Reply to Trump caved: I smell blood in the water

Forum Index » Political Discussion

Reply to "Trump caved: I smell blood in the water"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]You all don’t understand tariffs. America will win this. China doesn’t have any countries willing to buy like we do. [/quote]

That is one way of looking at it, but the main point is that goods are more important than money.

Without U.S. trade, China is losing out on cash. Well, that isn’t great, but cash is not as important as goods that you cannot make. Americans are losing out on goods. They need parts for machines, they need microchips, they need semiconductors, they need textiles. They need them so badly that even with 145% tariffs, Americans will still buy them, whereas China can find other sources.

People are focused on the dollar amount - China only buys $xx from the U.S., but we buy $2xx!  That doesn’t matter as much as people think. It’s not the dollar amount, it’s the pain of not having goods you need. Many  businesses don’t have the cash reserves to pay tariffs and wait for customers to pay higher prices. They will receive a $500k container at the dock, pay >$1.2 million with the tariff, and then sweat until they can start to make money off the products. They might face a lead time of 6-12 months before they see any returns. In the meantime, they have to make payroll, pay rent, pay utilities, pay benefits, pay their other suppliers. Many businesses cannot afford to pay an extra 725k up front and they will end up laying off employees and then shuttering. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics