Will There Be Tariff Retaliations?

Fox Business Network recently revealed a video of  Sen. Orrin Hatch (R-UT) speaking about tariffs.

Hatch stated, “I’m not a big fan of tariffs. I think it’s a mistake to impose tariffs because there’s always retaliation. And I really don’t think that we need that. We need free and open trading situations, and we always stood for that. So I’m a little bit concerned about the way the administration is moving.”

  • Jigsaw

    If we’re the only ones paying a tariff than that is not fair. We need to start making our own products again. Let’s see how they like that.

  • flashy0ne

    This whole thing is rather ridiculous. The Unites States has ONLY ASKED FOR PARITY. Those who enjoy an “unequal” trading advantage RESENT any change. SORRY, when you are giving dimes away for nickels, you MAKE MONEY by stopping. It will hurt for a little while BUT the trade will readjust and then continue — we BOTH need the action :^)

  • parthenon1

    I have faith in the presidents negotiating skill this tariff ploy is only part of it we are in the strong position as the largest economy in the world. So cut the pres some slack and wait and see !

    • Rick501

      parthenon1 – see my comment to Marth and you are an idiot too.

      • CCBoy

        Rick, maybe you should move and live in China. Okay? We’re happy with what Pres Trump is doing-trade parity. MAGA!!!

        • Rick501

          CCBoy – How do we achieve parity if all the other countries retaliate with tariffs of their own? Please enlighten me.

          • CCBoy

            Easy. Hypothetical example.

            A $100 US made TV is sent to China. They slap a 20% tariff. The TV’s new price is $120 in China market while Chinese made local TV sells for $100 only-now which TV would the Chinese locals buy? Meanwhile that Chinese made TV is exported to the US @ $100 or cheaper (subsidized) -this is where the US tariff is slapped so that their TV would be at par with US prices. Which do you think which TV brand the American people would buy if the prices were at par-Chinese junk or made in the USA?

          • Rick501

            CCBoy – What if the Chinese put a 20% tariff on US made goods in retaliation? You should read history or you are condemned to repeat it. Google Smoot-Hawley and see what is going to happenb next.

          • Rick501

            CCBoy – You still don’t get it. Nobody wins a trade war. We actually have an example of why since you can look up what happened with the Smoot-Hawley tariff act. Like I said, do some research and stop name calling when you have no facts to back up your point.

    • apzzyk

      Do you know how fragill our position is in being the number 1? Have you taken into consideration that the horrible and evil state of CA, all alone is 5th largest. Where would be without CA?. Have any of these retailiatory tafiffs be focused on CA products? Did you know that CA can leave the US by just going back to the Republic of CA? An independent Country. Did you know that the taxpayers of CA would pay lower taxes if they were an independent country rather than as a state? Before the great tax cuts CA was only getting about 70 cents on every dollar paid to the US back, and that this year it will go below 50 cents back on every dollar? Would you stick with a looser that you don’t like and does not like you just to pay higher taxes?

  • Marty

    Hatch is an idiot. I guess that’s what happens when you have been around for too long. Trump is right. we need equal trade.

    • Rick501

      Marty – Google Smoot-Hawley and then tell me Trump is right. You are the idiot because you don’t learn from previous mistakes.

      • Marty

        Rick, you are the idiot. Trump has all along said all he wants is fair trade. That’s all I want. I don’t believe any country should be able to tariff any other country without that country being able to do the same. Why do you think it’s ok for china to tariff us and we can’t do the same? Makes zero sense.

        • Rick501

          Marty – Did you Google Smoot-Hawley? I guess not because you seem to still support Trump’s tariff plan. It doesn’t work. Been there, done that. Other countries have already announced retaliate measures. Wait for all prices to go up just like they did under Smoot-Hawley. It’s basic economics for all countries. Nobody wins. You do know Trump lies all the time?

          • Marty

            Rick, currently Canada has a 200% tariff on US farmers dairy products. Are our farmers suppose to take this lying down? China also places tariffs on US products. So you think it’s perfectly ok for other countries to place tariffs on us but it would cause huge inflation if we do likewise to them. Our economy is much better than China’s. If they want a war, I think they’ll lose. And no, I didn’t google anything, I never use google.

          • Rick501

            Marty – Smoot-Hawley. Try again, then let me know what will happen next.

  • apzzyk

    Trump bit off far more than we, the people, will be able to chew, with more to come. For example, he catered to his evanagist base by imposing tariffs Turkish steel, which took down the value of the Turkish currency relative to the dollar even though we probably do not buy that much from Turkey anyway, and the response was a tariff on our electronics, which we do not make anyway, and so what could they do next to really cause the US pain? That might be to close its NATO airbase to US traffic. That is where we fly our planes from go to all parts of the middle east, where, if that were done, we could not even land and refuel our supply or med-evac planes, and that would leave in air refuling, and using the fighter jets off of carrers, and that base in Qtar, left and these are all vulnerable. Then there is China which has two or three nuclear options of its own. Most of the things that we find in retail stores have a China connection, and so what China could do is to put an export duty on all of the goods that it sends to us, which would raise the prices that we pay on all retail goods and some products that are necesary to our manufacturing sector – check under the hood on your car and see where the parts originate, or the source of replacement parts. Did you know that all things Briggs and Stratton are made in China? Then there is the possible double nuke – stop selling us everything, and replace that by taking out the $1.2 Trillion that they have invested in our National Debt, which would take down the US dollar on the world market, and also leave us with nothing to wear. Hold on, it is going to be a bumpy ride.

    • parthenon1

      All I must say is look at what he has done so far when broughrt to conclusion his mpves are working ! As for CA I wouldnt give a damn for its chances unless the Liberals can be ousted ! They are the reason the taxes there are so high, its all because of their give away regulations and the illegals drawing public assistance and no one stopping them from coming in or sending any of them back out, not even the crooks ! When the Tarriff have finally hit and the hurt starts in China from lack of our business the big dragon will be crying! Plus a stopping of the stealing of our technology will stymie them they are good as copying but no so good at invention! Plus if they pull out what they have invested the dollar will drop in value and we can pay back in devaluec $ plus our goods we export will be cheaper. Remember China with its government controll of every thing set quotas on builoding appartments now there are many thousands of empty apartments and lots of other situations like that

      • apzzyk

        First, the conservative idea that low taxes will attract new business simply is not true. When Brownback was elected Gov of KS about 8 years ago he thought that and they cut taxes betting that it would work, and actually it worked backwards, because the serviced provided by government such as schools, highways, and social services for the elderly and disabled went to hell. Boeing was actually looking for a place to move its plant because it could not attract new employees and when it tried to transfer people from Seattle, they would quit or take early retirement. The costs to the wheat farmers of transporting their grain to the elevators near the RR tracks increased because the trucks and trailers we down for repairs do to bad roads went up. The trucking assciation wants to pay higher fuel taxes all along I-80 because of the same thing – one of the things that you will see are the mud flaps that are laying on the road. I live in N. CO, about 30 miles N of Denver in a high tax area, and Boulder, Larimer , and the W. part of Adams CO will have an increase in population and jobs, while S of Denver in El Paso, County and CO springs, the population is increasing but the no of employers are not, and NORAD (under the Mountain, close to the Air Force Academy) is looking for new land NE of Denver because the City of CO springs is trying to get out of the government business to save the taxpayers money and not have big gumment – it no longer plows streets other than State and Federal highways, so if NORAD goes on alert, when there is snow the people who work there cannot get there during the time required before they shut the blast doors.
        Until about 1995 having a Ph.D. from a Chinese U was a joke because creativity was discouraged, then the students that China had sent to US U’s like Berkeley, CalTech, MIT and other good (liberal) U’s started coming back to fill teaching and research positions, and now in their best U’s the new graduates are on a par with ours. Due to high tuition debt, these and other Us around the world are also attracting our new grads because if they go overseas their tuition debt cannot be collected and the taxpayers get stuck with the debt.
        Then there is the fact that people like to be around similar people. I have the Ph.D.and when I go out to have a beer I like to go the brew pub on Main St. where others with good educations go so that we can talk about ideas not the rather mundane things that people talk about in the Biker bar that is 8 blocks away, although all of us drop in there just to keep in contact with the ‘real’ world. Innovation come when one puts two or more things together which have not been put together before. I am a Statistician, and I have been working on building artificial intelligence systems for years, and have written a couple of computer systems that actually write totally new computer programs and systems, and have outlined a new system for the analysis of the human genome, and I am only 79 (technically a ‘super ager”) and the way that I keep young in mind and body is by doing or at least thinking about how to do new things. One that I started writing 40 years ago and handed off to another person to try to tell composers of classical music from each other is now being used with some modifications is being used in astronomy to try to anticipate solar flares. It has been found that the Sun gives off sounds that can be detected from Earth with radio telescopes that are related to the creation of sun spots, or solar storms, which produce the radiation bursts which can kill people in space. My name probably does not appear on the product but I never wanted recognition anyway. Money is only worth what it will happiness it will buy;
        What has developed over the past 40-50 years in the global economy, which has also prevented major wars, even tariff wars until now is what is called ‘functional interdependence”, which has also resulted in trade imbalances, which increased substantially after 1980. When Reagan started doing his ‘supply side’ economics, the factories that were built in the US during WWII and after were wearing out and needed to be replaced, so the people or companies who owned these factories were looking around, and they found China, and with the cost of transportation falling because of container ships which could bring large cargo’s at very low prices per ton from there to here, they built their new factories there to exploit their cheap labor, get rid of the labor unions and regulations, so they built the new ones there and actually took people who would be laid off when the factory was fully moved there to train their replacements as necessary. I have met people who spend more time flying from the US to all parts of Asia for companies like Seagate and IBM and even defense contractors like Ball Bros and Lockheed-Martin just keeping the supply chain working. The obvious fault of Trump is that he knows nothing about processes like supply chains. For example, with the current retailiation, he does not know that the pork producers bread pigs 18-24 months ago to supply the expected demand for today. So when China stopped buying half of our pork production, the producers stopped breeding, and the pork that they breed for export last month, when the China buying stopped, were slaughterd, and with no market there anymore, are sitting in cold storage which has a limited capacity, so if they slaughter the ones that they breed for this month they will have no place to put the meat. Now they are stuck with the choice of slaughtering more and having the meat go to waste or feeding them at several dollars per day each or just doing mass killings in pits, and burning them to avoid a further glut on the market. Either way they loose, and the consumers will loose in the end when there is no more fresh pork and the breeding stock has also been slaughtered. This means that if the market would return next year we would have no capacity produce more and so because of the lack of supply, the price will increase for US consumers. Just the other day the USDA announced that it was doing some reorganization of its Economics functions – again to save the taxpayers money and get rid of the ‘deep state’. These are the people who did the forecasting so that the whole ag supply chains could be syncronized all the way from the producers down to the most basic suppliers. The bottom of the chain, the fertilizer producers and the farm machinery manufactorers are probably already shutting down now. Remember West, TX? After its plant blew up because it had too much stored the inspectors have doing more and better inspections and strictly limiting the amounts that can be stored safely. Usually the winter is the time for repairing and doing PM on the machinery that will be needed next year, but with no foreseeable market, there will be no planting and the need to streach out the money. In CO where we have legal marijuana we can also have commercial hemp, but we have no place to process it and so we do not have farmers with the right equipment to grow and harvest it, because without a profit no one invested in these things and with the anti government and anti tax people out there and in the USDA, there is no Federal money to put these essentials together in time for next year so that hemp can be grown as a replacement for soy, corn and even wheat. Trump also does not know about the gradual transition process that is necessary in modern agriculture – I got all 3 of my degrees at Ag U’s and most of Statistics came about because of the need to do Ag research.
        Most of the Treasuries that have been sold over the past year are indexed to keep the return on investment constant – this was supposed to protect against inflation, but would also apply if the dollar lost value when comparied with other currencies of the major lenders, such as China and Japan, and to a lessor extent the EU and even Mexico, so there will be no savings in terms of repayment if the dollar goes down we will just have to pay more dollars. The day after the election the credit rating of the US fell from AAA to AA which was because the Federal Tax base was expected to fall with Trump’s tax cuts, and the with the reduction in the deductabiity to the maximum flat rate of a total of $20K most individuals will actually pay more in Federal taxes, and the States to be hit hardest by this are the Blue states, and this may violate the 16th Amendment which makes tax rates proportional on individuals where a person in KS will pay lower total Federal Taxes on the same amount of income than people in CA or NY; this would also violate the 14th Amendment’s equal protection of the laws; and the 10th Amendment’s rights of states to tax their own citizens. NY and CA have already announced that they will challenge the new tax law, but it will not be done until Jan 1 of 2019 when the taxes become due. This, or these suits will go directly to the Supreme Court, so all other matters will have to wait, and seldom has the Court ever ruled against the high population states, and if these suits prevail, all of a sudden the Feds will not even be able to fund things like the great increase in military spending without either borrowing a hell of a lot of money from our overseas and international new threats to our national security, or heavily tax the ones who got the permanent tax cuts this year, just to meet long-term contractual obligations and things like the 14th Amendment Constitutional Right to veterans pensions, and the other ‘entitlemnts’ such as govt. pensions, Social Security and Medicare and even medicaid, all of which are earned benefits that are also protected by contract law and due process. If there is no money for other things these will have to be paid first.

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