Trump's Tariff Threats Are Working On China

[dannno]

Trump's Tariff Threats Are Working On China



https://www.forbes.com/sites/kenrapoza/2018/04/10/trumps-tariff-threats-are-working-on-china/#4a779fb47c86



The market owes a lot of today's bounce to Chinese president Xi Jinping. He has conceded (http://money.cnn.com/2018/04/09/news/economy/china-xi-jinping-economy-trade/index.html) that tariffs on U.S. cars and trucks coming into his country are too high. They are coming down.


Threats of trade tariffs work. Removing the threat of adding extra costs to foreign exporters is like going into a fistfight in handcuffs. You can still win that fight if you're really crafty and great at kicking, but all things being equal, you're probably going to down in the first round.

[dannno]

Sounds like lower taxes.

[Zippyjuan]

Worth noting: https://www.npr.org/2018/04/10/601072299/china-ready-to-lower-import-tariffs-and-trade-barriers-xi-says


Now, that seems on the surface a big thing for U.S. carmakers, but it's worth pointing out here that U.S. automakers like GM and Ford now make nearly all the cars they sell in China at factories inside of China. So this likely won't have a very big impact.

and:


but this is not the first time the Chinese have vowed to reduce tariffs on foreign cars, or even to lift limits on foreign ownership of companies inside of China.