3 ms·

What is the goal of Americans not buying stuff? What is it they hope to achieve?

r_singh 8y ago
It's quite simple actually. This tariff is essentially is price disadvantage for China made products; products made in the US now have a relative advantage. So this is done in the hope that it will make sense for people to buy US made products and will also encourage local (US) companies to manufacture and sell in the States (since the tariff protects them from competition). It's a great move IMHO. I visited a WTO (world trade org) event in Mumbai recently and the US representative (https://en.wikipedia.org/wiki/Richard_N._Haass https://en.wikipedia.org/wiki/Richard_N._Haass) was somewhat happy with what Prez. Trump is doing with import duties.
- Taniwha 8y ago
  I think it's largely a zero-sum-game - WTO rules allow a country targeted with unilateral trade sanctions to respond in equal measure without sanctions - which China is doing. Unlike a communist country they're free to pick targets that are political targets, in particular they're being smart, going for Trump's rural base. Meanwhile real people, in both countries are losing their livelyhoods.
  - r_singh 8y ago
    > I think it's largely a zero sum game If I get your point right, I think that depends on a few things: (1) how much the 'Trump's rural base' in question depends on the Chinese market for their exports (not as much as the reverse IMO); (2) Whether US cos. will be able to take advantage of the higher tariffs on China made goods and hence sell more (therefore increase / stabilise employment); (3) If it doesn't really impact imports from China, and Americans just end up paying higher prices due to the tariffs, then how the GOV uses this new income from the tariffs? This could be used to strengthen local industry and increase employment, etc. > which China is doing China was doing this either ways by levying high import duties on products brought in to China, while US practiced free market and low key became somewhat of a victim to subsidised Chinese manufacturing. Disclaimer: my views may be naive, and would love to be corrected or given more insight on the subject to prove my view otherwise.
    - Taniwha 8y ago
      I'm pretty sure that prior to this silly trade spat China simply charged their national sales tax (17%) against imports - which is fair since that puts imports on a level playing field with local products. This is not unusual, NZ, where I live, does the same thing (15%). US states with sales taxes do too. I think China is targeting pork and soy beans (lowest prices now in a decade)
      - r_singh 8y ago
        > prior to this silly trade spat China simply charged their national sales tax Not true. Developing countries like China and India have long imposed "import duties" (aka customs or tariff) on certain categories of products to safe guard local industry and employment while making special trade agreements only with a few countries. They even change the tariffs on a yearly basis without caring about consumers of imported goods in their country (prices of imported cars and items like the iPhone vary every year in India).
quantummkv 8y ago
The goal is to force companies to move the manufacturing they took to China back to the US. The only reason companies manufacture in China is price. It is cheap to manufacture in China and then import it. Make it expensive to import from China and the companies will be forced to move manufacturing back.

It's quite simple actually. This tariff is essentially is price disadvantage for China made products; products made in the US now have a relative advantage. So this is done in the hope that it will make sense for people to buy US made products and will also encourage local (US) companies to manufacture and sell in the States (since the tariff protects them from competition). It's a great move IMHO. I visited a WTO (world trade org) event in Mumbai recently and the US representative (https://en.wikipedia.org/wiki/Richard_N._Haass https://en.wikipedia.org/wiki/Richard_N._Haass) was somewhat happy with what Prez. Trump is doing with import duties.

Taniwha 8y ago
I think it's largely a zero-sum-game - WTO rules allow a country targeted with unilateral trade sanctions to respond in equal measure without sanctions - which China is doing. Unlike a communist country they're free to pick targets that are political targets, in particular they're being smart, going for Trump's rural base. Meanwhile real people, in both countries are losing their livelyhoods.
- r_singh 8y ago
  > I think it's largely a zero sum game If I get your point right, I think that depends on a few things: (1) how much the 'Trump's rural base' in question depends on the Chinese market for their exports (not as much as the reverse IMO); (2) Whether US cos. will be able to take advantage of the higher tariffs on China made goods and hence sell more (therefore increase / stabilise employment); (3) If it doesn't really impact imports from China, and Americans just end up paying higher prices due to the tariffs, then how the GOV uses this new income from the tariffs? This could be used to strengthen local industry and increase employment, etc. > which China is doing China was doing this either ways by levying high import duties on products brought in to China, while US practiced free market and low key became somewhat of a victim to subsidised Chinese manufacturing. Disclaimer: my views may be naive, and would love to be corrected or given more insight on the subject to prove my view otherwise.
  - Taniwha 8y ago
    I'm pretty sure that prior to this silly trade spat China simply charged their national sales tax (17%) against imports - which is fair since that puts imports on a level playing field with local products. This is not unusual, NZ, where I live, does the same thing (15%). US states with sales taxes do too. I think China is targeting pork and soy beans (lowest prices now in a decade)
    - r_singh 8y ago
      > prior to this silly trade spat China simply charged their national sales tax Not true. Developing countries like China and India have long imposed "import duties" (aka customs or tariff) on certain categories of products to safe guard local industry and employment while making special trade agreements only with a few countries. They even change the tariffs on a yearly basis without caring about consumers of imported goods in their country (prices of imported cars and items like the iPhone vary every year in India).

quantummkv 8y ago

The goal is to force companies to move the manufacturing they took to China back to the US. The only reason companies manufacture in China is price. It is cheap to manufacture in China and then import it. Make it expensive to import from China and the companies will be forced to move manufacturing back.