BREAKING: Trump prepared to hit China with $60 billion in tariffs by Friday, doubling

[Turingsage]

What's that, like 0.005% of China's GDP? LOL, it's the Coming Collapse of China(tm)!!

err no about 0.5% annually

 

[xyxmt]

Is US going to pay royalties to Germany for every rocket/missile they sell

 

[Yaseen1]

at present if china goods are banned world will see shortage of essential goods which will result in to price hike and promote smuggling of china goods in u.s which will be more damaging to u.s than china

 

[Get Ya Wig Split]

Trump hits China with 60 Billion Terrif

China sells all US treasury worth 1 Trillion balances it out

it will never happen though

 

[Get Ya Wig Split]

What you're talking about, we eat the cake and of course we keep it in stomach for digesting but US can keep the remaining of what it left from our digestion : The sanction will only damage the multinational companies which include US company and European, we only earn a thin margin of profit and pay an heavy price for pollution cause by these products but if we retaliate to the pure 100% US product such as soybean or Apple, Automobile, Boeing, Insurance compagny, US will even to lose more. And not only that American people are the one to be suffer without the cheap "made in China" which thing they can afford. And not to mention if we stop exporting the rare earth that US are begging us.

I think it's about time that China to find their interest else where. If you're happy with Trump, I will be happy to see China not to depend on US.

interesting post...props

 

[Samlee]

it will never happen though

Dude As Long As Big Orange Is In White House Anything Can Happen

 

[TaiShang]

He's just a confused boy. Back on topic. I'm disappointed that it's only $60 billion . Murica should impose a tariff on all Chinese goods to Murica. That would be ballsy. But $60 billion, meh. Just to appease the 95ers.

I do hope Trump will go ahead with the "punishment" and China will slap back even heavier penalties on US peasants' export to China.

Then sit back and watch the revolt.

It is China, not the US, which the largest trading nation in the world, after all. If the can swallow it, China can digest it even by looking at it angrily from afar.

 

[ddlee96969]

i guess EU will pay more tax.

 

[lcloo]

You know who will suffer?

1) The American companies in China making goods for American markets. Some of these companies export 100% of their products to USA and other countries. The exporters normally would use creative accounting to generate minimum profit of say 6% so as to pay minimum tax to Chinese customs, their affiliated companies in USA (normally same owners) would make upto 400% gross profit margin on the onboard price of the goods.
Reason for the 400% margin is because they have to pay for the freight, warehouse, promotion and distribution (which includes large sums for for American salaries) expenses. At the end their Net Profit would stands from 30% to more than 100% (Why you think Apple can make such huge profits during its heyday?).

2) The consumers of USA will have to bear all the costs increases due to tariff because importers and retailers will pass these extra costs to the end users.

3) US exporters and their employees, subcontractors and suppliers if trade war erupts. Refer below:-
Exports to China: Vital to US economic growth

• China’s economic growth rate is slowing, but it remains an important market for US exports. In 2016, US goods exports to China totaled $113 billion, holding steady with the previous year and still the third-largest US goods export market behind Canada and Mexico, our neighbors and NAFTA partners.
• Exports of services to China are becoming significant. In 2015, the most recent complete year of available data, US services exports to China totaled $47 billion, making China the United States’ third-largest services export market. From 2006 to 2015, US services exports to China increased more than 400 percent. Services exports to the rest of the world increased 76 percent.
• Global trade is slowing, but exports of US goods and services to China continue to outpace exports to other major markets. On average, US goods exports to China grew by 8 percent annually over the past 10 years, despite the modest decline over the past two years versus 2014. Of the United States’ top 10 goods export markets, only Japan had positive export growth in 2016, reflecting an overall slowdown in global trade.
• US services exports to China grew more rapidly than all other major trading partners, averaging nearly 19 percent annually over the last decade. Only Brazil came close over the same period, with 17 percent average annual growth. The 6.8 percent growth in services exports to China in 2015 far outpaced growth in exports to the United States’ top three markets: the United Kingdom (3.4 percent), Canada (-9.2 percent), and Japan (-5.2 percent).
• China’s maturing economy is undergoing important changes that have resulted in a slowdown in GDP and trade growth. Even so, US exports of goods and services to China have grown faster than exports to any other major US trading partner over the past decade. From 2006 to 2016, US goods exports to China increased 114 percent. That is greater than the growth to any of the other top 10 US goods export markets, including the two largest US trading partners: Canada (41 percent growth) and Mexico (13 percent growth).
• Exports continue to play an essential role in the US economy and job growth. US goods exports to China come from a wide range of industries including transportation equipment, agriculture, computers and electronics, and chemicals. These exports also sustain logistics jobs in America’s ports and throughout the country. US services exports to China included travel and education, royalties, transportation, business and professional services, and financial services.

China: An important market for states and districts across the country

• Most states have seen significant increases in exports of goods and services to China since 2006. Thirty states experienced at least triple-digit goods export growth to China since 2006, and four states saw growth of more than 500 percent over the same period: Alabama, Montana, North Dakota, and South Carolina. Every US state had triple-digit services export growth to China since 2006, 16 states had export growth of more than 400 percent.
• Most congressional districts have seen significant growth in exports of goods or services to China since 2006. 432 out of 435 districts saw triple-digit growth in exports of servcies to China since 2006, and 190 districts saw similar growth in exports of goods.
• The value of US goods and services exports to China is significant. Last year, 29 states exported more than $1 billion in goods to China, while another 11 states exported more than $500 million. In 2006, only 17 states exported more than $1 billion of goods to China and only one state exported more than $1 billion in services to China – California.
• The Value of US goods and services exports to China is significant for congressional districts around the country. China was a top three goods export market for 263 districts in 2016, and among the top five for 358 districts. China was the top services export market in 2015 for 93 congressional districts and a top five market for 399 districts.

More can be done to strengthen US exports to China

• China is a significant market for US exports and it should be even bigger. The United States has a small share of China’s overall market. US goods accounted for about 8.4 percent of China’s total imports in 2015, trailing behind China’s purchases from the European Union, South Korea, Japan, and Taiwan. That market share represents a decline from 2000, when the United States held a 10 percent share of China’s import market.
• Expanding market opportunities in China requires a variety of tools. China maintains an array of tariff and non-tariff barriers that prevent more American goods, agriculture products, and services from reaching Chinese customers. The United States should continue to bring legally sound, industry-supported cases to the World Trade Organization. Congress should expand the resources at the Office of the United States Trade Representative to build upon the successful track record of using the WTO to address unfair Chinese trade practices. The Trump administration should pursue results-oriented engagement with China designed to address barriers of longstanding concern.
• In addition, the United States should push forward negotiations with China on a high-standard bilateral investment treaty, which would reduce ownership and licensing barriers that keep American companies from selling more products and services in China, including exports.

Read Full USCBC 2017 State Export Report here.
Read Full USCBC 2017 Congressional District Export Report here.


Sponsors
Applied Materials
Caterpillar
Chevron
Corning
Dupont
JPMorgan
Smithfield
Thermo Fisher Scientific
Underwriters Labratories Inc.

 

[royalharris]

come on, trump boy

 

[Figaro]

You know who will suffer?

1) The American companies in China making goods for American markets. Some of these companies export 100% of their products to USA and other countries. The exporters normally would use creative accounting to generate minimum profit of say 6% so as to pay minimum tax to Chinese customs, their affiliated companies in USA (normally same owners) would make upto 400% gross profit margin on the onboard price of the goods.
Reason for the 400% margin is because they have to pay for the freight, warehouse, promotion and distribution (which includes large sums for for American salaries) expenses. At the end their Net Profit would stands from 30% to more than 100% (Why you think Apple can make such huge profits during its heyday?).

2) The consumers of USA will have to bear all the costs increases due to tariff because importers and retailers will pass these extra costs to the end users.

3) US exporters and their employees, subcontractors and suppliers. Refer below:-
Exports to China: Vital to US economic growth

• China’s economic growth rate is slowing, but it remains an important market for US exports. In 2016, US goods exports to China totaled $113 billion, holding steady with the previous year and still the third-largest US goods export market behind Canada and Mexico, our neighbors and NAFTA partners.
• Exports of services to China are becoming significant. In 2015, the most recent complete year of available data, US services exports to China totaled $47 billion, making China the United States’ third-largest services export market. From 2006 to 2015, US services exports to China increased more than 400 percent. Services exports to the rest of the world increased 76 percent.
• Global trade is slowing, but exports of US goods and services to China continue to outpace exports to other major markets. On average, US goods exports to China grew by 8 percent annually over the past 10 years, despite the modest decline over the past two years versus 2014. Of the United States’ top 10 goods export markets, only Japan had positive export growth in 2016, reflecting an overall slowdown in global trade.
• US services exports to China grew more rapidly than all other major trading partners, averaging nearly 19 percent annually over the last decade. Only Brazil came close over the same period, with 17 percent average annual growth. The 6.8 percent growth in services exports to China in 2015 far outpaced growth in exports to the United States’ top three markets: the United Kingdom (3.4 percent), Canada (-9.2 percent), and Japan (-5.2 percent).
• China’s maturing economy is undergoing important changes that have resulted in a slowdown in GDP and trade growth. Even so, US exports of goods and services to China have grown faster than exports to any other major US trading partner over the past decade. From 2006 to 2016, US goods exports to China increased 114 percent. That is greater than the growth to any of the other top 10 US goods export markets, including the two largest US trading partners: Canada (41 percent growth) and Mexico (13 percent growth).
• Exports continue to play an essential role in the US economy and job growth. US goods exports to China come from a wide range of industries including transportation equipment, agriculture, computers and electronics, and chemicals. These exports also sustain logistics jobs in America’s ports and throughout the country. US services exports to China included travel and education, royalties, transportation, business and professional services, and financial services.

China: An important market for states and districts across the country

• Most states have seen significant increases in exports of goods and services to China since 2006. Thirty states experienced at least triple-digit goods export growth to China since 2006, and four states saw growth of more than 500 percent over the same period: Alabama, Montana, North Dakota, and South Carolina. Every US state had triple-digit services export growth to China since 2006, 16 states had export growth of more than 400 percent.
• Most congressional districts have seen significant growth in exports of goods or services to China since 2006. 432 out of 435 districts saw triple-digit growth in exports of servcies to China since 2006, and 190 districts saw similar growth in exports of goods.
• The value of US goods and services exports to China is significant. Last year, 29 states exported more than $1 billion in goods to China, while another 11 states exported more than $500 million. In 2006, only 17 states exported more than $1 billion of goods to China and only one state exported more than $1 billion in services to China – California.
• The Value of US goods and services exports to China is significant for congressional districts around the country. China was a top three goods export market for 263 districts in 2016, and among the top five for 358 districts. China was the top services export market in 2015 for 93 congressional districts and a top five market for 399 districts.

More can be done to strengthen US exports to China

• China is a significant market for US exports and it should be even bigger. The United States has a small share of China’s overall market. US goods accounted for about 8.4 percent of China’s total imports in 2015, trailing behind China’s purchases from the European Union, South Korea, Japan, and Taiwan. That market share represents a decline from 2000, when the United States held a 10 percent share of China’s import market.
• Expanding market opportunities in China requires a variety of tools. China maintains an array of tariff and non-tariff barriers that prevent more American goods, agriculture products, and services from reaching Chinese customers. The United States should continue to bring legally sound, industry-supported cases to the World Trade Organization. Congress should expand the resources at the Office of the United States Trade Representative to build upon the successful track record of using the WTO to address unfair Chinese trade practices. The Trump administration should pursue results-oriented engagement with China designed to address barriers of longstanding concern.
• In addition, the United States should push forward negotiations with China on a high-standard bilateral investment treaty, which would reduce ownership and licensing barriers that keep American companies from selling more products and services in China, including exports.

Read Full USCBC 2017 State Export Report here.
Read Full USCBC 2017 Congressional District Export Report here.


Sponsors
Applied Materials
Caterpillar
Chevron
Corning
Dupont
JPMorgan
Smithfield
Thermo Fisher Scientific
Underwriters Labratories Inc.

Excellent analysis. By launching a unilateral trade war, Trump is only shooting himself in the foot. At the end the day, his supporters are the ones who will suffer the most; think about all the Midwest farmers who enthusiastically voted for Trump. Their biggest customer is China ... and they're going to lose it all once a trade war occurs (especially American soybean producers). Unfortunately, Trump is having his strings pulled by the likes of Lighthizer and Navarro ...

Trump hits China with 60 Billion Terrif

China sells all US treasury worth 1 Trillion balances it out

I don't think China would dump the treasuries first ... it's too risky of a move. I think the immediate retaliation will be to cancel existing Boeing orders (which has profited immensely off China), drastically cut soybean/sorghum imports, reinstate import ban of American beef, and curb American automobile ventures. If that doesn't work or the situation escalates, China could then interfere in the supply chains of American multinationals (notably Apple), encourage boycotts or even outright close American operations such as Starbucks (as seen by the Lotte crisis), and respond with a broad tariff of all American imports. China could accelerate selling of their US treasury holdings, but I don't see them dumping them all at once ... that's equivalent to a nuclear weapon detonation in the financial markets.

it will never happen though

Never say "never" ...

 

[comfortably_numb]

Trump hits China with 60 Billion Terrif

China sells all US treasury worth 1 Trillion balances it out

Unfortunately for you, things won't end up your way. China would never indulge in a massive sell-off of US T-bills for the simple reason that they help keep the prices of Chinese exports competitive.

Even if by some stretch of imagination such a folly does indeed happen, the open market sale of bearer bonds would only drive the interest rates of the instruments further down. In any case the Americans will be unaffected.

But such a move would surely hurt Chinese private investors who too have stockpiled the t-bills as well as the other countries to do so.

Instead of chest thumping and tomtoming your master's lines, use whatever little brain you possess.

 

[kris]

Trump hits China with 60 Billion Terrif

China sells all US treasury worth 1 Trillion balances it out

Hmm any way it's good for them. Too much holdings are not good.

American trade war with China ain't going to help them as China is one of their biggest creditors..

Actually everywhere else China gives money only when they are getting something in return. But what are they getting wrt USA?

 

[Deino]

Since this thread already exists in the "World Affairs" section and since it is completely irrelevant to Chinese military, I close this thread.



Deino

 

[nang2]

Actually, what Trump really hits is NOT China, but American consumers.