You know what? There are not that many people in the US as a proportion of the world. Only 3 to 4%. It doesn’t have to have the role in global trade that it has had.
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If they rent the same apartment for $2000/mo. that in other countries would be rented for $400, and if they pay $60/mo. for broadband while in other countries, you can have much better broadband for $8/mo., their inflated prices don't mean it's really 25% of economic value that is getting exchanged.
True, & no one disputes this will have a damping effect on other countries' exports, but those 25% are formed by things like rent, utilities & health insurance (!) — and not by made-in-Vietnam jeans that cost from $25-ish everywhere. So using the 25% metric in this discussion is highly misleading.
The problem is that many big markets like China, Europe (esp. Germany) and Japan are all exporter nations.
The US is the consumer nation. Right now there's no market left for making up for the trade deficit.
It's unclear of consumer demand can be quickly turned on, if we didn't manage for decades.
I doubt it.
Considering that they especially targeted base materials like metals, their costs will also rise. Their local producers can now sell at higher prices in the US, so will be less competitive.
And either way: nobody will build factories now, as Trump might change his mind tomorrow.
I suppose I'm thinking of the fact that they say they've raised these barriers against us because we don't import enough of their stuff, like their "food". I hope we don't get to a stage where we increase our imports in exchange for lower trade barriers. I hope we ride this period out instead.
Unless the rest of us start imposing new and punitive tariffs on each other, which we won’t, the damage will largely be limited to the US and global trade will divert to other markets that will benefit. That includes ours. This is really an opportunity for European business.
given that the US now has no other option, they'll just have to pay the extra. meanwhile for the rest of the world, if usa trade is 20% that just goes down, trade to elsewhere takes over, but it's only a small road bump
It doesn’t quite work that way on the demand-side. If US imports less goods, those exporters won’t just sell more elsewhere. International exporters would’ve been selling more into other markets prior to this US fiasco, if there was the demand and money to be made
well I mean if it's artificially become 25% more expensive to sell to USA, they'd have to reduce their price 20% just to stay the same point on the supply/demand curve, but maybe they could sell those units to someone else only dropping the price 10%? or 5%?
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Perhaps the orange orangutan is a closet green? 🤣
The US is the consumer nation. Right now there's no market left for making up for the trade deficit.
It's unclear of consumer demand can be quickly turned on, if we didn't manage for decades.
Considering that they especially targeted base materials like metals, their costs will also rise. Their local producers can now sell at higher prices in the US, so will be less competitive.
And either way: nobody will build factories now, as Trump might change his mind tomorrow.
Does ‘Murica feel great yet? So tired yet of winning?
Proper Bunnies?? Sad