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Tariffs

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Trump's trade war hits its latest victim - US farmers. To try to ameliorate this, Trump is spending $12 billion in farm relief. To compensate for the damage he is doing to the US economy. I suppose he will pay for this with the . . . tax cuts. Or something.

Are you tired of all the winning yet?
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To Ease Pain of Trump’s Trade War: $12 Billion in Aid for Farmers

One study estimates that soybean, corn and wheat farmers have lost $13 billion in the trade war.

By Julie Hirschfeld Davis and Ana Swanson NYT
July 24, 2018

WASHINGTON — The Trump administration announced on Tuesday that it would provide up to $12 billion in emergency relief for farmers hurt by the president’s trade war, moving to blunt the financial damage to American agriculture and the political fallout for Republicans as the consequences of President Trump’s protectionist policies roll through the economy.

Unveiled two days before the president is scheduled to visit Iowa, a politically important state that is the nation’s top soybean producer, the farm aid appeared calculated to show that Mr. Trump cares about farmers and is working to protect them from the worst consequences of his trade war.

But the relief money, announced by the Department of Agriculture, was also an indication that Mr. Trump — ignoring the concerns of farmers, their representatives in Congress and even some of his own aides — plans to extend his tit-for-tat tariff wars.

“The actions today are a firm statement that other nations cannot bully our agricultural producers to force the United States to cave in,” Sonny Perdue, the secretary of agriculture, said during a call with reporters to unveil the program.

The move drew swift condemnation from many farm groups and lawmakers, including several in his own party, who worry about a cascade of unintended consequences that may be just beginning. One farm-group study estimates that corn, wheat and soybean farmers in the United States have already lost more — $13 billion — than the administration is proposing to provide as a result of the trade war. The prospect of retaliation has upended global markets for soybeans, meat and other American farm exports, and farmers are warning that tariffs are costing them valuable foreign contracts that took years to win.

“You have a terrible policy that sends farmers to the poorhouse, and then you put them on welfare, and we borrow the money from other countries,” Senator Bob Corker, Republican of Tennessee, told reporters on Capitol Hill. “It’s hard to believe there isn’t an outright revolt right now in Congress.”
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Coal is on the decline overall. From TP:

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Newly released data shows the coal industry is doing worse today than it was when President Barack Obama was preparing to leave office in January 2017. Coal production is still on the decline. Coal-fired power plants are still closing. And Trump’s own Department of Energy doesn’t see these trends reversing anytime soon. In other words, Trump hasn’t reversed the downward financial trajectory of the industry that started years ago.

New forecasts from the Energy Department’s Energy Information Administration (EIA) show coal production will decline by 1.1 percent in 2018 and drop by another 1.8 percent in 2019. Despite an increase in coal exports, according to the report, declining domestic consumption is making it unprofitable for coal producers to keep mining.
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Well, at least coal exports are increasing. So Trump did something right. Right?

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China Announces Date to Match $16 Billion U.S. Tariffs
Bloomberg News
August 8, 2018

China confirmed that it will impose 25 percent tariffs on an additional $16 billion worth of imports from the U.S. from Aug. 23, matching an earlier move from Washington in another ratchet higher for the trade war between the two nations.

. . .

The revised Chinese list released today added hundreds of new items to be hit with tariffs, and now covers items as diverse as coal, medical instruments, waste products, cars and buses.
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Sell those coal stocks; Trump is here.

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The latest victim of Trump's tariffs - a manufacturer of computer cases. But don't worry; there are plenty of computer cases available from China.

Are you tired of all the winning yet?
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We are very sad to announce that CaseLabs and its parent company will be closing permanently. We have been forced into bankruptcy and liquidation. The tariffs have played a major role raising prices by almost 80% (partly due to associated shortages), which cut deeply into our margins.
=============================

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So Trump claims tariffs work "big time" creating jobs and wealth.

"Tariffs are working big time. Every country on earth wants to take wealth out of the U.S., always to our detriment. I say, as they come,Tax them. If they don’t want to be taxed, let them make or build the product in the U.S. In either event, it means jobs and great wealth....."

A reporter asked him today about all the farmers losing their farms.

Reporter: "So, for family farmers here who are worried about losing their generations-long farms at the end of the season . . .any words of comfort for them now?"

President Donald Trump: "Well, they would've lost them anyway because they were being hurt so badly by the trade barriers. We will tell you they are going to be in a very good position soon."

So tariffs are working big time. And those farmers who lost their farms due to tariffs? They would have lost them anyway due to . . . tariffs.

So we can all look forward to the damage these tariffs will do to the economy. Which would have happened anyway, apparently.

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China says U.S. farmers may never regain market share lost in trade war
https://www.politico.com/story/2018/08/11/farmers-china-soy-bean-market-share-734773

In business terms some markets are "sticky". Which means that once a customer is gained they tend to remain customers. When lost they tend to remain lost.

Grain, oilseed markets are like that as well. Countries tend to have long term purchasing and selling relationships.

To Keep Your Customers, Keep It Simple
https://hbr.org/2012/05/to-keep-your-customers-keep-it-simple

Want to loose customers permanently? Just Fu$k them over once. Just ask Donald trump about doing that to US banks and why they won't lend to him anymore.

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By Damian Paletta and David J. Lynch
September 15 at 4:44 PM

President Trump has decided to impose tariffs on $200 billion in Chinese goods, two people briefed on the decision said, one of the most severe economic restrictions ever imposed by a U.S. president.

. . . .
...

The only sure way to survive a canopy collision is not to have one.

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That's the bad part about the reports of people removing papers from his desk before he can sign them. Now he is onto that trick. And he feels the need to do more stupid stuff so that the world knows just who the boss is.
Always remember the brave children who died defending your right to bear arms. Freedom is not free.

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Well, since China has retaliated with huge tariffs on US soybeans, guess who they are buying them from?

Go ahead, guess.

Helpful hint: The country is run by Trump's overlord.

Is it really a coincidence that Russia is benefiting greatly by Trump's actions (at the expense of US farmers)?

MRGA
"There are NO situations which do not call for a French Maid outfit." Lucky McSwervy

"~ya don't GET old by being weak & stupid!" - Airtwardo

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"Shifting trade flows are redefining the Brazilian landscape, spurring more farmers to align their crops with Chinese appetites. The nation’s soy plantings have expanded by 2 million hectares in two years – an area the size of New Jersey – while land used for cane shrank by nearly 400,000 hectares, according to government data....

China’s growing demand for meat has supercharged soy imports for animal feed. The Asian nation paid US$20.3 billion last year for 53.8 million tonnes of soybeans from Brazil, nearly half its output – and up from 22.8 million tonnes in 2012.

A new 25 per cent Chinese tariff on US soybeans – a retaliation for US levies by President Donald Trump – is expected to boost Brazil’s soy exports to an all-time record this year.

Brazilian soybean exports to China rose to nearly 36 million tonnes in the first half of this year, up 6 per cent year on year. In July, they surged 46 per cent from the same month a year earlier to 10.2 million tonnes.
https://www.scmp.com/news/china/diplomacy-defence/article/2159654/china-us-trade-war-has-brazilian-farmers-dumping-sugar

Then there is corn, wheat and rice. Putin is smiling today. All according to his plan.

Russia Expands Grip on Wheat Exports as Asia Set to Buy More
https://www.bloomberg.com/news/articles/2017-08-30/russia-expands-grip-on-wheat-exports-as-asia-forced-to-buy-more-j6zml2eg

Worried about Russia's march on grain markets? It could be worse
https://www.reuters.com/article/us-russia-grains-analysis/worried-about-russias-march-on-grain-markets-it-could-be-worse-idUSKBN1D30GK

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How the trade war highlights a culture clash between Chinese patience and Trumpian instant gratification

"Wei Yen says that China’s past humiliation by Western powers and the Chinese tendency to wait out confrontation mean that a long drawn-out trade war could work in the country’s favour...

Despite this pressure, China is unlikely to succumb to US demands. The typically Chinese response would be to draw out the trade war to gain bargaining power....

However, the way Trump has gone about getting China to concede will backfire. The bullying tactics are reminiscent of how China was humiliated by foreign powers a century ago when the country was weak and the government corrupt. But that was then and this is now. The country is no longer weak and its corruption is under control....

Xi Jinping, the paramount leader in a Confucian society, will be keen to avoid being shamed by the US in public view, a scenario that would also be totally unacceptable to the Chinese leadership and people...

In fact, the trade war may have inadvertently strengthened the Chinese resolve to resist foreign intervention while at the same time emboldening its current leadership, which bills itself as the guardian of the “Chinese dream”.

The US may also be unwittingly drawn into a game that it started but can't finish gracefully simply because of its misreading of the Chinese character."
https://www.scmp.com/comment/insight-opinion/united-states/article/2165202/how-trade-war-highlights-culture-clash-between

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As he proudly unveiled his new trade deal with Canada this week, President Donald Trump heralded it as a “great victory”

"in the milk and cheese heartland of Wisconsin...

“It’s probably not going to have any impact at all as far as saving farms,” said Darin Von Rudin, a third-generation dairy producer and head of the Wisconsin Farmers Union. “...

Compared to overall production in the U.S., the increased access to Canadian customers is “tiny,” not even enough to meet annual growth in American production, he said.

As for the low milk prices U.S. farmers are facing, announcement of a tentative trade agreement had no effect on the market, said Mike North, president of the Wisconsin Dairy Business Association.

“The price of milk, the price of product, there has been no movement on this news,” he said. “The net impact has been zero.”...

What dairy farmers were offered in the deal is “mainly symbolic,” and represents only a small reduction in Canadian protectionism, Economist Ethan Harris of Bank of America Merrill Lynch said in a note to clients, CNBC reported.

https://lfpress.com/news/economy/trump-called-it-a-great-victory-but-u-s-dairy-farmers-doubtful-the-deal-with-canada-will-solve-their-troubles/wcm/862512e1-1005-426f-bd71-6dee08e0dfcb

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More winning.

Ford loses a BILLION dollars in revenue and plans massive layoffs...

Because of the trade war Trump sparked.

Google search for 'Ford Layoffs' because the Trumpettes won't believe a single "main stream media" source.
"There are NO situations which do not call for a French Maid outfit." Lucky McSwervy

"~ya don't GET old by being weak & stupid!" - Airtwardo

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It's now taken over 2 months to NOT receive an Italian product due to our import changes at the borders.
I'm pretty upset, the Italian designer I ordered from is PISSED!

Skymama will be happy, if it ever arrives.

Yay. All this winning.
It's only just being felt. BOHICA

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"US not invited to Canada's "Save the WTO Summit" of 13 'Like-Minded' Countries"

https://business.financialpost.com/news/economy/u-s-not-invited-to-canadas-save-the-wto-summit-of-13-like-minded-countries

An isolationist approach to Foreign Policy will result in less influence by the US around the world. And other countries will fill that vacuum.

America Alone, indeed ...

Major Dad
CSPA D-579

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yoink

***"
America Alone, indeed ...



But the majority of Trump supporters don't see that as a bad thing, and you'll never convince them otherwise.

True.

But the "majority of Trump supporters" represents a minority of the American Electorate.

If the rest of the Electorate isn't shocked and appalled by what has been happening and actually gets out and vote next month, then the USA is truly on the decline...

Major Dad
CSPA D-579

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China September exports surge, creating record surplus with U.S. despite tariffs
https://www.reuters.com/article/us-china-economy-trade/chinas-september-export-growth-tops-forecasts-surplus-with-u-s-record-high-idUSKCN1MM080

China’s vast export engine unexpectedly kicked into higher gear in September, producing a record trade surplus with the United States that could exacerbate the already-heated dispute between Beijing and Washington. ...

September exports rose 14.5 percent from a year earlier, the fastest pace since February, the customs data showed. That was well above August’s 9.8 percent and a Reuters poll forecast of 8.9 percent.

“The big picture is the Chinese exports have so far held up well in the face of escalating trade tensions and cooling global growth, most likely thanks to the competitiveness boost provided by a weaker renminbi,” said Julian Evans-Pritchard, senior China economist at Capital Economics. "

Just more winning for trump.

Why Germany Is Betting on Trade With China
https://www.bloomberg.com/news/articles/2018-10-11/germany-is-thriving-in-china-as-trump-s-trade-war-poses-risk

An investment push is bringing the countries closer together in spite of — and because of — rising trade tensions with the U.S.

When Sabine Herold opened a new Shanghai facility in September, the milestone for her tiny Bavarian glue maker was the culmination of 14 years of careful development — and a sign of how deep and wide commercial ties between Germany and China have become.

Piling into China with Bosch drills, Mercedes-Benz cars and Siemens turbines has made the Asian country Germany’s largest business partner for the past two years. Total trade between the two reached $179 billion in 2017, double the U.K.’s level and triple that of France. Germany’s special status became clear in July, when BASF SE announced a $10 billion plant in Guangdong province — the first large manufacturing site in China entirely owned by a foreign chemicals maker. Now, BMW AG is plowing $4.1 billion into its Chinese joint venture, taking advantage of a new policy to let foreign companies take majority control of their local partnerships.

According to trump. America will win by trading with itself and the world agrees.

‘The world just moves on without us’: Japan and EU sign a trade deal
http://www.msnbc.com/rachel-maddow-show/the-world-just-moves-without-us-japan-and-eu-sign-trade-deal

Canada can avoid offending U.S. by pursuing sectoral trade with China: report
https://www.cbc.ca/news/politics/china-sectoral-trade-report-1.4857990

Canada and 10 other countries agree to new Trans-Pacific trade pact, without the U.S.
https://business.financialpost.com/news/economy/canada-and-rest-of-trans-pacific-partnership-agree-to-revised-text-say-reports

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yoink

***"
America Alone, indeed ...



But the majority of Trump supporters don't see that as a bad thing, and you'll never convince them otherwise.

I doubt that the majority of Trump supporters even realize that tariffs are taxes that they end up paying.
...

The only sure way to survive a canopy collision is not to have one.

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US trade deficit in goods widens for fourth straight month, hits $76 billion
https://www.cnbc.com/2018/10/25/us-trade-deficit-widens-for-fourth-straight-month-hits-76-billion.html

China’s record trade surplus with the US shows Trump’s strategy is “failing”
https://www.vox.com/2018/10/12/17967422/china-trade-war-us-trump-deficit

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Prediction:
Bourbon Is the Latest Victim of Trump's Trade War
How a spat over aluminum and steel could threaten the American spirit’s growing international presence

https://www.theatlantic.com/international/archive/2018/06/bourbon-eu-tariffs-trade-war/563726/

Facts on the ground.
Tariffs make U.S. bourbon an endangered species in European bars
https://www.chicagotribune.com/business/ct-biz-tariffs-bourbon-europe-20181121-story.html
Following the European Union's June implementation of a 25 percent tariff on bourbon, the popular U.S. whiskey variety, the impact has been clear. One American producer said his exports have "dropped to zero" as a result. Last year, they made up 15 percent of revenue.

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Reuters: GM to slash jobs and production, cancel some car models

https://www.reuters.com/article/us-gm-restructuring-idUSKCN1NV1NB

Cost pressures on GM and other automakers and suppliers have increased as demand waned for traditional sedans. The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.[/i]
"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones.

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