Author Topic: The psycopath  (Read 43189 times)

Cardboard

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The psycopath
« on: August 02, 2019, 08:44:57 AM »
Will likely add tarrifs on European cars and French wine at 1:45 PM ET today.

Well, maybe I should not call him a psycopath. Probably more a simple imbecile?

Are you raising cash to take advantage of bargains? Are they going to be bargains at all if the imbecile keeps ruining the global economy with tarrifs?

Cardboard


MrB

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Re: The psycopath
« Reply #1 on: August 02, 2019, 09:31:40 AM »
Cardboard why do you say that? According to this, http://trade.ec.europa.eu/doclib/docs/2015/january/tradoc_152998.1%20Trade%20in%20goods%20and%20customs%20tariffs.pdf

EU duty on imports of cars from the US is 10%
US duty on imports from the EU is only 2.5%

I'm not an expert in the field, but on face value I would have agreed if EU duties were 0 or substantially less than what the US charged. I would think implicit in your statement is that one should have free trade (no tariffs), but if I don't want to trade freely with you then I probably should not be upset if you match the tariffs I'm charging you, no? What am I missing?

Cardboard

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Re: The psycopath
« Reply #2 on: August 02, 2019, 09:57:21 AM »
Because there should have been better ways to resolve these issues. So far all this does is slowing the global economy, creating issues for businesses on sourcing, raising costs for U.S. consumers and businesses among others. 

For a so called great negotiator I must say that Trump has failed miserably with his tarrifs. This was the very wrong way to go about this IMO and all we are seeing is downside.

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Spekulatius

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Re: The psycopath
« Reply #3 on: August 02, 2019, 10:11:48 AM »
US duties on trucks are 25%, that’s where all the money is made. There is almost no native US  “car” industry any more, all the US manufacturers make a living selling trucks. Europe offered already to lower all tariffs of US cars to zero, but Trump wouldn’t take it.
To be a realist, one has to believe in miracles.

MrB

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Re: The psycopath
« Reply #4 on: August 02, 2019, 10:13:01 AM »
Because there should have been better ways to resolve these issues. So far all this does is slowing the global economy, creating issues for businesses on sourcing, raising costs for U.S. consumers and businesses among others. 

For a so called great negotiator I must say that Trump has failed miserably with his tarrifs. This was the very wrong way to go about this IMO and all we are seeing is downside.

Cardboard

I hear you, but as a practical matter what do you do? In my mind it is as simple as matching tariffs or negotiate something, which essentially results in raising costs/tariffs indirectly. If I charge you 10% and you charge me 2.5% and I refuse to negotiate, what options do you have? As a first step it probably makes sense for you to raise your tariffs and at least force me to negotiate.

MrB

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Re: The psycopath
« Reply #5 on: August 02, 2019, 10:14:52 AM »
US duties on trucks are 25%, that’s where all the money is made. There is almost no native US  “car” industry any more, all the US manufacturers make a living selling trucks. Europe offered already to lower all tariffs of US cars to zero, but Trump wouldn’t take it.

Spekulatius is this a result of recent negotiations?

MrB

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Re: The psycopath
« Reply #6 on: August 02, 2019, 10:21:07 AM »
US duties on trucks are 25%, that’s where all the money is made. There is almost no native US  “car” industry any more, all the US manufacturers make a living selling trucks. Europe offered already to lower all tariffs of US cars to zero, but Trump wouldn’t take it.

Just adding some numbers to what you’re saying,


http://trade.ec.europa.eu/doclib/docs/2019/february/tradoc_157704.pdf
The EU-US automotive trade represents more than one-sixth of all trade in industrial goods. Some EU manufacturers have located in particular the production of pick-up trucks and sport utility vehicles (SUVs) in the US of which a large share is then exported to the EU or to China. The EU imported passenger cars and trucks worth almost EUR 7 billion from the US while the US imports of EU cars and trucks reached EUR 40 billion in 2017. This accounted for 14% and 29% of all EU passenger car imports and exports respectively. US exports of passenger cars to the EU face a tariff of 10% and EU exports to the US face tariffs of 2.5%. But exports of pick-ups and trucks popular in the US face a 25% import tariff. US producers face 10% to 22% in the other direction, depending on engine size. Average tariffs on core motor vehicle parts stand at 1.7% in the US to 4% in the EU.

cwericb

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Re: The psycopath
« Reply #7 on: August 03, 2019, 10:06:43 AM »
I can’t believe that the US consumer hasn’t yet clued in and realized that every time Trump imposes a tariff, the price of consumer goods goes up or corporate profits go down. Perhaps it is because the full effect hasn’t trickled down yet but won’t this eventually cause inflation? Do people not realize that this is a sneaky way of raising taxes?
Politicians and diapers must be changed often, and for the same reason. - Mark Twain

Gregmal

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Re: The psycopath
« Reply #8 on: August 03, 2019, 12:45:52 PM »
I can’t believe that the US consumer hasn’t yet clued in and realized that every time Trump imposes a tariff, the price of consumer goods goes up or corporate profits go down. Perhaps it is because the full effect hasn’t trickled down yet but won’t this eventually cause inflation? Do people not realize that this is a sneaky way of raising taxes?

Many of these people happily get fleeced buying(scratch that now, leasing) new iPhones every 18 months, buying $300 Jordans, and running balances on 25% interest credit cards...Many of them were the folks taking out 0-3% down mortgages on homes 15x their annual income back when they could do that to. It'll be a while til the chickens come home to roost here.

cwericb

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Re: The psycopath
« Reply #9 on: August 03, 2019, 03:39:26 PM »
Yes, you are right. But that's a little scary.
Politicians and diapers must be changed often, and for the same reason. - Mark Twain