Just how much is $250 billion in tariffs?
From tractor parts to tilapia, magnets to mirrors, President Donald Trump ratcheted up existing tariffs Friday on billions of dollars of imported Chinese goods from 10 percent to 25 percent -- and threatened to add additional tariffs that would leave American manufacturers and consumers paying higher prices on almost everything the country imports from China. What exactly does a hit on that many billions in goods look like?
To show the economic stake of each of the $250 billion in items already being taxed, NBC compiled a searchable database of the tariffs along with their import values for 2015-2017. The bigger the dollar amount, the more the U.S. economy spends on these goods.
The damaging impact on the U.S. economy of Trump’s trade war with China
Please use the link for interactive database
The U.S has levied a total of $250 billion in tariffs against goods and merchandise made in China. How are these additional taxes affecting consumers and the U.S. economy in general? NBC News compiled a list of all import categories targeted to date, along with their value from 2015-2017, to show the extent to which tariffs are impacting Americans’ pocketbooks.
The tariffs represent part of President Donald Trump's leverage to compel Beijing to reform its "unfair" trade practices , including alleged intellectual property theft.
The most impacted products are electronics parts, which represent a hit on $100 billion worth of goods, followed by $8 billion in wooden furniture, $6 billion in upholstered seats, $6 billion in aluminum car tire wheels, and $5 billion in vacuums.
Seafood is also under siege: The U.S. imports billions of dollars worth of seafood from China every year, and the tariffs are affecting popular menu items such as $177 million in peeled crawfish tail meat, $104 million in sole fillets, and $104 million in catfish.
American appetite for Chinese-made handbags could also take a drubbing under the list, which represents about half of the $500 billion worth of goods the U.S. imports from China annually. The list levies tariffs on over $2 billion in plastic handbags, $1.7 billion in leather handbags, and $2.3 billion in handbag components.
The database also includes over 1,000 categories that haven't been imported for the past three years. Those items included agricultural products like chicken, eggs, and some types of fish, along with industrial products like wooden railroad ties and yarn.
The cost at shopping at Walmart is going to jump 25%, and bean farmers throughout the Midwest are going to get hurt especially hard.
We'll see how that plays out in the voting booth. Personally I don't see that it's going to impact their votes as I see the Republicans are still pushing the wedge issues of God, gun, gay bashing and abortion to distract their base while they write laws to siphon more money to the wealthy. Status Quo....
Nos. 6, 27b, 8a-def-14h, 37, arkh-18x/gh6, and omnibus number 11.
Tariffs are levied on the wholesale cost that Walmart and others pay so if Walmart buys 100,000 of a certain Item for 200.00 each the tariff is 50.00 but since You and I pay 500.00 retail for the Item the price will increase to 550.00 which is a 10% increase.
In other words, we shouldn't have bothered to fight in WWII because it was temporarily painful!
The Administration is trying to find ways to increase/extend subsidies to these farmers. So not only does this hurt me as a consumer it hurts me as a tax payer.
Americans will still demand Chinese products, especially electronics, and I doubt that China will suffer as much from Trump's tariff war as US consumers will. As for China's purchase requirements, such as soybeans, China will locate and then maybe stay with suppliers from other nations and so the American farmers (who will be receiving a $100B subsidy) may well have to be subsidized for a long time. I don't think the tariffs are affecting the Chinese consumers as much as it is affecting the American ones. It certainly hasn't affected me much. Isn't what Trump is doing called shooting oneself in the foot?
What if manufacturers move their production to other countries with cheap labour-- countries some of which might in fact be able to produce those items cheaper than the Chinese can? (Vietnam,India, Bengladesh...maybe even Mexico?)
In this conflict, the U.S. has the advantage that we import much more from China than they import from us. So if tariffs cut down trade volume-- China gets hurt more than we do as they can lose more business selling to U.S. (because they sell more to us than we sell to them to start with-- I think its maybe 6X as much?).
in addition initially our economy is much stronger than theirs.
OTOH China does have an advantage as well-- they're not a democracy. Their leaders don't have to face re-election! (if their people are suffering-- they still can't vote their leaders out of office).
That wouldn't be easy. China has spent a couple decades creating "manufacturing centers" where a constructor can find all sorts of specialized subcontractors. Supply chains are short and easy to set up.
It wouldn't be hard to build assembly plants in Vietnam, but providing all the necessary components might be a nightmare.
So I think companies will hesitate... a long time.
And in the meantime, China is promoting internal consumption.
As I see it, the populace here are becoming more affluent, and internal consumption is increasing.
Which also means Chinese wages have been rising-- meaning that the cost advantage for manufacturers due to lower wages in China (compared to the U.S.) is decreasing-- compared to much lower wages in other Asian (and latin AMerican?) countries.
The ''mighty five'' are consider to be Malaysia, India, Thailand, Indonesia and Vietnam. China is rapidly moving into medium to high-tech manufacturing as its labor costs have risen.
One or all of the ''mighty five'' are poised to take China's place as the low cost manufacturer of choice.
Even if wages are not at US level, the cost of living is much less in China. For example, I live in a modern guarded building in a middle to upper-middle class neighbourhood, surrounded by 3 major university campuses, near all conveniences, subway, huge department store, great restaurants and other service shops, an area of superior infrastructure, constantly cleaned, part of a city with a population almost that of all of Canada. My apartment is a well-furnished 3-bedroom with a spacious living-dining area and 2 balconies, kitchen and bathroom, which costs me including all utilities, cable TV (about 200 channels) and internet for the equivalent of US$550 per month. In Toronto, in an area and building that does not compare with that, for the same cost I would have to live in a basement room with a shared kitchen and bathroom down the hall.
Even if wages are not at US level, the cost of living is much less in China. For example, I live in a modern guarded building in a middle to upper-middle class neighbourhood, surrounded by 3 major university campuses, near all conveniences, subway, huge department store, great restaurants and other service shops, an area of superior infrastructure, constantly cleaned, part of a city with a population almost that of all of Canada. My apartment is a well-furnished 3-bedroom with a spacious living-dining area and 2 balconies, kitchen and bathroom, which costs me including all utilities, cable TV (about 200 channels) and internet for the equivalent of US$550 per month.
OMG-- why am I still living in the U.S!!! I should move to China where I could live like a king!
Marry a beautiful Chinese woman like I did, who is a fantastic cook, keeps the home immaculately clean, having been raised on a farm knows her vegetables and can choose the best there is, is amazingly calm and never gets angry, treats me as if I were the Emperor - do that and you'll never want to leave China.
I am genuinely happy for you Buzz. Finding happiness is really the key to life.
At the age of 69 I had a choice - stay in Toronto, as an old man, eventually enter an old folks home...
But 13 years ago, like Bilbo Baggins had many adventures in my life, but there was still time for the biggest one of all - move to China and live a life I had never before even dreamed about the possibility of experiencing. Having the fun and satisfaction of teaching young people and watching their lights turn on (and there is such a joy in that), learning, seeing and photographing a culture so different from what I ever knew, and finding and marrying a woman who most men could only dream possible.
Yes I not only found that key, but used it to open a door to a new and happy life...
Exactly.
China’s per capita GDP is higher than America's, but China's population is four times America's. And as you point out elsewhere, purchasing power is higher in China.
True. Simpler processes are easier to move - already have moved in many cases. Textiles is an example.
I don't think so. Also, you said earlier that it wasn't.
Even PPP is higher per capita in the US.
O-o-o-p-s! Backwards!
China's GDP PPP is higher.
Ah. OK. Just making sure.
$550/month won't even pay for one room in a house where I live. One bedroom apartments are going for around $2000/mo. Prices up so much more than wages.
It's pretty close to my house payment here in WI. Not including taxes, insurance and utilities. We have 2 bedrooms and one bath. We hope to refinance this summer and move the kitchen into a bigger space and add a half bath on the first floor to increase the value.
So what should be done about the huge trade deficit with China?
What about their ongoing theft of trade secrets and intellectual property
Is the Chinese economy doing all that well?
Was it OK for China to renege on a deal that was nearly worked out?
Trump's action will get them back into discussions.
The news I read (American, not Chinese) was that the Chinese came to negotiate and that's when Trump slapped their face with the tariff increase to 25%. Their meeting lasted 90 minutes - I'm surprised it lasted that long.
I don't think that they're used to dealing with people who talk tough, and back it up with actions.
Actually, I think that most of the tariff charges aren't really there just to influence Chinese behavior. Most of it is sending a message to American companies who chose to outsource to cut labor costs and break unions. That message is, "Start moving your manufacturing back into the US or we will take action to put you out of business". This is a message that should have been sent 20 years ago, but, better late than never.
So... You have a super huge Chinese subsidized corporation stealing intellectual property from a super huge multinational (not American for tax purposes) subsidized corporation. Since neither corporation gives a rat's ass about their workers, their customers, or their respective countries why should I care?
I was hoping that Greg could explain it. Or maybe you. I'm not talking to Google right now because it always calls me and tries to sell me shit.
It sounds terrible when you Totalize everything, but I wonder what the price hike on every SINGLE individual piece and part is.
$ 0.01. $ 0.05, $ 0.25, $ 1.00, $ 5.00 ?
There's a hell of a lot of individual pieces and parts that come to this country to be sold .
Remember the argument on raising the minimum wage by Liberals ?
"It would only cost a nickel or so more on your hamburger in order for someone to make a "Living Wage" (whatever the frig that is).
Raising prices for EVERYONE didn't bother them for that, but now it does ?
On another note....Folks could actually buy "American Made" for a "Change", but even with these tariffs, it probably will still be cheaper to buy "Chinese Made" !
I will say this. I'm still wearing a pair of Rockport Walkers for 20 years that are the most comfortable shoes I ever owned and I wear them often and although they look worn out I don't care. They were made when the Massachusetts company manufactured them in the USA. I also bought a pair of the same size Rockport Walkers that were made after the company moved its manufacturing to Mexico, and they hurt my feet. I think that one benefit of buying American made goods is they last a lot longer.
Only the rear quarter of the heels. By the time they needed reworking it would have been in Mexico.
I deal with Hotels and Motels …. a lot....and they won't buy anything made in the U.S. when they renovate, due to costs (they all do studies before making decisions). Even with shipping charges, port charges, taxes, and any other charges that are thrown in for good measure, it's still cheaper to go outside the country for materials.
There's your sign.... much came from China.....only many from others.
The companies I design for get a trinket or two from the U.S. made companies..... but not MUCH.
Made in China saves MUCH !
Now don't get me wrong, there are some things that are "Inexpensive' to buy in this Country, but they aren't "Cheap".
Hotels/Motels aren't looking for products that may last forever, or they wouldn't have much pull with Banks in getting MORE money for themselves.
Probably true in many cases.
But I believe Apple manufactures their iPhones in China? And isn't the quality of Apple products generally considered top notch?
Most likely true, taking into consideration their advertising and critical reviews.
I have no problem with Tariffs if they're used properly. When you have countries like China that can manufacture goods so cheaply that US manufacturers can't possibly compete tariffs are the only way of leveling the playing field. Many countries use VAT taxes to make imported goods more expensive to near the same cost as domestic products and ideally the money raised through VAT taxes is used to lower the tax burden on citizens so there no real net loss to individual consumers it's just paying the same amount of taxes in a different way which has the added benefit of keeping domestic goods competitive against goods from low wage countries.
Tariffs can indeed allow local producers to be competitive... but at a higher price for the consumer. Tariffs raise the price of imports. The consumer pays the difference, for higher-priced imports or for local product at that same higher price. I wonder if Americans are willing to go there.
VAT is neutral in international trade, applied to both imports and local production.
Anything made here has ALWAYS been more expensive than imports. I call the tariffs an equalizer. Made over there and made here costs are getting closer to equalizing. Chinese materials should cost as much to buy as it does for American made !
That’s fine, as long as everyone understands that the consumer's price is the previous Chinese price plus the tariff.
China doesn't pay the tariff. The American consumer does.
When have they NEVER ?
Made in China is still cheaper than Made in the U.S. !
#thecostoflivingsucks!
That has ALWAYS always been my cause !
Every Fucking "Feel Good Political Policy" costs us, no matter how "Good" one "Feels" at the time about a policy.
You're fighting the wrong battle. Lowering consumer costs byany and all means is a good thing.
And then... paying a decent wage so living standards can go up, instead of stagnating. That's the battle that needs to be fought.
What is this "Decent"...."LIVING"...wage everyone speaks of anyway. Is there an "Honest" number that actually makes sense ?
If we fought about the "Actual" cost of living increases, Constantly asking for a raise wouldn't be an issue now ….. would it !
That fucking raise ya just got didn't do squat, as the "Cost of Actually living" just went up AGAIN !
Do you have any idea what you're talking about?
Of course !
Do you deny the "Cost of Living" keeps going up ?
... which is an excellent demonstration that you do not...
oooo, OUCH.....ya got me ?
Do you still deny the "Cost of Living" keeps going up ?
... and you persist...
Does the cost of living keep going up ?
I was feeling your pain. Did that help ?
Do you really think the topic is significant? Really?
100%
Do you know what the inflation rate is today?
Two percent.
Went up, didn't it.
Why do you bother?
Hope springs eternal...
why does anyone?
Do the ones that scream for a " Living Wage" …. NOT complain about the cost of living as a reason they need the raise ?
The cost of Living is the REAL bother for EVERYONE.
We had family from Australia visit for several weeks recently and the ladies always go to the very upscale South Lake TX mall to go shopping
and everyone was rather disappointied by the prices (not very good) and the source of almost every garment ( China) with India as a distant second.
I think we found 2 or 3 things made in the USA. Even the Christian clothing store was flooded with Chinese product.
Both China and the USA are in for a rude awakening
during the period of adjustment should these tariffs continue and China retaliates.
Nothing worth doing is ever easy.
Do US Citizens want higher pay, better benefits and steady jobs or cheaper stuff?
They want it all charger.......
In reality, corporate CEOs want their bonuses, and the only way that happens is if the shareholders get their dividend checks. In short, money that could be used to support a better quality of life for the employees (AKA consumers) gets siphoned out of the system taken out of circulation.
It's an endless spiral of cut workers, implement cheaper automated systems, to where the workers take lower paying jobs and have to buy cheaper Chinese made goods at Walmart. Repeat cycle.
Excellent post.
Many stocks don’t pay a dividend, they are invested in because of their potential for future growth and profit. Bezos is now the wealthiest man and Amazon never paid a dividend. It is not uncommon for CEO bonuses to be linked to the performance of the business without a dividend being a factor.
????????????????
And now Amazon is quietly replacing those people who do the packing with a robotic system that just needs ( for now) to be fed cardboard and packing material.
Frankly, we have received too many nearly empty boxes from Amazon - it has to save them $$ on material alone.
Yeah. What's up with that? I'm tired of getting a 50 cubic foot box for an item that could fit in a 10 cubic foot box
This could be simple: tax all robotic added value at 100%. Rebate the money to everyone.
Free air pouches !!! ( which also have a cost )
They're actually air-bags for delivery drones...
You could go all out for the empty box scam.
This could be simple: tax all robotic added value at 100%. Rebate the money to everyone.
Not a good idea,. it would piss off the robots. And then they would unionize and charge more for their services.
And worse yet---some robots have a really mean streak.
Remember Hal?
Why can simple ideas never be good?
I like their big boxes, my attic looks like a Amazon warehouse.
The problem with that is they'll need to decide what constitutes a robot. I found a definition of Robot as any machine or mechanical device that operates automatically or semi-automatically. So that would cover most machinery used in manufacturing. I think most people think the difference between machine and robot is that a machine does the task it was designed to do and a robot does the task it was programed to do but is capable of doing many different tasks. It doesn't seem right to tax one and not the other though since to me a robot is just a modern machine controlled by a Computer instead of Cams, Pulleys, Gears, Timers, and Relays. In the end they both do the same thing, they replace human labor with mechanical labor.
Reprogrammable is the best definition I know.
case in point.
We received a pair of earrings in this 10 in x 7 in x 3.5 in box last week.
That's insane.
And they're not even poppable like bubble wrap!!!!
Bring back the bubble wrap!
p.s. If there were more bubble wrap in the world, there would be a lot less problems
Ummm........
That's a piranha made from plastic bottles, Bob.
Popping bubble wrap is theurapetic
For piranhas?
yeah....and you, too
More duct tape would help too - not just for mouths.
I know, you have to get an exacto knife or a razor to cut the darned things before putting them in the recycle bucket.
No stress relief there !
lol
BINGO!
There will be no winners on either side, just lots of losers. But, they both knew that in the beginning, but, they don't are how much it hurts their people on either side, just so they can look like He-Men to their own supporters.
Childish and uncaring how much the poor will suffer on either side. after all, the poor are expendable commodities and really don't matter. Right?
Americans are not getting hurt by the tariffs. Oh wait, since farmers are Americans it would seem that they are getting hurt. After the $12 billion that Trump authorized to help out farmers he now wants another $15 billion for them. Seems the farmers aren't that happy over the situation.
FARM UNION PRESIDENT CALLS TRUMP'S PROPOSED $15 BILLION SUBSIDY AN INSUFFICIENT, 'TEMPORARY' SOLUTION
...tax payers are paying dearly for this tariff war.
Not only taxpayers, but, consumers as well.
Farmer and unions is an oxymoron. I’ve never met a farmer who would ever join a union
Cesar Chavez?
There are 200,000 members that say you have no idea of what your talking about...LOLOL
Do you even know that the National Farmers Union is? From your comment you have no idea, but that's not unusual.
Chavez was a farm worker, not an owner and to his credit he preferred the bracero program to increasing immigration
Let me help you
a farmer usually works his farm
but a farm worker while working the farm is simply paid labor not a farmer
And of course labor is of no importance...
Don’t you tire of Strawman arguments.
I never said a farm worker is of no importance. The context is that a worker is not the farmer who actually owns the land and has at risk the crops or animals he/she owns.
You should learn the meaning of "strawman argument".
Tarrifs are just a way of increasing what people pay. They are taxes on end users...
Why are we importing catfish from China? Catfish is a pretty big commodity here in Arkansas and I see billboards all up and down the highways encouraging people to buy US raised catfish.
It seems like we're importing too many things we can manufacture/produce right here in the good ol' USA. But I don't know nuttin' 'bout ekonumics
Price. Chinese catfish costs less, despite transport. If consumers are willing to pay a bit more, they can have American catfish.
People are dumb. I would rather have something produced here in the USA and pay more for it.
Sam Walton proved that you're an exception.
I never understood sending our chickens to china to be processed?
More reason to buy farm raised local.
"Just how much is $250 Billion in tariffs worth?"
Depends upon who benefits from them. And to be sure, there will be beneficiaries.
There goes cheap flat screen tvs.
Maybe not.
IIRC, originally Trump seemed to want companies doing manufacturing in China to move their plants to the U.S.
But recently, while that is still his ultimate goal, it seems that he has been sending the message that since his main target is China, he might be OK with American companies in China leaving China-- no matter where they go. In other words, since his target is China, he's be Ok if they left China and went elsewhere even if its not the U,.S.
So in order to avoid specific anti-China tariffs, some companies will be other places where labour is cheap-- for example Viet-Nam, India, etc.
(While the trade war might hurt both the U.S. as well as the Chinese economy-- it might start to benefit other countries such as India and some in SE Asia! Which means Americans migth still be able to eat their cheap TVs and have them too!).
I'm sorry...but I just don't think we're importing a half a trillon dollars worth of purses every year.
I'm sorry...but I just don't think we're importing a half a trillon dollars worth of purses every year.
I had read that the standards of math education in U.S. schools are pretty horrendous. I had been skeptical, but.....
I'm sorry...but I just don't think we're importing a half a trillon dollars worth of purses every year.
Your skepticism is well founded. In fact, its more like 100 trillion purses!
Why so many? Well we don't actually need all those purses for use as..purses. Rather, we use them to keep all the catfish we're importing from China cool so they don't rot on the long boat ride from China to our Pacific ports!
My best laugh of the day. Thank you. By the way, it's the boat that's TO China that's slow, not the one FROM China.
The total probably includes all those backpacks the kids take to school as well as any other duffle, pack, or pouch that's made in China. But you're right the story says handbags are on the "List" and the "List" represents about half of the $500 billion worth of goods the U.S. imports from China annually. So the List represents about 250 Billion in Chinese goods and Handbags are just a part of that, how big or small a part is not specified.
I find it hilarious that retard and his retarded supporters actually think that tariffs mean the Chinese government is just sending us money.