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It’s basic math: here’s why you’ll NEVER notice the tariffs
Posted on 5/10/19 at 4:33 pm
Posted on 5/10/19 at 4:33 pm
A 5 minute google will tell you that:
As a percentage of total GDP, imports account for 15%. LINK
Of that 15%, only about 3% (0.4% of the total GDP) is imports of iron, steel, or classified as an article of iron or steel. LINK
Is it scary when we see numbers in the billions of dollars for deficits with other countries? Sure. But the size of our economy is so vast, and our reliance on imports so small, that we don’t feel it and never will.
In contrast, Germany and China are so reliant on imports and exports that they REALLY care when we throw our weight around (Germany is more than 80% exports/imports).
The vast majority of our trade is with NAFTA anyway, so we could literally embargo the world outside North America and you’d not even notice.
And yet, we protect this whole system of international trade (hat we barely use) to the tune of trillions of our dollars and thousands of our sons and daughters.
As a percentage of total GDP, imports account for 15%. LINK
Of that 15%, only about 3% (0.4% of the total GDP) is imports of iron, steel, or classified as an article of iron or steel. LINK
Is it scary when we see numbers in the billions of dollars for deficits with other countries? Sure. But the size of our economy is so vast, and our reliance on imports so small, that we don’t feel it and never will.
In contrast, Germany and China are so reliant on imports and exports that they REALLY care when we throw our weight around (Germany is more than 80% exports/imports).
The vast majority of our trade is with NAFTA anyway, so we could literally embargo the world outside North America and you’d not even notice.
And yet, we protect this whole system of international trade (hat we barely use) to the tune of trillions of our dollars and thousands of our sons and daughters.
This post was edited on 5/10/19 at 7:07 pm
13
Posted on 5/10/19 at 4:37 pm to cokebottleag
IB freemelttttttttt
Posted on 5/10/19 at 4:39 pm to cokebottleag
But muh Chinese terlit paper!
Posted on 5/10/19 at 4:42 pm to Btrtigerfan
John Wayne TP may come from China. The good stuff doesn't.
Posted on 5/10/19 at 4:42 pm to cokebottleag
Conservatives arguing against the free market and advocating for raising taxes. We’ve entered bizarro world
This post was edited on 5/10/19 at 4:43 pm
Posted on 5/10/19 at 4:43 pm to cokebottleag
quote:
here’s why you’ll NEVER notice the tariffs
Well.... Unless your job is the sale of metal goods.
Posted on 5/10/19 at 4:44 pm to cokebottleag
quote:Well that’s because like 75% comes from domestic steel producers anyways.
Of that 15%, only about 3% (so 3% of 15%, not 3% of the total GDP) is imports of iron, steel, or classified as an article of iron or steel.
In addition, if 25% of the competitors will essentially have to raise their prices by 25%, why wouldn’t the remaining 75% raise their prices by say 5-10 percent? They can raise their prices without a single additional cost, so it’s basically 100% profit for that additional price margin.
This post was edited on 5/10/19 at 4:46 pm
Posted on 5/10/19 at 4:45 pm to cokebottleag
quote:
It’s basic math: here’s why you’ll NEVER notice the tariffs
Basic math to liberals and “democrats” means stealing other people’s money and spending it as their own..........so socialism.
They’re too stupid to know any better so there’s that.
Posted on 5/10/19 at 4:45 pm to DavidTheGnome
If China wasn’t playing fair in the first place then it was never free. They need to suffer so that we can have 100% fair free trade. If not then we will balance out the deficit with tariffs of our own.
This post was edited on 5/10/19 at 4:46 pm
Posted on 5/10/19 at 5:01 pm to cokebottleag
IBajunkpeddler doesn’t wanna here such rubbish
Posted on 5/10/19 at 6:29 pm to DavidTheGnome
quote:
Conservatives arguing against the free market and advocating for raising taxes. We’ve entered bizarro world
What Reddit page was that from?
Posted on 5/10/19 at 6:33 pm to Nguyener
quote:
Unless your job is the sale of metal goods.
Learn to code
Posted on 5/10/19 at 6:34 pm to DavidTheGnome
quote:
Conservatives arguing against the free market and advocating for raising taxes. We’ve entered bizarro world
What's bizarre is , Libertarians claiming they aren't Liberals.
Liberals are for open borders , propping up other countries and direct foreign aid , just like most (not all) Libertarians.
Posted on 5/10/19 at 7:08 pm to buckeye_vol
It doesn’t work like that. There is no bump for everyone because there are too many producers to collude effectively.
The foreign steel just becomes uncompetitive.
The foreign steel just becomes uncompetitive.
Posted on 5/10/19 at 7:29 pm to cokebottleag
quote:They don't have to collude. If pre-tariffs the average price of 25% of a foreign item price $100 and the 75% of domestic item costs $110, then the average price wold be $107.50. If the foreign prices increase by 25% then that rises to $113.75. So why wouldn't I raise my prices knowing that the average price has risen by nearly 6% without any increase on domestic items.
It doesn’t work like that. There is no bump for everyone because there are too many producers to collude effectively.
quote:So even if it didn't increase because of the price increase on foreign competitors alone, but if this makes them less competitive, the demand for domestic items be more likely to increase, and the future demand for foreign items decrease, even if there is a price increase?
The foreign steel just becomes uncompetitive.
All I know is if a quarter of my competitors suddenly had a price increase, the ability for me to raise prices has increased substantially, whether due to new demand or the new price point of the average item.
This post was edited on 5/10/19 at 7:32 pm
Posted on 5/10/19 at 7:33 pm to 93and99
quote:Since when are libertarians (classical liberals) for propping up countries for foreign aid? I bet Rand and Amash would take issue with this representation.
Liberals are for open borders , propping up other countries and direct foreign aid , just like most (not all) Libertarians.
Posted on 5/10/19 at 7:53 pm to DavidTheGnome
quote:
Conservatives arguing against the free market and advocating for raising taxes. We’ve entered bizarro world
They aren’t conservatives.
Posted on 5/10/19 at 9:20 pm to cokebottleag
I'm in the renewable energy sector and these tariffs have affected prices for people buying solar. This increase will see all solar companies raise their prices again to account for the 25% increase. BUT, I agree with the tariffs until China comes correct. It sucks because I hate to pass these costs on to the customers but margins are thin enough in this sector and we cannot eat them. With that said, being that there are fed tax credits still in affect solar is still a great deal for nearly everyone who goes solar. The tariffs have not hurt other parts of our business.
Posted on 5/10/19 at 9:45 pm to buckeye_vol
quote:
They don't have to collude. If pre-tariffs the average price of 25% of a foreign item price $100 and the 75% of domestic item costs $110, then the average price wold be $107.50. If the foreign prices increase by 25% then that rises to $113.75. So why wouldn't I raise my prices knowing that the average price has risen by nearly 6% without any increase on domestic items
I would say this is false. The domestic market is still free trade. The loss of a low cost import has left a void for another competitor to enter the market at the current domestic item price. The domestic producers are obviously operating at an acceptable profit margin currently and this would allow them to generate more gross profit. Some domestic competitor will accept the current domestic price to take market share.
This post was edited on 5/10/19 at 9:47 pm
Posted on 5/10/19 at 9:53 pm to Colonel Flagg
quote:I'm not sure the barriers of entry would make this likely as is, especially in manufacturing, but more importantly, I don't think it would be feasible since we don't know how long the tariffs will last as they're likely temporary, especially if Trump is not reelected.
The loss of a low cost import has left a void for another competitor to enter the market at the current domestic item price.
So that would be a lot of money and time to get things running with a decent possibility that the tariffs aren't even in place when it's ready to go, especially if it's in the steel sector, where the available market share is already limited.
This post was edited on 5/10/19 at 9:55 pm
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