- cross-posted to:
- news@lemmy.world
- cross-posted to:
- news@lemmy.world
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The problem is that China can live very easily without American goods, while the opposite isn’t true. They already called his bluff even before inauguration, good luck continuing bluffing.
Now I understand how he managed to bankrupt a casino
The idea is that China can’t live without selling stuff to the US… But it’s easier for them than it would be for the US.
There will be supply chain shocks. There is no country in the world that can absorb the entirety of Chinese production like US could. This would cause recession for China which would highly increase the chances of war in Taiwan strait.
I hate this timeline
The problem is that China can live very easily without American goods
A lot of it is food. They probably can, but it will not be not easy at all.
Can that food be imported from elsewhere?
Yes, but the other countries that buy from elsewhere will want their normal amounts too.
Can other food producers increase their production while the US spirals down? Nobody really knows, we are in shock due to both global warming and the war in Ukraine. And the US is a really major food exporter.
Can people make do with less food? Probably, but it’s not trivial.
Anyway, China’s tariffs are completely self-imposed. They can cut them at any time.
What I mean is that this could totally end with China going “fuck this, we subsidize food for our citizens” and Africa starving yet again.
Or, hopefully, food prices rising in the developed world while the only place the US would be able to sell being Africa, below normal prices, like it happened with Russia and India and oil. But then I’m expecting too much from the world.
If the US manages to reduce their imports, what will probably happen is that the rest of the world will cut the more optional consumption from there so that they can keep buying the food. What means that US industry will suffer.
But your first feeling that sellers and buyers will redistribute who they deal with is probably correct too. Anyway, the tariffs shouldn’t have an immediate effect of changing how much food moves around, but nobody knows what domino pieces they will hit on the fall.
On the very short term, China is tariffing stuff that hurts. What means they are serious about not buying from the US and will pay extra for the privilege. And yes, also means somebody else will probably take their place.
Who wants to bet that the idea of retaliatory tariffs wasn’t gamed out beforehand and they have no strategy?
It seems like if you want a trade war with China, you’d want partners to help you apply pressure and replace Chinese goods you can’t do without. Maybe somewhere like Vietnam for cheap labor; Canada for rare-earth minerals; and the EU to buy expensive American goods and services. Oh no.
The dumbest president in existence has no strategy and is operating on blind ego impulse? Shocking!
Who wants to bet that the idea of retaliatory tariffs wasn’t gamed out beforehand and they have no strategy?
He has a concept of a strategy.
What is the end game here? A war? There is no war against China that US can win unless India and to lesser extent Russia becomes antagonistic to China. Thats not happening.
If tariffs aren’t solving all your problems, you’re just not using enough of them.
/s
Whelp there goes Walmart and dollar general
Frankly, good riddance.
“If he does impose the additional 50%, US companies would pay a total rate of 104% on Chinese imports.”
This was the bit of information I was confused about before reading this article. I was under the impression that we were already charging over 50%, and for some reason I didn’t realize that we can charge more than a 100% tariff.
As others have already said, JFC we are cooked.
US companies would pay a total rate of 104% on Chinese imports.
The more money people lose, the more desperate they become. This is going to get interesting. Who goes after Trump first? The ultra rich or the average working class?
How to kill the world economy in 3 easy steps…
Step 1: Populism
I was going to add stupidity, but they usually go hand in hand.
Lmao the US is so fucked
Everyone is fucked
If only that shooter had better aim.
If only republicans weren’t so fucking gullible.
It’s not gullibility. It’s intentional ignorance and simply believing what they want to believe so they can hate the people they want to hate.
Even now the majority of republicans will defend Trump’s actions.
Unfortunately it would have martyred him and all of his supporters would never have realized how much of a buffoon he really is. A lot of them still don’t understand now but they will more and more as they feel it with continued inflation and their financial situation dwindling.
If only the Democrats ran a candidate that was not dogshit time and time again. It was never a surprise that candidates like Harris and Clinton did not do especially well against Trump in polls. It takes a special kind of loser to lose to Donald Trump.
It wouldn’t matter because he’d be dead. He is destroying America and is trying to take the rest of the world down with him.
He’s definitely taking all the steam out of the european MAGA-like right wing parties, it’s beautiful to see. That would have never happen if he was martyred.
Our local Trump wanna-be went to the inauguration without an invitation only to take some pictures with american flags and show how much he supported (and was supposedly supported by) Trump; Nowadays he basically acts as if what’s going on in the US is pure craziness and he would never, and he hardly even knows Trump anyway. His polling goes down each time Trump comes up with more stupid shit.
I think of that guy all the time. He had it … he was there.
Has Europe made itself more robust in the wake of the multiple financial collapses stemming from the US? Sincere question. I know china has taken measures.
I think there’s some things in place but there’s still a lot of reliance on American systems which is a bit risky. If Trump decides to start tariffing anything to do with Visa or Mastercard shit would hit the fan real quick.
Not really, there are so many alternatives it would only hurt visa and MasterCard
On the other hand that is just money, at least there is no real vendor-lock-in there yet, though I am sort of surprised the concept of different currencies per payment company hasn’t occurred to them yet outside of gaming.
They did gor like a week here in he UK. We’re rolling back the rules since 2008 already
Their banking sector at least went through reforms following the 2008 crisis. They are required to be less risky in certain ways than they were pre-GFC and have gone through a bunch of stress testing over the years.
You just now coming round to this realisation?
Just block trade and get it over with.
DT fans its a correction, neutral and non fans it is a crash
The problems with US tariffs is that they build a wall around the USA. All the other countries still trade with each other. China can sell their goods elsewhere, and they can buy what they need elsewhere, too. It might involve some losses, but it will be far less painful for them than the US.
Imagine what the US buys in China: many basic chemicals for the pharmaceutical and chemical industry, nails and screws for industry or building, electronic parts of all kind to build about any kind of electronics.
If the US industry loses access to the basic, mass produced ingredients for their production, the current stock market developments will only be a small precursor before Wall Street implodes.
