Trump's tariffs to raise prices

[Dramatica 13,698]

To quote Trump himself, with his politics the US will become like «Venezuela on steroids»..

 

[AsleepOnTheCeiling 6,976]

2 hours ago, faysalaaa said:

Okay that makes sense, thank you for explaining

I agree with you in generally, but I also think iPhones should be made domestically, and people should pay more for it. The market will always adjust and offer solutions for people that cant afford it. iPhone slave labor is insane, and nobody should be okay with it.
 

 

Every consumer electronic is made using slave labor. Because we mine minerals from Africa using child labor that is paid next to nothing. The US will never get these jobs back unless Trump also institutes something akin to slave labor. China is able to dorm it's workers, and is able to fill 2,000 job positions overnight. I work in the US supply chain and I can tell you that it's hard getting people to work in an unskilled labor job in this sector, even at twice the average income for a job with no degree requirement. Americans think they're too good for this kind of work. 

 

I'm gonna link an article that explains some of this as well. It mentions how we held a lot of consumer electronic manufacturing until around 2005, with China able to graduate twice as many mid-skill engineers as the US. We don't have the labor force trained to even build the factory lines out in this manner efficiently. Much less able to change entire lines in mere hours the way China can. It also touches on how Americans wouldn't even be willing to pay a 10% premium on items made in the domestically. 

 

The second article I'm linking includes a quote from Tim Cook, who was always behind the logistics and supply chain portion of Apple. He mentions that the tooling skill needed in the US for the precision work on an iphone is so rare here that he's not sure he could fill a room with everyone skilled enough in the US. And in China you could fill football fields. It also touches on the theoretical numbers. They say we would go from having a throughput of several hundred million iPhones manufactured a year in China to only producing a few million in the US. Which would limit supply and skyrocket demand, which would drive costs insanely high making the iPhone a ultra luxury item. This would also in turn exasperate that job sector and cause sky high wages for some of those positions. And this is assuming every single engineer and skilled laborer works for Apple, so there would be no option for an alternative because of the insane amount of scarcity in the applicant pool. 

https://www.cnet.com/tech/tech-industry/features/why-your-iphone-may-never-be-made-in-the-usa/

 

https://www.forbes.com/sites/quora/2018/01/17/how-much-would-an-iphone-cost-if-apple-were-forced-to-make-it-in-america/

[Ayesha Erotica 1,925]

On 11/9/2024 at 11:02 PM, Shyane said:

I feel like my comment on this won't be welcomed but I'm still going to share. I heard that ad from Kamala's campaign during the election. I'm so shocked this is her campaign ad. 

Right now, China exports cheap products to the world because they have cheap labor. People living under poverty line working hard for their government. You know that is not what democracy looks like. No other countries can compete with the price of their products. The minimum wages in more developed countries are simply too high. The costs to make the products are higher so the prices on the market are more expensive. And because of that, US is giving China money to buy those products. Domestic products cannot compete. This eventually causes Chinese economy to thrive and American economy to wither which happened in the last decade or two.

Raising the tariff nullify the competitiveness of the Chinese products as it will reflect on the price of these products. Yes, those foreign made products will become more expensive which is why they do this so that American people will buy more domestic products which will then keep the money in the US, creating more job opportunities and keeping the companies and production lines in the US. We want to keep the companies here so job opportunities will be here. There was a trend of US companies leaving the US (not sure how it is now). This policy is trying to stop that. There may be an increase in day to day products but this will create more jobs and increase wages. With the increase in the salary, you will be able to afford those products instead of giving those money to China which actually supports their authoritarian regime.

Trump also said that he intends to support the US gas industry which may actually help decrease prices of day to day products. I do understand people hate Trump and Democrats are better with social issues but on this policy, I think Trump's policy is beneficial for Americans. Please don't come for me.

You're lucky, since @StrawberryBlond became the State Secretary of GagaDaily on October 16, 2024, the guillotine for dissent has been abolished.

This is an exciting contribution from you, but I don't think it will work against China. Biden has NOT lifted the tariffs imposed by Trump and has added some tariffs on a smaller scale to the tariffs already in place. The result: inflation has risen.

What you wrote will work if Trump blackmails, threatens and economically destroys Germany in favor of America, but it will not work against China, because China is smart and will fight back and is in a stronger position than Germany. One cannot win a trade war against China.

China will circumvent the tariffs, e.g. by re-declaring products, sending them to Vietnam via detours and from Vietnam to America. It will impose counter-sanctions. We all benefit from China's cheap prices because it reduces our cost of living. China even subsidizes its own products, which is good for us because they are even cheaper and we save more money. Do you think America would be able to find enough workes willing to work for law salaries to fill all the necessary gaps to replace China? I think this is rather unlikely. One cannot duplicate China's factories in America and have competitive prices.

I agree that the approach you describe will create more jobs, but why should wages rise? There will be more workers, but they will be more impoverished and will be able to afford less because the products around them will become more expensive.

I expect this:

(Inflation reduction from tarrifs on Europe) + (Inflation increase from tarrifs on China) = overall inflation increase (because trade with China is bigger than with Europe).

[AsleepOnTheCeiling 6,976]

1 hour ago, AyeshaErotica said:

You're lucky, since @StrawberryBlond became the State Secretary of GagaDaily on October 16, 2024, the guillotine for dissent has been abolished.

This is an exciting contribution from you, but I don't think it will work against China. Biden has NOT lifted the tariffs imposed by Trump and has added some tariffs on a smaller scale to the tariffs already in place. The result: inflation has risen.

What you wrote will work if Trump blackmails, threatens and economically destroys Germany in favor of America, but it will not work against China, because China is smart and will fight back and is in a stronger position than Germany. One cannot win a trade war against China.

China will circumvent the tariffs, e.g. by re-declaring products, sending them to Vietnam via detours and from Vietnam to America. It will impose counter-sanctions. We all benefit from China's cheap prices because it reduces our cost of living. China even subsidizes its own products, which is good for us because they are even cheaper and we save more money. Do you think America would be able to find enough workes willing to work for law salaries to fill all the necessary gaps to replace China? I think this is rather unlikely. One cannot duplicate China's factories in America and have competitive prices.

I agree that the approach you describe will create more jobs, but why should wages rise? There will be more workers, but they will be more impoverished and will be able to afford less because the products around them will become more expensive.

I expect this:

(Inflation reduction from tarrifs on Europe) + (Inflation increase from tarrifs on China) = overall inflation increase (because trade with China is bigger than with Europe).

Backing up your statement regarding China running its products through other countries:

 

https://www.ice.gov/news/releases/hsi-chicago-seizes-nearly-60-tons-honey-illegally-imported-china

 

We're spending money just doing this with honey, and still failing. Also, honey prices have not gone down nor has there been a huge increase in honey production jobs.