The world is like being addicted to the American market and dollars and have to accept the Unequal Treaties thrown at them by Emperor Trump. These countries are looking at America and the dollars they are going to get in return for the goods and bananas they sold to the Americans. All these are good as long as the dollar still has value, still can be used to buy goods and services all the over the world. With BRICS and dedollarisation gaining momentum, with countries trading with their own currencies, and eventually not accepting the dollar, the need to sell to America will decrease in importance.
The main consequence to the rest of the world is that they would be selling lesser goods and bananas to the Americans with the tariffs. And to continue to maintain the volume of their trades, they have no choice but to diversify to other markets. The Americans are not going to buy the same volume because of the higher cost.
Cutting down the chase, the shadows and lights, there is only one consequence to the American economy and the American people. Inflation and cost of living are going to shoot sky high. The relative value of the dollar and purchasing power are going to decline. Americans are going to be poorer as a result.
Trump can gloat on the billions or trillions he is collecting, from who? The Americans, the average Americans that are living from paycheck to paycheck and stretching every dollar to make ends meet. This harsh reality is going to hit the Americans hard, very hard, and they cannot take it for long. All their spare cash if they have would be gone fast. They would all have to tighten their belts and make do with less for their shrinking dollar.
America is going to implode. The poor and average Americans are going to be adversely affected, becoming the new poor, like the poor of third world countries. The final blow will come when the world stops accepting the American dollar, when American dollar cannot be exchanged for goods and services or other currencies to buy goods and services. And that day will come very fast.
Higher tariffs on imports do not help anyone, do not help the interests of the Americans except clown Trumps' ego, that he collected trillions from taxes, from the American people to conduct more wars and make more weapons and war machine, to genocide more Palestinians.
And why did China accept a 35% tariff against a 10% tariff for American goods? Superficially China is on the losing side. The truth, American goods will still be cheaper to import vis a vis Chinese goods to America. This means the cost of living of the Chinese would not spike up like the Americans. China does not want and does not need to tax the Chinese citizens like Emperor Trump. The Americans have Trump to thank for the higher cost of living. Period.
Good morning All
ReplyDeleteAll.these internal socalled taxations where the Government can simple exempted them.
Who's the Hell know whether China implemented or not!
The import Taxes or Tariffs are usually meant to protect your local industries from fair competition.
For China it's may be just a symbolic gesture that they are taxing just 10% on the Americunts.
China no need to burden their own as they had the essential supplies from many other sources long ago to twart the Americunts ploys that the PRCs knew.
So just a token tactic to massage the fools Americunts egos.
https://youtu.be/ZFeRJxe92HI?si=szZHaXCY3-DaQ2VB
DeleteUAssA blunders!
Tariffs are to protect manufacturing. What manufacturing does the USA have that needed protection. Protect Trump's hot air.
DeleteCommerce Secretary Howard Lutnick, another prolific liar, expects the USA to reap in US$50 billion a month over those tariffs that Trump sets. From whom is not mentioned. Ho, ho, ho listen to Santa Claus coming early this year. Is that a reality or a misinformation or disinformation?
ReplyDeleteTo put it in another way, USA consumers will be taxed another US$50 billion every month by the Trump administration over those tariffs. Nobody wants to answer the question of who will be eating those tariffs. Manufacturers in other countries will all close shop if they are to absorb the tariffs, when margins are already razor thin. The reality is importers in USA will have to pay the levy and recover from USA consumers if they want to remain in business, and end of story. USA retailers are already suffering razor thin profits and are least in a position to absorb those tariffs.
Perhaps the Hillbillies are really so dense that they will just pay through their noses down the road. Not talking about who will pay those tariffs - not by the administration and not by the MSM and everything will be fine. Of course, China and others will just continue to ship goods to the USA if importers want them to keep their outlets functioning. If not, no sweat.
Manufacturers in China and other countries can continue to sell to each other, at the same price for products made at the same cost, having to deal with less threats, so what is the problem?
DeleteWhy sell at a loss by eating those tariffs, which is a no brainer. Sell less, make more instead of selling more to make a loss. What kind of business would that be called?
High cost of living in the USA is not going to be the concern of China or anyone else. It is up to the Hillbillies to sort out.
ReplyDelete