The tariffs dont switch manufacturing back to the USA, they just shift it from China to Vietnam, Cambodia, Thailand, Malaysia, India, etc... I own a manufacturing co and our goods CANNOT be made in the USA or no one could afford them and NO ONE would buy them. They are solid brass lighting. We tried manufacturing in the USA but our prices would have tripled and no one would be able to afford them.
clearly you dont own a large manufacturing co nor have taken an economics class. Lower cost manufacturing increases the standard of living of all americans and enables us to focus on high value added jobs.
Realize what they’re saying is that American workers need to compete with child labour… competitive forces are good for free market when the market operates under the same rules and regulations only!! government makes American companies pay people minimum wage and then cnbc(fake buisness news) says that American companies are just scared to compete with china and 3rd world companies for cheaper products and services. this is plain and obvious if you dont agree you don't understand anything or your a actor hired by government or cnbc🤣
This is how politicians play with regular everyday people. They take advantage of the lack of education of regular everyday Americans and use that as their advantage, yet these Americans cheers for their beloved politicians and vote for them. This dumbness is unbelievable! LOL
@@mayankjain3299 RU-vid censored my comment I was trying to say the same thing lol , got a notification of your reply but my original comment is gone now horrible!
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@@makiyano9896 Americans are undereducated. Smart one do their own research. But most prefered Alex Jones, Hanity, Meadow. Do you know CA used to be a red state and TX blue state?
@@Aapig They are the testing ground for weapons and tactics of warfare, plus geopolitical interests. Social security spending are much bigger and less important for the country.
Tariffs may not be the best tool to reduce trade deficit. What tool would be better? Cause the more money we send to China, the more they will use it against us
I see construction workers that work for the government change the corner of a sidewalk the other day. One person is actually moving and working while the other 4 watches. Paid hourly btw, takes days to finish a something that could be done in a few hours if they were paid by completion.
@@jtmartin8445 Yes, duties make imported goods more expensive, therefore allowing domestic producers of equivalent goods to charge higher prices as well. The prices for this type of good rise, no matter where it is produced. Duties are therefore inflationary. Undoubtedly, a disproportionate portion of the higher prices is born by lower income households, because they use a higher portion of their income for consumption. So the remaining question is whether the higher prices domestic producers can charge end up in payroll or in dividends.... My guess is that the money is going to be split between workers in Mexico where the production gets migrated to - Mexico being domestic under USMCA (formerly NAFTA) rules and the owners of these new Mexican factories, including US shareholders. No benefit will accrue to US factory workers.
Americans want to pay more for less so they can be number 1. providing healthcare does not provide a STRONG impression. But Bashing China and the world does.
He didn't communicate it well enough. He needs to assume his audience is full of 10 year olds and dumb it all down so that the average voter can understand him.
Democrats pushed him aside to make room for Biden. LOL. If Bernie was the front runner, democrats would have been thriving now. Shot them selves in the foot. Republicans aren't much better but Trump is certainly the better choice as opposed to Biden
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People cry about tarriffs but hate it when American corporations offshore labor. At the end of the day it's the same thing. Either you want to protect domestic production or you don't.
@@Ckomon Americans do not mae consumer goods. Too competitive. No toy factory, no phone factory , no PC, TV factories, etc etc. US companies simply don't know how to compete.
So a 25% tariff only increased steel and aluminum cost by 2.4% and 1.2% that sounds like annual inflation numbers. Tariffs went into effect in 2018. Inflation by year 2018: 1.9% 2019: 2.3% 2020: 1.4%
"slightly more costly." Are you kidding? 100% on EVs and 60% on everything else on Chinese imports (still cheaper than made in America). Even products imported from other countries have Chinese components. Tariffs is not the answer but the two old men refuse to face reality.
Both. Its unfortunate that so many dont understand that tariffs are indeed a tax on Americans which has the ability to make inflation worse. It's too bad neither trump or Biden or even their economic advisers understand this.
It also noteworthy that 80 billion was spent on Ukraine war alone. If war is important, Americans should understand that inflation is mandatory. End of the day, tariffs were revenue not spending.
Is it really a tax tax when Trump offset it by cutting your income taxes? Remember that? They didnt cover that. This is deceptively reported. Don't you know by now that you can't trust NBC? THEY LIE. THEY LIE. THEY LIE. and when they finish that they LIE SOME MORE.
@mikebostic9518 the only difference is that Trump was hated by this while Biden-Harris got a pass. Democrats are just so freaking liarrrsss lols. Trump actually went to the ASEAN for this, because he knew he needs to curb competition, that when he’s about to increase tariffs for Chinese goods, his back up is to diversify the market to the ASEAN; hence, Trump has good relations with Pres. Widodo of Indonesia and the rest of ASEAN leaders that time. Democrats really were a bunch of misinformation and hate spreader 🥴
I own a manufacturing co and we import some of our products from China. 100% of the tariff is paid by American consumers. The way it works is In order to have the goods cleared by customs the importer (person or co receiving the goods) must pay the tariff. In our case it is 30% of the goods value. When Trump increased the tariffs from 3% to 30% we just raised the price to the consumer by the same amount.
My understanding is tariffs on import goods is to make them competitive to goods produced locally. That way the local producers won’t be undercut by imported goods that don’t have the addition cost of producing locally. Level playing field in price. Now the consumer decided on the actual quality of the products. This is not a USA only thing. Other countries do this as well to imported goods. Hence the reciprocal trade proposal.
@@bademoxy Unless Mexico is part of US. You are bringing back nothing. The US trade deficit actually incresed not decreased. China has moved their manufacturing to Vietnam and Mexico.
It's funny how they only mention the numbers that benefit them. By their own accord, that's an additional cost of ~$1000 per year per person. Go look up how much revenue tariffs create vs income taxes, and the go look at how much you paid in income taxes. But CNBC doesn't want to tell you that.
How about we outsource all news media content where the labor rates are cheaper. Artificial intelligence is already in use. It would spawn a "just like that" moment.
Only it’s impossible to make the same product as the same price. China has lower costs for materials and workers get paid less than America”s workers. This means the cost will always be lower in china and American companies see no profit having businesses in America compared to China. Here’s an example: You can stay in America and spend $10 to procure materials, pay $15 for workers, and sell your product for $30 which is a $5 profit. Now you can go to China and pay $5 for material, $10 for workers, and sell for $25 which is a $10 profit. Now which price would consumers rather choose: $30 or $25? And which would you choose for profit: $5 or $10? Seeing how low the prices are, consumers will buy more of the $25 product, meaning you get a $10 profit more often as compared to a $5 profit.
I rather reduce the number of products I actually need and pay more for goods made in the USA even locally. If this it effects consumers too much simply reduce income taxes to the consumers by the amount of tariffs generated. I want long term suitable local manufacturing with a focus on quality and suitability not disposable. Ideally with a end-to-end recycling programs.
Why you don't do it then ? I live in Denmark and choose too buy a sweatshirt there was made in the usa that I prefer that over China no one force you to not do the same
@@YorickReturns Its not consumers it incentivizing business to locate and align themselves the the nation they hold customer value in. (USA, Japan, or China) This is in the self-interest of the both nations and their citizens as it creates opportunities, jobs, and overall value for every individual in the nation.
No matter how people feel about Obama I can say that we did not have this problem under his presidency and I actually had extra money to save. now I can't even buy groceries without penny pinching, thanks to Trump and Biden!
poor president doesn't even know what he's doing, it's clear they just give him stuff to sign and he just says "okay" and signs it, no matter what. That's why they want to keep him in there.
We should continue to keep tariffs high. Before trump, it was cheaper for companies to pay import fees from Europe and buy American company equipment from there. For example, Cisco was cheaper to purchase in Europe and ship to New York (pay 2.5% import fee) than to actually purchase in New York and pay the 8.875% sales tax. That made absolutely no sense and thankfully it has been fixed. I lost sales when I was in that industry due to this.
Which is so contradictory with the goal of reducing carbon. Not like it’s going to improve EV market in the US which is basically just Tesla dominating. The other automakers are scaling back.
We get 5G infrastructure equipments from our allies from Sweden (Ericsson), Finland (Nokia) and South Korea (Samsung). The US is already the leader in 5G chipset, mobile devices, etc (Qualcomm to name a few). The US is not interested in dominating all fields of tech like China wants to and farmed those out years ago.
That's the wrong question to ask. Biden is the president now, so all tariffs are now Biden's tariffs as he could've removed any Trump tariffs that he didn't want to keep.
See, china introduced electric cars that have really low pricing that costumers can easily afford. But now they have 100% tariff tax which means those cars now cost twice the price
U want all those spying machine on the street, and they can remotely stop your car from operation? Not to mention they are so easy to cause explosions. There are proof all of the place for above.
When we outsourced to China in the past, we've found it's very hard to get the factories and expertise back necessary to rebuild industry. We don't wanna do that again, especially with EVs. Also the Pentagon expects war with China this decade, and so the government is trying to decouple as much as possible to soften the economic blow in case war really does happen.
Im a importer of some goods from China with 30% tariff. We re-routed the products through Latin America and we kind of relabelled them. Now the tariff is 3%. MAGIC MAGIC 😂. We raised the prices in America by 30% citing 30% tariff but we paid only 3%. We make more money now. I personally donated 8000 USD to Trump Campaign. We make 18.2 million dollars just because of Trump. Also we paid less tax on it. TRUMP is great for business. Im voting for Trump. I feel sorry for the consumer but making more money feels good. Honestly money is everything.
Been hearing nothing but negative on Tariffs. So how do you Balance the Trade wiith China for example. How do you protect US jobs too. Any suggestions ?
Tariffs are better than no tariffs. At least tariffs help gradually build the domestic industry, keep Americans employed, and weaken the industries of other nations by not importing their goods. What will people do with whatever little savings they enjoy on account of no tariffs if they have no jobs because all those jobs have been outsourced to sweat shops. It would be another thing if home prices fell drastically - that's what people want to buy. Will 0 tariffs help with reducing home prices? People don't mind paying slightly higher prices for whatever other knick knacks they buy on a day to day basis.
The problem is "Will domestic industry get built? And if so, will they mature and thrive if the tariffs are later removed?" If it's a no to either question, then you're ultimately wasting your time because you're just imposing higher costs on the domestic consumer on items that domestic producers will never, ever be able to produce as efficiently as those foreigners. For example no American will buy toys if they go up 10x in price, because that's the cost of toys made by US workers. And short of robots taking over American workers' jobs, that inefficiency will stay the same. Brazil has massive tariffs on nearly all imports for many decades, and its economy has, is and will continue to be second-rate. I mean no one buys a Brazilian-made car, except for Brazilians who can't import. Some nations instead focus on certain industries where they have a competitive advantage, and use that to subsidize job losses in other industries where they have no hope of competing internationally. The political issue is that it hollows out certain regions in favour of others, and that becomes an electoral problem. Still, blaming the foreigner is a politically seductive narrative.
@@Avantime Toys that cost ten times as much might not be too bad, if it reduces the number and increases the quality. Most American kids have ten times the toys they can manage, and most of them are cheap plastic junk. Basically, bringing production back to the US will partially substitute robotics for labor, as US labor costs are so high.
CNBC is supposed to be financial channel? wow tariff has nothing to do with Americans, unless what is being imported has no competition in USA for example lets talk about cars, if USA companies are selling their cars for 40k dollars it doesn't matter the tariffs, the cars being imported, have to keep their price at 40k dollars or lower
Americans aren't willing to pay higher prices, full stop. We've been complaining about inflation for years but all of sudden we're cool with higher prices?
Yes let’s have other countries charge 100% tariffs yet we charge them 20% then these economist goes crazy. Have those European and Asian countries lower their tariffs then we will lower ours. Let’s destroy rust belt areas but consumers get to buy cheap chinese goods.
The trade deficit just means americans spend more than they produce. Yes stopping that will mean the consumer gets less, but it also meand the us will stop selling its assets and piling up debt.
The US will always have debt so long as the US dollar remains the world currency reserve. Trade deficits are the prerequisite for dollar liquidity. The US just has to focus on high valued exports and domestic growth in consumption and investment. Growth through trade is a losing battle for Americans so we should stop focusing on trade deficits.
@@Pyrrhic. Don't cry for US. The trade deficit does not include service.US provides accounting, legal, consulting service to China that are not counted. Starbuck ,KFC. Pizza hut all made tons of money in China.
@@samuel.andermatt there are supplies in G7 that you can consume but not Made in China because the Uniparty already instructed the citizens to only buy Made in China.
The argument that tariffs increase inflation is a gross oversimplification. You are not a good journalist if you accept such statements uncritically. Tariffs usually are only imposed on certain product categories and often only on certain importing countries. If you impose tariffs on Chinese electric cars, for example, the prices of Chinese electric cars will rise and only those. The prices of tomatoes or televisions (whether from China or elsewhere) will NOT rise as a result. The prices of non-Chinese electric cars will NOT rise either. The statement that the tariffs are paid by the end customers is also a manipulative simplification, because the tariffs is money that goes to the state, thereby reducing the need for taxing elsewhere to get the nation financed.
Isn't the issue that with no tariffs, manufacturing jobs are moving to other countries. Wasn't Detroit the hub of car manufacturing back in the day before jobs were moved to china. These tariffs are meant to even the playing field and should be viewed as a long term investments. Its also good to note that both the presidential candidates agree on tariff. This video is a short term analysis of short term discomfort to American citizens.
@@TheVinster Why should the people PAY the c0st, If china can build a product at a lower cost it's good for the customer. Its US corporations that have a problem
@@spcysos The idea is not to send further jobs out. Damage is already done in the last 3 decades and the lost jobs are not coming back. Tariffs prevent that and evens the playing field for current American businesses.
What is worse? Not having a job and not being able to afford to pay for anything or having a job, having to work 40 hours per week, and still not being able to afford to pay for anything?
Can someone explain to me why Biden keeps criticizing China's unfair subsidies from CCP but isn't the administration give incentive to certain industry too like chip, solar panel and etc? what's the difference?
Yeah things might be slightly more expensive, but we will have better paying manufacturing jobs to buy things. It is too prevent outsourcing of jobs to China and other countries. That's the idea at least.
Economically speaking, countries should do what they're best at. If China is great at making cars and we're great at growing wheat, for example, trade lets everyone have more of both. This has been known by economists for centuries. We should instead invest in industries we have a competitive advantage in, whether that's manufacturing or something else.
@@wiimooden That does not work. Free trade and laissez-faire works only in an ideal world where people and capital flow freely and where every nation is a democracy focused on positive competition (growing the pie vs. taking your slice). You simply can’t do free-trade with an adversarial, authoritarian regime.
@@Ckomon you are correct. That is why the US has been failing at everything. The rest of the world is sick of their authoritarian ways of doing business and controlling the world.
what a cold take. tariffs are only a tax in the sense that imported goods then cost more than the importer wants to sell for (the tariff will bring up the retail price somewhere to around the levels of domestic prices of similar products). we don't want imports wrecking our economy. Sure, you could buy the Chinese EV's or whatever junk for like a smaller sum. Have fun with the result of having no domestic auto companies because they're all bankrupt from having no buyers and no consumer protections because the owners of the producing company are all overseas. sorry fellow american worker! I didn't know you would lose your job! I just wanted to buy cheap imported whatever! And that's not just cars; it's any industry.
Companies don’t HAVE to pass the cost increases to consumers. With record inflation, came record CEO pay… That means prices of goods were increased to pay the wealthy; not counteract the costs of goods.
@@caleboutlar8260 "Overpaid", if it means anything objectively, means that there are other individuals able and willing to do the job to the required standard for significantly less money. What people really mean when they say "overpaid" is "Someone is making a lot of money. And I don't like it".
oh no american companies can compete with cheap chinese trash thats dumped on the market this is terrible! Not to mention the consumer here in the US may actually work for and thus benefit from their company having the tariff protection or perhaps gain a new job doing so
What they didn’t talk about, which is another talking point, which is reality, is companies will take advantage of Tariffs,and that is companies in the US or company imports from Mexico by taking an opportunity to match prices of would be import costs due to tariffs and creating a new standard pricing matrix much higher to maximize profits, therefore yay for the consumer more inflation.
Why do people in China choose to move from the farms to the "sweat shops"? The same reason that Americans and Europeans of past generations did... It's better for them! It might be a step (or several steps) down for you, but that's not relevant.
I don't know much about economics, and I want to know whether the tariffs imposed are used to subsidize or improve the quality of life of the country's people in some way, or to be more straightforward, where is the money used?
Without the Japanese cars in the 80, American cars will still have oil leak after 50K miles and lasted only up to 80K miles. Americans need to know how to compete.
@@davidwong5197 true except 50% of cars are actually full sized trucks . why do so many need trucks? and why are they all full size? what happened to small trucks?
@@ronblack7870Clearly you've not used a full size truck much if at all. A lot are used by contractors and municipalities for towing heavy trailers around.
@@davidwong5197 The tariff forced the Japanese makers to make cars here in the US. Most Toyota are made here. Ironically, Ford, a US company, made most of their cars in Mexico.
Tariffs should be focused and limited in time. In a case where China subsidized an industry (such as EVs) a tariff makes sense until the US industry develops. At some point, our subsidies should be compared to China's and if theirs is more, we should equalize with tariffs. If China no longer subsidizes their product we should remove tariffs. It is more complicated than that but that is the general idea...to create a more level playing field. We must always remember that for the most part American consumers pay for the tariff and any that other countries place on our goods.
None. Being lied to about the worth of one's work is not in anyone's self-interest, just as being lied to about one's health isn't in anyone's self-interest.
Trump all day! Everyone with common sense knows that NY was political interference. As for both being old, that’s just a projection of your guy. Trump is exactly the same as 8yrs ago.
Crooked businessman vs. corrupt politician. The former swindled money from his business partners, the latter waging deadly wars all over the globe for decades. In the grand scheme of things, Trump and Biden are not that bad tho, former presidents and other countries' leaders ain't better than them. Obama, Bush, Clinton, etc are corrupt sociopaths. So too Putin, Xi, Abe, Modi, Sunak, Macron, Erdogan, Lula, etc. They are all either corrupt, inept, and/or downright psycho.
I think this video has really tried to sell this as job losses and economic policy, letting free markets work, but it loses sight of the bigger picture. The "countries" on whom tariffs are being placed is mainly one, China. China historically speaking combines state capitalism and economic policy undercutting free market forces. Why in the world would you do business with someone who cheats? The markets were never free to begin with. Further, the larger issue is the rise of China as a global power. The more wealthy we make it through shipping jobs over there, the greater threat it could pose to us down the road. This is the real necessity and economic benefit of tariffs: maintaining the US's global power. Perhaps, a globalist hungry for money thinks that this is not a real benefit but it is crucial for the US to maintain this balance with its trillions in debt. If we fall from power, we will be one of the poorest countries in the world.
A flat 10% import tax on all imports is good because it will level the playing field for domestic manufacturers who pay local taxes. Any other tax or import restrictions are wrong and bad for consumers.
There is nothing competitive about Chinese firm products. Every Chinese firm in a new space get govt subsidies in addition to land and other factors of production. No firm in the world can compete against that. Because it is like starting a 100mts race, 60mts away from finish line. Also, the Chinese don’t allow other country firms to compete against local players. Unless it’s an industry they want to develop locally. A goood example is Tesla. Chinese dint have any EV before Tesla and now they are just dumping it in every country. They just copied Tesla, got benefits from govt., hired employees who are experienced there and dint allow any more American or other country manufacturers to enter. The Chinese use the wests free market against them and while keeping their markets anything but free. High time west wakes up
Well, the US simply can't compete on a one-to-one basis against China's ultra cheap labor in many of the manufacturing spaces. Not because they are more skilled, but because they are underpaid, work longer hours, don't have benefits, etc.
Why does China not have 0% tariffs or no local component rules on anything then? They're taking advantage of open markets with their state sponsored companies. Mostly because naive people like you take economics textbooks as the Bible.
Why is no one asking why companies have to pass 100% of the cost of the tarrifs, how about they reduce profits a bit and absorb some of the cost? Also why are US companies failing to compete?
We don't compete anymore, we legislate protections for our international companies. We incessantly hear about how "unfair" it is that other Countries subsidize many of their industries and rather than compete on their level, and help OUR workers, we get protectionist legislation that only protects the companies.
That is the point at least to me if the cost to do business outside is more than it would be lovally what do you think is going to happen they are going to produce more locally.
They don’t pass 100% of the cost of the tariffs on. They will also take a hit from this because they have fewer costumers and smaller margins. A company is just an organized group of people if a company loses money people are losing money they aren’t just a boogey man money can be taken from. Also US companies can’t compete because the Chinese government already has tariffs in place against the U.S. Unrestricted free trade is bad economic policy if it isn’t reciprocal. Chinese companies make stuff cheaper not because they are better but because they have more dangerous factories and use cheaper more polluting materials. Also our government has failed to maximized productivity in the rest of the economy for the last couple decades which holds companies back.
They don't. But reduced profits mean reduced money for investment, which means reduced productivity. It also means reduced stock price and reduced returns for investors, who are not just "the rich" but retirees with pensions for example.
With quality being the same customers are interested in price. Buying an American car at $50k vs the same car made in China at $15k. But the Chinese has tariffs so it becomes $60k
Tariffs are my #1 voting issue because I believe in capitalism and free markets and shared prosperity and global cooperation. And yet I can't pick a candidate for me because the entire government apparatus is structured to be anti-China
If you believe in free markets then why do you believe in State Mercantilism that China is currently practicing? There is a reason there are zero candidates or parties that share your views.
China is taking advantage of naive people like you. Their system is not a free market and they're taking advantage of relatively free trade with their state controlled economy to take over industries with artificially cheap products.
@@JigilJigil 😂 your assumption is so wrong. I bet your country cant even make the tires of these cars though. Please go back to your own country's channel, we dont need your opinion here in North America.
Trump need to take some basics economics class before he step foot in the whitehouse. Even a middle school kid knows, tarriffs will be somewhat passed on the ultimate consumers , is he that stupid?