Trump: Agreement doesn't cover tariffs on cars, steel, aluminum or pharmaceuticals | Metals Mine
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DaJoWaBa
May 12, 2025 10:48am
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Quoting Trader#279B
{quote} no i mean tariff means china will have to pay more tax that will profit usd, so....
A tariff is a tax applied by, e.g., Country A on any imports from Country B. The tax is paid by Country A Importers, not Country B Exporters.
Ergo, Chinese companies will not be paying any of the US Tariffs, USA Importing companies will.

However, the Tariffs will also cut demand, in Country A, for Country B's goods and services, with chaotic consequences along the value-adding supply chain as well.

One indirect consequence is that, IF Country B was lending Country A the money to purchase from Country B, Country B will stop lending to Country A. Country A will find the cost of borrowing money dearer and their currency less in demand both as a result of the dynamic mentioned already but also IF any other lenders doubt Country A's creditworthiness IF they predict Country A going into recession due to a collapse in demand, for instance.
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Dutchy Daxy
May 12, 2025 8:02pm
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Quoting Trader#279B
{quote} no i mean tariff means china will have to pay more tax that will profit usd, so....
U still don't know how tariffs work after all these months and posts about tariffs?

If a container arrives in the US (from China) the importer/wholesaler pays the tariffs to the US government.

The importer/wholesaler has to charge higher prices to the retialer (product + tariff) and the retailer charges higher prices to the consumer.
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Subdude
May 12, 2025 6:31pm
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Quoting DaJoWaBa
One indirect consequence is that, IF Country B was lending Country A the money to purchase from Country B, Country B will stop lending to Country...
That's an interesting angle, then monitoring treasury yields seems like a good idea to gauge a longer term fiscal impact of this madness.
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Subdude
May 13, 2025 7:39pm
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Quoting DaJoWaBa
{quote} Yes, one of many. It's the reason that the "Bond Vigilantes" are a force to be reckoned with as a final arbiter on future economic outlooks. When US Bond rates started climbing, Trump blinked and announced the 90 day "pause" on tariffs application.
Meh, I think most of the reason for the pause had to do with the C-suite crowd that had donated so generously to his inauguration losing billions in the value of their shares.
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DaJoWaBa
May 13, 2025 4:05am
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Quoting Subdude
{quote} That's an interesting angle, then monitoring treasury yields seems like a good idea to gauge a longer term fiscal impact of this madness.
Yes, one of many.
It's the reason that the "Bond Vigilantes" are a force to be reckoned with as a final arbiter on future economic outlooks. When US Bond rates started climbing, Trump blinked and announced the 90 day "pause" on tariffs application.
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DaJoWaBa
May 14, 2025 12:39am
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Quoting Subdude
{quote} Meh, I think most of the reason for the pause had to do with the C-suite crowd that had donated so generously to his inauguration losing billions in the value of their shares.
Well, while I am not so sure, I'd rule out nothing. I don't think Trump feels behoven to anyone. He'll happily take anyone's money without recourse, e.g. see crypto or tickets to Mar-a-lago.

The stratospheric rich that got mesmerised in the headlights won't be bothered by what their shares value are from one moment to another as it's all notional to them, even if very real to retail investors.

The value of shares are to them like the value of a house. It's immaterial until they need to sell and they discover what someone else is prepared to pay. However, the dividdends is another matter as that is part of their regular income. If profitability sinks and dividend payouts too, that'll have more instant effect.



However, representations from highly-affected companies spelling out the consequences to the co
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Trader#279B
May 12, 2025 9:12am
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so that means plat used 30-40% in car industry
and gold used 10%+ in pharmacutical industry
will be benefited and not fall anymore
none the less try to recover upwards??
please correct me
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Trader#7BE2
May 12, 2025 9:19am
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I mean, tariff = bad. So ...
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Trader#279B
May 12, 2025 9:37am
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Quoting Trader#7BE2
I mean, tariff = bad. So ...
no i mean tariff means china will have to pay more tax that will profit usd, so....
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