Tariffs on Chinese built boats?

[twistedtree]

Nothing like a $1-Trillion surplus and 17% growth in exports despite 8 years of 25% tariffs. Xi does control and China does export (the government) - lest we ignore the many state owned companies that both manufacture and export.

So what Chinese companies have dropped their prices by 25%, such that it costs the same to a US buyer after they pay tariffs? I don't think Foxcon is charging Apple 25% less for iPhones and Macs so Apple can import at the same final cost after paying 25% tariff. Nobody has reduced the cost to the builder of my boat so they can pay the tariffs without increasing their net costs. So where exactly are tariffs being subsidized by the Chinese government?

 

[O C Diver]

So what Chinese companies have dropped their prices by 25%, such that it costs the same to a US buyer after they pay tariffs? I don't think Foxcon is charging Apple 25% less for iPhones and Macs so Apple can import at the same final cost after paying 25% tariff. Nobody has reduced the cost to the builder of my boat so they can pay the tariffs without increasing their net costs. So where exactly are tariffs being subsidized by the Chinese government?

There's no reason for China to lower the price of your boat. Any manufacturer that could have built your boat at a competitive price (with the tariff) has already gone out of business.

There's no reason for China to cut the cost of Apple products as no production facility still exists in the USA that could ramp up to meet the demand within 5 years. If a company in the USA did, China would cut their price to put the USA company out of business.

Without doing an internet search, I would imagine China did that to hasten the demise of the USA steel industry. Once gone, China can charge market prices.

Ted

 

[twistedtree]

There's no reason for China to lower the price of your boat. Any manufacturer that could have built your boat at a competitive price (with the tariff) has already gone out of business.

There's no reason for China to cut the cost of Apple products as no production facility still exists in the USA that could ramp up to meet the demand within 5 years. If a company in the USA did, China would cut their price to put the USA company out of business.

Without doing an internet search, I would imagine China did that to hasten the demise of the USA steel industry. Once gone, China can charge market prices.

Ted

OK, I'm talking about response to the tariffs over the past 4 years or so, and any notion that China is absorbing the cost as opposed to the US consumers or US companies.

 

[O C Diver]

OK, I'm talking about response to the tariffs over the past 4 years or so, and any notion that China is absorbing the cost as opposed to the US consumers or US companies.

I'm not aware of any instances recently as most of their targeted industries have been conquered. I would also guess the current administration would simply raise the tariff to negate China lowering the cost.

Ted

 

[KMAL]

OK, I'm talking about response to the tariffs over the past 4 years or so, and any notion that China is absorbing the cost as opposed to the US consumers or US companies.

I can say unequivocally that I am paying for the tariffs levied on my boat - they are charged at import by the US and I pay them to get the boat. This includes the 25% imposed in the first Trump administration and the latest 10%.

 

[KMAL]

So what Chinese companies have dropped their prices by 25%, such that it costs the same to a US buyer after they pay tariffs? I don't think Foxcon is charging Apple 25% less for iPhones and Macs so Apple can import at the same final cost after paying 25% tariff. Nobody has reduced the cost to the builder of my boat so they can pay the tariffs without increasing their net costs. So where exactly are tariffs being subsidized by the Chinese government?

To the best of my knowledge the tariffs are not being subsidized by the Chinese government - but I have no way of knowing this. I am not aware any prices that are staying the same - they are indeed going up.

 

[KMAL]

Interesting discussion. Australia, and everyone else, is facing 25% tariffs on exports of steel and aluminium (you spell it aluminum) to USA. Bluescope, our large steel producer also operates in and makes steel in USA, employing 4000 people to do it.
Anyway, our Prime Minister (who Xi calls "handsome boy" [he`s definitely absolutely neither]) has asked your President to exclude Australia from the 25% tariff again, as he did last time. We buy way more from USA than we sell, so it`s a real possibility.

I think Trump likes you Aussies - and having operations in the US should be meaningful - particularly at the scale of employment you site.

 

[DDW]

A couple of data points: I buy small quantities of aluminum (around 1000 lbs a year) for a product I make. None comes from China. Nevertheless, the price of aluminum has increase by 50% between 2018 and 2021, and an order this week was quoted at about 100% increase over 2018. Without the competition of Chinese aluminum (which I would not use because it is crap), the US and EU aluminum mills have increased prices. This is what tariffs are supposed to do, but China is not paying anything, I am. Second, I buy some electronic components from places like Digikey and Mouser. Many of these components are now subject to tariffs, and those tariffs are added to the price as a separate line item on the invoice. Again China is not paying anything, I am.

 

[BruceK]

I think Trump likes you Aussies - and having operations in the US should be meaningful - particularly at the scale of employment you site.

We can only hope so. We just paid 500BN towards the AUKUS submarine project which may help. Though whether we actually get delivery seems optional.

 

[Andy G]

Anyway, our Prime Minister (who Xi calls "handsome boy" [he`s definitely absolutely neither]) has asked your President to exclude Australia from the 25% tariff again, as he did last time. We buy way more from USA than we sell, so it`s a real possibility.

Who knows? There doesn't seem to be much economic or common sense around at the moment.

 

[MVTara]

Were the 2018 tqrriffs imposed on all size boats or was there an exception?