Posted on 05/13/2019 1:28:57 AM PDT by Zhang Fei
BEIJING — Chinese exporters of all sorts of products, from power adapters and computers to vacuum cleaners, are anxiously hoping trade talks in Washington this week will yield a deal that might stave off higher U.S. tariffs on imports from China.
Companies across China are bracing for a tariff hike on Friday after President Donald Trump, complaining Beijing was backtracking and the talks on a festering trade dispute were taking too long, said he would raise import duties on $200 billion of Chinese goods to 25% from 10%.
Amber Chen, sales manager for a vacuum cleaner manufacturer based in southern China, says her company has $100 million in exports to the U.S. at stake.
“I really hope that the two countries can reach an agreement,” Chen said in a phone interview. “We just can’t swallow the costs of a tariff increase.”
Many Chinese companies are reluctant to speak publicly about their problems, especially those linked to sensitive topics such as the ruling Communist Party’s policies on trade and technology.
But sales managers of five Chinese companies that depend heavily on exports to the U.S. told The Associated Press that while they have managed to adjust to current tariff levels with minimal trouble, a jump to a 25% tariff would make doing business with the U.S. virtually impossible for most of them.
“If the tariffs rise to 25 percent, then we’re done for,” said James, a sales manager for a computer monitor manufacturer in Shenzhen, China’s southern tech hub.
He declined to give his full name. He said 30% to 40% of his company’s products are exported to the U.S.
If the tariff increase goes ahead, the impact will be deeply felt by small- and medium-sized enterprises, said Shawn Yang, sales manager for a company in Shenzhen that produces electric power
(Excerpt) Read more at marketwatch.com ...
his has the possibility of creating unemployment and labor unrest. It will be interesting to see how the Communist Party leadership deals with this,
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Too much unrest will lead to shooting the unrested however many there are; and Panda Face will rule until someone more powerful shoves him aside.
shooting the unrested
ROFL!!!
25% is peanuts.
I say bring them ALL to 100% for Chinese exports, then enact the next step, to 100% in a month.
200% in two months.
500% in three months.
And no matter what happens, LEAVE the 25% on, permanently.
Sorry, I meant to say we initiate 25% across the board.
No reversal on that. Ever.
But we immediately prepare a new, 100% tariff, for one month from now.
We should not be hesitant. Be strong, Trump.
Seems to me that small and medium sized enterprises could get up and running in the US to make the same thing with American citizens as employees than it is to get larger ones started to replace the Chinese exports. Half of what's made in China and shipped here would have never moved to China in the first place if the Chinese government hadn't subsidized the creation of everything in the country.
Leave at least the 25% tariff on permanently to compensate for the government subsidies and zero interest money they pump into business to ensure that Chinese have jobs.
In fact, there should be tariffs of some amount on anything we import except raw materials that aren't available in the US.
JMHo
The media and globalist politicians are insisting the tariffs will be paid 100% by consumers, will cause inflation to soar, and will drive the US economy into a recession. They have no answers to the deindustrialization of the US the huge trade imbalance, and the rampant theft of intellectual property. They deny the obvious — the US has been in a one sided trade war with China for three decades and is losing.
This article points out the truth. Chinese manufacturers will reduce prices to retain market share. It is entirely feasible through price reductions by the Chinese producers, and currency manipulation by the Chinese government, the tariffs will not impact US retail prices. If so, the cost of the tariffs will be offloaded 100% on the Chinese economy. A big win for us as the Treasury will receive a huge windfall from tariff revenues courtesy of the Chinese.
The United States achieved its greatest economic growth from 1865 to 1900 when it levied the highest tariffs in its history. China has achieved extraordinary growth over the last three decades while employing mercantilist (not free trade) trade policies including tariffs, restrictions on foreign investment, export and capital subsidies, and rigid non tariff barriers.
The Bush, Clinton, Obama open markets/open borders policies have been economically destructive to the US. The screams we hear from academics, businessmen and politicians is the anguish they are experiencing from having their applecarts overturned. The rules are being changed for protected interests.
He has little choice but to cave.
As an aside, it has been pondered that Xi may not be a communist at heart but may be taking a hard line to appease those bosses in the Chinese Communist Party who may still have power in China. If this supposition is accurate, this may be just what Xi needs to be able to break free from the death grip of the CCP/CPC.
Only Trump, Lighthizer, Mnuchin, and company know.
Xi is certainly between a Trump and a hard place.
He has little choice but to cave.
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He is indeed in a difficult but self-made situation. The question now becomes can he now afford to “lose face” by caving to Trump.
Well, we can't really know if that is true.
When Xi first came to power, he sounded like he was going down the same path as Deng (i.e., move China away from communism and toward a market economy). But something happened along the way.
Either he was a hard core commie at heart OR he came under pressure from hard core commies in the party to change his tune.
I don't understand this. People here on FR have been saying that it is American who will be paying the tariff (and suffering). That the Chinese will be uneffected. The Chinese will still sell the same amount of goods as before, and will make the same profit. Maybe this Chinese exporter is wrong??
amazing- turned on the Today show to see what the weather was going to be like and all they did was paint a doomsday scenario over these tariffs- doomsday for the United States of course...
Sod off, troll.
Most of Chinese business will shut down, and the Communist leadership will be in deep doo-doo.
And Walmart will slowly lose all its customers too.
Just a matter of time - they will cave......
Kudos Trump. Kudos.
If?
What’s the matter Hop Sing? Not so tough now are you.
Free Traitors™ need to learn to think long term with the key word that sentence being think.
Why would that happen?
Economics 101: All costs related to producing a good or service are passed on to the consumer in the form of price. That includes all taxes, regulations, import/export costs etc.
This was taught in High School economics classes and can still be found in any Economics 101 textbook today.
Tariff's are taxes. and I quote:
"A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade and a policy that taxes foreign products to encourage or safeguard domestic industry. Taxing items coming into the country means people are less likely to buy them as they become more expensive."
If you purchase a product from China and a tariff is in force, you are paying the tariff in the form of the final price of the product (what you pay at the register.)
Now, can China manipulate their way out of this by reimbursing (printing more money @ home) or forcing companies to sell their product at current prices pre-tariff?
I guess they can. The problem for the Chinese Government is those companies won't do it for long as their currency devalues, they lose money and their workers refuse to work.
I believe President Trump knows the Chinese will try to currency manipulate themselves out of this against the United States and President Trump knows the Chinese can't do it.
He's staring them down and while I have reservations, I back President Trump 1,000%. Not using tariff's as a trade negotiating tool in the past has put us in this hole we're in. President Trump is doing what other President's have refused to do and for that he has my respect and support (despite my reservations.)
What Free Traitors™ want you to believe is that the supply function is static and no new domestic/foreign suppliers will EVER come on line. Brand new factories are still being built all over the world and many in the USA all the time. The supply situation is dynamic and not static. With more domestic supply will mean pressure to reduce prices.
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