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Trade war: US beef and pork disappearing from China

That is because trade war is not about tax, it's about sustainability. And which side depending on which side more.

Usually the one with Trade surplus would lose. And in this case, it is China.

Why?

Because while China can match US dollars to dollars, but since there are MUCH more Chinese Product US can impose tax than the other way. Which mean if China were to match US dollar to dollar, China would have to double the amount of tax (or whatever amount more required) to match the dollar value to the US.

Say if US impose a 10% of tax in Chinese imported Machinery, which can mean 10% of multi-millions dollar. Which is in itself hundred of thousand of dollars, while China, on the other hand, tax a US imported Car (as if anyone still buying those....) however, a Car does not worth as much as a Industrial Machine, which mean to get up to US level, you will need to probably charge a 3 to 400% tax of the car.

While it may not be Machine vs Car in reality, but in reality we know China have trade surplus over US (Which is why the trade war started in the first place) which mean to achieve dollar to dollar, Chinese tax levy have to be more.

However, just because Chinese Charge more tax, that does not mean that product is not needed in China (That is why it have a market in the first place) Which mean it damage Chinese more (due to higher tax) than US (which you have lower tax on product import from China)

In a long run, it's depends on who can live without who in the market. And since China have more Trade Deficit than US, although it does not mean Chinese are depending more on US market, it do mean China will lose more than US if the trade war continue.

The current level of this "conflict" is too small to matter. It has to escalate a lot, like a lot, before we see the kind of impact worth talking about.

The US has a significant upper hand here.
 
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That is because trade war is not about tax, it's about sustainability. And which side depending on which side more.

Usually the one with Trade surplus would lose. And in this case, it is China.

Why?

Because while China can match US dollars to dollars, but since there are MUCH more Chinese Product US can impose tax than the other way. Which mean if China were to match US dollar to dollar, China would have to double the amount of tax (or whatever amount more required) to match the dollar value to the US.

Say if US impose a 10% of tax in Chinese imported Machinery, which can mean 10% of multi-millions dollar. Which is in itself hundred of thousand of dollars, while China, on the other hand, tax a US imported Car (as if anyone still buying those....) however, a Car does not worth as much as a Industrial Machine, which mean to get up to US level, you will need to probably charge a 3 to 400% tax of the car.

While it may not be Machine vs Car in reality, but in reality we know China have trade surplus over US (Which is why the trade war started in the first place) which mean to achieve dollar to dollar, Chinese tax levy have to be more.

However, just because Chinese Charge more tax, that does not mean that product is not needed in China (That is why it have a market in the first place) Which mean it damage Chinese more (due to higher tax) than US (which you have lower tax on product import from China)

In a long run, it's depends on who can live without who in the market. And since China have more Trade Deficit than US, although it does not mean Chinese are depending more on US market, it do mean China will lose more than US if the trade war continue.
It is actually a particularly bad time for this for U.S. one example is the above you did where if China does dollar for dollar duties the percentage on American companies will be particularly high hence removing them from competition in the local market. But the bigger problem is back home where U.S. job market is getting stretched too thin and the pressure is on to raise the wages which is pointing towards upcoming inflation in the U.S. which I might add is also pretty bad on the pocket considering little to no savings... By taxing cheap foreign imports those goods will become artificially expensive as well hitting the home hard. If this is/was posturing it has failed miserably... if this was considered giving U.S. an edge then someone messed up big time. This will drive U.S. exporters such as agricultural products and big ticket exports too expensive in other countries effectively removing U.S. from the competition. Whereas foreign goods may still remain competitive for some time... but here is an even bigger problem a lot of taxation on the Imports will be on U.S. companies themselves that have moved their operations abroad to remain competitive they will be forced to relocate either back to U.S. in a tight job market or a third country which may or may not work.
 
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I don’t remember ever seeing US beef in a store in Sweden.
Meat is European or from South America.

Does Sweden not have local beef?

We only have Irish beef, pork and chicken here. I figured Sweden, Denmark and Norway were similar
 
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Does Sweden not have local beef?

We only have Irish beef, pork and chicken here. I figured Sweden, Denmark and Norway were similar
Plenty of local beef and pork, but Swedish beef is pretty expensive. Pork more normal.
Imported pork is quite often from Denmark.
Imported beef from Ireland, Germany and South America.
 
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It is actually a particularly bad time for this for U.S. one example is the above you did where if China does dollar for dollar duties the percentage on American companies will be particularly high hence removing them from competition in the local market. But the bigger problem is back home where U.S. job market is getting stretched too thin and the pressure is on to raise the wages which is pointing towards upcoming inflation in the U.S. which I might add is also pretty bad on the pocket considering little to no savings... By taxing cheap foreign imports those goods will become artificially expensive as well hitting the home hard. If this is/was posturing it has failed miserably... if this was considered giving U.S. an edge then someone messed up big time. This will drive U.S. exporters such as agricultural products and big ticket exports too expensive in other countries effectively removing U.S. from the competition. Whereas foreign goods may still remain competitive for some time... but here is an even bigger problem a lot of taxation on the Imports will be on U.S. companies themselves that have moved their operations abroad to remain competitive they will be forced to relocate either back to U.S. in a tight job market or a third country which may or may not work.

What you said is exactly why China is and will be in a less favourable position if the trade war continue, and as I said Trade war is not about tax or money, it's about sustainability. And it also mean how quickly or easy to find alternative source and/or market. Because everything you said would happened to US, it will also happen to China too, but on a bigger scale.

Just because there are tariff, that does not mean one market can do without product from tariffed country, there is a need for that particular product and that is the reason said product have a market in your country. It takes time to either ramp up production locally, or source from another country, meanwhile sourcing from other country may not be cheaper than just pay for the tariff.

Don't get me wrong, trade war HURT BOTH SIDE, but in this case, there are more ammunition with the US than there are with the Chinese. Now, a Trade War wins depends on who brink first, and we may not know who is going to get hurt more until we are actually fighting in this. No one want to see a trade war, but if US and China did fight one, the consensus is that America would be on a more favourable ground
 
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Pakistan should start exporting pork to China, there are lots of pigs and boars in Pakistan destroying the crops. It will be win-win for both.
Any use or Trade related to this being is Haram in islam.
 
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That is because trade war is not about tax, it's about sustainability. And which side depending on which side more.

Usually the one with Trade surplus would lose. And in this case, it is China.

Why?

Because while China can match US dollars to dollars, but since there are MUCH more Chinese Product US can impose tax than the other way. Which mean if China were to match US dollar to dollar, China would have to double the amount of tax (or whatever amount more required) to match the dollar value to the US.

Say if US impose a 10% of tax in Chinese imported Machinery, which can mean 10% of multi-millions dollar. Which is in itself hundred of thousand of dollars, while China, on the other hand, tax a US imported Car (as if anyone still buying those....) however, a Car does not worth as much as a Industrial Machine, which mean to get up to US level, you will need to probably charge a 3 to 400% tax of the car.

While it may not be Machine vs Car in reality, but in reality we know China have trade surplus over US (Which is why the trade war started in the first place) which mean to achieve dollar to dollar, Chinese tax levy have to be more.

However, just because Chinese Charge more tax, that does not mean that product is not needed in China (That is why it have a market in the first place) Which mean it damage Chinese more (due to higher tax) than US (which you have lower tax on product import from China)

In a long run, it's depends on who can live without who in the market. And since China have more Trade Deficit than US, although it does not mean Chinese are depending more on US market, it do mean China will lose more than US if the trade war continue.
Nicely explained
 
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What you said is exactly why China is and will be in a less favourable position if the trade war continue, and as I said Trade war is not about tax or money, it's about sustainability. And it also mean how quickly or easy to find alternative source and/or market. Because everything you said would happened to US, it will also happen to China too, but on a bigger scale.

Just because there are tariff, that does not mean one market can do without product from tariffed country, there is a need for that particular product and that is the reason said product have a market in your country. It takes time to either ramp up production locally, or source from another country, meanwhile sourcing from other country may not be cheaper than just pay for the tariff.

Don't get me wrong, trade war HURT BOTH SIDE, but in this case, there are more ammunition with the US than there are with the Chinese. Now, a Trade War wins depends on who brink first, and we may not know who is going to get hurt more until we are actually fighting in this. No one want to see a trade war, but if US and China did fight one, the consensus is that America would be on a more favourable ground
I don't think you are understanding the dynamic. In U.S. their is whole cottage industry of discount stores aka dollar stores and bigger stores such as walmart which rely primarily on Chinese cheap esports... they will become increasingly expensive hurting American pockets. Likewise American produce and agri products as well as big ticket machinery will become expensive in China driving American exporter out of contention. The dynamic in China is much different whose people are not dependent on American exports nor their exporters uni dimensional. However, again American companies that outsourced their production to China will be in an untenable position where they may have to close shop in China or face even higher wage costs in U.S...
 
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With a weakening US, there will be less money propping up Israel. Alhamdulillah.
 
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I don't think you are understanding the dynamic. In U.S. their is whole cottage industry of discount stores aka dollar stores and bigger stores such as walmart which rely primarily on Chinese cheap esports... they will become increasingly expensive hurting American pockets. Likewise American produce and agri products as well as big ticket machinery will become expensive in China driving American exporter out of contention. The dynamic in China is much different whose people are not dependent on American exports nor their exporters uni dimensional. However, again American companies that outsourced their production to China will be in an untenable position where they may have to close shop in China or face even higher wage costs in U.S...

You don't fully understand the new world of globalization.

Any country goes to trade war with any other country will drag the world into it, US and China goes to war and then not only US and China and many of the US company are associated with Chinese own investment.

Yes, as you said, this will impact US own company and US investment in China, but at the same time, it will also impact Chinese investment in the US and Chinese own company. And since China have a Trade Surplus to America and Chinese have more FDI in America, it will hurt China more than it will hurt US

Plus a lot of US product is also a re-export product, while a lot of Chinese product is Chinese primary product, which mean unless China want to drag other country into this trade war, the US export is not really that much impacted. For example, every Samsung Mobile Phone have American parts in it, would China want to tax Samsung Phone because of the US parts? Because if they do, then the Chinese would also going to trade war with Korea and US at the same time. Even many Chinese export have US parts in it, or partially made in the US, which mean it will also damage Chinese own economy.
 
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I don't think you are understanding the dynamic. In U.S. their is whole cottage industry of discount stores aka dollar stores and bigger stores such as walmart which rely primarily on Chinese cheap esports... they will become increasingly expensive hurting American pockets. Likewise American produce and agri products as well as big ticket machinery will become expensive in China driving American exporter out of contention. The dynamic in China is much different whose people are not dependent on American exports nor their exporters uni dimensional. However, again American companies that outsourced their production to China will be in an untenable position where they may have to close shop in China or face even higher wage costs in U.S...

Two countries at war, any kind of war, will hurt both countries. It's all about which country gets hurt the least.

American soybean exports to China have completely stopped. But these are not high value goods. The Americans are targeting high technology Chinese companies like turbine and engine manufacturers, electronics industry, tooling companies etc, stuff that's supposed to carry China into the 4th Industrial Revolution. A lot of this stuff have alternate suppliers from other countries that are not affected by tariffs. So it's not just a simple matter about money.

https://www.cnbc.com/2018/07/05/global-trade-war-ramps-up-as-us-tariffs-on-china-kick-in.html

In the same article, you can see what China has put tariffs on. Look at aircraft and computer chips in particular. If China puts tariffs on Boeing and Intel, then the effect on China is much more damaging since their competitors, Airbus and AMD, can also increase their own prices due to monopoly of the market. Or the Chinese consumer will have to pay the extra price due to tariffs.

The end result, Americans will get alternate suppliers at only slightly higher prices, while the Chinese have no choice but to pay the extra money.
 
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Two countries at war, any kind of war, will hurt both countries. It's all about which country gets hurt the least.

American soybean exports to China have completely stopped. But these are not high value goods. The Americans are targeting high technology Chinese companies like turbine and engine manufacturers, electronics industry, tooling companies etc, stuff that's supposed to carry China into the 4th Industrial Revolution. A lot of this stuff have alternate suppliers from other countries that are not affected by tariffs. So it's not just a simple matter about money.

https://www.cnbc.com/2018/07/05/global-trade-war-ramps-up-as-us-tariffs-on-china-kick-in.html

In the same article, you can see what China has put tariffs on. Look at aircraft and computer chips in particular. If China puts tariffs on Boeing and Intel, then the effect on China is much more damaging since their competitors, Airbus and AMD, can also increase their own prices due to monopoly of the market. Or the Chinese consumer will have to pay the extra price due to tariffs.

The end result, Americans will get alternate suppliers at only slightly higher prices, while the Chinese have no choice but to pay the extra money.
your first part is correct observation but the second part is incorrect deduction. Low value product has low value because of the abundance of alternatives. Levying tariff on it from a single country will only cost little extra to Chinese consumers. On the other hand, high value products have fewer alternatives. US consumers would have to much more for the fewer alternatives.

This is likely why China doesn't hike tariff on US high value products and services.
 
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