The Tarriff Hype.

[Ron in Regina]

China refused to bow to what it called "blackmail" from the United States as a global trade war ignited by President Donald Trump's sweeping tariffs showed few signs of abating on Tuesday, even as battered stock markets steadied.

Beijing's rebuke came after Trump threatened to ratchet up tariffs on U.S. imports from the world's No. 2 economy to more than 100% on Wednesday in response to China's decision to match the "reciprocal" duties Trump announced last week.

Trump awaits 'call' from China, but aides say deal not likely before 104% tariffs hit — Reuters

U.S. President Donald Trump said on Tuesday that he is waiting to hear from China before duties of more than 100% take effect, but other administration officials said they would not prioritize negotiations with the world's No. 2 economic power.

apple.news

 

[Ron in Regina]

I was more curious with respect to the dollar figures that Trump was throwing around, & %’ages, etc…in the above article and wondering how much of that was real, and how much of that was in his head:

Like: “We have a deficit with the European Union of $350 billion — it’s going to disappear fast,” Trump vowed.

Is that like the $250 Billion that the US “subsidizes” Canada??

No it's not like the $250B....Germany alone on just autos is an $80B trade deficit. If Germany reciprocated with $80B of US imports would there be a tariff?

Add all the trade deficits up and keep in mind America is bankrupt.

Trumps long-awaited announcement of “reciprocal tariffs” turned out to be nothing of the sort: to calculate the trade barriers other countries impose on the U.S., the administration simply took each country’s trade deficit and divided it by its exports to the U.S. This back-of-the-napkin math doesn’t actually measure trade barriers at all.

The reaction from the worlds of business and finance has been swift. Wall Street witnessed its worst two-day sell off in the past five years last week. International markets continued their downward trend on Monday, with Japan’s Nikkei index and the Shanghai Composite Index dropping over seven per cent. Oh well.

Jesse Kline: Trump puts a match to the global economy — National Post

The world is facing the second economic crisis of the 2020s — only this one is entirely preventable

apple.news

 

[petros]

Trumps long-awaited announcement of “reciprocal tariffs” turned out to be nothing of the sort: to calculate the trade barriers other countries impose on the U.S., the administration simply took each country’s trade deficit and divided it by its exports to the U.S. This back-of-the-napkin math doesn’t actually measure trade barriers at all.

The reaction from the worlds of business and finance has been swift. Wall Street witnessed its worst two-day sell off in the past five years last week. International markets continued their downward trend on Monday, with Japan’s Nikkei index and the Shanghai Composite Index dropping over seven per cent. Oh well.

Jesse Kline: Trump puts a match to the global economy — National Post

The world is facing the second economic crisis of the 2020s — only this one is entirely preventable

apple.news

Economic warfare involves using economic measures to weaken a country's economy and gain a strategic advantage, often through tools like tariffs, sanctions, and embargoes.

Here's a more detailed look at economic warfare:
What it is:

• Definition:
  Economic warfare is the deliberate use of economic means to harm a country's economy, reduce its political and military power, or compel it to change its policies or behavior.
  
  
• • Tools:
    Common tools include:
    • • Tariffs: Taxes on imported goods, making them more expensive and potentially harming a country's exports.
        
      • Sanctions: Restrictions on trade, financial transactions, or travel, designed to punish or isolate a country.
        
      • Embargoes: A complete ban on trade with a specific country or region.
        
      • Export controls: Restrictions on the export of certain goods or technologies.
        
      • Financial warfare: Measures to disrupt a country's financial system, such as freezing assets or targeting financial institutions.
        
      • Cyberattacks: Disrupting critical infrastructure or stealing sensitive information.
        
  • Goals:
    • • Economic weakening: To cripple a country's economy, making it less able to compete or support its military.
        
      • Political influence: To force a country to change its policies or behavior through economic pressure.
        
      • Strategic advantage: To gain an edge over a competitor in international relations.
        
      • Resource control: To control access to critical resources or markets.
        

Examples:

• • Historical examples:
    The Anglo-Irish Economic War of the 1930s, where Britain imposed tariffs on Irish goods in response to Irish actions.
    
  • Modern examples:
    • • Sanctions against Russia following its invasion of Ukraine, aimed at crippling its economy and limiting its ability to fund the war.
        
      • US tariffs on goods from China, intended to address trade imbalances and protect US industries.
        
      • US sanctions against Iran, aimed at limiting its nuclear program and its ability to finance its activities.
        

Consequences:

• • Economic hardship:
    Economic warfare can cause significant economic damage to the targeted country, leading to job losses, reduced living standards, and economic instability.
    
  • Increased tensions:
    Economic warfare can escalate tensions between countries, potentially leading to further conflict.
    
  • Global instability:
    Economic warfare can disrupt global trade and financial markets, leading to instability and uncertainty.
    
  • Rise of economic nationalism:
    Economic warfare can fuel protectionist policies and a decline in global cooperation.
    

Recent Events:

• • The Economist reports on the new book "Chokepoints: American Power in the Age of Economic Warfare" by Edward Fishman, a former State Department sanctions official.
    
  • The Hill Times reports on Canada's need for a new growth strategy in response to US tariffs.
    
  • Foreign Policy reports on the potential impact of US tariffs on the global economy.
    
  • Lrytas reports on the potential impact of US economic warfare on Lithuania.

 

[Ron in Regina]

180 countries at the same time though? Apparently there’s only 195 countries total, so somehow he missed 15 of them?

 

[petros]

180 countries at the same time though? Apparently there’s only 195 countries total, so somehow he missed 15 of them?

15 are already sanctioned. Can't tariff nonexistent trade.

180 countries will have to negotiate what they'll pay to the mob for "protection".

 

[Taxslave2]

Zero cool factor for an America/Canadian Demon or LS7 Vette or Mustang GT or Shelby taxed at 30% at an EU port and then German border.

This is the part most people don't want to accept. That many countries have placed enormous taxation on US imports. Now they whine when the US levels the playing field.

 

[Ron in Regina]

U.S. President Donald Trump said on Tuesday that he is waiting to hear from China before duties of more than 100% take effect, but other administration officials said they would not prioritize negotiations with the world's No. 2 economic power.

Trump awaits 'call' from China, but aides say deal not likely before 104% tariffs hit — Reuters

U.S. President Donald Trump said on Tuesday that he is waiting to hear from China before duties of more than 100% take effect, but other administration officials said they would not prioritize negotiations with the world's No. 2 economic power.

apple.news

 

[Taxslave2]

Anyone got thoughts where to park a couple hundred thousand in RRSPs until the market sorts itself out? I was thinking 30 day CDs.

 

[Ron in Regina]

Anyone got thoughts where to park a couple hundred thousand in RRSPs until the market sorts itself out? I was thinking 30 day CDs.

Apparently fentanyl is a booming market with a potentially quick turnaround.

 

[Taxslave2]

Apparently fentanyl is a booming market with a potentially quick turnaround.

Competing with the government for market share is difficult.

 

[Tecumsehsbones]

Apparently fentanyl is a booming market with a potentially quick turnaround.

But it leads to really dangerous drugs like alcohol.

 

[Ron in Regina]

(YouTube & EU backflips on tariffs in a humiliating display of weakness as Trump executes plan perfectly)

 

[pgs]

Anyone got thoughts where to park a couple hundred thousand in RRSPs until the market sorts itself out? I was thinking 30 day CDs.

If they are in stocks or mutual funds , best to hang on and sell after the market rebounds .

 

[Taxslave2]

If they are in stocks or mutual funds , best to hang on and sell after the market rebounds .

Mutual funds. The catch is that I only have a little over a year before I am forced to turn them into an annuity. Unless they change the law.I'm going to see the money manager later today. See what her thoughts are. The trouble with mutual funds is that you never really know if the advisors are looking after the banks interests, or yours until it is too late.

 

[bob the dog]

Mutual funds. The catch is that I only have a little over a year before I am forced to turn them into an annuity. Unless they change the law.I'm going to see the money manager later today. See what her thoughts are. The trouble with mutual funds is that you never really know if the advisors are looking after the banks interests, or yours until it is too late.

Mutual funds are all in favour of the vendor. Paying 3% while they make 50 times that for themselves with your money.

I took my union pension as a lump sum and bought shares in Ford and have been smiling ever since. The dividends alone are equal to what my monthly pension would have added up while the principle sits in my RRSP. Taking the dividends avoids having to turn it into an annuity iirc. Company is dirt cheap right now as well despite having close to $30 billion in cash. Eventually it will be worth more than Tesla imo.

But you be you and good luck hanging on to what you can. Banks are not your friend, again imo.

 

[Ron in Regina]

China was already set to see tariffs increase by 34% on Wednesday as part of Trump’s “reciprocal” tariffs package. But the president tacked on another 50% after Beijing didn’t back off its promise to impose 34% retaliatory tariffs on US goods by noon Tuesday, adding an additional 84% in duties.

Earlier Tuesday, China’s Commerce Ministry said it “firmly opposes” the additional 50% tariffs on Chinese imports, calling it “a mistake upon a mistake.” The ministry vowed to escalate its retaliation on US exports.

Tariffs on China set to rise to at least 104% on Wednesday, White House says — CNN

President Donald Trump is set to impose an additional 84% in levies across all Chinese imports on Wednesday, White House Press Secretary Karoline Leavitt announced on Tuesday. That will mean all goods from the country are subject to a tariff of at least 104%.

apple.news

Hmmm….they’ve used the word exports as opposed to imports.

 

[petros]

View attachment 28629
China was already set to see tariffs increase by 34% on Wednesday as part of Trump’s “reciprocal” tariffs package. But the president tacked on another 50% after Beijing didn’t back off its promise to impose 34% retaliatory tariffs on US goods by noon Tuesday, adding an additional 84% in duties.

Earlier Tuesday, China’s Commerce Ministry said it “firmly opposes” the additional 50% tariffs on Chinese imports, calling it “a mistake upon a mistake.” The ministry vowed to escalate its retaliation on US exports.

Tariffs on China set to rise to at least 104% on Wednesday, White House says — CNN

President Donald Trump is set to impose an additional 84% in levies across all Chinese imports on Wednesday, White House Press Secretary Karoline Leavitt announced on Tuesday. That will mean all goods from the country are subject to a tariff of at least 104%.

apple.news

Hmmm….they’ve used the word exports as opposed to imports.

Coincidence?

 

[pgs]

Mutual funds. The catch is that I only have a little over a year before I am forced to turn them into an annuity. Unless they change the law.I'm going to see the money manager later today. See what her thoughts are. The trouble with mutual funds is that you never really know if the advisors are looking after the banks interests, or yours until it is too late.

I agree , just think it is best not to sell indiscriminately in a falling market .

 

[pgs]

Mutual funds are all in favour of the vendor. Paying 3% while they make 50 times that for themselves with your money.

I took my union pension as a lump sum and bought shares in Ford and have been smiling ever since. The dividends alone are equal to what my monthly pension would have added up while the principle sits in my RRSP. Taking the dividends avoids having to turn it into an annuity iirc. Company is dirt cheap right now as well despite having close to $30 billion in cash. Eventually it will be worth more than Tesla imo.

But you be you and good luck hanging on to what you can. Banks are not your friend, again imo.

Yes if you can amass enough to live of dividends life is good .

 

[Ron in Regina]

Coincidence?

No idea. Is the US getting a jump on things with Taiwan before it becomes part of China?