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Republican Party identification has begun requiring intellectual vacuity.

-- Jennifer Rubin (she's a conservative for those who don't read much)
Beatification Candidate
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quote:
Someone please explain to me why US steel mfgr's raised their prices as a result of the tariffs, which is how I read the above statement.


That's what the tariffs allow them to do in any reasonably competitive market. Tariffs are like a wall around the country. The height of the tariff is the height of the wall. The tariff permits domestic prices to rise to the height of the wall. If you have free trade, domestic and world prices are the same (except for transport costs). If you have a 10% tariff, domestic prices are 10% higher than world prices. No US manufacturer has an incentive to sell for less than that, because they don't have to.
 
Posts: 7678 | Location: Williamsburg, VA | Registered: 19 July 2005Reply With QuoteReport This Post
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I knew P*D would have a more lucid explanation... Big Grin


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Posts: 22718 | Location: Somewhere in the middle | Registered: 19 January 2010Reply With QuoteReport This Post
What Life?
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That's what I figured.
So US Steel hypothetically increase employment & demonstrably raise prices, leading to users of steel to spend more so either reduce profits or raise prices, or reduce expenses possibly by reducing jobs, and the consumer learns to buy less often, which further damages profits which leads to loss of companies...
and a new equilibrium develops.

but who actually comes out better off? What am I missing?

because I'll bet the majority of the new capacity comes from spiffy new automation not more employed steel workers.


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Posts: 2580 | Registered: 07 April 2008Reply With QuoteReport This Post
Republican Party identification has begun requiring intellectual vacuity.

-- Jennifer Rubin (she's a conservative for those who don't read much)
Beatification Candidate
Picture of Piano*Dad
posted Hide Post
If you owned stock in a steel manufacturer, you win. If you are a high-skilled (or union-protected) worker in that industry, you win. If you owned stock in a steel user, you lose. If you are a worker in one of those industries, you lose. The losers don't feel the loss as much because steel is a big fraction of a steel company's output, but a small fraction of an automaker's output. And the losers don't always fully understand that they are losers. It's often not easy to connect the dots between something abstract, an increase in tariffs on steel, and something far downstream like a pink slip at a retailer of paper clips.
 
Posts: 7678 | Location: Williamsburg, VA | Registered: 19 July 2005Reply With QuoteReport This Post
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Trade deficit with China widens for the fourth consecutive month.

quote:
The U.S. trade deficit rose to a seven-month high in September as imports surged to a record high amid strong domestic demand, offsetting a rebound in exports.

The Commerce Department said on Friday the trade gap increased 1.3 percent to $54.0 billion, widening for a fourth straight month. Data for August was revised to show the trade deficit rising to $53.3 billion instead of the previously reported $53.2 billion.

The trade deficit continues to deteriorate despite the Trump administration’s protectionist trade policy, which has left the United States locked in a bitter trade war with China as well as tit-for-tat tariffs with other trade partners, including the European Union, Canada and Mexico.

The politically sensitive goods trade deficit with China jumped 4.3 percent to a record high of $40.2 billion in September. Economists polled by Reuters had forecast the overall trade deficit rising to $53.6 billion in September.

When adjusted for inflation, the goods trade gap increased to an all-time high of $87.0 billion in September from $86.3 billion in August.

The government reported last week that the trade deficit subtracted 1.78 percentage points from gross domestic product in the third quarter. That was the most since the second quarter of 1985 and reversed the 1.22 percentage points contribution in the April-June period.


https://www.reuters.com/articl...d-high-idUSKCN1N71DL


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Posts: 22718 | Location: Somewhere in the middle | Registered: 19 January 2010Reply With QuoteReport This Post
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President Donald Trump's trade war is already wiping out small American manufacturing businesses, and it will have a more negative impact on the US economy than most are expecting, economists at the Swiss banking giant UBS say.

Seth Carpenter, UBS' top US-focused economist, expects tariffs imposed by Trump on Chinese goods and China's retaliatory levies to halve the speed of gross-domestic-product growth in the world's largest economy.

"We are outliers compared to the rest of Wall Street in terms of how big an effect the tariffs have on the US economy," he said in London on Thursday at the launch of the bank's 2019 Global Economic Outlook. "We expect a material slowing in the fourth quarter of this year — so right now — into the first quarter of next year."

He pointed to official UBS forecasts, which see annualized growth at 1.7% in the fourth quarter and just 1.5% in the first quarter of 2019. The annualized growth rate in the third quarter, as reported by the US Bureau of Economic Analysis, was 3.5% — which already represented a slowing from the previous quarter and showed a significant negative impact from the trade war.

Most of the slowdown, UBS says, is likely to come in the manufacturing sector, which is much more sensitive to changing prices for raw materials. The impact is likely to be so acute that many new manufacturers are likely to go out of business.

Yet much of Trump's reasoning behind the trade war is to reinvigorate the US manufacturing sector.


https://www.businessinsider.co...people-think-2018-11


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Posts: 22718 | Location: Somewhere in the middle | Registered: 19 January 2010Reply With QuoteReport This Post
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All this wining is wearing me out.


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Posts: 26510 | Location: Yorba Linda, CA | Registered: 23 April 2005Reply With QuoteReport This Post
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Ivanka received Chinese patents for voting machines and nursing homes. Am I the only one who finds this ghoulish?
 
Posts: 20703 | Registered: 31 March 2007Reply With QuoteReport This Post
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quote:
Originally posted by Steve Miller:
All this wining is wearing me out.


More on its way.

https://www.businessinsider.co...na-trade-war-2018-11


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Posts: 22718 | Location: Somewhere in the middle | Registered: 19 January 2010Reply With QuoteReport This Post
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quote:
Originally posted by Steve Miller:
All this wining is wearing me out.


I'm not sure whether you left out an n or an h.
 
Posts: 41799 | Registered: 20 April 2005Reply With QuoteReport This Post
Republican Party identification has begun requiring intellectual vacuity.

-- Jennifer Rubin (she's a conservative for those who don't read much)
Beatification Candidate
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...wining is what you do when you're tired of all this winning but don't feel like whining.
 
Posts: 7678 | Location: Williamsburg, VA | Registered: 19 July 2005Reply With QuoteReport This Post
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n Smiler


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Posts: 26510 | Location: Yorba Linda, CA | Registered: 23 April 2005Reply With QuoteReport This Post
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New York Times article:
https://nyti.ms/2zxFtf1

It talks about how Columbia Sportswear navigates around tariffs, how designers are paired with international trade experts to design around tariffs.


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Posts: 10766 | Registered: 01 December 2006Reply With QuoteReport This Post
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US-China trade war: Deal agreed to suspend new trade tariffs
http://www.bbc.co.uk/news/worl...tin-america-46413196

90 days of no escalation on tariffs.


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Posts: 10766 | Registered: 01 December 2006Reply With QuoteReport This Post
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