Is China Losing the Trade War?

Main Course

Moderator: Moderator

User avatar
eric84
Moderator
Posts: 53563
Joined: Tue Jan 11, 2005 8:31 pm

Re: Is China Losing the Trade War?

Post by eric84 » Wed Jul 11, 2018 3:33 pm

Trumpiedoodle actually tweeting about soybeans. Clearly, agricultural complaints are getting to him.
Love is better than anger. Hope is better than fear. Optimism is better than despair.

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Wed Jul 11, 2018 4:17 pm

What did he tweet?
More irrational spitefulness coming from twodogs...

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Wed Jul 11, 2018 7:35 pm

President Trump imposed tariffs on $34 billion of imports from China last week, and China immediately retaliated by imposing tariffs on an equal amount of imports from the U.S. Since the administration announced the tariffs in March, commodity markets anticipated that China would hit U.S. soybeans with tariffs, and thus soybean prices have fallen by about 28 percent since March.

Soybean farmers clearly lose in this scenario. For example, Michael Petefish, president of the Minnesota Soybean Growers Association, told NPR that the tariffs would cost him “close to $250,000” this year. Petefish compared his position as a soybean farmer to being “a pawn in a high-stakes chess match.”

On the other hand, winners include American companies that use soy as an input to their production processes. For example, producers of soy milk, soy meal, and soybean oil will pay less for raw soybean and thus they can either continue to sell their products at their current prices (and increases their profits) or cut the price of their products to benefit consumers.

Like high oil prices, there is no good or bad price of soybeans. It all depends on whether the gains to producers of soy-based products outweigh the losses borne by soybean producers.
More irrational spitefulness coming from twodogs...

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Wed Jul 11, 2018 11:22 pm

We are getting there with oil too. Higher prices hurt the consumer but help the the US producer.
More irrational spitefulness coming from twodogs...

User avatar
Godjira
Stew Ingredient
Posts: 65538
Joined: Sun Jan 23, 2005 6:52 pm

Re: Is China Losing the Trade War?

Post by Godjira » Wed Jul 11, 2018 11:34 pm

Of course. All part of Trump’s plan to turn the United States into North Korea. Juche!
That's the kind of bold flavor they enjoy in Albuquerque!

ASQ
Stew Ingredient
Posts: 1280
Joined: Mon Feb 25, 2013 1:39 am

Re: Is China Losing the Trade War?

Post by ASQ » Thu Jul 12, 2018 8:43 pm

I can't find my printer cord

do I buy a new one?
buy a new printer that is cheaper than the cord?
risk printing a sensitive document where prying eyes can see?
call customer service number that is probably located far away and have them mail me sensitive documents?

decisions decisions

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Thu Jul 12, 2018 9:38 pm

Juche!!!
More irrational spitefulness coming from twodogs...

ASQ
Stew Ingredient
Posts: 1280
Joined: Mon Feb 25, 2013 1:39 am

Re: Is China Losing the Trade War?

Post by ASQ » Fri Jul 13, 2018 2:19 am

When I say I can't find a cord, it means it's somewhere in the garage buried beneath hundreds of other cords. The garage has been over a hundred degrees the past week so I would rather not spend much time in there if I don't have to. I would rather just buy what I need from China. A new printer can be delivered same day.

Speaking of printers, my 1st printer was an American-made (I think) HP laser my dad bought when I was a kid. It lasted over 20 years (I think) until I could no longer find a computer with a serial port. None of this print once and done crap currently being sold.

polardude1
Stew Ingredient
Posts: 59518
Joined: Wed Jan 11, 2006 1:30 pm

Re: Is China Losing the Trade War?

Post by polardude1 » Fri Jul 13, 2018 11:16 am

Two Dogs
Soybean farmers clearly lose in this scenario. For example, Michael Petefish, president of the Minnesota Soybean Growers Association, told NPR that the tariffs would cost him “close to $250,000” this year. Petefish compared his position as a soybean farmer to being “a pawn in a high-stakes chess match.”
For some farmers that could be the difference of surviving and going out of business.

Two Dogs
On the other hand, winners include American companies that use soy as an input to their production processes. For example, producers of soy milk, soy meal, and soybean oil will pay less for raw soybean and thus they can either continue to sell their products at their current prices (and increases their profits) or cut the price of their products to benefit consumers.
YOU mean selling at a loss
DCComic "3000 dead Americans is slightly less than fuck all",

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Fri Jul 13, 2018 2:33 pm

polardude1 wrote:
Fri Jul 13, 2018 11:16 am
"For some farmers that could be the difference of surviving and going out of business."
Unfortunately yes. Inefficient farmers will lose to efficient farmers if they do not adapt.

"YOU mean selling at a loss"
Again yes if they are too stupid to grow something that can be grown somewhere else cheaper. This is the main reason you don't see many banana plantations in Montana.
More irrational spitefulness coming from twodogs...

polardude1
Stew Ingredient
Posts: 59518
Joined: Wed Jan 11, 2006 1:30 pm

Re: Is China Losing the Trade War?

Post by polardude1 » Fri Jul 13, 2018 2:42 pm

As far as I know, it's quite a challenge to grow bananas in a Montana climate
DCComic "3000 dead Americans is slightly less than fuck all",

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Fri Jul 13, 2018 2:45 pm

And soybeans in a flood plain but some farmers are slow to learn.
More irrational spitefulness coming from twodogs...

User avatar
birdlite
Stew Ingredient
Posts: 10589
Joined: Fri Jan 21, 2005 1:00 am

Re: Is China Losing the Trade War?

Post by birdlite » Fri Jul 13, 2018 2:53 pm

twodogs wrote:
Fri Jul 13, 2018 2:45 pm
And soybeans in a flood plain but some farmers are slow to learn.
Just an FYI
Soybeans are generally able to handle a fair amount of flooding without sustaining major impacts. Yield losses are seldom observed in fields flooded for 48 hours or less.

polardude1
Stew Ingredient
Posts: 59518
Joined: Wed Jan 11, 2006 1:30 pm

Re: Is China Losing the Trade War?

Post by polardude1 » Fri Jul 13, 2018 2:56 pm

The midwest is flat and one bog flood plain, It's also our bread basket.
DCComic "3000 dead Americans is slightly less than fuck all",

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Fri Jul 13, 2018 4:25 pm

"It is the Chinese who are playing with fire, not us. Even if you think the president is wrong to ratchet things up further," Cramer told the audience during his monthly Action Alerts PLUS members call.

One of the reasons for Cramer's optimism is the fact that the U.S. is actually not an exporting powerhouse. He pointed out that the U.S. is the 155th largest exporter as a percentage of gross domestic product.

"This won't last forever and the U.S. has the upper hand. So I am willing to take the risk that earnings are not going to be hurt," Cramer said.

For critics of the tariffs, the stats that are really at stake are American jobs. But Cramer looks to history for guidance on the pain that employees may see stateside as a result of these tariffs.

"When the U.S. slapped that 30% tariff on steel -- 5% higher than the current one -- back in 2001, the International Trade Commission said that it only cost our country about 13,000 jobs," Cramer said. Yep, a 30% tariff didn't hurt a much weaker economy than we have now where more than 500,000 jobs were created in the last year in manufacturing and construction."
More irrational spitefulness coming from twodogs...

coffeeguy
Stew Ingredient
Posts: 9208
Joined: Wed Jan 26, 2005 3:26 pm

Re: Is China Losing the Trade War?

Post by coffeeguy » Sun Jul 15, 2018 2:03 pm

What you refuse to understand is that it is American companies that are doing the bulk of the importing of goods from China. By raising tarrifs you are hurting the competitiveness and profitability of your own businesses.

User avatar
twodogs
Stew Ingredient
Posts: 8009
Joined: Fri Jan 21, 2005 7:21 pm

Re: Is China Losing the Trade War?

Post by twodogs » Sun Jul 15, 2018 2:21 pm

Then why do Europe, Canada, Mexico and China have tariffs on US goods?
More irrational spitefulness coming from twodogs...

Post Reply