Trump's post-office plans: Big
announcement
(Bye, bye America: I'm
moving to China)
T-3 updated: Good morning Mr.
and Mrs. American Consumer – all of us, I guess. From “our” President and his
T-3 policy (Trump’s Terrible Tariffs) – more attention grabbing headlines
from here:
Trump tariffs set to cost you $2,000 in 2020 research finds
Trump’s tariffs are expected
to cost American households more than $2,000 per year in 2020, according to
a recent report from the National Foundation for
American Policy (NFAP).
The Arlington-based nonprofit
— which looked at the effect of tariffs on the overall economy and consumers —
estimated that by the end of 2019, the trade duties imposed
by Trump: “[…] will have cost the average household $1,315 over a two-year
period,” adding: “When adding the tariffs in effect and the tariffs set to go
into effect by the end of 2019, the costs of the tariffs to consumers will be
$259.2 billion. That is, the tariffs will cost the average household $2,031 per
year, and will be recurring so long as the tariffs stay in effect.”
Early on I asked a simple question when all this silly-ass game from
Trump started: “Who pays for Trump’s tariffs?”
I then gave a hint and well-known definition: “Tariff (noun): A tax or duty paid on a particular class of imports or exports
by the consumer not the producer or manufacturer.”
Also related to this same subject from
my earlier post.
Example of another “greatest
deal-maker ever Donald” failure wherein he makes us and himself, not China – the
target, hugely with this story: Trump
caves on tariffs – he can’t pull the trigger on China increases.
Details of
that: Trump delayed the new tariffs on a large batch of Chinese imports that
were supposed to go into effect September 1, and exempted some other Chinese
imports altogether. This de-escalates Trump’s trade war with China.
It also amounts
to a tacit acknowledgement that his tariffs “might” hurt American consumers “too
much.” (No
kidding – nice you finally woke up)!!!
Laptops, cellphones, gaming
consoles, and other products imported from China won’t face a 10% tariff on
September 1, as expected. The Trump administration says the 10% tariffs on
those products will go into effect on December 15, instead (just in time for the
Christmas shopping season, eh, Mr. Donald the Grinch?).
But the delay reveals an
unwillingness by Trump to raise the cost of products many Americans find
essential, suggesting he’s bluffing about ever imposing such a tariff.
The 10% tariff will still
land on September 1 on these imports from China: clothing, footwear, and toys,
but U.S. importers can apply for tariff exemptions (but will they)?
In case you have lost track,
Trump has now imposed 25% tariffs on about $250 billion worth of intermediate
goods imported from China, which are components most consumers never see.
The new 10% tariff on all
remaining Chinese imports on August 1, as talks on a trade deal with China
broke down are mostly finished consumer products, therefore consumers would likely
notice higher prices reflecting the added tariff, which is a new added tax.
China called Trump’s bluff
which caused Trump to partially reverse that new 10% tariff, and without any
corresponding concession from China.
China also refused to fulfill a pledge to
start buying more U.S. farm products, for instance and now more and more U.S.
farmers are literally going bankrupt and foreclosing and worse.
Noteworthy: China allowed its currency (the Yuan) to fall in
value more than usual, which makes Chinese exports to other countries cheaper and
boosts domestic sales.
It is possible China has decided to bear the pain of Trump’s trade war
for the next 15 months and hope Trump loses the 2020 election.
This all leaves Trump, who
fancies himself as the ultimate master dealmaker, hardline negotiating with only
himself. Summary of that:
- Trump’s initial threat on consumer imports from China was to levy a 25% tariff.
- Trump, when it came time to do it, he lowered it to 10%.
- Now it’s 10% on just half of those products, rather than all of them.
- Plus, there’s an appeals process for eliminating the entire tariff.
My 2 cents and score board: China: A bunch – Trump: Zip, zero, nada, nil, goose egg
(just egg on his smug face).
But, this will only get worse – bet it – just don’t
bet too much (except maybe a few bucks on China for being tougher than Trump –
oops).
Finally, the sub-headline to this story is:
These Trump tariffs
“eliminate all remaining economic gains from the administration’s deregulation
actions”
So, Trump’s bragging rights about his super economic genius plan are also
down the proverbial drain or swamp (take your pick).
Thanks for stopping by.
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