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BOOM! China Moves to Lower Tariffs on US Cars from 40% to 15%
GATEWAY PUNDIT ^ | 12/11/2018 | Jim Hoft

Posted on 12/11/2018 8:26:28 AM PST by bitt

HUGE ECONOMIC NEWS THIS MORNING—

China moved to reduce tariffs on US cars from 40% to 15% in the latest sign of their willingness to negotiate a trade deal with President Trump....

...Despite the Deep State DOJ’s best efforts to ruin the trade deal and punish Americans China is committing to a new trade agreement with the Trump administration.

(Excerpt) Read more at thegatewaypundit.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs; Politics/Elections
KEYWORDS: 3months; automotive; belongsinbloggers; blog; boom; braking; china; clickbait; hugh; series; shamwow; sorghum; soybeans; tariffs; temporary; trade; tradewar; trump; winning
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To: gaijin
Good news, but they’ll simply follow the Japanese by replacing the 40% tariff with a non-tariff barrier.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Right.

Also, China has to somehow stop stealing our technology. I heard they even stole the secret formula for Coca Cola. (Serious!)

War with China, given current geopolitical conditions, is almost inevitable. The sooner the American public understands this, the better.

One of the vilest canards of the globalists is the obvious falsehood that nations with extensive trade contact do not go to war.

That is a lie. WWI and WWII are both examples of wars between European nations with EXTENSIVE trade before the wars.

On the other hand, the USA and USSR never got into a shooting war, in part because we had no trade with them, hence, nothing but ideology to argue about.

Given the extreme likelihood of war with China in the not-too-distant future, we might be better off to encircle them (like we did the USSR) and cut off all trade. This would allow our superior economic system to utterly defeat them, as it did the communist USSR.

21 posted on 12/11/2018 9:02:20 AM PST by Disestablishmentarian
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To: bitt

They had a 40% tariff on our cars? Wow, the nerve...and the media quiet about it. Disgusting.


22 posted on 12/11/2018 9:11:59 AM PST by Professional
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To: bitt

But I wonder what the Chinese social credit score will be for buying a foreign car.


23 posted on 12/11/2018 9:51:04 AM PST by sphinx
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To: gaijin

Yeah, like President Trump is going to stand still for that.


24 posted on 12/11/2018 10:26:45 AM PST by Balding_Eagle ( The Great Wall of Trump ---- 100% sealing of the border. Coming soon.)
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To: Disestablishmentarian

AND we need to start manufacturing replacement parts for the grid and a billion other things, rather than rely upon their exports!

transformers, etc..


25 posted on 12/11/2018 11:23:06 AM PST by bitt (,)
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To: bitt

I’ve read that Buick is the most popular car in China.


26 posted on 12/11/2018 11:44:31 AM PST by blam
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To: blam

A version of the Buick Verano has been in the top ten or even top five best-sellers in China.

The top sellers are Chinese designed minivan and SUV. Versions of the VW Jetta are also top sellers.


27 posted on 12/11/2018 11:51:11 AM PST by jjotto (Next week, BOOM!, for sure!)
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To: bitt
***China is committing to a new trade agreement with the Trump administration***

All the world is shocked - except me, and I hope you. I have explained why China is in a weak bargaining position in all this. They tried to skirt the trade imbalance issue by undermining POTUS politically... didn't work, and they're out of ammunition.

Now they will try to minimize the give back.

We have to stop the theft of patents and intellectual property!

28 posted on 12/11/2018 12:19:31 PM PST by Bob Ireland (The Democrat Party is a criminal enterprise)
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To: bitt

great news


29 posted on 12/11/2018 1:31:00 PM PST by GOPJ (Term limit DC bureaucracies - a permanent unelected 'ruling class' is a threat to our democracy.)
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To: bitt

15% is what it was in May 2018. China jacked it up to 40% after the first phase of the 10% tariffs on Chinese goods. US tariffs on Chinese auto imports are now 10%, up from 2.5% before the end of June.


https://www.nbcnews.com/business/business-news/china-agrees-slash-car-tariffs-it-s-still-six-times-n876346
[China agrees to slash car tariffs — but it’s still six times more than the U.S. pays
At 15 percent, Chinese automotive tariffs will still be six times higher than what the U.S. charges on almost all vehicles.]


30 posted on 12/11/2018 4:24:16 PM PST by Zhang Fei (They can have my pitbull when they pry his cold dead jaws off my ass.)
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To: JBW1949

Winning!!!


31 posted on 12/12/2018 8:27:19 AM PST by GOPJ (Term limit DC SWAMP bureaucrats - a permanent unelected ruling class is a threat to our democracy.)
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To: JoSixChip; bitt; blam; central_va; Zhang Fei; gaijin; jjotto; Disestablishmentarian; gunnyg; ...

Actually, it's a win-win for China — they really wanted this one-off deal. Trump needed to show something for all the bluster and "Tariff Man" talk before the U.S. markets tank deeper and the economy slows down even faster due to tariffs (i.e., excise taxes on purchasers and end users of certain goods and services)**** despite the "fiscal stimulus" provided by huge increase in spending and national debt increasing by $1.2T last fiscal year...

So Lighthizer, Mnuchin and Kudlow had no choice but to pick up the phone and make a call, and Chinese were only happy to "give in" and use it to get what they currently urgently need while letting Trump take the credit. They'll be happy to do one-off trades for a while if Peter Navarro and Wilbur Ross insist on fundamental restructuring of their economy while using blunt tools that only impede U.S. and global economy, e.g., Japan's economy has sharply contracted in recent quarter and is on the verge of recession when only 6-9 months ago it was one of the most stable economies in the world.

Here's how this really works:

China needs more soybeans and sorghum than they can currently get from Brazil due to seasonality after they cancelled purchases from U.S. farmers. U.S. used to be main supplier of these ag products to China but after China imposed retaliatory tariffs and stopped buying soybeans from the U.S.*** their price crashed and some have been rotting in the fields or stored in silos / storage at extra cost. So now they get to buy enough of what they urgently need, at a fraction of the price they were buying before (while Brazil and other suppliers are ramping up all-year production to assure China's needs and independence from U.S. farmers), in return for meaningless "concessions" on autos which have a small market share in China**. BTW, Tesla, BMW and Volvo are setting up JV factories in China so they wouldn't be held hostage to U.S. government's whims, steel and aluminum, re-imported parts and other tariffs; and besides, China, India and Asia / PacRim — that's where their largest market is or will soon be while in the U.S. the Big Three automakers are losing market share and overall sales are slowing despite long-standing protectionist Chicken Tax" (25% tariffs on foreign light trucks / pickups still in effect since imposed in 1964 by LBJ).

______________________________________________________________________

** State of the auto market in China:

From A Win on China Car Tariffs Is Irrelevant for Automakers - BLQ, by Anjani Trivedi, 2018 December 05

From China's Auto Tariff Reversal Looks Like a Lemon - BLQ, by Anjani Trivedi, 2018 December 12

From Tesla cuts China car prices to absorb hit from trade war tariffs - Reuters via CNBC, 2018 November 22

From Tesla cuts prices on Model X and Model S in China after Beijing reduces US auto tariffs - CNBC, by Robert Ferris, 2018 December 14

From GM Needs China More Than It Fears Trump - BLQ, by Anjani Trivedi, 2018 November 28

From Carmakers' China Tax Joy Will Be Short-Lived - BLQ, by Anjani Trivedi, 2018 October 30

From Boeing to Open Its First 737 Plant in China Under Shadow of a Trade War - BLQ, 2018 December 14

______________________________________________________________________

*** State of soybeans market in the U.S.:

China buys two/thirds of world's soybean exports and was buying on average 60% of U.S. annual production (spending $12.25B last year) until first round of trade war and cancelling orders in spring of 2018 they have bought just 17%. Brazil is the world's top soybean exporter, but it's now cheaper for them to buy and import from U.S. while diverting local production to China.

From China bought 500,000 tons of U.S. soybeans. But that's just a drop in the U.S. export bucket - CNBC, by John W. Schoen, 2018 December 12

From Current US soybean prices don't support farmers paying bills, says top industry official - CNBC, by Jeff Daniels, 2018 July 12

From Damaged soy crop hits farmers reeling from U.S.-China trade war - Reuters, by Karl Plume, 2018 September 27

From Don't be fooled by China's soybean buy; crude, LNG, coal are the big fish - Reuters, by Clyde Russell, 2018 December 13

______________________________________________________________________

****

Capital, including human, goes where it's welcome and stays where it's well treated. - Walter Wriston

One of the great mistakes is to judge policies and programs by their intentions rather than their results. - Milton Friedman

Nothing is so admirable in politics as a short memory. - John Kenneth Galbraith

Beatings will continue until morale improves.

32 posted on 12/14/2018 6:15:50 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy
One of the great mistakes is to judge policies and programs by their intentions rather than their results. - Milton Friedman...

Thanks for adding me to your ping list...

33 posted on 12/14/2018 9:16:31 PM PST by GOPJ (Term limit DC SWAMP bureaucrats - a permanent unelected ruling class is a threat to our freedom.)
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