U.S. to collect 25% tariffs on Chinese woodworking equipment starting July 6

[andrew whicker]

I bought some cedar recently and was surprised it was cheaper a few weeks ago then it was this winter. There are also tariffs on Canadian lumber. I get a contracts here and there for garden boxes. I use cedar. We'll see what happens to the price.

Not excited for this tariff war. There was an article (bloomberg?) that described the weapons at China's disposal. Since China is a dictatorship, the gov't can make all sorts of red tape / inspections / fees / etc to do business over there. And since this red tape could be hard to track to 'new anti-America' laws, it could be hard to actually finger point. They can put media spin on our products and services.

They also have the ability to sell our debt, but this would also hurt them. Sounds like that might be a last resort.

[Simon MacGowen]

They also have the ability to sell our debt, but this would also hurt them. Sounds like that might be a last resort.

The Chinese will retaliate only to the extent that works for their domestic audience;
Simon

[eugene thomas]

And it's off and running..........

[Joe Adams]

I humbly beseech thee not to besmirch this thread.

[andrew whicker]

To be fair to all of us, either this is the most boring topic of all time (cheap crappy Chinese tools go up in price) or a very interesting topic that impacts all of us (new tariffs that you might encounter in making an income, whether running a business or keeping your job).

It will probably stray into the 'more interesting' category.

[Mike Hollingsworth]

Until Shiraz chimes in, we are all armchair quarterbacks.

[John Sincerbeaux]

The U.S. has been in a trade war for decades and we lost!
Yet, we worry about the cost hike of a Chinese machine and forget about all the great American-made WW machines no longer made?
No politics here��

[Simon MacGowen]

The U.S. has been in a trade war for decades and we lost!
Yet, we worry about the cost hike of a Chinese machine and forget about all the great American-made WW machines no longer made?
No politics here��

The war was partly lost because our system costs are so high. China and other Asian manufacturers have no to little environmental costs. benefits, pensions, etc. that add onto the costs of their products. Their wages are 1/10 or less than ours. When everything is added up, our cost disadvantages are so obvious.

My concern is not the trade wars but their use as purely a bargaining chip. Once the negotiation is over, everything goes back to normal and whatever trade gains that are secured on the basis of the threats of trade wars will be lost over time, soon and again. Then what?

If we don't address the cost factors and purely look at the deficits, we may win the battle but never the war. Why do you think Walmart is so popular which is stocked mostly with imported goods? Consumers at large are unwilling to pay more for better quality.

Simon

[Brad Shipton]

Woodwork machines will end up being an unintended victim of this tariff strategy. The idea that this industry will come back to North America is unrealistic. The scale is simply not there. Can you bring back some others, absolutely. Once the price creeps up enough North American factories of sufficient scale can automate their plants and compete. If you watch any of the many videos produced showing the monster plants in China you will quickly see low cost labor is key. In the case of woodwork machines, it will simply result in higher consumer costs.

[Edwin Santos]

China and Japan (both targets of the tariffs in addition to Euro, etc.) are the biggest buyers of the US Treasury Bonds. They do have another economic weapon in their pockets.

Simon

Hi, Could you elaborate upon why their buying volume of US Treasury Bonds is an economic weapon?
Edwin

[Simon MacGowen]

. Can you bring back some others, absolutely. .

Hopefully, not this kind:

https://www.youtube.com/watch?v=TmLsV9cSk0o

Simon

[Simon MacGowen]

Hi, Could you elaborate upon why their buying volume of US Treasury Bonds is an economic weapon?
Edwin

"If China does abstain from purchasing Treasurys this year, U.S. interest rates on the margin could rise more than expected."
https://www.cnbc.com/2018/01/10/repo...raw-nerve.html

Japan which used to be the #1 holder of the Treasury Bonds would not have much room as China to sell, but it could cut down the amount of buy too.

This is a weapon that they may not use but one that is at their disposal.

Simon

[Brad Shipton]

Simon, the factories I think that can be made profitable in the future in North America will look more like this.
5760.jpg

[Greg Parrish]

Simon, the factories I think that can be made profitable in the future in North America will look more like this.
5760.jpg

looks like a scene from The Terminator. No peeps in sight.

[Simon MacGowen]

Simon, the factories I think that can be made profitable in the future in North America will look more like this.
5760.jpg

But that won't meet the stated objective of the current tariffs: jobs. Once those robots are in place for phones, auto plants, etc., only the corporate America will see the benefits (profits), but not the workers, nor the consumers, I am afraid.

In fact, why can't that be done in America now -- whether there are tariffs or not?

Simon