Quora: Is President Trump's announcement of adding an additional $300 billion in tariffs on China starting September 1, 2019 mean that China is not backing down in trade talks?
Richard Haywood, An American who has lived in China since 2012 Answered
Wait a minute…he is NOT adding an additional $300 billion in tariffs (read taxes on the poor and the middle class). He is adding taxes to $300 billion of goods imported from China. Huge difference.
The actual taxes raised by the Treasury are $30 billion. CHINA PAYS ZERO DOLLARS IT IS THE USA THAT PAYS either importers or consumers and it is paid to the USA treasury.
It is a way of rising taxes on the middle class and the poor without calling it that while still allowing massive tax cuts to the rich and corporations.
Maybe China will loss some business (huh??? imports from China are up since the Trump taxes, exports are down) or bottom line it is hurting the USA consumers and employees not Chinese.
Many companies are not paying any taxes now so they can easily absorb the taxes Trumps has levied (it is a business cost deduction after all) or they just pass it on to the consumer who pays the tax (like a value dded tax but gets no deduction).
The $1,000 TV is NOT going up $100. Remember it is a tax levied on the imported price. Maybe the wholesale price is $500 so it is a $50 tax to the importer and they pay it to the US treasury to be lost in the $trillion deficit Trump admires so much and the GOP is so proud of that they have encouraged for over 40 years.
Or they absorb all or part of it but pass the rest on to the retailer who absorbs all or part and passes the rest on. Maybe you, the consumer will see no difference or maybe the price will go up by $20.
Chinese economic woes are self inflicted as it cuts infrastructure growth, and tries to promote consumer spending. Chinese GDP growth is 6%, inflation 2.6% for real growth of over 3% the USA inflation of about 1.6% and GDP growth of 2.1% or real growth of less than .5%.
China growth is much stronger than USA’s, it exports worldwide are up, it exports to the USA are up, its imports from the USA are down. So far the only impact is in farm goods and the Chinese have increased imports of soybeans from South American and locally grown as their needs have plummeted because of the Asian swine flue has killed off 25% of its pig herds which are the primary consumers of soybean imports. 25% of their herd represents a loss GREATER than the combined herds of North America and Europe so pork prices are up in China.
China does not rely on America for much of its critical needs wheres the USA does rely on China for much of its consumer driven market. Bottom line, the USA has shot itself in the foot, China may stumble but quickly regain its footing.
China looks 30–50 years into the future, the USA at the next quarter ot next year, Business investment in the USA has plummeted, even foreign business investment has plunged, economic growth is based on flooding the market with cheap money in the USA not strong business fundamentals. In China foreign business investment continue to grow at 3 to 7% unchanged, tech investments are up 40% in 2019.
China is eating the USA’s lunch. Guess who the smart money is on?
Richard Haywood, An American who has lived in China since 2012 Answered
Wait a minute…he is NOT adding an additional $300 billion in tariffs (read taxes on the poor and the middle class). He is adding taxes to $300 billion of goods imported from China. Huge difference.
The actual taxes raised by the Treasury are $30 billion. CHINA PAYS ZERO DOLLARS IT IS THE USA THAT PAYS either importers or consumers and it is paid to the USA treasury.
It is a way of rising taxes on the middle class and the poor without calling it that while still allowing massive tax cuts to the rich and corporations.
Maybe China will loss some business (huh??? imports from China are up since the Trump taxes, exports are down) or bottom line it is hurting the USA consumers and employees not Chinese.
Many companies are not paying any taxes now so they can easily absorb the taxes Trumps has levied (it is a business cost deduction after all) or they just pass it on to the consumer who pays the tax (like a value dded tax but gets no deduction).
The $1,000 TV is NOT going up $100. Remember it is a tax levied on the imported price. Maybe the wholesale price is $500 so it is a $50 tax to the importer and they pay it to the US treasury to be lost in the $trillion deficit Trump admires so much and the GOP is so proud of that they have encouraged for over 40 years.
Or they absorb all or part of it but pass the rest on to the retailer who absorbs all or part and passes the rest on. Maybe you, the consumer will see no difference or maybe the price will go up by $20.
Chinese economic woes are self inflicted as it cuts infrastructure growth, and tries to promote consumer spending. Chinese GDP growth is 6%, inflation 2.6% for real growth of over 3% the USA inflation of about 1.6% and GDP growth of 2.1% or real growth of less than .5%.
China growth is much stronger than USA’s, it exports worldwide are up, it exports to the USA are up, its imports from the USA are down. So far the only impact is in farm goods and the Chinese have increased imports of soybeans from South American and locally grown as their needs have plummeted because of the Asian swine flue has killed off 25% of its pig herds which are the primary consumers of soybean imports. 25% of their herd represents a loss GREATER than the combined herds of North America and Europe so pork prices are up in China.
China does not rely on America for much of its critical needs wheres the USA does rely on China for much of its consumer driven market. Bottom line, the USA has shot itself in the foot, China may stumble but quickly regain its footing.
China looks 30–50 years into the future, the USA at the next quarter ot next year, Business investment in the USA has plummeted, even foreign business investment has plunged, economic growth is based on flooding the market with cheap money in the USA not strong business fundamentals. In China foreign business investment continue to grow at 3 to 7% unchanged, tech investments are up 40% in 2019.
China is eating the USA’s lunch. Guess who the smart money is on?
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