The trade and economy mega-thread (2 Viewers)

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    superchuck500

    superchuck500

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    Is there a trade deal with China? Is it really a deal or just a pull-back to status quo ante? Is Trump advancing US interests in this well-executed trade battle plan or was this poorly conceived from the start . . . and harmful?

    I think the jury's still out, but I haven't seen that the Chinese are offering much in compromise - and it's not even clear if there's going to be an agreement. But it's clear they are working on something and I'm sure Trump will sell it as the greatest trade deal ever. The proof will be in the details.


     
    MT15 said:
    Yeah, I don’t think I will ever understand why he turned on Canada so hard. I mean, Mexico I get the motivation. But Canada? Who we do need to buy things from, no matter what the idiot says.
    Click to expand...

    He thinks that by making Canadian lumber more expensive, that US based mills will expand/ramp up production, which will cost way more than the 25% tariff, not to mention payroll to man the mill, and will spit out as much lumber as Canada in 12 months.

    We don't have the raw material nor infrastructure to get this done. Not to mention the capital it will cost lumber companies to invest in new equipment and manpower.

    Further, if interest rates rise as a result, demand slows. If demand slows, there is no need to have added $10mm (or whatever the capital expenditures it will cost to meet what he envisions) in debt to ramp up production where there is no demand.
     
    Last edited:
    MT15 said:
    Yeah, I don’t think I will ever understand why he turned on Canada so hard. I mean, Mexico I get the motivation. But Canada? Who we do need to buy things from, no matter what the idiot says.
    Click to expand...
    It’s a test run to see if they can replace income taxes with tariffs.
     
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    DaveXA said:
    For the economy yeah, but for impact on the classes within the country, it's similarly regressive.
    Click to expand...
    If a flat tax rate is set at 20%, a family making 50,000 will pay 10,000. A family making 500,000 will pay 100,000.
    With tariffs, if a family making 50,000 is paying an extra 10,000, that is 20% of their income. A family making 500,000 and paying 10,000 will only use 2% of their income.
     

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