China fires back, unveils additional tariffs on $50-billion of U.S. goods

[Hatuey]

https://www.theglobeandmail.com/bus...veils-additional-tariffs-on-50-billion-of-us/

China hit back quickly on Wednesday against U.S. plans to impose tariffs on $50 billion in Chinese goods, retaliating with a list of similar duties on key American imports including soybeans, planes, cars, beef and chemicals in a move that sent global markets lower.

Beijing responded after U.S. President Donald Trump’s administration targeted 25 per cent tariffs on some 1,300 Chinese industrial technology, transport and medical products, acting less than 11 hours later in a sharp escalation of the trade dispute between the world’s two economic superpowers.

Something I thought was important in the article:

While Washington’s list was filled with many obscure industrial items, China’s list strikes at signature U.S. exports, including soybeans, frozen beef, cotton and other agricultural commodities produced in states from Iowa to Texas that voted for Trump in the 2016 presidential election.

It seems China has decided to fire twice. The administration has denied that we are in a trade war with China. I wonder how the people who those tariffs still feel. You know, farmers, car makers, and our tech industries in states that voted for him. Will they ignore this as long as he keeps talking about a wall? Here is to hoping they won't suffer too much from these measures.

 

[Cardinal]

https://www.theglobeandmail.com/bus...veils-additional-tariffs-on-50-billion-of-us/



Something I thought was important in the article:



It seems China has decided to fire twice. The administration has denied that we are in a trade war with China. I wonder how the people who those tariffs still feel. You know, farmers, car makers, and our tech industries in states that voted for him. Will they ignore this as long as he keeps talking about a wall? Here is to hoping they won't suffer too much from these measures.

They also hit back at Californian products, which I thought was a little petty. California is "the capital of the resistance." Why punish them?

 

[Hatuey]

They also hit back at Californian products, which I thought was a little petty. California is "the capital of the resistance." Why punish them?

It seems that the point is to hit back at Trump heavy voter states and not necessarily every state in particular. It is however worth noting that soybean production is almost nonexistent in California but prominent in Trump country and a bit of the east coast.

For California, it makes sense - attack a state already annoyed by Trump - it can only create some anxiety in the more rural parts of the state.

Sent from a memo written by Nunes and edited by Trump.

 

[tres borrachos]

https://www.theglobeandmail.com/bus...veils-additional-tariffs-on-50-billion-of-us/



Something I thought was important in the article:



It seems China has decided to fire twice. The administration has denied that we are in a trade war with China. I wonder how the people who those tariffs still feel. You know, farmers, car makers, and our tech industries in states that voted for him. Will they ignore this as long as he keeps talking about a wall? Here is to hoping they won't suffer too much from these measures.

That's depressing.

I see the areas that supported Trump are the ones who are going to get hit the most. Will those people accept what Trump did to them?

 

[chuckiechan]

https://www.theglobeandmail.com/bus...veils-additional-tariffs-on-50-billion-of-us/



Something I thought was important in the article:



It seems China has decided to fire twice. The administration has denied that we are in a trade war with China. I wonder how the people who those tariffs still feel. You know, farmers, car makers, and our tech industries in states that voted for him. Will they ignore this as long as he keeps talking about a wall? Here is to hoping they won't suffer too much from these measures.

China’s tarrifs AFAIK have amounted to about 2% of US trade. China has gotten the message but has to play the game. But make no mistake, China is a long term economic and strategic threat. They want us out of the region, yet they want to continue raping and pillaging out economy like they did to the presidents before Trump.

Trump is not going to play that game.

As far as markets are concerned it about greed and fear over their cheap Chinese imports they bolt into your washing machine. They don’t give a **** about you, it’s about a CEO walking away with a multi million dollar bonus.

 

[Chomsky]

Economists will generally tell you the winner of a trade war is the one that loses the least. We shall see. But I'm not crazy about losing, in hopes the other guy loses more.

At least the S&P losses today aren't as bad as I though might be (-130). But soybeans are getting hit!

 

[minnie616]

Some of the US companies that will be hurt from the trade war with China.


Apple, Boeing, Caterpillar, Intel , GM , Starbucks, Nike, 3M,and other multinational companies in the Dow that sell to the China.

List of companies taken from the following article:

China's tariffs would hurt these American companies

China's tariffs would hurt these American companies

 

[Kreton]

Economists will generally tell you the winner of a trade war is the one that loses the least. We shall see. But I'm not crazy about losing, in hopes the other guy loses more.

At least the S&P losses today aren't as bad as I though might be (-130). But soybeans are getting hit!

The winners of a trade war are the countries that aren't involved.

 

[minnie616]

https://www.theglobeandmail.com/bus...veils-additional-tariffs-on-50-billion-of-us/



Something I thought was important in the article:



It seems China has decided to fire twice. The administration has denied that we are in a trade war with China. I wonder how the people who those tariffs still feel. You know, farmers, car makers, and our tech industries in states that voted for him. Will they ignore this as long as he keeps talking about a wall? Here is to hoping they won't suffer too much from these measures.

Corn is another farm product that China has on their tariff list.

 

[Chomsky]

The winners of a trade war are the countries that aren't involved.

Good point!

 

[OrphanSlug]

And people are shocked China responded... why?

 

[Chomsky]

So a family farmer called in live to CNBC, and claims he just lost 40 grand. He claims 1/3 of American Soybeans go to China, so this is a pretty big deal. He also claims the farmers have been writing letters to Trump telling him not to get involved in a tariff war due to their exposure, but they haven't received a reply.

Anyway, just one guy's anecdotal claims ...

 

[Barnacle]

@realDonaldTrump
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We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!
4:22 AM - 4 Apr 2018


@realDonaldTrump
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When you’re already $500 Billion DOWN, you can’t lose!
6:20 AM - 4 Apr 2018

 

[Helix]

They also hit back at Californian products, which I thought was a little petty. California is "the capital of the resistance." Why punish them?

probably to add pressure, and i wouldn't be surprised if they keep upping the ante. as i understand it, saving face is more important in Chinese culture than it is in our own. they'll want to appear to win any pissing contest decisively.

 

[Hatuey]

And people are shocked China responded... why?

We are all more in shock that it has gotten this far. I don't think anyone thought we'd go back to the 1920s.

 

[OrphanSlug]

We are all more in shock that it has gotten this far. I don't think anyone thought we'd go back to the 1920s.

Of course, then again when we have an idiot in the White House all kinds of terrible things should be expected.

 

[minnie616]

So a family farmer called in live to CNBC, and claims he just lost 40 grand. He claims 1/3 of American Soybeans go to China, so this is a pretty big deal. He also claims the farmers have been writing letters to Trump telling him not to get involved in a tariff war due to their exposure, but they haven't received a reply.

Anyway, just one guy's anecdotal claims ...

An interesting fact to add to his claim:

Soybeans are by far the most valuable U.S. agricultural export, with $22.8 billion in shipments in 2016.

 

[leekohler2]

And people are shocked China responded... why?

Some on the right probably are.

 

[leekohler2]

An interesting fact to add to his claim:

Soybeans are by far the most valuable U.S. agricultural export, with $22.8 billion in shipments in 2016.

I've heard pork farmers on the radio say similar things. This isn't good. Trump is playing games with working Americans' livelihoods.

 

[chuckiechan]

Economists will generally tell you the winner of a trade war is the one that loses the least. We shall see. But I'm not crazy about losing, in hopes the other guy loses more.

At least the S&P losses today aren't as bad as I though might be (-130). But soybeans are getting hit!

We are already losing 500 billion a year. Define losing?

 

[HenryChinaski]

That's depressing.

I see the areas that supported Trump are the ones who are going to get hit the most. Will those people accept what Trump did to them?

Not at all, they’ll blame Obama.

 

[OrphanSlug]

Some on the right probably are.

Then that makes them complete and total morons for thinking that Trump would somehow fix things with tariffs and magic fairy dust to the point that everyone else on the planet would do nothing in response.

 

[Chomsky]

We are already losing 500 billion a year. Define losing?

In general terms, doing worse than currently.

In specific terms, losing employment & production from pass through costs, while raising inflation & prices to consumers. To say nothing, of market uncertainties.

 

[Chomsky]

An interesting fact to add to his claim:

Soybeans are by far the most valuable U.S. agricultural export, with $22.8 billion in shipments in 2016.

Well, the just became less valuable! :doh

 

[minnie616]

Well, the just became less valuable! :doh

Looks that way.

From today’s Yahoo news:

At a projected 2018 crop of 4.3 billion bushels, soybean farmers lost $1.72 billion in value for our crop this morning alone. That’s real money lost for farmers, and it is entirely preventable,” Heisdorffer said in a statement.

With the tariff, American soybeans will be less competitive in the international market, making the export business even harder as farmers already face headwinds from producers in South America. Besides the economic pressure, China also wants to leverage the agricultural products to move President Trump, who has a lot of supporters in the U.S. farm belt. The largest soybean producers in the U.S. are Illinois, Iowa and Minnesota.

https://finance.yahoo.com/news/soybean-chinas-trump-card-trade-war-173132128.html