Tariffs Catch-All
- Thread starter BubbaOtis
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Well then, dumbass, why not focus on those issues and not take the shotgun mob boss approach, fucking up the economy and alienating our trade partners in the process?Not a great sign
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“China has warned countries against appeasing the US in trade talks over President Donald Trump's tariffs.
A Chinese commerce ministry spokesperson made the comments in response to a report that Washington plans to put pressure on governments to restrict trade with Beijing in exchange for exemptions to US import taxes.
… "Appeasement cannot bring peace, and compromise cannot earn one respect," a Chinese Commerce Ministry spokesperson said.
"China believes that all parties should stand on the side of fairness... and should defend international economic and trade rules and the multilateral trading system."…”
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Trump’s trade war may very well turn into a war on Christmas that will ruin Christmas for a lot of kids. There is a toy store near our house that we go to frequently for birthday/Christmas presents, etc. My wife went there yesterday to buy a birthday present for one of or kids’ friends. The owner told her they were very uncertain about whether they would be getting toy shipments a few months from now. Not just that they would be more expensive, but they may not be getting their new supplies at all. He said it would be a good idea to get the toys you want right now for the holidays.
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Trump’s Trade Offensive Threatens America’s Financial Primacy
Rising volatility and dollar weakness raise fears of a financial realignment, away from U.S. shores
—> https://www.wsj.com/economy/global/...d7?st=1nzD7P&reflink=mobilewebshare_permalink“… Volatility in Treasury markets and unexpected weakness in the dollar suggest that what began as a trade conflict could morph into a more dangerous “capital war.” The clash threatens to raise U.S. borrowing costs by undermining Washington’s long-standing financial primacy, which for years has drawn trillions of dollars of foreign funds into the country.
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Some of the market dislocation reflected hedge funds and other large investors forced to unwind certain trades that became unprofitable. Treasury Secretary Scott Bessent has said the selloff largely reflected technical factors—how investors’ risk-management strategies, such as “Value-at-Risk,” forced sudden and one-time liquidations as correlations between different assets changed unexpectedly.
“This is one of those occasional ‘VAR’ shocks that you get in the trading community. I think a lot of people got very leveraged, maybe out over their skis,” Bessent said on Bloomberg Television this month.
And some analysts have warned against rushing to sweeping conclusions given how foreign investors began the year overly exuberant about U.S. growth prospects, or American “exceptionalism.” Trump’s trade policy, by threatening to push up costs while uncertainty over the policy execution chills growth, has demolished that narrative.
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But other analysts, economists, and former government officials warned that strained trading conditions might also reflect more fundamental concerns.
“The behavior of investors changed. Ordinarily they would’ve bought the dollar in this crisis time, and instead they sold the dollar,” said Steven Kamin, a former senior Fed economist who is now at the American Enterprise Institute. “It suggests that maybe investors are getting ‘hinky’ about the safety of Treasurys or the desirability of dollar assets.”
Trump administration officials have previously argued that consumers wouldn’t bear the cost of tariff hikes because the dollar would strengthen. A weaker dollar makes it more likely that U.S. importers and retailers will have to pass along price hikes.
… “The tariffs are the tip of the iceberg,” said Ludovic Subran, chief economist and chief investment officer at Allianz, the German insurance giant. “If the dollar depreciates by 30%, what is the return on your investment in the U.S.? Everybody is doing the math.” …”
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… Data from Japan’s finance ministry shows private investors in Japan sold $17.5 billion in long-term U.S. bonds during the week ending April 4, the largest amount of foreign bond sales since just before last November’s presidential election, according to Bank of America.
Bond market volatility and higher yields don’t necessarily have to reflect foreign selling of Treasuries but rather how capital inflows aren’t keeping pace with an expanding trade deficit. Foreign investors accounted for a smaller share of buyers at Treasury auctions in March, according to Bank of America.
“The longer this goes on, the more likely it is that we become less of a reserve currency than we have been. And that could start being quite expensive,” said Eric Rosengren, who served as president of the Boston Fed from 2007 to 2021.”
… Data from Japan’s finance ministry shows private investors in Japan sold $17.5 billion in long-term U.S. bonds during the week ending April 4, the largest amount of foreign bond sales since just before last November’s presidential election, according to Bank of America.
Bond market volatility and higher yields don’t necessarily have to reflect foreign selling of Treasuries but rather how capital inflows aren’t keeping pace with an expanding trade deficit. Foreign investors accounted for a smaller share of buyers at Treasury auctions in March, according to Bank of America.
“The longer this goes on, the more likely it is that we become less of a reserve currency than we have been. And that could start being quite expensive,” said Eric Rosengren, who served as president of the Boston Fed from 2007 to 2021.”
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Trumpty Dumpty woke up pissed with the markets down big again and his approval ratings, especially on the economy, also tanking.
He DEMANDS that Jerome Powell lower rates. Trump claims if he doesn't the economy will slow down. No terrible businessman with no clue of economics. Your shotgun waffling approach tariff policy is about to bring massive inflation which is slowing down spending. He calls Powell a "loser."
Powell is the mastermind that threaded the needle with rates, got inflation under control, and somehow did it without tanking economy. Brilliance.
Analysts say that if Trump fires Powell, the next market drop will make existing drop look like a tiny blip.
He DEMANDS that Jerome Powell lower rates. Trump claims if he doesn't the economy will slow down. No terrible businessman with no clue of economics. Your shotgun waffling approach tariff policy is about to bring massive inflation which is slowing down spending. He calls Powell a "loser."
Powell is the mastermind that threaded the needle with rates, got inflation under control, and somehow did it without tanking economy. Brilliance.
Analysts say that if Trump fires Powell, the next market drop will make existing drop look like a tiny blip.
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Now markets are down double what they were earlier right after Trump's Twit.
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So, I should move to cash before lord trump ends the US economy. Since the only way he knows to deal with people smarter than him that don't kneel is to fire them.
lawtig02
Inconceivable Member
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There's a damn good reason we haven't heard from a single Pub in months now, except for Silence who is clearly a Russian troll. I think Pandemic may have chimed in once, and Ramrouser has commented on a couple of non-economic issues. But I have a VERY strong feeling callatoroy and HeelYeah are realizing what catastrophic mistakes they made by supporting this shitshow. Maybe the next time we see them, they'll be willing to own up to it like so many of us have done before.
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Pandemic stopped by to say it's ok to call people illegal as we are all illegal, which makes us better.
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The Japanese have just been in Washington. Their experience apparently was they went to talk to the American leadership on this matter, and the American leadership said 'what are you offering?' And the Japanese said 'well, what is it that you want?' And the Americans could not explain what they wanted.'
www.forexlive.com
It’s like the old meme:
1. Start a trade war.
2. ???
3. Profit
Turns out it’s a bit harder in real life.
Japan keeps asking the US what it wants in trade talks and can't get an answer | Forexlive
Japanese negotiators went home on Friday
It’s like the old meme:
1. Start a trade war.
2. ???
3. Profit
Turns out it’s a bit harder in real life.
HandsonFire
Distinguished Member
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I fell like I could do a better job and I know Jack shit about economics/stock market etc.The Japanese have just been in Washington. Their experience apparently was they went to talk to the American leadership on this matter, and the American leadership said 'what are you offering?' And the Japanese said 'well, what is it that you want?' And the Americans could not explain what they wanted.'
Japan keeps asking the US what it wants in trade talks and can't get an answer | Forexlive
Japanese negotiators went home on Friday
It’s like the old meme:
1. Start a trade war.
2. ???
3. Profit
Turns out it’s a bit harder in real life.
Shipping alfalfa grown in the high desert overseas is a complicated means of sending scarce water overseas.In the Harquahala Valley, hay fields stretch as far as the eye can see.
"It could break us": Valley farmer says Chinese tariffs have crushed the alfalfa export market
Alfalfa hay is mainly used as feed for cattle and is big business in Arizona, with Arizona farms exporting over $100 million of alfalfa overseas a year.www.abc15.com
Alfalfa hay is mainly used as feed for cattle and is big business in Arizona, with Arizona farms exporting over $100 million of alfalfa overseas a year.
Shannon Schulz has been farming in the Harquahala Valley for decades.
"There's no better way to raise a family than on the farm," Schulz said.
Schulz is unique in the Valley, as he not only harvests his alfalfa but also is part of the export process overseas. His main customers are countries in the Middle East, and China.
“Usually, this warehouse is full of hay. It’s not right now because business is just slow," Schulz said.
Business is slow because Chinese dairy farms have all but stopped buying U.S. alfalfa to feed their cattle after the country imposed retaliatory tariffs on U.S. exports. China makes up about half of Arizona's alfalfa export market.
“With the current tariffs in place, which is in total about 66% from China to us, it puts our product out of the marketplace," Schulz said.
Schulz says that now Chinese farms are buying from other countries in Africa and Europe. For the alfalfa now growing in Arizona’s fields, by the time it's ready to be harvested, there may not be a customer to buy it.
Losing about half of his business overnight has not been easy.
“It could break us," Schulz said. "It could break a lot of farmers.”
Schulz says he voted for President Donald Trump and believes in the goals of his tariff plan, to bring manufacturing back to the U.S. and expand exporter access to foreign markets.
“In the long run I think it will be a good thing," He said.
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China sends back new Boeing jet made more expensive by tariffs
With $55m price set to balloon by 125%, 737 Max returns to Seattle production hub still wearing the colours of Xiamen Airlines
The 737 MAX, which was meant for China’s Xiamen Airlines, landed at Seattle’s Boeing Field at 6.11pm, according to a Reuters witness. It was painted with Xiamen livery.
The jet, which made refuelling stops in Guam and Hawaii on its 5,000-mile (8,000-km) return journey, was one of several 737 MAX jets – Boeing’s bestselling model – that had been waiting at Boeing’s Zhoushan completion centre for final work and delivery.
Trump this month raised baseline tariffs on Chinese imports to 145%. In retaliation, China imposed a 125% tariff on US goods.
A Chinese airline taking delivery of a Boeing jet could be crippled by the tariffs, given that a new 737 MAX has a market value of around $55m, according to IBA, an aviation consultancy. Beijing is reportedly considering ways to support airlines that lease Boeing jets and are facing higher costs.
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Boeing’s order book had 130 planes scheduled for deliver to Chinese companies at the end of March for both commercial airlines and leasing firms, Airways Mag reported.
DiehardHeelFan
Distinguished Member
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Hitler’s Terrible Tariffs
By seeking to “liberate” Germans from a globalized world order, the Nazi government sent the national economy careening backwards.
Hitler’s Terrible Tariffs
By seeking to “liberate” Germans from a globalized world order, the Nazi government sent the national economy careening backwards.
Behind a paywall. Looking for a free link.
Centerpiece
Iconic Member
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US stocks and dollar slide after Trump attacks Fed chair Powell
The president amps up attack against US central bank boss calling him "a major loser" for not lowering interest rates.
www.bbc.com
Though the US dollar and US government bonds are typically considered safe assets in times of market turmoil, they have not escaped the recent turbulence.
The dollar index - which measures the strength of the dollar against a set of currencies including the euro - on Monday fell to its lowest level since 2022.
Interest rates on US government debt also continued to rise on Tuesday, as investors demanded higher returns for holding Treasuries.