U.S. goods trade deficit with China tumbles to five-year low

[HTacianas]

WASHINGTON (Reuters) - The U.S. goods trade deficit with China, a focus of the White House’s “America First” agenda, shrank to its smallest in five years in March, which could embolden President Donald Trump as he escalates his trade war on Beijing.

U.S. goods trade deficit with China tumbles to five-year low - Reuters

 

[Kentonio]

In other news, Americans cheer as they pay an extra 20% tax to their government on goods they want to buy..

 

[HTacianas]

In other news, Americans cheer as they pay an extra 20% tax to their government on goods they want to buy..

EU sets new trade rules to limit cheap Chinese imports - Reuters

 

[Kentonio]

EU sets new trade rules to limit cheap Chinese imports - Reuters

And...?

 

[Occams Barber]

WASHINGTON (Reuters) - The U.S. goods trade deficit with China, a focus of the White House’s “America First” agenda, shrank to its smallest in five years in March, which could embolden President Donald Trump as he escalates his trade war on Beijing.

U.S. goods trade deficit with China tumbles to five-year low - Reuters

The problem you're not seeing is that, if the US increases the tariff on Chinese imports, you (the American consumer) are the ones who pay for it. Either you pay the increased price for the import or you pay an increased price for the local version of the product. The local price increases because it is no longer competing against the (once) cheaper import.

Either way - you pay. This is why protectionism is a poor economic strategy.
OB

 

[paul1149]

protectionism is a poor economic strategy.

Protection is a good strategy when you're being ripped off. China's infractions are legendary, and we have for decades allowed them to get away with it. Stop it now, or in little time they will rule the world, and not beneficently.

There are already hidden taxes we're paying on Chinese imports, such as the postal subsidy which makes it cheaper to ship from Beijing to the US than between US cities. Chinese manufacturers may adjust by lowering their prices to some extent, easing the tariff crunch on the American consumer. And the upside is our domestic employment, which has been smoking hot.

 

[hislegacy]

Good news! Tariffs go directly into the treasury and will help bring funds into the federal government

If they only effected the wealthy, they would be applauded by the left.

 

[Occams Barber]

Good news! Tariffs go directly into the treasury and will help bring funds into the federal government

If they only effected the wealthy, they would be applauded by the left.

Then it's a blessing that tariffs mainly impact on the poorer members of society.
OB

 

[PeachyKeane]

This isn't exactly a big deal. For one, assuming this trade deal ends, this will all return to normal levels. But that's okay, because we really shouldn't care about trade deficits.

The big deal in these trade negotiations is China's intelectual property theft. China reverse engineers American tech, or outright steals it, rebuilds it as their own, and then resells it, all over the world, in violation of international patent laws. That costs us a nearly incalculable amount of money (which is to say I don't know, and don't want to do the math, but it's a lot).

A dip in the trade deficit is less than nothing. Eyes on the prize folks: a promise to prevent IP theft is what negotiators need to walk away with in negotiations.

 

[zephcom]

This isn't exactly a big deal. For one, assuming this trade deal ends, this will all return to normal levels. But that's okay, because we really shouldn't care about trade deficits.

The big deal in these trade negotiations is China's intelectual property theft. China reverse engineers American tech, or outright steals it, rebuilds it as their own, and then resells it, all over the world, in violation of international patent laws. That costs us a nearly incalculable amount of money (which is to say I don't know, and don't want to do the math, but it's a lot).

A dip in the trade deficit is less than nothing. Eyes on the prize folks: a promise to prevent IP theft is what negotiators need to walk away with in negotiations.

And how does a treaty stop Intellectual Property theft?? Other than saying they can't import to America items which contain stolen IP, what leverage does America have?

There is no penalty for violating 'international patent laws' because there is no international government to enforce them.

 

[essentialsaltes]

Fortunately there are lots of other countries willing to sell us things that we don't have to pay extra on. From the OP:

"The overall trade deficit increased 1.5 percent to $50.0 billion in March."

 

[mark46]

1) A trade deficit does NOT harm the US.

2) China is being harmed by US tariffs.

3) US consumers are buying from other countries instead of China.
=====
How is the bad for the US? Apparently, Trump's tariffs have hurt China, and consumers chose to buy goods from elsewhere instead of from China.

Fortunately there are lots of other countries willing to sell us things that we don't have to pay extra on. From the OP:

"The overall trade deficit increased 1.5 percent to $50.0 billion in March."

 

[essentialsaltes]

1) A trade deficit does NOT harm the US.

Better inform the president.

2) China is being harmed by US tariffs.

2A) The US is being harmed by Chinese tariffs.

How is the bad for the US?

See 2A.

 

[Tanj]

Good news! Tariffs go directly into the treasury and will help bring funds into the federal government

Because it's a tax.

If they only effected the wealthy, they would be applauded by the left.

It's much more hilarious that this tax increase is being applauded by the right.

 

[Pommer]

1) A trade deficit does NOT harm the US.

2) China is being harmed by US tariffs.

3) US consumers are buying from other countries instead of China.
=====
How is the bad for the US? Apparently, Trump's tariffs have hurt China, and consumers chose to buy goods from elsewhere instead of from China.

The rest of the world LENDS us money to run our government that is supposed to make sure that this revenue-stream-scheme STAYS in place. The USA wanting and EVEN bigger slice of the pie is an invitation to several different kinds of war.
Trade-wars might be “easy to win” if they didn’t have an unfortunate tendency to escalate into shooting-wars.

 

[NotreDame]

1) A trade deficit does NOT harm the US.

2) China is being harmed by US tariffs.

3) US consumers are buying from other countries instead of China.
=====
How is the bad for the US? Apparently, Trump's tariffs have hurt China, and consumers chose to buy goods from elsewhere instead of from China.

Long term, these tactics could harm the U.S. as China, Russia, and the EU explore ways to divorce themselves from the extent of global reliance on the U.S. dollar and its financial markets.

 

[iluvatar5150]

Protection is a good strategy when you're being ripped off. China's infractions are legendary, and we have for decades allowed them to get away with it. Stop it now, or in little time they will rule the world, and not beneficently.

There are already hidden taxes we're paying on Chinese imports, such as the postal subsidy which makes it cheaper to ship from Beijing to the US than between US cities. Chinese manufacturers may adjust by lowering their prices to some extent, easing the tariff crunch on the American consumer. And the upside is our domestic employment, which has been smoking hot.

That only applies to items shipped through the USPS, and AFAIK, Trump has already pulled us out of that (or at least has promised to).

 

[essentialsaltes]

Soon after Trump tweeted "China should not retaliate," the country announced new tariffs

I guess they're not taking his advice on trade.

The Dow is now down more than 500 points

 

[PreviouslySeeking...]

Lol, I would clap, but....

My company purchases components from China that aren't manufactured in the US.

How this "war" & lowered trade deficit have affected us... Our components cost more. Our profit margin is less. We've had layoffs (the last was barely 6 months ago). And no one has seen a real raise since I don't know when. Oh & we are short handed, but "lucky" to have a job so we work double plus quick - doing more for the same or less.

The only boom in employment around me is service work or high level niche jobs. So I stay here, stuck like many, even degreed people I know right now.

 

[PreviouslySeeking...]

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