You will find more infographics at Statista
U.S. President Donald Trump imposed a 25 percent tariff on $34 billion of Chinese goods, a move which prompted Beijing to impose retaliatory tariffs on U.S. imports. Things are set to escalate even further after Trump threatened to add more tariffs to $200 billion of Chinese imports including fish sticks, fruit, vegetables and coal. The Chinese government have threatened to take “firm and forceful measures” if Trump does indeed follow through on his threat.
Now that the first round of tariffs have come into effect, what does the U.S. public think about the situation? Gallup conducted a poll in late June, finding that most Americans support attempts to change trade relations with Beijing. 62 percent of Americans polled said they feel China’s trade policy with the U.S. is unfair with only 30 percent considering it fair. Trump has also imposed tariffs on steel and aluminum imports on a host of trade partners including Canada and the EU. 65 percent think the situation with Canada is fair, along with 56 percent for the EU.
While a majority of 55 percent also think Japan’s trade policy with the U.S. is fair, things are more divided when it comes to Mexico. 46 percent of people think trade between the U.S. and Mexico is fair while 46 percent consider it unfair.
I believe that the people who run these “American” companies have been warned about the Chinese building the cheap shit that they hawk over here for “Made in America” prices. I can imagine that if the new tariffs (now the highest since 1947) don’t encourage them to build manufacturing plants over here, and they merely pass the costs onto the American public, then there will be an embargo against the countries where this garbage comes from. There will be shortages, and companies like Harley Davidson, General Motors, and the big box stores will shut down as a result and will either be reorganized under more pliable new management or will be liquidated.
Everyone had better buy some extra underwear and socks to put back just in case!
We won’t find out what the people think until tariffs are converted into price hikes at the retailers.
There is NO SUCH THING as “free trade” especially when it comes to American products being sold abroad. Every other country has erected trade barriers in the form of excise and “value-added taxes”, as well as regulatory restrictions on our products. The Trump administration knows this, and is attempting to get the existing “sweetheart” trade deals (which DO NOT benefit the United States of America) thrown out and renegotiated.
The countries that have “value added taxes” rebate the tax to domestic companies that ship their products out of the country for export, while slapping the “value added tax” on products imported from America.
In addition, American businesses that want to build plants in foreign countries quite often have to procure a “local partner” who actually “owns” 51% of the company, making industrial espionage not only possible, but likely.
The average foreigner would like to buy American products, but quite often, they are priced out-of-reach bacause of the taxes and duties placed on American imports by their respective governments.
“Free trade”means just that…the free exchange of products and materials between countries. PERIOD!
If I had my way, a “tit-for-tat” system would be established. A country imposing an 10% “value added tax” on American products would have the very same 10% “tax” imposed on its exports to the United States. Also, there are many European countries that purposely use excessive “taxation” to keep American cars out. In some of these countries, if you purchase an American car, the taxes imposed are equivalent to buying one for the government.
The regulatory angle that countries use to keep out American products could be handled in the same way…a good example of this is Japan, that insists that every foreign car be inspected individually unlike the “blanket certification” system that most countries use. The “blanket certification” system requires that a model of each car be submitted to a testing laboratory for evaluation and inspection. Once certification is approved, the foreign car company can import as many cars of each certified model as it chooses without government interference. You would see Japan scrap its individual certification system in a hurry if the United States insisted that every Japanese import be individually inspected.
This even occurs with other products, which cannot meet Japanese government approval. A number of years ago, an imported cooking kitchen appliance was very popular with Japanese households. Once the Japanese government got wind of it, they banned the imported product as “the temperature did not go low enough”. This was but another example of regulatory overreach.
Another sneaky tactic used nowadays is the “pass-through” system whereby a country uses a “third country” to get its exports into a country with trade restrictions. Canada produces very little steel of its own, mainly “specialty steels” in small quantities. A good example of the “pass-through” system is Chinese steel, which is routed though Canada, given the “made in Canada” label (with the true “country of origin” being carefully hidden) in orer to circumvent restrictions on Chinese steel (which was being “dumped” in the United States).
A “tit-for-tat” system is the only way to have truly “free trade”. If this were the practice throughout the world, you would see trade restrictions disappear.
Stupid article. Merkin people don’t think. And when ever they do think it isn’t about the fairness of trade policy. It is about where to order pizza.
It’s important that people understand the President’s ultimate goal, which is parity between nations with zero tariffs. Unfortunately you can’t achieve this without lots of acrimony. But it’s great to see a President finally stand up for Americans on the world stage and say, very loudly and clearly “ENOUGH”!