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Ultimately they're not raising tariffs on end products, they're raising it on parts, but that will still cause inflation plus unemployment because tariffs on pa

Ultimately they're not raising tariffs on end products, they're raising it on parts, but that will still cause inflation plus unemployment because tariffs on parts will drive production out of the US where it gets taxed on the way back in, so you'll both lose exiting US jobs while driving up the cost of products coming back in as you both make it impossible to produce in the US and also drive up prices.

throwaway5752 8y ago
What reason do you have for expecting current tariffs to not escalate into broader and more destructive tariffs in this ongoing trade war? Are you basing this on rational choice theory? Because I have some disappointing news for you in that case.
- amluto 8y ago
  If I were in charge of a country subject to new tariffs, I would consider playing it differently. Rather than applying punitive tariffs back, I would consider trying to get US manufacturers that are affected to the tariffs to move to my country and export finished products to the US. After all, the nonsensical structure of Trump’s tariffs may be more harmful to the US than to anyone else.
  - AnimalMuppet 8y ago
    The problem with that is timing. Politically, people demand action now - like, this week. Getting a business to move takes months to years.
jonknee 8y ago
Currently it's devolving into tariffs on everything. Like Europe's 25% tariff on Harley motorcycles. They're getting hit on both ends too because their inputs are also hit (steel being the big one). Tariff in and tariff out, it's ridiculous.
- briandear 8y ago
  Actually the tariff is 31%. An increase of 25% over the existing 6% tariff. If Europe is so concerned about tariffs, then why did they have a 6% tariff in the first place? That’s the point of this “trade war” — countries already have tariffs. It’s disingenuous to complain about American tariffs when the EU has built their protectionist model around doing just that. France has a bunch of “protected” industries and they have the nerve to complain when others retaliate? For the record, I am opposed to all tariffs and subsidies. But framing this as a Trump-caused issue is intellectually dishonest. He’s just attacking the status quo (wrongly or rightly.)
  - s2g 8y ago
    Can you really not see the difference between the reasonable protectionism practiced by every country and the current trade war?
    - briandear 8y ago
      There is no such thing as “reasonable protectionism” unless you are dealing with dumping. Harley could hardly be accused of dumping. So why a 6% tariff in the first place? EU clothing tariffs already average 12% in many other categories it ranges from 4-36%. So is the EU protecting nearly every industry? Isn’t that the point of this “trade war” — the EU has been applying tariffs to almost everything for a long time. Doesn’t the US have a right to retaliate? French milk is already better than most American milk, yet France puts a 36% tax on dairy imports in addition to heavily subsidizing dairy. So the effective tariff is much higher. And European consumers end up losing because they have to spend more of their money on dairy — all to protect a fairly small industry when measured as a percentage of GDP. Yet every time reforms are attempted, farmers literally riot. Why should a country accept their goods being taxed without being able to respond in kind? This is tit-for-tat to be sure, but the tit didn’t start with the Trump tariffs.
      - tpm 8y ago
        The tit didn't start with the Trump tariffs, but Trump also effectively stopped TTIP negotiations, and TTIP would lower trade barriers between US and the EU. This was a prelude to the current trade war with the EU. Which is very unhelpful, he should just concentrate on China.

throwaway5752 8y ago

What reason do you have for expecting current tariffs to not escalate into broader and more destructive tariffs in this ongoing trade war? Are you basing this on rational choice theory? Because I have some disappointing news for you in that case.

amluto 8y ago
If I were in charge of a country subject to new tariffs, I would consider playing it differently. Rather than applying punitive tariffs back, I would consider trying to get US manufacturers that are affected to the tariffs to move to my country and export finished products to the US. After all, the nonsensical structure of Trump’s tariffs may be more harmful to the US than to anyone else.
- AnimalMuppet 8y ago
  The problem with that is timing. Politically, people demand action now - like, this week. Getting a business to move takes months to years.

jonknee 8y ago

Currently it's devolving into tariffs on everything. Like Europe's 25% tariff on Harley motorcycles. They're getting hit on both ends too because their inputs are also hit (steel being the big one). Tariff in and tariff out, it's ridiculous.

briandear 8y ago
Actually the tariff is 31%. An increase of 25% over the existing 6% tariff. If Europe is so concerned about tariffs, then why did they have a 6% tariff in the first place? That’s the point of this “trade war” — countries already have tariffs. It’s disingenuous to complain about American tariffs when the EU has built their protectionist model around doing just that. France has a bunch of “protected” industries and they have the nerve to complain when others retaliate? For the record, I am opposed to all tariffs and subsidies. But framing this as a Trump-caused issue is intellectually dishonest. He’s just attacking the status quo (wrongly or rightly.)
- s2g 8y ago
  Can you really not see the difference between the reasonable protectionism practiced by every country and the current trade war?
  - briandear 8y ago
    There is no such thing as “reasonable protectionism” unless you are dealing with dumping. Harley could hardly be accused of dumping. So why a 6% tariff in the first place? EU clothing tariffs already average 12% in many other categories it ranges from 4-36%. So is the EU protecting nearly every industry? Isn’t that the point of this “trade war” — the EU has been applying tariffs to almost everything for a long time. Doesn’t the US have a right to retaliate? French milk is already better than most American milk, yet France puts a 36% tax on dairy imports in addition to heavily subsidizing dairy. So the effective tariff is much higher. And European consumers end up losing because they have to spend more of their money on dairy — all to protect a fairly small industry when measured as a percentage of GDP. Yet every time reforms are attempted, farmers literally riot. Why should a country accept their goods being taxed without being able to respond in kind? This is tit-for-tat to be sure, but the tit didn’t start with the Trump tariffs.
    - tpm 8y ago
      The tit didn't start with the Trump tariffs, but Trump also effectively stopped TTIP negotiations, and TTIP would lower trade barriers between US and the EU. This was a prelude to the current trade war with the EU. Which is very unhelpful, he should just concentrate on China.