Dow Jones down by more than 700 points as China declares tariffs right after Trump warned not to

[Feng Leng]

https://edition.cnn.com/politics/live-news/china-tariffs-trump-2019/index.html

What we're covering here

• The latest: China just announced it will be raising tariffs on $60 billion worth of US goods.
• What happened last week: The Trump administration raised tariffs on $200 billion worth of Chinese exports from 10% to 25% on Friday.
• What's at stake: About a quarter of the items hit by the US's new 25% tariff rate are consumer goods, including luggage, backpacks and baseball gloves. (The Trump administration has so far strategically shielded most consumer electronics, like iPhones, and other everyday goods from the tariffs)

 

[Nahid]

i am very much amature in this trade war. so china will earn 60bn and USA will earn 200 bn= USA is earning more 140 bn. so usa winning the war. can someone provide me details information pleas.

 

[Shabi1]

i am very much amature in this trade war. so china will earn 60bn and USA will earn 200 bn= USA is earning more 140 bn. so usa winning the war. can someone provide me details information pleas.

However Chinese claim their exporters will bare only 10% of the impact on its goods, US consumers will end up paying for remaining 90% increase.

 

[xyxmt]

i am very much amature in this trade war. so china will earn 60bn and USA will earn 200 bn= USA is earning more 140 bn. so usa winning the war. can someone provide me details information pleas.

it means US raised tariff of imports which target $200 billion worth of imports, so tariff will 25% on 200 (just an example). but it doesnt mean US will earn that tariff money because it is meant for import decline.

 

[nang2]

it means US raised tariff of imports which target $200 billion worth of imports, so tariff will 25% on 200 (just an example). but it doesnt mean US will earn that tariff money because it is meant for import decline.

US earns nothing since all import tariff is paid by importers, who are Americans. Tariff is nothing but a trade obstacle. No wealth can be generated by creating more obstacles. It just causes some wealth shift. In this case, from American people to American government.

 

[lcloo]

US earns nothing since all import tariff is paid by importers, who are Americans. Tariff is nothing but a trade obstacle. No wealth can be generated by creating more obstacles. It just causes some wealth shift. In this case, from American people to American government.

In a way Trump will generate more income for the US government, and that will help him loosen up budget constrains for his government spending like military budget.

So, instead of the unpopular direct income tax, he choose the more popular import tax coupled with America First slogan, but most common American may not realised that.

 

[Crusher]

it means US raised tariff of imports which target $200 billion worth of imports, so tariff will 25% on 200 (just an example). but it doesnt mean US will earn that tariff money because it is meant for import decline.

You are wrong here "tariffs" mean kind of "tax collection" at the US ports when the containers from china arrive, so importers who will order 200 billion dollars worth of specific products from china will pay additional 50 billion dollars to the US government at the ports, so it is a kind of punishment to the importers to discourage them from buying those particular import items from china. It is not a straight away ban, but that is how tariff/trade war is proceeding between US and China at the moment.

 

[xyxmt]

You are wrong here "tariffs" mean kind of "tax collection" at the US ports when the containers from china arrive, so importers who will order 200 billion dollars worth of specific products from china will pay additional 50 billion dollars to the US government at the ports, so it is a kind of punishment to the importers to discourage them from buying those particular import items from china. It is not a straight away ban, but that is how tariff/trade war is proceeding between US and China at the moment.

so you repeated exactly what I said to prove me wrong

 

[Crusher]

so you repeated exactly what I said to prove me wrong

The point is you are saying US doesn't earn anything, I am saying US government does earn but from greedy US importers who otherwise want to make big profit by selling chinese products at cheap prices but they will now be forced to sell those same chinese imported products at higher prices after paying 25% tariffs on them so that everyone faces the music. It is not a zero sum game, US government is sending a clear signal both to China as well as its own importers that it is NOT business as usual anymore.

 

[Feng Leng]

If this was a nuclear exchange it would be a tactical nuclear strike against Guam, vaporizing all military installations and military personnel.

 

[Feng Leng]

LMFAO the Dow is down by 700. A true massacre. Well done, Beijing!

The Global Times chief editor tweeted: "China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many scholars are discussing the possibility of dumping US treasuries and how to do it specifically."

 

[Wine&Steak]

Brutal correction in US markets

Chicken littles

meh....you pdf junkies

 

[gambit]

Aaahhh...Just another bandwidth wasting useless 'how to collapse the US' thread from the economic and financial 'sages' of PDF that no one bothered to consult.

 

[Globenim]

I wonder what kind of mental gymnastics will be deployed by our selfproclaimed Google professionals to spin this one into a "sign of desperation" and "doing nada" this time. Or are they going to avoid the threads with conflicting facts in favour of meaningless hot air discussions about letters and opinions of the most obscure bloggers our diligent Hindus keep spamming.