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Politics Tariffs/Trade Wars

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"Official" talks between US and China begin in Switzerland this week. Some predictions are that tariffs will end up at around 40% on Chinese products, at which point, the CCP will probably just eat them.

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I expertly predict that either the importer, retail or customer will eat the costs.

From my experience I estimate that Western producers, which American producers are, are not able to produce at as low prices (otherwise they would be doing it already). They might be able to compete at that 40% tariff rate.

There will be exceptions but this will be the general picture.
 
I expertly predict that either the importer, retail or customer will eat the costs.

From my experience I estimate that Western producers, which American producers are, are not able to produce at as low prices (otherwise they would be doing it already). They might be able to compete at that 40% tariff rate.

There will be exceptions but this will be the general picture.
Somehow people here thinks it's the Chinese that pays the tariffs.
 
Up until now, the Chinese government has been covering it. They can do 25 or 35% tariffs, they can't do 145%. This was literally an embargo on Chinese goods.
 
How is the Chinese government covering it?
 
How is the Chinese government covering it?
They reimburse the manufacturer for US tariffs. Remember tariffs are assessed at the factory. A $10 shoe which costs $100 in the US will be $14 with 40% tariff.
 
Hw does that work? Importer informs the manufacturer that they will pay the old price minus the tariff and the Chinese government then reimburses this loss?
 
Hw does that work? Importer informs the manufacturer that they will pay the old price minus the tariff and the Chinese government then reimburses this loss?
I'm not sure about the specifics, but the original Trump tariffs have been covered by the CCP. No tariff related price increases in the US on tariffed products.
 
You have to know the specifics.

No price increase does not automatically mean Chinese or CCP is covering the costs.

Chinese companies set up shop outside China to other cheap production countries, for example.
 
You have to know the specifics.

No price increase does not automatically mean Chinese or CCP is covering the costs.

Chinese companies set up shop outside China to other cheap production countries, for example.
The specifics as I've heard them are, the manufacturer pays the US Treasury and the CCP reimburses the manufacturer.
 
This is very interesting in comparison to my own experience, when I import from outside the EU, I pay the customs.

Of course chinese manufacturers could deliver everything as DDP and be the importer...
 
This is very interesting in comparison to my own experience, when I import from outside the EU, I pay the customs.

Of course chinese manufacturers could deliver everything as DDP and be the importer...
"Generally, FOB is the Incoterms® rule most often used if you're importing from China. Here, the seller's responsibilities end when the goods board the ship transporting them to your chosen destination."

Source: Maersk

(FOB import customs clearance is on the buyer)
 
This is very interesting in comparison to my own experience, when I import from outside the EU, I pay the customs.

Of course chinese manufacturers could deliver everything as DDP and be the importer...
The Chinese government chose to pay them.
 
"Generally, FOB is the Incoterms® rule most often used if you're importing from China. Here, the seller's responsibilities end when the goods board the ship transporting them to your chosen destination."

Source: Maersk

(FOB import customs clearance is on the buyer)

Yup, I don't think we've been responsible for import when shipping abroad, including the US, except once or twice.

And to spill the secret, we include the cost when calculating the offer. So even then it's the buyer.
 
China's merchantile practices are no secret.
 
Yup, I don't think we've been responsible for import when shipping abroad, including the US, except once or twice.

And to spill the secret, we include the cost when calculating the offer. So even then it's the buyer.
This is why I'm asking, from my experiences when I buy something abroad I;m the one that pays the tariffs. So unless there is evidence that CCP would cover it, I dont think people understand what is happening. Mind you China is the biggest exporter in the planet, to "pay for the tariffs" would mean they would go bankrupt by now.

As for the 2020 trade war, Trump's Claim that it was China who paid was already proven false:

Since 2018, the president has repeatedly insisted that China pays the tariffs he has imposed on Chinese imports. This claim is false—the tariffs are paid entirely by U.S. importers. His advisers, such as Peter Navarro, knowing the claim is false, have tried to defend him, and the tariffs, by arguing that China pays the tariffs indirectly, through currency depreciation and lowering export prices. These arguments are also false, as well as illogical—since the advisers also claim that such Chinese behavior benefits China and hurts the United States.


Its like two battle ships just hitting each other to submission
 
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