Yet another independent study has confirmed what we warned about from the beginning: Americans are paying for the trade war, not the Chinese. We can argue semantics all day, but the fact has always been that the American consumer is paying for Donald Trump’s tariffs.
Unfortunately, anyone with even a basic knowledge of economics could see that this is the outcome.
“China is paying us tremendous — and they’re paying for it,” Trump said at a Cabinet meeting last week. “Those tariffs are not paid by us. Those tariffs are paid because they’re devaluing their currency and pouring cash into their economy.” However, Trump is incorrect on this one. The White House has continued to assert that claim even after the same conclusion was reached in several other major independent studies, including from Princeton, Yale and the University of Chicago, according to a report by Business Insider.
United States businesses have also shouldered the burden of the tariffs, but are much more likely to be able to absorb some of the costs than the average American consumer who was already living paycheck to paycheck.
Financial Experts Warn: Americans WILL Pay The Cost Of A Trade War
The New York Federal Reserve said Monday that it has been proven that the costs of a trade war are for American businesses and consumers to bear. The central bank found in a new study that Chinese businesses have not significantly lowered prices on exports to the US in response to the trade dispute that began in early 2018. That signaled that Americans have instead had to absorb additional import taxes levied by the Trump administration, estimated at around $40 billion annually.
“The continued stability of import prices for goods from China means US firms and consumers have to pay the tariff tax,” Fed economists Matthew Higgins, Thomas Klitgaard, and Michael Nattinger wrote in the study.
But the New York Fed said its findings suggested Chinese firms have not used exchange rates to maintain competitiveness through lower prices.
“Instead, they’ve accepted the loss in competitiveness in the US market and have used the weaker currency to pad profits on each unit of sales,” Higgins, Klitgaard, and Nattinger wrote. -Business Insider
Whether it is in the form of higher prices, lost jobs, or fewer profits, American businesses and consumers have paid for the tariffs on imported Chinese goods.
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Well the Chinese have been paying – by having their organs harvested, by being put in concentration camps, by living with pollution, by being removed for the 3 gorges dam, by dying in the workplace, and getting only a few dollars a day and committing suicide.
But isn’t the oppression and slaughter of the Chinese and those under their control worth it for a few pennys off the cheap junk, or so the billionaires can make a little more profit?
All events and news are politicized, the disseminators of news actually see truth and real facts as undesirable and irrelevant. If one wants to get some kind of idea what the truth is they have to consider the source, who is stating ‘the facts’, comparing the story with other news outlets, determining any apparent motives for presenting a story, getting opposing points of view, determining what is the evidence, finding alternative sources, and so on.
The truth is the American people are heavily and continuously propagandized. The news is altered, mixed with half truths, totally made up, or not even presented at all. My wife is originally from a European country, she goes on-line to read the news in her birth country, and keeps me informed of news items concerning the US that are not shown here. I’m blown away how even important items are heavily altered or withheld from the Amer. people and not just sometimes, but all the time. Censorship is definitely in effect in the US with the MSM totally implicated. There is no doubt the MSM is a tool for the deep state.
Pres. Reagan’s intel director Casey once said “the government’s disinformation program is complete when everything the Amer. people believe is false”. Let that sink in. You can bet sooner or later all independent / alternative news sites and sources will be banned.
But it’s not just current events, history is also revised. Such as the War between the States was fought only about slavery, or how the US was “pulled unaware and reluctantly ” into WW I, WW II, and Vietnam. Or WMDs in Iraq, or the real JFK facts, high level acts of treason, and all the endless cover ups of ongoing crimes of officialdom, which continues unabated to this day.
Knowledge and truth are power, and the deep state doesn’t want you to have it. There is no doubt they want the Amer. citizens to be nothing more than a managed disposable programmed resource.
Taxation without representation is not conservative.
I have come to expect (and enjoy!) long term reasoning in your articles. This was so short sighted that I went cross-eyed.
I would be happy to spell it out… but what’s the point? If you can’t see it by now then nothing I might say will convince you.
I have come to expect (and enjoy!) long term reasoning in your articles. This was so short sighted that I went cross-eyed.
I would be happy to spell it out… but what’s the point? If you can’t see it by now then nothing I might say will convince you.
My intention is not to rewrite the article, but it cites: “The continued stability of import prices for goods from China means US firms and consumers have to pay the tariff tax,” Fed economists Matthew Higgins, Thomas Klitgaard, and Michael Nattinger wrote in the study. This is mostly untrue.
If you look at the CPI, it has not risen. If you look again at prices paid by manufactures here for supplies, they are below inflation rates, and so on. If you look at the Trade deficit just in the last couple of months has fallen over 33%. All of this means that the tariffs are not impacting the American consumer. I could cite even more data, but the fact remains that there is no evidence for what those “experts” have said that the prices have been passed onto consumers.
China is having there exporters pick up a large chunk of the tariffs. China knows that if it’s prices rise, then many other countries are just waiting to jump in and take that market share away from them and they do not want that to happen.
I did not even speak of their devaluation of the Yaun they did and how it has hurt them. I did not even speak of the petrodollar and how a cheaper Yaun and rising oil has killed them…Make no doubts, the Chinese want this to stop.
The reason they have not conceded is because the tariffs are a small part of the “DeaL”. Trump is trying to force the Chinese to recognize International Law and respect our Patents. China steals an estimated $450 Billion of our ideas per year. China is selling company stocks on our markets and their financial data is known to be false and we are not allowed to force them to use standard industry accounting methods. What this means is that the company they are selling stocks of could be broke, but we are not allowed to check their financials. Trump wants to change all that. I hope he does.
https://www.forbes.com/sites/kenrapoza/2019/05/17/here-is-how-china-is-really-paying-for-tariffs/#58ce33b11fae
https://www.dawn.com/news/1514450
Jon from CA, thanks for a great analysis. CNN & MSLSD have much of the country duped by LYING BY OMISSION. Important facts are purposely disregarded in an effort to support their preconceptions and political ideology.
As an addendum, I must admit to my own heavy bias against the BIG-FEDERAL-GOVT. liars & cheaters in “D.C.” DEMONRATS !!!
Considering all of our manufacturing went to China it doesn’t take a rocket scientist to figure that out!
…By being hooked on “Made in (Communist-ruled) China”.
It’s official, Mac is a never trumper. I’m curious who he would support in office, and ironically, I was assaulted by a pop up window advertised a pro trump publication.
I’ve really never understood why Mac believes Trump is part of the global elite. If anything, his time in office shows just the opposite, and the global elite seem determined to do anything to remove him. Is this all a ruse, as well?
I believe Trump is being divinely guided, and that he is doing God’s work.
Donald Trump: “I am a Tariff Man….. We are right now taking in $billions in Tariffs.”
Ron Paul’s reply: “Americans pay the tariffs.”
It is clear that Trump is doing exactly what he has been told to do by globalist handlers. Bleed out America.
Trump thinks his supporters are dummies. What language is Trump’s grandchildren learning? Mandarin Chinese. Where do you think Trump wants to expand the Trump brand: Asia.
All Trump is doing is making American labour cheaper for their new Chinese bosses.
I have been to China many times. It is extremely modern and has amazing infrastructure. The women are very beautiful and very fashionable.
The place is super hi-tech. The last time I was in the US I saw lots of slow-moving, obese black people, the infrastructure sucked, and every hotel I stayed at I had to argue with the d-bag at the checkout desk.
America needs to raise its game. It is not China’s fault. At least your president is smart enough to know the future and bet on China for his kids. Shee-ah, shee-ah Mista Trump!!!!
at least the usa is not funding the chinese army to the same extent !
China just suffered its THIRD bank failure within the most recent three months, which is unprecedented in that country. The report I read said China has a list of over 500 banks which may be on the verge of failure.
Meanwhile, back at WalMart, your average consumer – who never reads labels and could care less about trade imbalances – is STILL paying the SAME prices for all the Chinese crap which has been flooding our markets. I know that, according to some theories, especially as espoused in our communist indoctrination centers (schools), trade wars and protectionism always lead to disaster; still, my own observations have disproven that naked assertion many times before.
Regarding the high-holy-truth being spewed from Princeton, Yale and the Univ of Chi-com-go, all three are well known to be bastions of “progressive” (communist) propaganda. I wouldn’t believe anything published by someone from these schools (you can add in Columbia to that list as well).