Monday, May 6th 2019

U.S. Hikes Tariffs on Electronics Imports from China by 2.5 Times

President Donald Trump Sunday announced a fresh round of import tariffs affecting $200 billion worth electronics goods from China, starting next Friday. President Trump in a Tweet said that his administration would raise import tariffs to a staggering 25 percent from the existing 10 percent, a 2.5 times change, a move that could increase prices of consumer-electronics and computer hardware by at least 14 percent unless retailers are willing to take a hit on their margins. Tech stocks took a beating to this news as Dow Jones Industrial index fell 1.5 percent, and Nikkei shrunk 0.2 percent.

In the short term, as we mentioned, the new tariffs can increase end-user prices by at least 14 percent. In the medium-term, electronics companies could move their manufacturing out of China, transferring the costs of doing so to the consumer. In the long term, prices could remain high as the countries companies are relocating to may not have the labor or logistics cost advantages of China.
Source: MoneyControl
Add your own comment

98 Comments on U.S. Hikes Tariffs on Electronics Imports from China by 2.5 Times

#51
lynx29
64K said:
China has attained their current economic status by maintaining double digit growth in their economy. Those days are over. Now they are trying to test the waters of being a superpower but that costs a lot of money.

USA Defense Spending around 600 billion dollars

China Defense Spending around 147 billion dollars

imo China is overreaching and will fail the tariff war.
no, USA defense spending is 826 billion, you forgot about Trump's increasing of their budget. this number is 3 years old, Trump has increased it since then, I imagine its closer to 1 trillion now.

it's ok though, just keep printing money and raising the debt ceiling. ;)

https://usafacts.org/government-finances/spending?comparison=by_government_type&government_type=combined&table=spending--by-mission&year=2016
Posted on Reply
#52
Steevo
Dave65 said:
Snip
Compared to socialist Venezuela? Compared to being arrested for making a joke in England or Canada? Compared to being sold as a slave in most Islam run countries? Compared to being killed for being raped in India? Compared to being killed for insulting the leaders o f South Korea or Taiwan?

Justify that comment please.
Posted on Reply
#53
Basard
Steevo said:
Justify that comment please.
Well, I am getting pretty sick of winning!:roll:
Posted on Reply
#54
64K
lynx29 said:
no, USA defense spending is 826 billion, you forgot about Trump's increasing of their budget. this number is 3 years old, Trump has increased it since then, I imagine its closer to 1 trillion now.

it's ok though, just keep printing money and raising the debt ceiling. ;)

https://usafacts.org/government-finances/spending?comparison=by_government_type&government_type=combined&table=spending--by-mission&year=2016
It's one of the perks of being the world's reserve currency.
Posted on Reply
#55
GoldenX
FordGT90Concept said:
I just want to know what happened yesterday that inspired Trump to do this. It was a shock to everyone and even the military was involved (ships in contested South China Sea)
I bet Venezuela, and China's stance with it, had something to do with this.
Posted on Reply
#56
moproblems99
lynx29 said:
no, USA defense spending is 826 billion, you forgot about Trump's increasing of their budget. this number is 3 years old, Trump has increased it since then, I imagine its closer to 1 trillion now.

it's ok though, just keep printing money and raising the debt ceiling. ;)

https://usafacts.org/government-finances/spending?comparison=by_government_type&government_type=combined&table=spending--by-mission&year=2016
It doesn't matter who's in charge, fiscal responsibility is no more. We are going to spend on Social Programs or Military. Pick your poison. Only 50% will be happy at a time.
Posted on Reply
#57
John Naylor
This was exactly what was done from the get go ... 1st it was going to be 30% ... then retailers / manufacturers complained about "Killing XMas" so it was 10% then and supposed to go to 25% January 1 ... then it was pushed 30 days.... there goes any hope of a revival in PC industry.

And of course here tariifs make no sense.

Cyberpower imports parts and builds with US labor in the USA of A ...they will be paying that 25% which makes it impossible to compete with the likes of Dell, HP and others
Dell makes Alienware in Florida, and servers in Texas ... but everything else is shipped here and sold at BestBuy wherever in those same boxes they left China in... they pay 0% tariff. Trumponian logic says only "parts" are subject to the tariff... fully assembled PCs / laptops with 100% chinese labor and parts are not.
Posted on Reply
#58
hardcore_gamer
Good. In addition to reducing the massive trade deficit, it's time to stop the forced technology transfer and blatant intelectual property theft.
Posted on Reply
#59
Bones
Roddey said:
I am not talking about debt. I am referring to retirees who had big financial losses in the financial crises of 2008 and have never recovered. Now cuts in SS and Medicare, after a round by the previous administration. I am talking about direct severe reduction of incomes in the retiree classes.
Debt itself cannot be separated from these financial losses you speak of, it factors in too.
Many including some potential retirees certainly had some debt at that time and just by being in debt alone made things harder on them now.

Speaking of the financial losses of 2008, that was due at least in part by the reset of the real estate market which some retirees had a stake in as a future investment for retirement. The obvious is it was a risk they took by doing so and note the term "Risk", it's inherent in how it all works anyway which there is nothing any of us can do about that.

Also doesn't help that back in 2006 when the Dem's had control over both houses they did nothing to address the coming reset which was known to be coming even then. If you have the power and do nothing knowing such is around the corner, you're just as culpritable as any other involved.

BTW I'm in that age group of so-called "Retirees" and know first hand about how it is having lost a full 50% of what I had at the time once it was all over with, which BTW never fully recovered.

The biggest "Thing" that triggered it all was how overinflated the market had become with all the loans/debt that was outstanding and when all that came due there was nothing of substance to repay it with, hence the bubble everyone had heard about before.

Folks had gotten themselves into debt buying houses, land and other real estate deals and while that's one thing it's another when it all comes due with nothing to repay it with. This caused a chain reaction across the market and it just went from there. I didn't have anything related to real estate to worry about, what got me was the results of the chain reaction that followed with everyone trying to make good on those debts but the substance/money just wasn't there to repay it all with.
That's why it is a matter of debt even if it seems it's not part of it because it's all intertwined, like it or not.

And I can promise you I didn't like it one bit.

~Done.
Posted on Reply
#60
Casecutter
China bought Newegg and now so many listing just ship direct from Asia/China direct they don't have to "import", warehouse and have workers in the old City of industry, CA facility do anything.
This fan controller $6.88 shipped to my door!
https://www.newegg.com/Product/Product.aspx?Item=9SIACJF6WU5336

This is the bigger picture they (China) looking to change the whole idea of commence and importing. China lobbied 10 or more years ago to permit "fast ships" that didn't effectively dock in American ports but off shore. Huge platform cities they portrayed as "enterprise zones" that didn't necessarily have to use American workers. Basically fly in workers like six months at a time. They envisioned this as a "hub" no different than UPS/FedEx that sorted packages, and wouldn't have to go through customs... kind of like USPS packages today. They went so far as think of using fairly large (Chinese built) cargo airplanes from those hubs delivering direct to airports (America, Canada, Mexico) from west, east and gulf based hubs. This is where they wanted to put the onus of customs and checking when it landed in the country. We would be left to police to flood of parcels. Then they'd contract with postal service and other freelance (Uber) type delivery individuals for final delivery.

Alibaba and others saw this as a way to wreck Amazon model. No large central physical warehouse's (in Asia or here) just dump the orders direct to a supplier and they send it. A way to upset the entire supply chain of commence and importation of goods. They get a small piece of the sale, but more than any shipper a good piece from each package going through the system. There where a lot of free-market capitalist Washington types who thought they saw it as a good way to line their pockets. And the main reason free-market capitalism is not always the best as humans are susceptible to greed.
Posted on Reply
#61
Divide Overflow
If China won't negotiate in good faith, they will be held accountable for their own unfair tariffs and theft of IP. It's about time!
Posted on Reply
#62
nemesis.ie
Eskimonster said:
"Food exports are falling since many countries don't like U.S. food processing standards. "

I so agree, i never buy american food.
The quality of Cadbury products has gone down the toilet completly since Mondelez took over. I no longer buy any of their stuff. Even Nestlé's products are better than Cadbury now.

Another historic brand/product ruined.
Posted on Reply
#63
john_
yakk said:
Best way to continue to raise taxes, a lot, and blame somebody else.

Well done.
Best way for your friends to make a couple(or more) of billions from the stock market(s) because you phone them a few days earlier to tell them to short EVERYTHING. Then when you are ready to announce an agreement with China, you phone them again and tell them to now buy EVERYTHING.

You do that a few times while you are president and after your presidency, a nice little(huge) bank account is waiting for you in an "no one knows" bank on a "no one knows" island in the middle of an ocean somewhere.

Just an idea.
Posted on Reply
#64
NC37
Valantar said:
It's quite fascinating how Trump keeps saying that "China is paying" when the US public are the only ones paying for this. Rhetoric ≠ reality.
Well you just identified yourself as someone who doesn't watch any business news. China's economy has been slowing down. Enough their supreme leader is trying to accelerate his silk road plan which would bypass the American control of the sea routes for trade. China is hurting and frankly, it's about time. They've been screwing over this world for decades now. If it wasn't for slave labor, companies would never do business there. Any product that goes to China is practically guaranteed to be copied and hocked by the government there. They have no respect for other nations but demand everyone bow to them.
Posted on Reply
#65
Steevo
john_ said:
Best way for your friends to make a couple(or more) of billions from the stock market(s) because you phone them a few days earlier to tell them to short EVERYTHING. Then when you are ready to announce an agreement with China, you phone them again and tell them to now buy EVERYTHING.

You do that a few times while you are president and after your presidency, a nice little(huge) bank account is waiting for you in an "no one knows" bank on a "no one knows" island in the middle of an ocean somewhere.

Just an idea.
I thought Trump was too stupid? Or is he actually playing 5D chess or whatever we are up to now.

Also, that is a great way to attract attention, and so far he has been one of the most scrutinized presidents, yet most transparent. Also, considering he already seems to have money, I doubt he is worried about an island, somewhere when the US is the place to be. Maybe it really is about helping the US, you know, instead of borrowing from the EU and then defaulting. But what do I know, we only have the lowest unemployment, inflation and interest is low, the "great recession" is over, and weed is becoming more legal, no one has lost rights, everyone stands on their individual rights instead of assigning rights based on group identity.... seems good to me for the last few years and my taxes went down.

https://www.nytimes.com/2019/05/03/business/economy/jobs-report-april.html
Posted on Reply
#66
sepheronx
NC37 said:
Well you just identified yourself as someone who doesn't watch any business news. China's economy has been slowing down. Enough their supreme leader is trying to accelerate his silk road plan which would bypass the American control of the sea routes for trade. China is hurting and frankly, it's about time. They've been screwing over this world for decades now. If it wasn't for slave labor, companies would never do business there. Any product that goes to China is practically guaranteed to be copied and hocked by the government there. They have no respect for other nations but demand everyone bow to them.
I don't see it much of a slowdown to be honest. It is a common trend within China's economy for quite a few years now:

https://tradingeconomics.com/china/gdp-growth

Their annual growth rate is above 6% as well too:

https://tradingeconomics.com/china/gdp-growth-annual

Reality is though, people worry about GDP growth numbers a lot but never really look whats behind a lot of it. Debt isnt considered a negative of GDP calculation:

GDP = private consumption + gross investment + government investment + government spending + (exports – imports)

Nothing shows debt is a negative. America runs off of a debt that correlates to GDP growth; every year the GDP grows, so does the debt. China does it in other methods like heavy construction which is a huge contribution of China's economic growth. But that construction ends up being dead ends with ghost cities/towns. Its an artificial growth in those regards. Your last comment also is directly the same for the US as well. Any nation that wants to deal with others that US doesn't like? Sanction. US doesn't like someone specific? Extradite them directly to the US. Complain about one nation being a dictatorship and how evil it is, while your best friend executed 30 people in 1 day and or blew up a school bus full of children in Yemen.

Hypocracy that is all it is. China will do what it needs to do to survive and US will do the same. Eventually they would end up butting heads.

What matters is how the locals feel and what is happening at home.

https://www.china-briefing.com/news/chinas-middle-class-5-questions-answered/

400M people are considered middle class in China. That is more than the population of the United States. Not bad, since it wasn't that long ago in history that China faced an Opium crisis thanks to British Empire, then starvation along with genocide during Second World War to what they are now. I know it is simplification of history, but point is still there.
Posted on Reply
#67
64K
sepheronx said:

400M people are considered middle class in China. That is more than the population of the United States. Not bad, since it wasn't that long ago in history that China faced an Opium crisis thanks to British Empire, then starvation along with genocide during Second World War to what they are now. I know it is simplification of history, but point is still there.
But is it sustainable?

For the people that call this Trump's America. A President in America doesn't equate to a Monarch or a Dictator. Our Constitution prevents that.
Posted on Reply
#68
GoldenX
64K said:
But is it sustainable?

For the people that call this Trump's America. A President in America doesn't equate to a Monarch or a Dictator. Our Constitution prevents that.
You only have two parties...
Posted on Reply
#69
SRB151
Roddey said:
Show me an American that isnt in the 1% that isnt always stressed out about there incomes. Even retirees are worried and there is a class that should feel secure. Not everything is propaganda.
Maybe I should change that, even Peter Thiel has a bug out house in New Zealand.
'

OK, me. I'm not always stressed about my income. And no, I'm not in the 1%.

GoldenX said:
You only have two parties...
Yeah, but they couldn't be more different. It's hardly a choice between two of the same.
Posted on Reply
#70
AsRock
TPU addict
juiseman said:
As a result of the trade war; we don't get stuff like this.....

https://hothardware.com/news/huawei-5g-8k-tv
Korea comes to mind, but better still America should be fully able to make this shit it's self. People just need to get of their fat asses and having the hope what once was the American way.

Dam country needs to get it's act together already.
Posted on Reply
#71
moproblems99
AsRock said:
Korea comes to mind, but better still America should be fully able to make this shit it's self. People just need to get of their fat asses and having the hope what once was the American way.

Dam country needs to get it's act together already.
In other words, the US needs another World War. Our economy seems to do pretty well after we come in and bail Europe out.
Posted on Reply
#72
AsRock
TPU addict
WW3 already happening, but everyone's being called a racist or some thing else nasty if they say any thing.
Posted on Reply
#73
GoldenX
AsRock said:
WW3 already happening, but everyone's being called a racist or some thing else nasty if they say any thing.
Gotta keep it PC, that's how the Allies defeated the Axis, with gender ambiguous retorts and remarks.
Posted on Reply
#74
moproblems99
AsRock said:
WW3 already happening, but everyone's being called a racist or some thing else nasty if they say any thing.
I dunno if I'd go that far.
Posted on Reply
#75
GoldenX
SRB151 said:

Yeah, but they couldn't be more different. It's hardly a choice between two of the same.
It's easier for two parties to agree on something than for multiple parties. Once they agree on something, that's the absolute truth. Sounds a bit like a masked dictatorship.
Posted on Reply
Add your own comment