President Donald Trump’s trade war is making things even worse than before for businesses in the United States. The trade war has been dragging on for four long months now, and the pain is being felt financially.
Companies’ earlier worries are starting to translate into actual financial pain as new orders coming in from China face the higher duties imposed by the Trump administration. According to Business Insider, many companies have retained their workforce but passed the skyrocketing costs of the tariffs on to the backs of the consumer.
While surveys in previous months fully exposed the worries about the soon-to-come cost increases from the tariffs, new data seems to show that businesses are now grappling with that reality. Surveys from the Federal Reserve and market-research firms released Wednesday outlined more widespread worries about the tariffs, while individual companies have started to tabulate the tens of millions of dollars in new costs they’re likely to incur from the tariffs.
The survey came down to a few points:
- Businesses were concerned that goods coming into the US from other countries were more expensive. Many of those goods are used in products sold by American companies to consumers, so the increased import prices prompted a boost in costs for firms and an increase in prices for consumers.
- The retaliatory tariffs made it harder for businesses to sell goods to markets like China and Canada.
- The buildup in the United States of a supply for those goods subject to tariffs abroad (notably farm goods like pork and soybeans) caused prices to sink in the US and businesses to receive less for their products, putting their entire business at risk.
No one should have to be told that when the food supply is this dramatically affected, it could ripple throughout the entire economy. But that’s not the only concern.
Chris Williamson, the chief market economist at IHS Markit, identified several other recent record highs were set because of the tariff costs. “Tariffs also drove a further marked rise in prices, exacerbating an upward trend in price pressures borne out of robust domestic demand,” Williamson wrote. “Average prices charged for goods rose at one of the fastest rates seen over the past seven years while average charges for services showed the second-largest rise since the global financial crisis.”
We don’t like to say we told you so, but we told you so. Americans are paying the cost of this trade war, not the Chinese government.
US must rebuild manufacturing and steel industry.
National security imperative. So stop whineing about inconvienence.
FYI: China seems to want a war. China Building man made islands with runways in ocean and claiming the free once open seas. China generals are war mongering nuts. They have murals of blows US sattelites out of sky at trade shows. I saw them.
Everyone always thinks they are tough and wants to try out the big kid. They are tough Until they get hit in the face. Then they learn to leave the quite big kid alone.
USA needs steel and manufacturing production capacity to be self sufficient for war.
Civil War between the North and South 1865 was lost because North had most production manufacturing capacity and better transportation.
Today USA has lost steel production to cheap imports.
Glad Trump is trying to repair the economy and readyness.
May God Keep President Donald Trump Secure and Safe, against ALL enemies foriegn and domestic.
God bless President Trump. God bless the neglected USA.
May God keep both Peaceful. No war. But always ready to hit in face and bloody a nose of nation, which tries them on for size.
Always ready. Run towards the firefight and silence the threat. Peace through Superior Fire Power and Vigilant Readyness.
All white kids that grow up surrounded by thugs of color know you must always hit them hard if thugs try you. You never back down. Just destroy the guy that thinks he’s tough. Then the other thugs learn to leave you be in peace.
China is building islands in the Chinese Sea, and not in the Gulf of Mexico, so that there is no blockade of trade routes. In order to restore metallurgy, you need to learn how to live within your means. The world is changing, and you want to stop this development. It is necessary to become a leader of world development, and not a brake, then you will not have to fight with China.
China is colonising Africa and the world does NOTHING.
China is the most dangerous country on planet earth.
China wants a fighting war. Not trade war.
China will not be allowed to squat on the seas and claim all the world for themselves.
What noise you would hear if US or Russia were to take over Africa the way China has. Yet China seems to have a free pass. WHY!
Russia and US should be Allies. Not enemy. China is Danger to both. With Russia, as friend not foe, Russia logistical proximity and US tech. The China threat could be contained and countered.
CFR/Trilateral controlled NWO leftist in USA are always stiring up trouble between USA and Russia.
Russia and USA MUST be respected advesaries at worst.
But an Alliance would be best for world stability.
I want all the China “studeny” operatives rounded up and shipped out of USA. These “students” are ALL spies. thieves of US tech. and will go operational in the future. Maybe near future. They are a dangerous presence.
It is pretty simple, a tariff is a tax.
I’m all for protecting our American industries
that are necessary for our national security
and well being.
But Unions and Democrats have obliterated
the market system.
I worked hard towards making $40 per hour and thought
I’d be well off. Taxes and Democrats took it all
to pay for people that did nothing, but voted
for Democrats. So I retired. I’m legally poor now,
(I still pay taxes). Why work so the government robs
you? Only a fool does that.
“We don’t like to say we told you so, but we told you so. Americans are paying the cost of this trade war, not the Chinese government.”
BULLSHIT. THE CHINESE GOVERNMENT IS PAYING THE COST OF THIS TRADE WAR AND IT IS PAYING IT IN SPADES.
The reason that it may not be transparent to some is that the CCP is trying to print over the losses and they can’t do that indefinitely. GDP is dropping. Stocks are crashing. The yuan has slipped by about 15% since the Tariffs started. The Tariffs are JUST NOW starting to bite. Wait for the results in January. China is going down.
Yes TARIFFS are a tax on imported goods and services and Americans will pay it for a time, but demand will be suppressed by the higher prices. Additionally we are at the end of the business cycle; the longest in modern history and demand for good and services always decline as consumers stop spending to pay down debt.
Meanwhile, those Tariffs go to the bottom line, reducing the trade deficit, increasing government revenue, and lowering the Debt to GDP Ratio.
Finally, businesses reaped windfall profits at the expense of American workers, families, and taxpayers. Let these companies feel the pain. Four months ??? FUCK THEM !!! Americans have been feeling the pain for 30 years !!!
Businesses must adapt to the New Environment or die. That New Environment requires them to resource their goods from countries other than China. (The Principle of Substitution) I have listed those countries here before, but in a word: ALLIES.
There is no point in continuing to enrich our enemy and China IS our enemy. 🙂
Take your cue from a guy that is a top economist for a major global bank. If you don’t want to believe him, believe Kyle Bass, you know the guy who convinced TEXAS to go gold. 🙂
https://www.zerohedge.com/news/2018-10-25/their-luck-running-out-why-albert-edwards-expects-chinese-hard-landing
Durango you are correct. When something is made and sold here the money stays in the USA. its spent Taxed and in circulation Here on the USA soil. Made in the USA is the label we need to see before we buy any new product. Of course I will have to pay more and My Social Security Ponzi check will not buy as much. However My children , grandchildren and great grandchildren will reap the benefit. Its imperitave that the Manufacture of durable goods return the the USA. And if that happens the Military will not need to enforce the Petro Dollar to the extent they do at present. The manuplitated stock Market isn’t a accurate indicator of anything.
Yes the stock market is manipulated. All markets are manipulated and always have been. In the past there was a Floor Trader who specialized in a particular dow stock and that person manipulated the price. Today the manipulation is conducted by machine, is more efficient, and front runs many trades.
That said, the markets do indicate investor sentiment; which is no substitute for ROI. Tesla comes to mind. 🙂
Here we go again! Tariffs!
Go back to China if you don’t like the
way the majority want to help save our
country.
Poor farmers, poor this, poor that.
The reason it is poor is because you want to be
subsidized… but not others. We’re rying to make it
when Meheco gets billions, China gets billions,
Every s..hit hole third world country around the world
gets billions. So they want everything we have…. given to them.
They see retired people who have scrimped and saved all their
lives living well….and they WANT THAT!! Like little kids they
scream and whine when they don’t get that. They scream
” discrimination “, “racists “, “Unions”, “Pensions ” as soon
as they sneak across our border illegally.
Stay in your own country if you don’t like it here.
Then, they further insult us by sending their (our dollars)
to Mehico, taking money OUT OF OUR ECONOMY…….
to bring more parasites, to completely drain the USA.
Idiots!! Send them ALL HOME (at least 5000 miles)
SOUTH OF THE BORDER!!!
Trump is trying to straighten out this mess, in one year, all
the damage Obunghole did in 8 years!!
If you don’t know what I’m talking about…. you need to remove
your head from between the scoreboard… and the Game Boy.
Trump needs to use MORE than troops at the border…..
IF HE DOES NOT…..we will be at war in the USA.
God help us. ? ?
All the business stats are lies. All the earnings reports are bald-faced lies.
These earnings reports and other reports coming out of the corporate front lines are all lies. They are all based upon an economy that doesn’t exist any more.
Look at Tesla’s 3Q earning report. Musk doesn’t care about things like “responsible corporate stewardship,” or “quality control.” His cars are fire traps. The guy is a capitalist nut job, a true corporate oligarch. Just like the rest of these CEOs.
They all have a screw loose when it comes to the being “responsible corporate citizens.” Mark Zuckerberg and Facebook privacy issues. Spying on its customers. Apple. Google. Amazon. Twitter. These guys would screw they mother, but only if she had been dead for two weeks.
The facts don’t matter any more. The bottom line? How quaint. Revenues? Nuts to that. Stock buybacks are the ticket. When these corporations start failing it won’t matter. They have been dead for ten years, at least.
At first I thought maybe the tariffs would be a good thing but now I see they’re not. the economy will still collapse, tariffs or no tariffs. Looks like the tariffs will just bring it a bit faster. WTF is a “responsible corporate citizen”? GMAFB! I’ll bet not one of those CEOs has ever been poor, ever had to scrape and struggle for a living, never gone hungry, etc. The REAL world would chew them up and spit them out, just like it would college snowflakes. Musk is a real piece of work. Those electric cars will never really catch on regardless. Give me the old internal-combustion gas engine any day.
1. Product (A)etc.. costs $10 to produce in an American factory.
2. Factory owners want to cut costs so they lay off 1000 workers
and import product (A)etc… from China for $5
3. Factory owners enjoy increased profit never consider passing
the savings on to the public.
4. Factory’s customers realize they can buy direct from China
and do so.
5. Factory’s customers enjoy increased profits never considering
passing the savings on to the public. Factory goes out of
business.
6 Factory’s customers become addicted to exorbitant profits
and sky rocketing stock prices.
millions of factory jobs are lost and middle class spending
goes way down due to lack of good paying jobs.
Big retail doesn’t give a sh*t.
7. Donald Trump realizes this whole thing stinks and gets elected
President.
8. Raises Tariffs as a first step to returning an equal financial
Balance of production and consumption to the public including
Factories and Factory workers.
9. Its painful to the old factory’s customers so they whine and
threaten to (pass the cost on to the public) Refusing to cut
in to their exorbitant profit.
Donald Trump turns up the heat.
10.Desperate for supply, The old Factory’s customers look for
American factories to produce product(A)etc…
11.American investors open a new factory to produce product(A)etc
12.America returns to being a manufacturing powerhouse, millions
of new factory jobs are created, prices are once again
controlled by innovation, competition, and a willingness to
produce for a little less profit to gain market share.
I think we are at #9
Keep it up Mr. President!!
Nice summary. Well stated. 🙂
Tariffs help to equalize the trade imbalance between countries. If consumers are feeling the pain from the imposed tariffs on China, it’s because China has been robbing currency due to the imbalance and importing that currency to China. While its cheap for the consumer to buy inexpensive shit from Dollar Tree and Walmart, profits leave this country and go overseas instead of staying local and circulating in our economy. It’s tough love, but its how it has to be.
Of course it hurts at first! What the F%%K did people think? Oh an easy slide into improvement? It will take TIME to undo 100 years of the shit we have! God people are STUPID!
Amen!
Maybe this was the desired affect all along.
Lotta pro China anti-American sentiment here.
But this is a negativist anti-American forum where there is never anything positive about America and everything negative possible, even if it flies in the face of reality- is said in abundance.
That attitude is how people miss our on everything good that happens in live and never even see the opportunities that are presented to improve their lot no matter how clear they are.
Comments that slam China. Comments that tell the truth are shadow banned on this web site.
Is it by the web admin?
Is it by China hackers/China government?
USA Fed thought Police?
I am unsure of Who is shadown banning? But they are banning free speech.
Any idea of who?
Everything you read, say, etc. is being manipulated.
Honest discussion is NEVER allowed under Tyrants.
They think that if they keep Lieing that we will believe the BS that is presented in the so called Media.
That is why the Tech MAFIA has shut down YouTube, Twitter, and PayPal, to anyone the questions the BS presented. Leftist NWO nut jobs want to shut you up and shut you down.
Media is ALL THEATER for public/cilvillian consumption.
What happens when you oppress people and shut them up is a Civil War or a World War. Any person who has studied world history see’s the patterns repeat in cycles. Over and over again the people are manipulated.
Jesus Christ Son of the Living God is the only Reality for a believer. All else is deception and manipulation.
We don’t censor.
Mac must be a modern day establishment type “conservative,” because he sure don’t like Trump.
Mac that’s a out right lie. Since the Tariff the Nucor Yamato steel mill at Blytheville Ark Is expanding and adding 200 new jobs. and they Pay $80,000 per year wages to their workers. The price of scrap paid to individual citizens has risen. The 3ews always try and control scrap metal prices and keep them low. Certiainly some marginal buisnesses will shrink or become extinct. Timber is higher price . Because Canada can no longer flood the market. Sawmills and steel That have been shut down for years are starting back up again. The USA is now exporting raw crude. When We get new refineries the USA will be able to refine that crude here which = more Jobs. Make America Great was a great slogan. Made in the USA is a better slogan. To heck with cheep imports they are mostly junk crappy products anyhow. The USA must start using the earths natural resources to make build & grow things that add to the GNP. We must again become producers of manufactured goods. Try and buy a USA made tire, farm tractor, appliance ect. No reason why they cant again be made here. The Tarrifs are a step in the right direction. The trade deals like NAFTA and others Simply put fucked the Producing Manufacturing USA middle class out of existance. When I first started out I got paid $1.00 per hour. but gas was 20 cents and during a gas war 17 cents. Starting wage for a kid would need to be $12.50 to be the same. Wal mart the nations largest employer starts out at $10.00 Quit trying to bullshit us that the Tariffs are bad and those lopsided trade deals where great. We know different.
Anyone who states that the Tariffs are bad for the U
SA. In making that statement they advocate that NAFTA and all those other Free Trade Agreements where good for the USA. And we know that just isn’t so.
You lost me at the first paragraph. It is not Trumps trade war. We have been looted for decades. Time to fight back.
You can thank Obunghole for the loss of jobs.
At one time we made everything we needed, but when
People started buying cheap junk from China…..they started
flooding the market…1994 NAFTA.
They pay someone 20 cents an hour to make somthing that we
make here for $16..an hour. We can’t compete with that so our
businesses shut their doors. The business moves to China and
the Chinese invade our borders looking for better wages….. which
no longer exist… so here we are with 10 million more mouths to feed
and fewer jobs for Americans and none for our youth.
And now these ORGANIZED INVASIONS BY HUMAN TRAFFICKERS
ARE THREATENING TO CRASH OUR ECONOMY COMPLETELY.
The Obunghole supporters want Socialism….everything free but they
have no idea what Socialism is, except that, their public education teachers
said it was a good thing.
If those teachers are screaming now about no pensions……wait
a few years when they get no pay or no job under demonicrat rule.