Trading wars impact

I have to admit I don’t know about this deal that much in detail, but overall what you say @Trump is true. As a leader he does not get into details and is not able to think through deep about issues with nuances.

I just hope he has capable people working under him who can take care of details. However, my experience is, in the absence of good leadership good decisions can’t be made most of the times.

1 Like

Some answers here:

Trump is going to change the name though. No more NAFTA and his cult members will think MAGA!

1 Like

Bill Richardson(Democrat) seems to be supporting this deal.

The dumbsters will believe anything he says, we have many of them on this forum just docking and keeping silent themselves when they see their emperor with no clothing on.

He is treating this as a patch to deflect on his failed promise to take down NAFTA. He ain’t taking it down, he is changing the schematics to make it look like he accomplished anything. Same as Trumpcare, same as N Korea, all mumble jumble, no action.

Anyway, Argentina, China and other countries took the US place on this rotten deal of tariffs.

Ohhh…did he as a strong man he pretends to be, told Mexico to pay for the wall? Wasn’t that the best opportunity to do so? I am asking for a friend here. :smiley::smiley::smiley::smiley:

Winning!

Inside American companies reeling from Trump’s trade war - Bloomberg

https://www.bloomberg.com/news/articles/2018-09-05/-i-m-in-big-trouble-corporate-america-reels-as-tariffs-pile-up

Blue Ridge Home Fashions Inc.’s problem is feathers. For Empire Today, it’s vinyl planks. At Jammy Inc., there’s a whole bunch of things, from tail lights to reflective tape.

All three companies are on the losing end of President Donald Trump’s trade war with China. Their supply chains have been disrupted, their planning and forecasting thrown into chaos. The whole experience has been, in the words of Jammy Chief Executive Officer Ralph Bradley, a “real kick in the ass

https://www.bloomberg.com/news/articles/2018-09-05/things-are-not-going-to-plan-in-trump-s-u-s-trade-deficit-wars

Things Are Not Going to Plan in Trump’s U.S. Trade Deficit Wars

Most economists argue against Trump’s characterization of the U.S. trade deficit as a reflection of the country’s profits and losses from trade. They also tend to cringe when people invoke reducing the deficit as a policy goal. The last time the U.S. trade deficit shrank significantly was in the aftermath of the 2008 crisis, which saw a collapse in global trade.

“Trade policy has very little direct impact on the overall trade deficit in the longer run," said Mary Lovely, a Syracuse University economist. A new Nafta, for example, is unlikely to do much to change the trade deficit, despite the administration’s claims, she said.

We are starting to be like Communist China.
We are protecting the farmers, rich farmers that is, giving them what? $7-$12 billion as a handout after somebody screwed them up with the falsehood of tariff wars.

Putin couldn’t be so proud of his pupil.

Even the Democrats are for tariffs. Bernie also

From walmart, costco and big tech companies like apple are having 75% of manufacturing outside for cost point of view.

Our Manufacturing industries are long forgotten, almost 20 to 30 years, and businesses moved all the manufacturing outside.

If they are bring back manufacturing locally, our economy gets benefit…naturally everyone here gets benefit.

Trump is trying to change the dynamics by simple concept. The results will not be seen immediately, but it takes year to provide benefit to local economy.

See here how he tweeted for Apple impact on tariffs. He is right on it.

Apple_DT

It’s more immediate than you think. The trailing 12 months of manufacturing job growth is the highest since 1995.

1 Like

Any one making here will get no tariff and additional tax benefit.

It starts immediately, but takes longer time to improve/sustain the results. Ford has stopped building plant in mexico and china, Apple has tied up with Foxconn to make parts in USA. This will start increasing year over year, that is what Trump’s plan.

BTW: This kind of protectionism is there in many countries. US is trying it for the first time (IIRC).

The big assumption is the demand is inelastic :slight_smile: or we can manufacture the same product at or lower cost, may be even at higher quality.

By adding tariff cost, Trump is forcing businesses to make it here which they will do eventually. In fact it should be same for all imports, but it seems to be big task/challenging.

Either in China (mfr) or India (IT) or Mexico or any other country, labor cost is too low compared to USA. This is the only reason US businesses are behind, not by quality standards or manufacturing capabilities.

Otherwise, businesses will continue to follow the same trend of outsourcing.

See Apple itself teamed with Foxconn for 7B factory at USA. Ford stopped new plants at Mexico and China. They will replan to USA soon( not declared yet ).

Just before 10 years, no one thought EV cars are reality, but now they are.

You will notice the changes from now to few years, lot of companies like TSLA, with local manufacturing/ assemblies will be established in USA.

Necessity is mother of invention !

Our country is turning into a Socialist distribution of wealth type of economy.

Tax incentives are a way to attract foreign companies, yes, foreign companies, not the “hire an American, buy American made products” which may be building factories here, but eventually will get their invested money back and given the times where they can’t pay enough to workers, they can easily pack up and go home.

By the way, Foxconn deal was made when there wasn’t any tariff wars going on. Who knows what trouble they will be in when the dust settles, their manufacturing power will be diminished if their raw materials are imported.

Besides that, most Americans can’t afford housing nowadays. With the stagnant wages, and the resilient opposition from republicans for a wage increase, they won’t be able to pay the higher price for anything.


""Even if the project creates all 13,000 jobs the politicians said it potentially could–and I find that absolutely not credible given how automated high-tech manufacturing has become–that means a cost of more than $230,000 per job .

At that price, the deal is a sure loser for Wisconsin taxpayers. That’s because there is no way the typical Foxconn worker will pay $230,000 more in state and local taxes than she and her family will consume in public services over her work time there.

At that price, the deal can only be accurately described as a transfer of wealth from Wisconsin taxpayers to Foxconn shareholders. ""

Trump wants overnight change. Also as pointed out by buyinghouse article, the future factories would be highly automated. So the low tech Trump supporters won’t benefit. IMHO, those jobs would be lost any way with tech advances, outsourcing sped it up. Can’t get them back. Those guys have to upskill or we create some labor intensive industry.

2 Likes

Business managers (…until CEOs) do not like tariff, Investors…do not like tariffs…they are supported by vested interest media/news…They can write any thing…

For all of them, Trump needs to be a Senile president, come, stay 4 or 8 years…and go !

Do you think Trump expects over night change? Really? Is he so much illiterate, Running a massive billions of empire on his own?

IMO, he knows what he is doing…Pity that we voted so many president who did not even try to move a needle towards jobs moving abroad. At this age 70, he is so firm and testing his full strength what he feels right.

As soon as Tax reduction is announced, every company repatriates cash to USA and some companies like Apple & Foxconn started 7B project factory in USA. This will provide some jobs. There may be many jobs coming like that.

Even if Trump gets 20% jobs here in USA, he is the great president.

If “future factories would be highly automated” is the scenario, the consequences are same for USA or any other country. Talking about unknown Futuristic issue is a BS.

The fact is whether he puts tariff or not, technological innovation continue to grow and the impact is common irrespective of Trump Tariff or jobs moving to abroad or here.

This is what Trump said “News/Media is not providing right information to people and they are skewed”

Frankly don’t really understand some of points raised, they sound like worshipping and pumping Trump rhetoric :crazy_face: you didn’t address how Trump supporters benefit. Thought the main goal is to get those guys employ, a good paying job.

1 Like

We already have 5M+ jobs that aren’t filled. Upskilling people and eliminating the welfare cliff are the keys to unlocking that economic growth potential.

We will see more manufacturing done domestically, and it will be highly automated. Someone will need to design, sell, and maintain those automated systems. It creates more than just the jobs in the factory.