Fears of a trade war are growing as president Trump pledges fresh measures against Chinese imports; Beijing calls it ‘blackmail’. Trump threatening to impose 10% tariff on $200 bn Chinese imports.
Idiot school 101 begins.
If you do stupid things, then people will react negatively to what you are doing.
If you say stupid things, then people will remember that for many years to come.
As Time put it:-
But here’s one real-world effect of tariffs that’s clear: Tariffs don’t just keep foreign companies from bringing foreign products into the U.S. They also keep U.S. manufacturers from bringing in parts they need to build stuff.
So if you were to start reading the trade press and SOHO business comments, it isn’t looking good for the little guy. Only is that really Trump’s focus of concern? The little guy I mean.
I seriously doubt that.
Already it’s costing more to produce goods as the cost of raw materials has risen.
Farmers and other food manufacturers needing chemicals and machinery, metal fabricators and component manufacturing needing metals, and one that caught my eye, soya production.
Big money was that to middle America with it’s huge farms but it’s cheaper for foreign countries to buy direct from places like Argentina, China, and Russia now.
SMACK! did that hurt? No? OK try this,.
Trumps tariffs are GIVING MONEY to Russia and China let alone your other competitors!
I find that kinda funny.
Then there are the counter tariffs. That’s you selling stuff.
Made in the US now comes expensive.
Is what the US makes better than everyone else?
Occasionally but it’s a basic business law of modern times that people aren’t manufacturer loyal any more. Not now the Internet gives you so much choice.
So buying decisions (individual to corporate) are based more on how much it costs to buy, feed, and MAINTAIN.
Maintain? Now we’re talking spares, the quiet but essential side of big name manufacturing.
As the cost of them rises, the throw away society will simply swap allegiance to a cheaper ‘look alike’ product.
How long does that take?
How long is it before failure equals beyond economical repair?
Problem is, once ditched, buyers seldom go back to what was, they simply move on.
And finally the Dollar.
Ouch! The stock markets around the world shuddered!
His outbursts are destroying confidence in the US and it’s beginning to show as the dollar (plus the debt anyone bought) is being DUMPED by other countries as fast as they can.
Iran has moved to an oil for goods trade, India and Pakistan are doing their own thing, Russia and China are already dealing in Yuan and Roubles, the Swiss central bank can now trade in Yuan or Renimbi. I read a total of 23 countries are either trading in local currencies now or using the other ‘mainline currencies’.
Be happy today because tomorrow Trump may do something REALLY STUPID.
I thought Obama was anti America and Pro Muslim but Trump is just running amok.
Destroying years of trust, diplomacy, and friendship.
America First? More like America Alone.