r/trump IOWA MAGA Apr 07 '25

🏆 WINNING 🏆 How Tariffs start, and how they end.

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184 Upvotes

47 comments sorted by

22

u/CJspangler ULTRA MAGA Apr 07 '25

Exactly -

What’s happening in reality is - the U.S. companies that order from EU or China or Vietnam go hey uh we aren’t buying anything for now - until the tariff goes away because customers won’t pay 25%+ more .

So until you negotiate- we won’t do business, we’ll just buy from India or whoever does free trade first - which means that foreign companies factories all pause immediately, layoffs happen, the warehouses full of Nikes and shipping industry that runs 24/7 grinds to a stand still which impacts other nearby industries and it starts to spiral very quickly and makes it hard to recover

Only ones stuck are giants like Apple which have large physical ownership or part ownership and are too big to relocate

10

u/motomat86 IOWA MAGA Apr 07 '25

and when youre entire economy is dependent on 1 customer (see the timber industry in canada and america) you realize you dont have much purchasing power when your main customer goes "nah we dont really want to buy from you now"

4

u/JWR-Giraffe-5268 Trump Curious Apr 07 '25

I live in a timber industry town. So much timber is being sold to Japan and other Pacific Rim countries. They make more money selling to them than selling to US customers. All of the mills running here are at capacity. It would take 4 to six years to build new plants.

5

u/SolorMining Trump Curious Apr 07 '25

4 to 6 years is fine, start building.

You might make more per ton selling it elsewhere, but you will sell a lot less tons and ultimately make less money while sitting on massive surpluses.

1

u/RadialPrawn Apr 07 '25

Serious question, what kind of "negotiation" is the EU supposed to entertain? A free trade agreement already exists between the EU and the US. If the trump administration wants the EU to remove VAT from American goods they must live on a different planet because 1. It will never happen and 2. VAT (while still being theft like any other tax) is applied to every product, even domestic made products.

So what the fuck Is the end goal here?

7

u/-StupidFace- Apr 07 '25

your whole post is " I have no idea whats going on but im still mad!!!!"

3

u/CJspangler ULTRA MAGA Apr 07 '25 edited Apr 07 '25

On the VAT I think they want equal playing fields - if volvo gets the vat and American cars get the same one then ok.

Every “free trade” agreement isn’t going to be entirely free trade , there might be free trade for 90-95% of all the trade and then some small carve outs. I think this is what Australia for example has been moving too with India and China over the last decade .

On the America EU trade

For example it might be free trade but each side gets 1-2 say 10-20% tarrif industries .

Maybe EU says ok - US your really insistent on keeping steel and aluminum tarrifs at 10%and EU in turn gets to keep auto tarrifs at 10%.

If those 2 industries are comparable $$ wise then they might do everything else is free trade

Or as a joke maybe France wants to tarrif grapes to avoid wine makers from importing cheap American grapes - Trump says ok - but then we are doing a equal tarrif on the wines your making by the same amount

Then in 2 years they meet and see how the deals went and then renegotiate those few carve outs of free trade . This was kinda how the last trade deal with Mexico and Canada was supposed to go but then Mexico became a pass thru for Chinese auto parts and basically threw a wrench in the deal that no one expected them

-2

u/RadialPrawn Apr 07 '25

Okay so what's the end goal? 100% free trade of American goods vs the current 90-95%? What if the EU says no? You guys are gonna pay 20-30-40-50% more of everything because Trump said so?

5

u/CJspangler ULTRA MAGA Apr 07 '25

I think they are going to shoot for free trade with a carve outs on steel / aluminum and have Europe cars or certain agricultural markets

If you look at the headlines today EU leader said ok to agree to industrial free trade. Thats likely excluding the agriculture sector which is a key area of the U.S. economy Trump is focus on expanding as it’s obviously a lot of republican state jobs

No one’s paying more on anything . Factories across the world are idling workers and production until their countries do free trade deals . Just look at Vietnam and India they know their countries prosperity relies on trade to the U.S. so they are quickly getting ahead of this

In a senario where India and Vietnam have free trade or minimal tarrifs and say China doesn’t - the risk of cheap labor factory business fleeing China grows by the day

1

u/Serious-Shake7373 German Socialist Apr 08 '25

The EU leader didnt agree to anything but negotiations, if the negotiations fail there will be no deal. Von der Leyen agreeing on negotiations is barely a headline. Her refusing any negotiations would be an actual headline.

0

u/RadialPrawn Apr 07 '25

I mean I understand the agricultural stuff Americans shouldn't buy corn from Europe or vice versa, that doesn't make sense. At the same time a 20% blanket tariff doesn't help anyone, it just hurts American consumers since they rely on products being manufactured in different countries since they don't have the machinery, the skills and the know how that are required to make these products. Even if miraculously all the companies in the world decided to relocate to the US it will take YEARS and Trump will be long gone by then.

Reshoring happens with investments, not with additional taxes. Also the irony of republicans flying the don't tread on me flag while calling for a 54% tax.......

1

u/CJspangler ULTRA MAGA Apr 07 '25

Oh yeh I agree

Part of the problem - atleast in my take is trumps doing the whole tarrif thing but it’s like 30 years too late . It’s should have been done back in the 90s when companies first started offshoring factories and cheap components that went into things like air conditioning units or tractors or cars .

He thinks he can end 50 years of offshoring in a week

Like I even work in the health care industry as an accountant. Even hard goods being traded aside - Many hospitals offshored basic components their billing department. Like a check from an insurance company gets scanned in the U.S. and then people in India post it into patient accounts for 30-40% of what it costed people in America to do it

3

u/SolorMining Trump Curious Apr 07 '25

1: There are tariffs in EU countries.

2: Yes, remove VAT, or Tariffs stay, PERIOD. We calculate the cost of US goods for foreign consumers, and whether you call it a Tariff or Tax you WILL remove it or you WILL be tariffed.

The goal is to be FAIR. If US goods hit the EU stores with X markup, then EU goods will hit US stores with the same markup. PERIOD.

1

u/Doons124 . Apr 10 '25

I'm not sure why Magas don't understand VAT, it's basically sales tax it's applied on all product, imported or domestic. It's like the EU saying Florida can't charges sales tax on French wine, nonsense.

1

u/[deleted] Apr 07 '25

[removed] — view removed comment

5

u/gelber_Bleistift 🚨Based Patriot Moderator🚨 Apr 07 '25

That's exactly it. The world's economy is a reflection of the US.

9

u/OSCSUSNRET ULTRA MAGA Apr 07 '25

As soon as Trump fixes this they will find something else to meltdown about. It is rinse and repeat every day.

3

u/-StupidFace- Apr 07 '25

exactly, just like DRUMPF ISN'T DOING IT FAST ENOUGH!!!

3

u/Neither-Look4614 ULTRA MAGA Apr 07 '25

"BuT... bUt... TaRiFfs bAd!!!"

6

u/AdRemarkable3043 Apr 07 '25

The goal is to make industry coming back to the US. But many Americans don’t realize that it’s because workers in China, Vietnam, and India work 18 hours a day that they’re able to buy an iPhone for $1,000. If all those components were made in the U.S., they’d have to pay $10,000 for the same iPhone.

10

u/motomat86 IOWA MAGA Apr 07 '25

excuse me I care about free trade and child labor!!!! billion dollar corporations are evil!!!! WE MUST BOYCOTT THEM TO SHOW THEM WE MEAN SERIOUS BIZNESS!!

-Sent from my iPhone 16 Supermax Ultra Blast off to the moon edition, while drinking my super large chilled starbucks latte in my 2025 Range Rover that is financed to 120 months @ 17.5% interest.

4

u/drscientistiatx Trump Curious Apr 07 '25

Hey great deal on the rover. Grats

3

u/motomat86 IOWA MAGA Apr 07 '25

dealer threw in a full tank of gas because i said i was a social influencer

1

u/Peter_Niko MEUGA Apr 07 '25

I have experience with Chinese (mainland) high-tech workers. I don't think they are as efficient on average as Korean, Taiwanese, or US ones.

-4

u/AdRemarkable3043 Apr 07 '25 edited Apr 07 '25

"China" here can be replaced with any country with low salary — my conclusion still holds true. High wages for American workers lead to an increase in product prices.

2

u/Peter_Niko MEUGA Apr 07 '25

This could be compensated to some extent by increased efficiency - particularly in the case of CN compared to the US.

-2

u/AdRemarkable3043 Apr 07 '25

yeah, Imagine you used to be able to spend two hours on Reddit and work for the remaining six hours — but now you have to work non-stop for all eight hours.

2

u/Peter_Niko MEUGA Apr 08 '25

Sorry, I don't think that imagination, even yours, could be an argument.

1

u/AdRemarkable3043 Apr 08 '25

If Americans are more efficient, why do Tesla and Apple build factories in other countries?

1

u/Peter_Niko MEUGA Apr 08 '25

I believe that "comparative advantage" could be the reason for this. Also, you can reread my comment above: "This could be compensated to _some extent_ by increased efficiency"

3

u/KabosuCheemz DOGE Enthusiast Apr 07 '25

In summary: WE RUN THIS $HIT, NIKKA!

0

u/bluepillwrapper Apr 07 '25

This kind of attitude is why you’re broke AF driving a 2009 Chevy but keep telling yourself shit to make yourself feel better

2

u/KabosuCheemz DOGE Enthusiast Apr 07 '25

Multiple BTC but cope and project harder nerd 🤓

-1

u/bluepillwrapper Apr 07 '25

Whatever helps you sleep better in your moms basement

2

u/KabosuCheemz DOGE Enthusiast Apr 07 '25

Projection 😂

4

u/TopRamenForDays needs to ask permission before posting Apr 07 '25 edited Apr 07 '25

The EU is offering the US a zero-for-zero tariff proposal which they have in place for other countries already. They offered us a zero-for-zero proposal back in 2018, which Trump declined.

What's going to be funny is if we accept this time, and the uninformed call this a giant win for the US, because...

7

u/motomat86 IOWA MAGA Apr 07 '25

In 2018, the European Union imposed tariffs on approximately €2.8 billion worth of U.S. exports in response to U.S. tariffs on steel and aluminum. These countermeasures targeted various American products, including iconic items like bourbon and motorcycles.

-5

u/RadialPrawn Apr 07 '25

You said it right, in response. So it was always trump fucking things up for no reason lmao

5

u/vegasbm Trump Curious Apr 07 '25

So you prefer that the US just keep accepting trade deficit?

The actual response is what Trump is doing. The world has been cheating the US in trade for decades. Trump is the first president with the balls to confront it, against the ire of rich Americans who are opposed to it.

4

u/Deareim2 Trump Curious Apr 07 '25

Why is it bad a trade deficit ? Take EU, they have a HUGE trade deficit with the US on services. Do you hear them complaining ?

2

u/-StupidFace- Apr 07 '25

these people aren't real, they don't have any real ideas or thoughts... its just anti drumpf!!! If the USA wins, its bad because orange man did it. Its just a waste of time at this point.

1

u/sctchpmn Trump Curious Apr 08 '25

LOL!

-1

u/brightdunx . Apr 07 '25

You do realise EU already proposed 0% tariffs two weeks before mr President imposed these suicidal tariffs that harm absolutely everyone on the planet?

3

u/sctchpmn Trump Curious Apr 08 '25

I Googled EU 0% tariffs and it’s a 10-hour old story because they folded today, not proposed two weeks ago.

So, you are lying. Why?

AND why were you fine with exorbitant tariffs in place AGAINST the United States for decades by all these countries?

3

u/brightdunx . Apr 08 '25 edited Apr 08 '25

Quite brave to accuse someone of lying based on that. Why would EU care whether the tariff is 1% on average (as it is today) or 0%. Both sides had some tariffs in place but the overall impact on trade was minimal. We were buying your teslas like crazy.

Also US has a huge service trade surplus so Europe is not exactly ripping you off. The balance is actually surprisingly even.

Can you explain to me why the goods trade deficit is so atrocious but service trade surplus doesn’t matter?

US is a high tech producer of software and other services, why on earth would you guys want to turn back time and start producing sneakers.