Opinion: How Trump Thinks Tariffs Work (And How They Actually Work) - - PressFrom - US
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OpinionHow Trump Thinks Tariffs Work (And How They Actually Work)

18:26  14 may  2019
18:26  14 may  2019 Source:   theatlantic.com

Trump says tariffs on $200 billion of Chinese goods will increase to 25% on Friday

Trump says tariffs on $200 billion of Chinese goods will increase to 25% on Friday In addition, Trump threatened to impose 25% tariffs on an additional $325 billion of Chinese goods "shortly." The president said that trade talks with China are continuing, but are moving too slowly as Beijing tries to re-negotiate. Trump tweet: For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars....

Here is a look at what tariffs are, how they work , how they 've been used in the past and what to expect now: Are we in a trade war? Economists have no set definition of a trade war. But with the world's two largest economies now slapping potentially punishing tariffs on each other, it looks as if a

President Trump frequently promotes the idea that when the United States places a tariff on an import from another country, that other country directly pays the bill. He’s wrong, but he keeps saying it. On Sunday

How Trump Thinks Tariffs Work (And How They Actually Work)© Jonathan Ernst / Reuters Trump meets with Chinese Vice Premier Liu He in the Oval Office on April 4, 2019.

Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

Last week, President Donald Trump increased tariffs on $200 billion worth of goods imported from China, the latest salvo in the administration’s months-long trade war with Beijing. On Monday, China said it would retaliate with tariffs on $60 billion worth of American products, warning that it would “never succumb to foreign pressure.”

Trump says in 'no rush' for China trade deal, defends tariffs

Trump says in 'no rush' for China trade deal, defends tariffs U.S. President Donald Trump said on Friday he was in "absolutely no rush" to finalize a trade agreement with China as negotiators from both countries prepared to continue talks in Washington, in a sign that discussions could go past this week. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

Here is a look at what tariffs are, how they work , how they 've been used in the past and what to expect now: Are we in a trade war? Economists have no set definition of a trade war. But with the world's two largest economies now slapping potentially punishing tariffs on each other, it looks as if a

The last time a trade war happened in the U.S., things didn't go well for the economy. Will history repeat itself as Trump puts a tariff on steel and aluminum? Here are the facts. Just the FAQs.

Trump argued that additional tariffs were necessary to force concessions from the Chinese and would redound to the benefit of American manufacturers and the American economy. “Tariffs will bring in FAR MORE wealth to our Country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do,” he said in one of his numerous tweets on the subject. He added: “Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch!”

Oh, really? To make the case for his trade war, and to measure his administration’s success in it, Trump is relying on blatant falsehoods and misconceptions. Taking those falsehoods as truths and those misconceptions as correct—accepting Trump’s theory of trade, that is—the United States might be stronger, the deals might be phenomenal, and the trade war might be good and easy to win. But the Chinese have not yet backed down, and show no signs of doing so. In the meantime, the businesses and consumers sitting back and watching the trade war are bearing modest, but measurable costs.

Larry Kudlow says Trump-Xi meeting likely next month at international meeting

Larry Kudlow says Trump-Xi meeting likely next month at international meeting Larry Kudlow, President Donald Trump's top economic adviser, said Sunday there is a "strong possibility" Trump will meet Chinese President Xi Jinping at the G20 economic summit in Japan next month and said he expects China to retaliate against the US for its increase last week in tariffs on Chinese goods as Beijing has indicated it would. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); "We were moving well, constructive talks -- and I still think that's the case ...

Fox News destroys Trump ’s China pays tariffs lie. Wallace said, “It’s not China that pays the tariffs , it’s the American importers, the American companies It is par for the course for a president who lost a billion dollars in a decade to not know how tariffs work . Trump thinks that the money is coming from

How do they work ? Paul Wiseman, Associated Press Published 8:27 p.m. ET May 11, 2019. Last July, Trump began gradually imposing tariffs on Chinese imports. After Friday’s increase, the administration is now imposing 25% tariffs on 0 billion in Chinese goods.

[Read: The U.S.-China trade talks have already changed the world]

In Trump’s mind, tariffs are a potent, unilateral weapon, and protectionism is a potent, necessary economic philosophy. He argues that his tariffs are a direct tax on Beijing—a way of sapping Chinese manufacturers, raising American revenue, aiding domestic businesses, and giving Washington leverage in trade negotiations. “Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products,” he said on Twitter. “These massive payments go directly to the Treasury of the U.S.”

This is not at all how it works; the Chinese government is no more apt to fork over billions of yuan for Trump’s tariffs than Mexico’s government is to pay for a border wall. Rather, tariffs fall on the American importers of Chinese goods, who often pass those cost increases onto American consumers. That means every time Trump raises tariffs, he risks raising costs on families and businesses.

Trump warns China not to retaliate against tariff hike

Trump warns China not to retaliate against tariff hike U.S. President Donald Trump on Monday warned China not to retaliate against a hike in tariffs he imposed last week and said U.S. consumers would not pay for any increase in duties. There "is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today ... China should not retaliate-will only get worse!" Trump tweeted, adding that tariffs can be avoided if manufacturers shift production from China to other countries.

Tariffs were fading into history, but Trump dusted them off in recent months and restored tariffs to a prominent place in his America First approach to the world. Here's a look at what tariffs are, how they work , how they 've been used in the past and what to expect now

An April 2019 working paper by economists found that the tariffs on washing machines caused the prices of washers to increase by approximately 12 percent in the United States.[148]. ^ "What Is Nafta, and How Might Trump Change It?". The New York Times.

Earlier this month, Trump argued that this dynamic did not exist. “The Tariffs paid to the USA have had little impact on product cost, mostly borne by China,” he wrote, intimating that Chinese companies have lowered their prices to remain competitive. That has not, in fact, happened. In a new paper, economists based at Princeton, Columbia, and the Federal Reserve Bank of New York write: “Although in principle the effect of higher tariffs on domestic prices could be offset by foreign exporters lowering the pre-tariff prices that they charge for these goods, we find little evidence of such an improvement in the terms of trade up to now.” The authors estimate that Trump’s tariffs were costing consumers about $1.4 billion in real income a month by the end of 2018.

Trump has promised to use the revenue that the government raises from China (remember, the government is not actually raising money from China) to help businesses harmed by the trade war. Washington will demand payments from Beijing, use the money to buy food, and pass the food on “to starving people in nations around the world!” he said. It is true that the government is planning more aid for agricultural firms hit by the trade war, and that Trump wants the U.S. Department of Agriculture to figure out some work-around. But at best, such a plan would involve taking American taxpayer dollars and using them to buy American agricultural goods to ship abroad or to bail out American farms.

Trump warns China not to retaliate on tariffs, insists they won’t hurt U.S. consumers

Trump warns China not to retaliate on tariffs, insists they won’t hurt U.S. consumers President Trump warned China against retaliation in a series of early morning tweets Monday and insisted there was “no reason” for U.S. consumers to absorb the costs of higher tariffs that took effect Friday. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); Trump wrongfully suggested that the impact of the tariffs could be mitigated by simply buying products manufactured in the U.S., or other countries not subject to tariffs.

Help us understand how tariff or trade war can work out. HOLTZ-EAKIN: Here was the dynamic. Inside the White House, there was a division. I am nervous about how the renegotiation of NAFTA turns out. And I'm prepared to be convinced that this new strategy toward China actually works .

How do they work ? Trump has embraced tariffs as a punitive tool - especially against China, the second-largest economy after US. A look at what tariffs are and how they work

Trump’s misconceptions on trade are not limited to tariffs. He continues to argue that the United States’ trade deficit with China is a sign it is getting ripped off, and that it is bleeding itself dry by engaging in commerce with the Chinese: “The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!” There are many issues with the two countries’ economic relationship, and many ways that China does not play fair. But trade imbalances are not in and of themselves a bad thing. The United States has a trade deficit with China in large part because goods are cheaper to produce there, and Americans choose to consume huge amounts of them; the deficit is not a way of measuring capital losses in the United States.

As for tariffs bringing “FAR MORE wealth to our Country”: The trade war thus far has not caused tremendous macroeconomic damage. But it has hit certain industries and businesses very hard—dairy farms in Wisconsin, for instance—while increasing consumer prices a smidge. Economists have estimated that Trump’s trade war cost the country a sliver of GDP last year, in part by forcing businesses to rejigger their supply chains. (The pain is worst in heavily Republican counties, one analysis found.) Given Trump’s new tariffs and China’s retaliatory measures, the cost might be yet greater this year.

Not that Trump himself would admit it. In his mercantilist, protectionist understanding of the world, trade wars are good, tariffs are a way of hitting the bad guy, and whatever the United States is doing on trade, it is winning. Alas, here in the real world, Trump’s trade war means that consumer goods are about to get more expensive and certain exporting businesses are about to face a much tougher climate, all thanks to the White House.

Read More

Trump administration will delay auto tariffs for up to six months.
The White House had to decide by Saturday whether to slap tarifffs on autos over what it calls national security concerns.

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