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Thursday, July 12, 2018

Buy USA-Trump's Trade War, Long Term Benefits

Poor Man Survival
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A Digest of Urban Survival Resources
 
 
 Unintended Consequences-Trump’s Trade War a Good Thing in the Long Run?
   The United Stated States has long been “spoiled” with cheap imports from China sold through Walmart and other retailers.  US importers of these often poorly made goods did benefit as distributors and a fair amount of low-paying jobs resulted at the retail and distributor end of our service sector and of course, China made out manufacturing shoddy goods and in some cases, dangerous goods which Americans purchased [remember the Chinese-made pet foods which were killing family dogs and cats? Or mold-filled wall board from China used by builders in southern states after hurricanes in the last decade?]
Let’s not forget how much technology the Chinese have stolen or hacked or were given from US firms since Bill Clinton was in office…done so in order to boost their military to dominate the South China sea and to compete with our own military!
Personally, our family has ALWAYS avoided purchasing anything made in China whenever possible especially any food product and that especially includes seafood.  As “preppers” and being frugal, we buy second-hand whenever practical.  We consume a bare minimum of soft drink and zero beer [when we do purchase it, we purchase it in bottles for our guests]…
BUY AMERICAN
What I am suggesting is that our family will likely not be affected much by the trade war.  In the long run it is our hope this strategy will encourage more American firms to begin producing again.  The Left-wing news has featured farmers worried about soybean crops no longer selling as much internationally, for instance.  This is an important crop where we live in MI.  China is not the only nation which buys this multi-purpose crop and China needs this plant and will have to buy it sooner or later.  China has always purchased less from us and imposed higher tariffs on US products and more restrictions than the United States has imposed which is one reason why we have such high trade imbalances.
Short term there will be pain, long term, this is something I believe our nation has needed but we’ll see if both countries have the cajones to stand up to each other or if public pressure here will make the president back down…Here’s another reaction to this from a long time writer:
 
 
President Donald Trump's trade war is starting to hit American consumers right in the pocketbook. It's also beginning to take its toll on U.S. business and industry. 

That's the natural outgrowth of protectionist trade policies. Tariff is just another word for tax. Trump claims the result of the tariffs may be more goods manufactured in America and fewer overseas, and by extension, more jobs. But it's only true in Trumponomics. It's never happened in real life and it's not happening now. 

What we're seeing is small manufacturers are getting hit hard and American workers are getting laid off. 

And prices on products are going up because of the price of the tariffs being added to imports; and because it costs more to make goods in America due to the greater regulatory and tax burden. 
Trump Boils Maine Lobstermen – The Wall Street Journal

Mr. Trump's unilateral tariffs are about to erode the price advantage of American lobsters. After the U.S. announced on June 15 plans to impose a 25% tariff on $50 billion in Chinese goods, Beijing retaliated with a new 25% tariff on American seafood, farm products and autos, effective July 6. That's on top of the 10% to 15% tariffs China already imposes on U.S. and Canadian lobster. 

Meanwhile, on July 1, China's tariff on Canadian lobster will drop to 7%. "I suspect that will virtually wipe out my company's Chinese sales," says Tom Adams, CEO of Maine Coast Company, a lobster dealer… "What happens if we lose 30%, 40%, even 50% of our market share?" he says. "We have to keep paying the bank for that borrowed money. If we do have an impact in sales, it's going to have a direct impact on jobs. That's the only way we reduce our expenses. I hope that doesn't happen. And to date we haven't laid anyone off." Mr. Adams adds that if the trade tensions don't abate, he would consider moving some of his operations to Canada. 

Southeast Missouri nail company gets hammered by Trump's tariffs – Missourinet 

President Trump's tariff on steel imports that took effect June 1 has caused a southeast Missouri nail manufacturer to lose about 50% of its business in two weeks. Mid Continent Nail Corporation in Poplar Bluff – the remaining major nail producer in the country – has had to take drastic measures to make ends meet. The company employing 500 people earlier this month has laid off 60 temporary workers. It could slash 200 more jobs by the end of July and be out of business around Labor Day. 

Trump's aluminum tariffs are hurting US brewers: Beer Institute CEO -- CNBC 

James McGreevy, Beer Institute CEO, argues that Trump's aluminum tariffs will cost American brewers an additional $347 million and more than 20,000 jobs could be lost in industries involved in the beer supply chain. 
Utah companies suffer at the hands of Trump tariffs on steel -- KUTV.com 

"Jack's Ornamental Iron, another Salt Lake City manufacturer, saw its steel cost jump 20 percent in less than two weeks," Hatch told Commerce Secretary Wilbur Ross during the meeting. 

Hatch also sighted issues at another Salt Lake City business, Bish's Steel Fabrication and Manufacturing, saying the company has watched as their business has gone dry within weeks. 

"The company tell me that contracts for future work have all but dried up," Hatch said in the hearing.

Look at the image below, from the Chamber of Commerce. It shows the amount of each state's exports impacted by the trade war. Trump is hitting his base right in the pocketbook.  
 
 
And David Stockman notes that Trump's trade war will add a 10 percent tax on household items like vacuum cleaners, air conditioners, suit cases, leather goods, glass and glassware, tools and cutlery and the like. Tariffs are a protection racket for big business that stifle competition and reduce the number of choices consumers have. There is nothing free market about tariffs. They are cronyism, also known as corporatism or fascism. 

Trade deficits, which seem to sit in Trump's craw, are a non-issue. Economics professor Richard M. Ebeling explains why

Additionally, wars have been started over tariffs. A Revolution was started over tariffs. Tariffs was one of the flash-points that led to the American war of Northern Agression. 
Bob Livingston
Editor, The Bob Livingston Letter™
P. S.  We stopped buying Oreo cookies once they closed their plant in Indiana & shipped those 400 jobs to Mexico…we din’t to support them nor did I need the calories!
Q. Several sites offer ‘Made in America’ selections…do your own search or try this site: https://www.madeinamericastore.com/
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Yours for smarter living,
Bruce ‘the Poor Man’
 
 
Additional FREE Resources
 
How to Survive the War on the Middle Class
14 of the best reports I’ve assembled on protecting your freedom…Here is the download link.
Other notes of interest…
 
Living Frugally In Suburbia 
You live differently than your neighbors.
 
 
14 Frugal Food-Rescuing Tips from Grandma 
These depression-era frugal tips still work today!
 
8 Simple Ways to Put More Money in Your Pocket 
Have more money without working harder!
 
 
Knowing When and How to Stockpile Groceries 
Stocking up could save your grocery budget!
 
Small homes are all the rage. But just how much does a tiny house cost? We have the answers, along with an analysis of how much money you can save living in a tiny home.
 
"Chances are your home is the most expensive thing you’ve ever bought. Yet if you’re like most of us, what you spent to acquire it is only the beginning...Here are six smart projects that almost entirely pay for themselves in resale value."
 
 
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1 comment:

Larry said...

I'm wit you-I've tried to avoid buying Chinese crap whenever possible! Good article & I believe you're correct: pain in the short run, positive results in the long run once we rid ourselves of our addiction to cheap China crap and begin to once again rebuild US self sufficiency and find other markets.