What Happens During A Trade War..

Discussion in 'Politics' started by willair, 9th Mar, 2018.

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  1. Lizzie

    Lizzie Well-Known Member

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  2. MTR

    MTR Well-Known Member

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  3. Lizzie

    Lizzie Well-Known Member

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  4. paulF

    paulF Well-Known Member

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    Lose-lose situation... China, Canada and Mexico form almost 50% of US imports, there is no way the US will not hurt when these countries impose tariffs on US goods. China for example is a lot less dependent on the US imports(around 18% or so)
    Checkout the site below for some good info(might be a bit outdated, click on a country and then click the Atlas link):
    The Globe of Economic Complexity: Visualize $15 Trillion of World Exports
     
  5. PandS

    PandS Well-Known Member

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    Easy stuff for China, devalue their dollar, their export is cheaper so negate the tariff
    US export is more expensive = tariff

    kill plenty of birds with this simple move

    Their nuclear weapon is their dollar and they are starting to use it already
     
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  6. Alain

    Alain Well-Known Member

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    China has been doing this, they have been manipulating their currency and devaluing it to make their goods cheaper, it's one the US and EU's biggest gripes.
     
  7. geoffw

    geoffw Moderator Staff Member

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    So there is a report that Trump has asked for a new bill which would allow him to raise tariffs at will - in contravention of WTO rules. He would not need congressional support for that.

    While it's unlikely that Congress would support such a bill, the move towards more unilateral power is both consistent and worrying.

    The proposed bill is likely to have its name changed. It's called the United States Fair and Reciprocal Tariff Act - aka the US FART Act.
     
  8. geoffw

    geoffw Moderator Staff Member

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  9. MTR

    MTR Well-Known Member

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    This is interesting, also shows how property markets are now trending down, have been for some time

    Interest rates have already risen, some lenders raising rates. I see this impacting on property markets Oz wide
     
  10. geoffw

    geoffw Moderator Staff Member

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    MTR Well-Known Member

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  12. geoffw

    geoffw Moderator Staff Member

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    MTR Well-Known Member

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  14. geoffw

    geoffw Moderator Staff Member

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    But even that article states that it's hard to measure; by any account, the defect, whichever side it's on, is only 1% to 2% of the total trade between the two countries. Figures have been cherry picked to make a molehill appear to ba a mountain, and injudicious statements are going to make it a real mountain.
     
  15. geoffw

    geoffw Moderator Staff Member

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  16. Alain

    Alain Well-Known Member

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  17. geoffw

    geoffw Moderator Staff Member

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    1. Those articles are just talking about China trade. I don't disagree that there is a problem. A lot of the problems occur just because China does a much better job of manufacturing than many other countries, but there also appears to be strong government support of their own industry through tariffs and subsidies. But the trade war is against many other countries as well, where the problems are insignificant compared to China. For instance, I don't really see that a trade disagreement with Canada is worth the trouble.
    2. One of those articles says that the problems (at least with China) are real, but that the actions are excessive or inappropriate. From the first article
    And another talks about the steel and aluminium (or aluminum) tariffs being unwarranted. Those were the first tariffs; they seem to be starting to cause some damage now. Other tariffs may not cause the same damage; however, the whole approach seems very awkward and even amateurish. The US seems determined to make enemies everywhere rather than work together with friends (like Canada).
     
  18. Lizzie

    Lizzie Well-Known Member

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    "Dear America, appreciate your allies, after all you don't have that many."
     
  19. geoffw

    geoffw Moderator Staff Member

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    IMF warns of damage to US from trade war

     
  20. Lizzie

    Lizzie Well-Known Member

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    That was a given
     
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