Unintended consequence of the tariffs

RNG

Apr 2013
38,656
26,645
La La Land North
With the institution of tariffs on China by the US and the retaliatory tariffs China instituted, not surprisingly trade dropped. But it dropped disproportionately affecting the US, and includes a huge drop in non-tariff US exports, an unexpected result.

It caused one of the largest trade imbalances with China ever recorded, and that was after the tariffs.



Reproduced from Institute of International Finance; Chart: Axios Visuals

China imported far fewer goods from the U.S. once the first round of tariffs took effect last July and the country retaliated.
Between the lines: The trade war is to blame for the slowdown, but interestingly imports of U.S. goods that weren'tsubject to tariffs slowed too when the trade war began.
What's happening: According to new research by the International Institute of Finance, this dynamic is proof that non-tariff measures were also contributing to the decline of U.S. exports to China.
"[This explains] why the US trade deficit with China grew last year. China's retaliation more than offset the impact of U.S. tariffs," IIF Deputy Chief Economist Sergi Lanau and Head of China Research Gene Ma argue.
  • Early on in the trade war, there were concerns that China would retaliate not with tariffs, but with other tactics— including canceling orders for U.S. goods.
Bonus: China is turning to other countries for imports of "animal, vegetable, paper, and mineral products" it used to get from the U.S., Lanau and Ma write.
  • Russia and Brazil are among the countries benefiting most.
The graph didn't C&P. Be patient and I will insert it or post it next.

Russia and Brazil benefit as Trump trade war reduces overall Chinese imports of U.S. goods
 
Oct 2009
510
88
Cliffside Park, NJ
RNG, tariffs are levied upon specifically described products or classifications of products.

If we levy a tariff on Chinese steel, and other nations producers will inherit China's share of USA's domestic steel markets. USA steel plants will continue competing with low-wage nation's steel. So of course, we may simply levy tariffs on all imported steel.

Due to USA steel tariffs, steel and steel in all forms, (i.e. steel products or components) costs to USA enterprises increase and more partial or fully steel goods are imported rather than produced in the USA. USA's steel fabricators are obviously the natural market for USA steel producers, so its illogical not to levy tariffs upon just steel unless we also levy tariffs upon all steel products. Otherwise, we're protecting USA steel producers that are selling to a shrinking USA market due to imported products of steel or steel components.

Did I mention that due to more expensive steel and steel products, increasing more imported products will use steel alternative materials? Congress should also consider levying tariffs on plastic and plastic products.

Opponents of tariffs tell us a pure free trade policy is the superior trade policy. But USA has been experiencing chronic annual trade deficits of goods in excess of a half-century. We have been purchasing more foreign goods that the values of our entire domestic production. Due to our annual trade deficits, our jobs and payrolls are lesser than otherwise.

I'm among the proponents of the policy described within Wikipedia's “Import Certificates” article.
Refer to Wikipedia's Import Certificates article, https://en.wikipedia.org/wiki/Import_Certificates
Respectfully, Supposn
 
  • Like
Reactions: BondJmsBond
Aug 2018
494
279
been around
USA has been experiencing chronic annual trade deficits of goods in excess of a half-century. We have been purchasing more foreign goods that the values of our entire domestic production. Due to our annual trade deficits, our jobs and payrolls are lesser than otherwise.
Free trade was, and is, a philanthropic giveaway by the Western World, to help raise up second and third world nations.

They're there, and now surpassing us. It's time now for Fair and Equitable Trade.

One intended consequence of the tariffs is, it's working.
China announces it seeks 'calm' end to trade war, as markets tank and currency hits 11-year flatline
 
Last edited:
Jul 2019
4,659
2,381
Georgia
Free trade was, and is, a philanthropic giveaway by the Western World, to help raise up second and third world nations.

They're there, and now surpassing us. It's time now for Fair and Equitable Trade.

One intended consequence of the tariffs is, it's working.
China announces it seeks 'calm' end to trade war, as markets tank and currency hits 11-year flatline

How about that, maybe it's the right thing to do.
winning!

although China is claiming the phone call didn't happen

Chinese newspaper editor debunks Trump's trade war claims: 'China didn't change its position'

“Based on what I know, Chinese and US top negotiators didn’t hold phone talks in recent days,” Hu said in a tweet. “China didn’t change its position. China won’t cave to US pressure.”
 
Last edited: