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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST
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To: RetiredNow who wrote (129908)2/6/2017 9:47:41 PM
From: Elroy Jetson  Read Replies (1) of 217617
 
It's absolutely not true that China generally imposes import duties on US goods which the US does not impose on Chinese goods.

These trade duties have been negotiated by very smart and sophisticated people like Republican John R. Bolton. I find it impossible to believe that an amateur like Trump is going to be able to negotiate a better deal. You can squish the details around like Jello, but the overall outcome will still be the same. These negotiations have gone on for decades and continue on a daily basis.

The United States in general imposes an import duty of 5.5% to 16% on many imported goods from China. China in general imposes an average import tariff of 12.47% on many imports from the US with a similar range in individual rates.

Documented accusations of dumping, selling a good for less than it costs to make, can bring impose additional anti-subsidy duties.

Example

The US determined some Chinese companies received Chinese government subsidies so were selling solar panels far below the real cost and imposed an anti-subsidy duty on Chinese solar panels of 20.94% with import duties as high as 239% on some Chinese firms receiving large subsidies from the Chinese government. The US also imposes special anti-dumping duties on Chinese steel products.

Tit-for-Tat

America imposes a 5.5% import duty on Chinese cars.
China also imposes a 5.5% import duty on American cars.

In 2011, mostly in response for the increased US duties on Chinese solar panels, China pointed out that some in the US auto industry, ie GM and Chrysler-Fiat, had received similar large US government subsidies in 2008, so they increased the 5.5% import duty on certain American made cars which were being sold for less than they cost to make, after taking into account American government subsidies. We can't argue with this conclusion because it's true.

So China increased the import duty on cars from 5.5% to 21.8% on Cadillac and to 18% on Jeep.

Import duties on Ford products remained at 5.5% as their production costs were not subsidized by the US government.

So we can insist China remove the anti-dumping duty on GM and Chrysler, but they''l insist on removing the anti-dumping tariff on Chinese solar panels and steel.

There's no huge hidden edge which Trumps is going to find. The sooner Trump talks to the Republicans like Bolton who negotiated these import tariffs, the sooner he's going to stop saying stupid shit and focus on improving aspects of the economy he can improve.
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