Trump's
Next Book Now in Rough Draft
(Author may change this time)
Who pays for Trump’s tariffs?
(Hint: Tariff (noun): A tax or duty paid on a particular class of
imports or exports by the consumer not the producer or manufacturer).
Update – “Trump, the Con
Artist” Taken Down Yugely…
Trump delayed the new tariffs
on a large batch of Chinese imports that were supposed to go into effect
September 1, and exempted some other Chinese imports altogether. The move
de-escalates Trump’s trade war with China, and amounts to a tacit
acknowledgement by Trump that his tariffs might hurt American consumers too
much.
Laptops, cellphones, gaming
consoles, and other products imported from China won’t face a 10% tariff on
Sept. 1, as expected. The Trump administration says the 10% tariffs on those
products will go into effect on December 15, instead.
But the delay reveals an
unwillingness by Trump to raise the cost of products many Americans find
essential, suggesting he’s bluffing about ever imposing such a tariff.
The 10% tariff will still
land Sept. 1 on other consumer imports from China, including some clothing,
footwear, and toys. U.S. importers can apply for tariff exemptions.
Another group of Chinese imports
will be exempt, supposedly for national-security reasons. Research firm
Sandhill Strategy estimates that the list of imports getting a tariff reprieve
totals about $155 billion worth of imports per year. That would leave about
$145 billion worth of goods subject to the new 10% tariff.
If you’ve lost track, Trump
has now imposed 25% tariffs on about $250 billion worth of intermediate goods
imported from China, which are components most consumers never see. He
announced the new 10% tariff on all remaining Chinese imports on August 1, as
talks on a trade deal with China broke down.
Those imports are mostly
finished consumer products, so shoppers would be more likely to notice higher
prices reflecting the added tariff, which is a tax.
China Called Trump’s Bluff:
Trump has now partially reversed himself on the 10% tariff, without any
corresponding concession from China. In fact, China has toughened its stance
recently, essentially calling Trump’s bluff. China has refused to fulfill its
pledge to start buying more U.S. farm products, for instance.
China allowed its currency (the
Yuan) to fall in value more than usual, which makes Chinese exports to other
countries cheaper and boosts domestic sales. It's possible China decided
to bear the pain of Trump’s trade war for the next 15 months and hope Trump
loses the 2020 election.
1.
That leaves Trump
who fancies himself as the ultimate master dealmaker just negotiating with
himself.
2.
Trump’s initial
threat on consumer imports from China was to levy a 25% tariff.
3.
When it came time
to do it, he lowered that to 10%.
4.
Now it’s 10% on
just half of those products, rather than all of them.
5. Plus,
there’s an appeals process for eliminating the entire tariff
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