How come you can't grasp this simple fact and the strategy that goes with it ?
Numerous foreign countries have been applying punitive tariffs to American goods and products that enter their countries. HOWEVER, goods and products from those same countries do not get the same level of tariffs applied to them when they arrive in America. That has resulted in VERY LARGE Trade Deficits being incurred by America .. to the tune of many BILLIONS of Dollars .... Do You Get That So far ???
Ok ... so next thing ...
Donald Trump has stated, IN PUBLIC, ON NUMEROUS OCCASIONS, that he is not a "fan" of tariffs, because all that he wants is RECIPROCAL TRADE, i.e. a fairly LEVEL PLAYING FIELD, with little, or no, tariffs ..... Still with me ??
Ok ... so next thing ...
He also stated, ON NUMEROUS OCCASIONS, that he can understand why some countries, such as China, etc, applied those tariffs, because previous American Administrations did nothing to counter it and just let it go on as before ... so China, etc, just carried on doing what was in China's best interests, as he would expect ANY country to do ... Following it OK ??
HOWEVER, President Donald John Trump has now made it clear that he is also now going to act in America's best interests and start applying some tariffs of his own to counter what other countries have been doing for decades at America's expense. And he will continue to do that until other countries make the decision to resort to Reciprocal Trade.
Unfortunately that may a bit unpleasant for a while, BUT other countries will, generally speaking, have a lot more to lose in the longer term than will America because America has far more cards to play than does anyone else .... and the President of the USA knows that very well, which is why he is determined to go the course ....
And you saw a good example of that when that arrogant President of the EU, Junker, came to the White House, and, WITHIN ONE DAY, Trump sorted him out and future trade between the EU and the USA will be fine, although the question of motor vehicles is still out there ....
Unfortunately the likes of the Harley Davidson management are not looking at this in the longer term picture .... they think, and probably believe, that America will lose out in the longer term and that these other countries will continue to play "hard ball" and will not reduce tariffs on American goods and products. That ain't gonna happen .... my prediction is that Harley Davidson will end up with egg on their face and be the losers ....
So there you are ... not so difficult was it .... |
