pull down to refresh
0 sats \ 9 replies \ @Solomonsatoshi 2 Apr \ parent \ on: Trump's "Liberation Day" Tariffs are a Mistake econ
The US chose to shift manufacturing to China because China could make things cheaper.
This delivered higher dividends to US corporates.
This is how free markets allocate capital and investment- to the use and purpose where they generate the highest returns.
Trumps tariffs seek to overtly distort market signals.
This only makes sense if you are heading into war and need to revive supply chains for strategic reasons...
China has won the free trade war by being structured to make things more efficiently than any other economy can.
China played the 'capitalist' west at its own game and beat them- now the USA wants to change the rules because it is losing at the game it set the rules for.
"free market" lol
okay bro
reply
My country of residence charges ALL countries the same uniform tariff of 15% on all goods and has done since the 1990s.
This tariff is the goods and services tax that is charged on all transactions within New Zealand and so charging it on imports simply creates a level playing feild- ie free trade.
The USA in response has refused to negotiate any free trade agreement with us and maintains huge barriers to free trade meaning US consumers have been are still denied the cheaper and higher quality of NZ produce.
The US now loses all credibility by unilaterally reneging on the free trade agreements it had made with countries like Canada and Mexico.
The USA has lost the trade war with China and the rest of the world- it has grown fat and indolent upon the endless spigot of USD money debt printing - and now that USD hegemony is in decline the USA wants to change the rules to hugely distort the global trade markets.
It might buy the US some time but little else- it is most likely to result in a global fragmentation and the US ending up isolated and broke.
Europe and other traditional allies have already been trading more profitably with China and that trend looks like being accelerated by the US tariffs which make most trade with the US even less viable.
Scoff all you like - $36 trillion debt makes USA look insolvent and USD hegemony unsustainable.
reply
This tariff is the goods and services tax that is charged on all transactions within New Zealand and so charging it on imports simply creates a level playing feild- ie free trade.
this is contradictory.
i don't have time for the rest of it
reply
You’re arguing with a CCP chat bot.
reply
does feel that way, doesn't it.
reply
Only because it seems easier for you to attack the messenger than to respond with reason, fact and logic to the message.
I live in New Zealand and am certainly not a CCP bot or Chinese.
New Zealand has practised very open trade for decades while the US has retained hugely obstructive trade stance toward us.
You use this dishonest and abusive name calling attack on me (not for the first time either) because you know you cannot debate the facts and issues in a fair and rational contest of ideas.
Your lack the confidence and ability to defend and support your ideas when they are challenged and so resort to childish untrue attacks on the messenger.
reply
The tariff (goods and service tax(GST)) is charged on imports and NZ businesses- this in not contradictory. It simply creates a level playing field for domestic and offshore producers- retailers.
For example previously aliexpress sales to NZ residents were not charged GST so they avoided the tax giving them an unfair advantage over NZ producers of similar products- now they are charged (since about 2018) and so the tax on domestic and offshore producers is equal.
The US is the hypocrit as the US already charges sales taxes on imports and in fact restricts imports of multiple goods from NZ already for example dairy products which NZ produces much more efficiently than US producers can - yet the US acting as a sore loser and bully is now imposing tariff on NZ exports on top of the extensive obstruction of free trade with NZ that US already imposes.
You 'dont have time for the rest of it' because you know you are wrong.
reply
'The US’s calculation that New Zealand imposes 20% tariffs on US goods entering the country is “outside the realm of reality”, economist Brad Olsen says.
The US has imposed a 10% tariff on all New Zealand exports to the US, claiming that was a “discounted” rate as it faced 20% tariffs into New Zealand.
But that US calculation appears to include New Zealand’s 15% GST, despite the fact that it is charged on all goods and services sold in New Zealand, and despite the fact that the US has its own sales taxes.
“The inclusion of GST is simply not in keeping with what what we are discussing on tariffs,” said Olsen, chief executive at Infometrics.
“Realistically, it’s a convenient way to up the numbers, and create the feeling of greater unfairness,” he said.'
Trump is a looking like poor dishonest loser and a bully.
USA set the rules of international trade and still lost the trade war.
Now USA seeks to change the rules again to address its chronic trade deficits.
reply