Posted on 06/19/2018 5:20:46 AM PDT by reaganaut1
In recent weeks, several major rounds of tariffs have moved from proposals to realities, and major new tariffs have been threatened—shifting the stakes for President Donald Trump’s trade actions on the U.S. economy.
Tariffs raise the price of imported goods, increasing costs to consumers, and making domestic producers (who don’t face the tariff) more competitive.
Examples of how new tariffs might ripple through the economy have already been provided by earlier, smaller rounds of tariffs. These earlier examples also show why broad effects from tariffs, on the otherwise booming U.S. economy, might be hard to detect.
One of the first to go into effect under Mr. Trump came in January, with the imposition of 20% tariffs on washing machines.
While tariffs are formally paid by whomever imports the goods, the importers can pass their costs along to consumers. In the case of washing machines, that happened quickly: The index for laundry equipment in the Labor Department’s consumer-price Index, the nation’s main gauge of inflation, shot up by about 17% over the past three months.
...
Mr. Trump’s steel and aluminum tariffs were announced March 1. For some countries they went into effect quickly. The European Union, Canada and Mexico were given more time to negotiate, but those extensions expired at the beginning of this month.
Prices for different types of steel and aluminum began to climb almost immediately, posting the biggest three-month price increase that has been recorded in years. While clearly inflationary and unwelcome for metal consumers, the jump in prices isn’t that much larger than typical volatility in the metals. And only a small portion of the metals ends up in consumer goods.
(Excerpt) Read more at wsj.com ...
Fake news. Yawn.
If that is true, then why aren’t all the other countries who levy a tax on our imports in competition to get rid of their tariffs? Are the other countries in competition to build up their negative trade deficit? Are the other countries incensed that the United States has the largest trade deficit?
What's fake about it?
It’s Econ 101. These tariffs will hurt the consumers.
William Blake
I am quite supportive of the tariffs and, frankly, very much see them as a tax increase. I have no problem with that particular tax increase.
Washing machines? Really? America used to produce really good ones that would last 10-15 years. Remember the Maytag repairman commercials?
So our tarrifs are hurting an industry that imports junk that lasts 3-4 years.
If I banged my brothers head against a dishwasher today it would break apart. Back then it was sturdy.
Let's be honest here. We're in a trade war. Trade wars, like any other war, have consequences. There will be casualties in the form of business lost, jobs cut, and higher prices. The hope is that at the end there will be tangible benefits for the country that outweigh the pain, but in the mean time people are going to get hurt. The winner will be the one who can take the pain longer than the other side. The President has the commitment to see it through. It remains to be seen if Congress and the business community do as well.
So, comparison shop.
The key phrase there is "used to". Maytag got bought by Whirlpool and much of their manufacturing is overseas.
It’s Econ 101. These tariffs will hurt the consumers.
I believe it was John Q Adams that said something about people needing to not sacrifice their lives, but sacrifice their comfort if we were to win the revolution.
If people want this nation to return to greatness, they may need to sacrifice their comfort. We’ll see what this country is made of soon enough.
It’s Econ 101. These tariffs will hurt the consumers.
Empowering the Chicoms with our dollars hurts all Americans. It’s Common Sense 101.
Adding to your post, I also think if we can get rid of more suffocating regulations and taxes on business, companies will have incentive to return operations HOME. I will gladly pay more for American made quality products instead of the cheap crap from overseas. Bring back American business by getting fedzilla out of the way and the trade war would end very quick.
I object to any tax increase. Federal budget deficits are not the result of inadequate taxation. They are the result of wildly excessive unconstitutional spending. Reduce the size, scope, power, and COST of government.
You big government types must be loving this.
Tariffs mean that everybody has to pay more for stuff, and the Feds get more power.
Also: US manufacturing becomes another branch of welfare.
Stop wrapping yourself in the flag. You’re getting it dirty.
I’m perfectly fine with buying American products. Our stores are far too rife with Chinese-made crap.
I am also against tax increases. I use the phrase here only metaphorically.
The taxes part has been done and regulations are being reduced. But neither tackles the major cost to manufacturing of labor and supplies. And if the profitability of manufacturing here in the states is dependent on tariffs then what business in their right mind is going to invest billions in manufacturing plants that can be made unprofitable at the stroke of a presidential pen?
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