USA 100% tariff on China EV.

[ZenOps]

https://www.cbc.ca/news/business/us-...hina-1.7203448

Damn, thats high. Still makes me wonder if China will win regardless. Willing to pay double for Chinese made quality? 2024.

I am 105% sure that in the American psyche, a car that is double the price is worth 3x the value. Lobster prison food mentality.

Not sure why syringes and needles are getting 50%, but the USA is also going after Canadian banks for drugs (but not after their own US banks for guns)

BTW: I always thought it was worth exploring negative tariffs. Since the UK can't export anything at normal price, simply use a -100% tariff.

[Buster]

The US is slowly grinding the Chinese down in an economic cold war.

The Chinese are going to have to turn to domestic consumption. The world will not accommodate large scale exports of EVs from China. Europe especially.

[ZenOps]

I'd think that China could weather any tariff amount with ease. They have a billion of their own citizens to sell to afterall. Punitive tariffs do not scale well beyond a king and his 1,000 peasant kingdom.

Nickel was not on the list, disaster avoided? I'd consider a nickel tariff much closer to a declaration of war.

https://www.bnnbloomberg.ca/us-tarif...ates-1.2072906

"The commodities that made the duties list include ores of aluminum, manganese and chromium; rare elements, such as actinium and curium; and metals like tin and zinc."

[Buster]

The point of the tariff is to force China into domestic consumption...so forcing China into "absorbing it with ease" is the point of the policy.

- - - Updated - - -

And China is basically lying about its population, and will continue to do so.

[TheGeneral]

“American psyche” statement above definitely does NOT apply to anything Chinese made. Most Americans still think China cannot produce anything of quality in that “third world country” EVEN on true quality product.

China factories are also starting to establish factory locations in other markets (Vietnam especially) in work arounds of these increased tariffs. Im sure they won’t be receiving quite as many government grants/incentives as keeping full production in the republic, but access to the rest of the global market at a competitive level will outweigh those losses.

Basically until labour forces can be utilized effectively in NA (which will never happen now with the woke generation expecting to live in a $1m detached Single family home on a McDonald’s wage) or labour is completely removed from the equation with automation (which will destroy the labour force anyway), the US will continue to tariff chase whatever next factory focused country emerges.

[ZenOps]

I'd say most older US citizens don't associate China with quality.

However, the young generation that does not really buy physical goods - will likely say that TikTok is a superior platform to similar US based platforms. And if the young people are any indicator, spending $30K on a Chinese social media platform is better money spent than $30k on a US combustion car.

Arguably all a $30K US car will do is get you to and from work for the next 50 years. $30K on a social media platform might make them more money than Kim Kardashian.

I mean, the USA could have tried to tariff TikTok at 500% (or do what they are doing now and force a sale for all profits) but that might let on too many young people as to exactly who is the best.

[arcticcat522]

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Nickel was not on the list, disaster avoided? I'd consider a nickel tariff much closer to a declaration of war.

That's the zenops we all know and love. We want more nickel.

[Buster]

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“American psyche” statement above definitely does NOT apply to anything Chinese made. Most Americans still think China cannot produce anything of quality in that “third world country” EVEN on true quality product.

China factories are also starting to establish factory locations in other markets (Vietnam especially) in work arounds of these increased tariffs. Im sure they won’t be receiving quite as many government grants/incentives as keeping full production in the republic, but access to the rest of the global market at a competitive level will outweigh those losses.

Basically until labour forces can be utilized effectively in NA (which will never happen now with the woke generation expecting to live in a $1m detached Single family home on a McDonald’s wage) or labour is completely removed from the equation with automation (which will destroy the labour force anyway), the US will continue to tariff chase whatever next factory focused country emerges.

Most of what China produces is low tech, commodity products. The ROW doesn't care about that and are happy to accept cheap shit from China

The Americans have been effectively grinding away and slowing the other areas.

[ZenOps]

I can imagine China will counter tariff on the week.

Inflation is pretty much assured now. $10 big mac by next year?

[Xtrema]

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The US is slowly grinding the Chinese down in an economic cold war.

The Chinese are going to have to turn to domestic consumption. The world will not accommodate large scale exports of EVs from China. Europe especially.

It's a battle of attrition now.

G7 car market is about 30M/year. Global car market is ~80M/year. China's capacity is 40M. So they can try to grab that 50M pie that's up for grabs which they already own 20M.

As for EU, sounds like that are following that UBS report and doing a 30%. But they said they need 50% to stop the Chinese.

The funny thing is, some Chinese EV makers are abandoning China because they couldn't make a buck there and setting up shop in China friendly parts of EU.

[ZenOps]

This does have me worried about the mental state of the USA.

US citizens don't like being taxed. Doesn't matter if its British tea or Chinese EV's - Americans like cheap and abundant stuff.



China as of 2023 now the largest exporter of cars (all types). It makes sense, if you want a "common" combustion car you might as well go local.

[ZenOps]

With the way that Europe is voting:

I would suggest Canada give a 2% incentive to buy Chinese EVs. Why follow the USA in an obvious policy mistake.

[Xtrema]

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With the way that Europe is voting:

I would suggest Canada give a 2% incentive to buy Chinese EVs. Why follow the USA in an obvious policy mistake.

You got it wrong. Left protect union jobs and anti-business, they will tariff even harder.

[ZenOps]

Well, there is the idea that commies join together. Group of Eurasian EV producers.

I tend to believe that left leaning want to automate themselves out of a job and simply take all the gains with none of the work. Which is modern union. In that case you simply want to push as much consumption for at little effort as possible.

Its capitalism that over inflates prices through luxury, like spending an extra 2 million car that goes 0.2 seconds faster in the 0-100. Subsidy from the government is synonyomous with left.

[Xtrema]

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Well, there is the idea that commies join together. Group of Eurasian EV producers.

I tend to believe that left leaning want to automate themselves out of a job and simply take all the gains with none of the work. Which is modern union. In that case you simply want to push as much consumption for at little effort as possible.

Its capitalism that over inflates prices through luxury, like spending an extra 2 million car that goes 0.2 seconds faster in the 0-100. Subsidy from the government is synonyomous with left.

EV tariff is done, as much as CPP keep saying they are negotiating new deal to their home audiences.

Temu and Shein is next.

https://www.reuters.com/business/ret...ts-2024-07-03/

Everyone is after #1, regardless of left or right.

Indonesia is slapping up to 200% on Chinese goods due to alleged dumping. Brazil isn't against China but just slapped 18% in 2024 and is working towards 35% tariff by 2026 for anything not built within its borders.

The left LOVES tariffs.

EU is going after anything that's not European. US and China alike. Fine all the digital platforms and tariff all the physical goods.

[Buster]

The world is going to force China to create domestic demand.

China is not in a good place right now and long term looks worse