The USA is just categorically unable to compete and just using tariffs to bring others down to their level of incompetence. When a country cannot produce anything that others want, and using tariffs to prevent others from making cheaper things to sell to it, that is basically cutting its nose to spite its face.
Globalization is all about comparative advantage and economies of scale. Who can make things cheaper for everyone is what the world wants, not who can make things more expensive and forcing others to buy from it. This defeats the whole purpose of investing in places that offers such comparative advantage and economies of scale to profit from it. What the USA is doing is a retrospective move that does nobody any favor.
The irony is that the world needs to progress and innovate to bring prosperity to as many as possible. Not the other way round that the Anglo-Saxon Whites have done over the centuries. The Anglo-Saxon White's century of domination is over. This is the Asian century and after that will be the century of the Africans.
Anonymous
7 comments:
It was the yanks who started the ball rolling decades ago to take advantage of the then cheap labour to manufacture their goods. As a result, their manufacturing infrastructure was destroyed, not by others but by themselves. Now they're complaining the very system they put in place to enriched themselves is unfair, after China developed their capabilities way beyond what they were originally tasked to do. And even beyond that into developing new cutting edge technology leaving their task masters looking like peasants. At the peak, every yankee company has manufacturing facilities in China.
Trump is upping his tariffs to 145% on Chinese exports to the USA, claiming that China does not give him respect. What respect is he expecting given his gangster stance and bullying tactics? As they say, respect must be earned and not through use of force or coercion.
Trump wants to force China to respect him by having Xi fly to Washington to negotiate and for him to gloat about China having to kiss his arse too. That China is not bending to his gloating about having to go to Washington soon to pay him due respect is and is making him lose face. Trump should realize that for Xi to refuse his invitation to attend his inauguration is reason enough not to expect Xi to crumble. Other countries can go ahead to kiss Trump's arse and be ridiculed with insults being added to injury. China is not going do that and will fight fire with fire till the end. There is no turning back.
China is just waiting to witness the result of the 145% tariffs and how it will affect USA consumers months down the road after the stockpiles are exhausted, before taking further action. Analyst are saying that there are only two outcomes resulting from those tariffs on China - either the importers absorb the tariffs, which is impossible, or pass them on to consumers, with the latter action being more realistic. That is going to be disastrous, with prices doubling on everything.
China has many cards to play with. In the meantime, Chinese exporters are already looking for new markets to replace the USA, with Bangladesh a good example.
As I said earlier, all the tariffs are just for one purpose on the surface, and that is to punish China and Trump is using that counter for a more insidious agenda. What happens to the rest of the world are just collateral damage for hosting Chinese investments. What is most striking is that Apple has come out publicly to announce that the company will not be making iPhones in the USA. In other words, Apple moving back to USA is not going to happen. That is just Apple, a USA company itself, looking at the prospect of making things in the USA and says a lot about manufacturing moving back to the USA. What about others?
Having said that, some are beginning to see the insidious hand of Trump manipulating the stock market with his actions to benefit the rich and his cronies. His back-and-forth rhetoric and his 90-day tariff pause are just to give him more leverage to cause further turmoil in the stock market for his cronies to make more money.
Exactly. The American Dream was to just to use their money printing privilege to print and print to enjoy what the rest of the world have to make in exchange without having to work for it.
But when the shit hits the fan, the USA realized that was a big mistake to offshore manufacturing when others began to innovate and make stuff much cheaper, like vehicles and consumer products. The USA panicked, but it is too little too late.
Good morning All
Just wait soon very soon the daft Hillibies Americunts who called Chinamen peasants gonna riots and loots and killed their own when their Survivals of 140 over peecents oops percent gonna overwhelmed them.
What's beautiful sights they shall be!
Retributions of what's Nancy Pesi Cola own words.
Vietnam's offer of reciprocal zero tariffs between them and USA is not going to work and will fail miserably. It is no point for Vietnam to kiss Trump's arse, knowing that Vietnam is basically an extension of China's manufacturing reach outside the mainland. To agree to a zero tariff defeats all the purpose of those tariffs, whose main objective is countering China and its investment worldwide.
Mexico is also not going to succeed in negotiations with the USA over tariffs. Trump is now raising another issue to cloud the negotiations, claiming that Mexico is not supplying enough water from the Rio Grande to USA farmers under an agreement, and he will not compromise on his tariff threat if water supply by Mexico is not according to the agreed level. This is all knowing that China has big investments in Mexico which Trump is targeting.
All the talk about countries negotiating with the USA are basically nothing more than going to see these countries getting insulted while masquerading as negotiating, with the USA making all the talking and demands and stuffing them down the throats of the arse lickers. Trump will ask them 'Does my arse smell nice and 'kiss baby kiss' LOL. How many countries does not have any Chinese investments that could therefore escape the tariffs?
There is also another fiasco being floated by Trump about imposing a US$1.5 million levy per call against ships built in China calling at USA controlled ports, or a US$500 thousand levy per call on any shipowner having any ship in its fleet built in China calling at any USA controlled ports.
Trump does not think it necessary for the USA to start building ships first before starting to fire his salvo. That will probably take five to ten years to be easible, considering the education and training needed to build ships and he knows he will no longer be around. Trump thinks that just firing pot shots will hit the Chinese target anyway.
The whole idea is just trying to pull a hocus pocus against China without considering that the USA does not build commercial ships anymore and does not have the capacity to build ships of the numbers that the world needs. There is not a shipowner in the world without a Chinese built ship in its fleet today.
For a start if the levy plan is implemented, shipowners having Chinese built ships in their fleet will avoid calling at more ports in the USA and instead unloading at one port instead of three and leaving importers to foot the bill for land transport for the goods they bought. This is going to be a massive added cost for USA importers and eventually passed on to consumers. Who is going to suffer more?
The Trump administration basically does not consider the consequences of its actions, only plucking ideas from the air and expecting them to work. For Trump, everything is so simple and easy. Just do it and if it does not work, just do a U-turn and nobody gets blamed. And indeed, even the security leaks have yet to be blamed on someone with Trump calling it just a glitch. Why is National Security so much less important for the USA when it was the rage in the past, blaming China over every item as a security threat?
Trump's low intellect does not allow him to think through a problem thoroughly. He is just behaving like a gambler, trying to make a quick bet and quick win and declares that he has won a good deal.
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