Wednesday, September 19, 2018

How Trump's Trade Follies Are Set To Clobber Americans' Pocketbooks - Right Before The Midterms

Image result for brane space, Trump tariff images
"Doh! I didn't know adding a quarter billion more tariffs would hurt my own folks!"

Let's concede that anyone with more than air between the ears knows this orange simpleton nicknamed 'The Dotard'  is a total putz, a loser - who doesn't know diddly. Especially concerning the idiotic trade war he's waging, even as we've learned he is ready to pile more hurt on ...fellow Americans.  Coming off Air Force One in Fargo, ND on Sept. 7, the Orange Baboon barked, in respect of his tariffs on the Chinese:

"There's another $267 billion ready to go on short notice, if I want!"

Oh yes, king of the world, "if you want".  If you want to crash the very economic growth you and your cohort are now bragging about, trying to get the clueless rabble to vote Reepo on Nov. 6th.  But perhaps not everyone in the Trump-GOP tribe is so sanguine about Donnie Dotard's trade antics. As reported yesterday in The Financial Times ('China Retaliates Against New U.S. Tariffs As Trade War Escalates'):

"The latest news has angered some within Trump's party, who worry over rising prices and shrinking exports for U.S. consumers and producers."

Adding this quote from Dave Reichert,  Reep Chairman of the House Ways and Means Subcommittee:

 "This places the burden on American families, manufacturers and farmers, who will pay the higher tariffs and bear the brunt of retaliation."

Well he is exactly correct, and too bad he can't educate his idiot Orange Overlord on the issue. We now know Trump plans to impose $200 b more on Chinese goods starting next week.  The new round of tariffs is set to start at 10 percent then rise to 25 percent on January 1st.  (There already exists 25 % tariffs on $50 b of Chinese goods.)  Trump then repeated on Monday his threat to add  tariffs worth $267 billion more on Chinese goods, making for a total of $517 billion.

This elicits the question of how exactly this ongoing trade war will hit American pocketbooks, in a time of continuing wage limits (See tomorrow's lead post).  Basically snatching whatever pitiful tax cuts people got, and probably a lot more out of their wage-starved pockets.

Start with sunglasses, given the U.S. imported about $1 billion of these items last year along with goggles and other eye ear.  China, indeed, is the top supplier of such items to the U.S.  This is according to data from the U.S. International Trade Commission. For example, Chinese -made Prive  Revaux sunglasses now sold at and priced at 29.95 may not be much of a bargain any longer.

China is also the top source for scarves and shawls and the second largest supplier of hearing aids according to U.S. trade data. The U.S. imported $4.6 billion worth of them in 2017 and another $606 million in T-shirts, tank tops and other casual shirts.  Given China has now announced 10 % tariffs that means you will be paying at least 10 percent more for all these items.

Dotard has tried to keep clothing staples out of the trade fight, given his base has many of them packed in their closets - and especially with midterm elections approaching. But he is too dumb to see the uptick in costs may well exact an even bigger political bite.  Thus, shoppers trying to keep warm this winter will likely not only see clothing prices soar at Walmart, but also at Burlington Stores and Macy's.  Well, hope everyone gets a terrific Xmas bonus because they will need it.

Meanwhile Chinese made gloves and mittens sold by Walmart and other American retailers are also on the list of targets as winter approaches and Chinese watches and jewelry may be next.

Beyond clothing, Apple has warned of higher prices on Apple Watches and AirPod headphones if proposed U.S.  tariffs are heaped on an additional $267b worth of Chinese goods, as Dotard warned in his Sept. 7 spiel.  More Apple products from iPhones to iPads will also likely see significant increases in price, according to Bloomberg News.

Why are Apple electronic products being hit so hard? Well, because Apple is deeply dependent on Foxconn Technology Group and other suppliers with operations in China. (Trump has since removed watches and assorted other electronic items from the tariff hit, obviously trying to appease some voters growing more uneasy with this nitwit.)

But hold strain! The biggest increases in price of all may be for Nike athletic shoes, as well as women's underwear. (Last year, Bloomberg notes that made-in-China bras, girdles, corsets, suspenders and garters sent to the U.S. were worth more than $1.2 billion.)

As I wrote, be sure you have a big Christmas bonus ready before you hit the retail outlets, or online ones, this winter. Thanks to Donnie Dotard you will need them, unless you're independently wealthy and are among the 1/2 of 1 percent who voted Trump because of his corporate income tax cuts.

No comments: