as importers look for alternatives in Southeast Asia.

Cost burden will shift to consumers

Trump said imposing tariffs is a tactic to get the Chinese side to the negotiating table earlier. As the trade talks drag on, he uses it to pressure the Chinese to make compromises, although Beijing has repeatedly said it won’t “negotiate with a gun pointed to its head”.

U.S. importers are legally responsible for paying the tariffs as the goods reach American ports. Some importers say they are able to mitigate the previous 10% tariffs due to the devaluation of the Chinese currency yuan. But with a 25% tariff, they have to pass along some costs, eventually to the consumers. In some cases, Chinese suppliers offer a lower price to stay competitive.

Since the beginning of the trade war in 2018, American taxpayers have paid over $27 billion in extra import tariffs, according to The Trade Partnership’s analysis of U.S. Census Bureau data. And the cost will only pile up from here, as Trump threats to impose 10% tariffs on the rest of $300 billion worth of Chinese products starting September 1. China has hit back by stopping the purchase of U.S. agricultural products.

While the next round of trade talks is scheduled next month, some Wall Street analysts are already predicting no trade deal before the U.S. election in 2020. Should this be the case, businesses and consumers will need to brace for greater costs.

“Each subsequent list has shifted more towards products that everyday Americans might buy, And that'll really kick in with the tariffs that have been announced for September 1,” said Anthony. “Those are predominantly products that certain individuals buy for themselves at retail as opposed to chemicals or industrial machinery.”

Correction: Trump's tariffs have cost U.S. businesses $3.4 billion in June. Importers paid $6 billion in total tariffs in June. An earlier headline misstated the number.

Krystal Hu covers technology and China for Yahoo Finance. Follow her on Twitter.

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[AU64 10,122]

Tell me about this when it shows up in the CPI.....until then, I'm thinking all this talk is mostly BS.   

The secret is what Dr Steele used to call..."consumers making rational buying decisions"....which means if the price goes up, the smart / rational consumer buys something else....or doesn't  buy it at all.      Just about everything that comes from China to the US (subject to tariffs) can be classified as "wants" and not needs....and virtually everything on the tariff lists is available from other low cost producing countries in the far east, or even from North America or maybe even a domestic source.  

Our own government is far more intrusive in a "cost or price way" than China....because of sales taxes, excise taxes, regulations that raise the cost of production or rules that force companies to make uneconomical investments.....like solar or wind power.   

 

[TexasTiger 13,556]

26 minutes ago, AU64 said:

Tell me about this when it shows up in the CPI.....until then, I'm thinking all this talk is mostly BS.   

The secret is what Dr Steele used to call..."consumers making rational buying decisions"....which means if the price goes up, the smart / rational consumer buys something else....or doesn't  buy it at all.      Just about everything that comes from China to the US (subject to tariffs) can be classified as "wants" and not needs....and virtually everything on the tariff lists is available from other low cost producing countries in the far east, or even from North America or maybe even a domestic source.  

Our own government is far more intrusive in a "cost or price way" than China....because of sales taxes, excise taxes, regulations that raise the cost of production or rules that force companies to make uneconomical investments.....like solar or wind power.   

 

So you’re saying the deflation will balance it out?

[AU64 10,122]

10 minutes ago, TexasTiger said:

So you’re saying the deflation will balance it out?

I am saying consumers have choices about what they buy....not deflation....just alternate buying actions.

[japantiger 4,077]

On 8/23/2019 at 9:52 PM, AU64 said:

I am saying consumers have choices about what they buy....not deflation....just alternate buying actions.

And what is already happening...suppliers move the supply chain and absorb costs other ways.  This is another BS story by a liberal arts major who's never done business.

[aubiefifty 17,492]

independent.co.uk

 

Trump blames 'badly run and weak' US companies for struggling to cope with tariffs he imposed

Clark Mindock New York @ClarkMindock

6-8 minutes

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Donald Trump has cast blame on “badly run and weak companies” that are struggling in the wake of his stiff international tariffs, and suggested that the US would have “one of the biggest Stock Market increases” if the US Federal Reserve would just cut interest rates.

Mr Trump’s claims come amid mounting signs that his trade war with China is damaging the US economy, and as American companies have complained that the stiff tariffs have put extra strain on manufacturers as the sector has slowed.

The attack on the Fed has become a mainstay of the president’s in recent weeks, too, as he seeks to put pressure on the financial regulator to cut interest rates in spite of his insistence that the US economy is strong. The Fed generally cuts borrowing costs when the economy needs help — to spur the flow of capital — and raises the rates during a strong economy to keep economic excesses in check. The Fed cut rates for the first time since the 2008 financial crisis earlier this year.

We’ll tell you what’s true. You can form your own view.

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“If the Fed would cut, we would have one of the biggest Stock Market increases in a long time. Badly run and weak companies are smartly blaming these small Tariffs instead of themselves for bad management...and who can really blame them for doing that? Excuses!” Mr Trump tweeted on Friday morning.

Earlier in the morning, Mr Trump also claimed that the Fed is responsible for allowing Europe to gain a trade advantage over the US, as the Euro drops in value compared to the dollar.

 

 

“The Euro is dropping against the Dollar “like crazy,” giving them a big export and manufacturing advantage...and the Fed does NOTHING! Our Dollar is now the strongest in history. Sounds good, doesn’t it? Except to those (manufacturers) that make product for sale outside the U.S.”, Mr Trump wrote.

The manufacturing sector’s output has slowed for two consecutive quarters, leading many to note that the circumstances have met the standard definition of a recession.

The sector, which Mr Trump pledged to revive as a presidential candidate, is among the hardest hit by Mr Trump’s trade war with China, and could complicate his hopes of re-election next year if the economic situation continues to deteriorate.

Manufacturing plays a key role in several states that helped Mr Trump along to his surprise win in 2016, including Pennsylvania, Wisconsin, and Michigan.

Mr Trump has said he plans on increasing tariffs on Chinese imports even further, too, from 25 per cent to 30 per cent.

 

[japantiger 4,077]

Look at tech earnings...they are all up.  Good companies get ahead of trends. Tariffs are a nuisance, not an earnings driver.