Trade Tariffs: Is Trump Actually Right?

[@Daytona2]

An insightful overview, thank you, Ramin, much appreciated 👍

[@avipatable]

It's pretty hard to compete with a country where a factory would rather put up anti-suicide netting in its stairways rather than make its working hours more bearable for its employees...

[@jjuxi459]

But harder still to compete with a country that didn't bother with the netting.

[@JimboJimbo-i4i]

Yet they happily work with India who are worse

[@pauljose1261]

The problem isn't tariffs, it''s Trump view that any trade surplus is worthy of tariffs. It's one thing if the surplus is a result of manufactred goods, it's another when it's due to resources that America requires to drive it's economy. A tarriff is a tax and taxing electronic goods from China is vastly different than taxing oil, electricity or raw materials from Canada. One tariff encourages Americans to seek domestic made products whereas the other will ulitmately increase costs for Americans.

[@timhall7771]

The question of intellectual property protection in dealing with China is much harder than you suggest. (I used to run all my company's business in China and surrounding countries.) It's not just about Government policy, but rather is a cultural characteristic - the chinese simply do not value/respect IP. As illustration, I saw significant cases of Chinese companies stealing each others' IP. So while this could potentially change, it's the kind of embedded societal characteristic that is only likely to change on the timescale of generations.

[@MrHotrod79]

This is the only channel where I actually listen to the adverts/sponsors as they are always actually relevant and I trust Ramin not to be pushing meme coins BS and fraud etc

[@AntDfromJerzee]

We DO NOT have diaspore, boehmite, and gibbsite which is used to make ALUMINUM. So any country that imports those ingredients to us will have control over all products that are Aluminum here which is car parts, HVAC, Hospital equipment, Window Frames, Cans, appliances, cooking utensils , electronics, power lines, etc.

[@peteryates7505]

The debate on tariffs is really down to the OBJECTIVE of the tariff....if it is to repatriate manufacturing (then it needs to be targeted, sustained with corresponding support for the US side), if it is to equalize competition then..., if it is to be punitive then..., or if it is simply to line the government coffers then wtf!

[@mikegofton1]

If industry tariff protection had a net positive impact for all countries over the long term, there would be a lot more of it. What we have seen though is a net reduction in tariff protection, accompanied by numerous trade agreements. In Australia, tariff protection was removed from the local car industry, and despite many government bail outs, the industry simply couldn’t compete with Japanese, Korean and European imports which had much greater economies of scale and lower supply chain costs. The last Australian made car was produced in 2017. While US voters might be willing to tolerate higher prices for imported goods in the short term, I will be very surprised if that lasts for more than one electoral cycle.

[@MrHotrod79]

Comparative Advantage does not account for cheating by some parties….hence why Trump is back to tariffs

[@VTh-f5x]

Trump seems to think that buying something from someone is like giving free money away.

[@BILLY-O-1982]

So the US has screws loose. 😂😂

[@martins.o.4388]

Great video. Very Informative Ramin. As always thank you for your great work !! 😀

[@MD76MAC]

There goes the price of everything.

[@Marenqo]

South Koreas development after the second world war was very much led by restrictive imports rules and export-oriented growth while state ubsidising private export, creating a less independent private sector. Very much like you japan did in the second half of the first century. Obviously both examples demonstrate the link between politics and the economy. Context is also important because you need a large market to export to, the US fulfilled the purpose of us being sink. In light of the discussion on the effects of the tariffs on China, you have to consider the fragmented nature of global value chans today. A basic Ricardian approach to int trade no longer works

[@larsnystrom6698]

Ricardo's logic for international trade didn't take into account that much of it is actually our supply chains, not just goods we consume directly. We make more profit by getting cheaper stuff we enhance or sell. Compare that with buying expensive locally produced stuff. Manufacturing is just a small part of the value enhencement. Just look at the small profit a farmer gets compared with what the end customer pays.

[@Marenqo]

@larsnystrom6698 yes, I agree iPhones are a great and well documented example of a multi-layered geographically fragmented global value chain, on the one end, and the disportionate value attached to marketing and branding, on the other

[@caparn100]

I think Trump's idea is to replace income tax with tariffs

[@davec3974]

Hilarious idea.

[@caparn100]

@@davec3974 But true.

[@plokijplokij97]

Where will the employees come from for protected sectors in the US? Insufficient employees will lead to increased wages, increased costs and inflation. Instead of having highly skilled workers, you will have a larger manufactoring base being paid lower wages and a lower tax intake.

[@Adrian-vf6kh]

There's a limit to what Trump can do when it comes to tariffs. When used indiscriminately they have had a hugely damaging effect on the US economy. The Smoot-Hawley Tariff Act raised import prices, lowered exports and led to the Wall Street Crash of 1929 - which wiped out the savings of most investors.

[@stefano3109]

Thanks very much for informative and Research. Interesting points for contrarians once Short Term effects will start to Kick in…

[@mutton_man]

WSJ did a great video on tariffs, they showed it's one of the most costly ways to bring jobs back to the US.

[@JimboJimbo-i4i]

I actually have a huge amount of respect for China for not basically being every other country which cowers to the US rule in fear of sanctions and tariffs, you are completely at their mercy for anything if you do that. (Like the entirety of Europe)

[@plokijplokij97]

Surely developed countries should be outsourcing manufacturing jobs to developing countries. It reduces costs to the developed country and increasing income for developing countries. I think if the manufactoring for the US was done in Mexico and not China then it would reduce costs and reduce migration to the US as Spanish speaking migrants gain good job is Mexico

[@PaulSmith-zt7ix]

Please history of British and USA trade war after WW1 and ww2

[@CarlJones-uc8qn]

Ramin didn’t have China on his market crash shopping list….

[@HamiltonRb]

Maybe someone should explain to Trump that a tariff is an extra tax that the consumer pays extra for in the end, so if he puts a 25% tariff on oil coming in from Canada, the price at the pump will go up & everything that trucks deliver will go up, because the cost to getting it to market went up. This won't affect his billionaire friends, because they own the companies that pass on the tariff to the American people to pay. Economics 101

[@whtwht]

Exactly. He'll do what's best for the Rich. No checks and balances and everyone bought off especially with Musk around.

[@davidpatterson4024]

When you say a spike took place did the price go back down to where it was before or was it just the rate of inflation that decreased? Thanks 😊

[@khiburgess5848]

Surely it depends on how much of a tariff is added so China are not significantly effected but there will be a level of tariff where it starts to be felt.

[@larsnystrom6698]

Trump talks about tariffs that will disrupt the US supply chains. Its unlikely that local production will take off quickly enough to avoid problems. I'm surprised you aren’t more apprehensive about it.

[@khiburgess5848]

@larsnystrom6698 He's already been President once and his tariffs were effective I am not apprehensive at all.

[@davidgray3321]

Depends how they are used, in the 1930s I believe they unscrewed world trade, interesting to hear anyone who knows about this experience?

[@Betweoxwitegan]

I agree that tariffs are not so clesr cut and are quite complicated in actuality but its debatable how effective "re-shoring" is and how much more secure domestic supply chains are as a result, long term employment and inflationary effects as a result of tariffs If we think about it logically then on-shoring doesn't necessarily increase domestic employment rates because there's already excess productive capacity and net job listings (real job listings) in The US economy, domestic supply chains still largely rely on international resource trade. Its complicated 😂

[@dalehodges5362]

Tariffs removing income tax works for me. Rich people can pay their way?

[@larsnystrom6698]

The 2018 tariffs didn't work, but this time it's different 🙂 The US hasn't learned much about tariffs from then, but China has. So I guess China will manage even with idiotically high tariffs on those 18% of their export. There's no way tariffs will improve the US trade balance. The increased costs of everything will hurt their export.

[@rns01111]

I don't write understand how tariffs and crypto work together.

[@avicomay6051]

The US has to copy a page of China's policy handbook... If you want to sell in the US, you have to manufacture in the US and partner with an American company 50/50... all is well...

[@danmchardy6424]

Tariffs should lead those importers to pass on their costs to their consumers. If the US domesticates its production of said imports then that's wonderful. But i anticipate that this will lead many like yhe UK and Eurozone to seek economic partnerships with places like China. Hence, my money is now on China to make a full economic recovery and, at such incredible valuations, I think this is the sole area to find value investments whilst the US market is considerably oberstretched and reliant on a handful of out performers.

[@GeoffreyEngelbrecht]

There is also a technology benefit for globalisation. If you look at ancient history, regions of the world where the population grew very rapidly such as ancient Egypt, Mesopotamia or the Indus Valley for example technology advanced there very rapidly compared to the surrounding less populated regions of the world. The larger the population the more people who can focus on specific expertise and develop and maintain certain technologies. If the population were to reduce technology would retrograde. For example if you took the 5 most brilliant people on the planet and put them on a deserted island with no contact with the outside world they would live like cave men. They wouldn’t be making computers and automobiles. They would live in basic shelters and spend most of their time finding or cultivating food. Already in the world today you can see certain regions of the world are experts in certain technologies. OLED screens for example is something which is mainly developed and produced in South Korea. That doesn’t mean it couldn’t be done elsewhere it would require that people be taken off of developing and maintaining other technologies though to do it. Maybe several hundred years ago a country like the US could isolate itself from the world but today that isn’t possible without losing access to a lot of the technologies and expertise they take for granted today.

[@VoiceOfThe]

Audio is a bit too loud compared to previous months uploads if interested. I’m having to turn you down 😂

[@gregh7457]

trump has taken a page out of the ccp propoganda handbook. I love it!

[@helixvonsmelix]

2011 Data

[@viiccd]

So having mocked Trump for months re tariffs, you now change your tune ?!😂

[@HungNguyen-h7t4f]

Raisin? Come on! Check the reviews.... dreadful

[@CarlJones-uc8qn]

He don’t care. He’ll push anything that pays. Such a shame. My opinion is changing…

[@resinsmp]

Counter tariffs win :)

[@itsrossrobinson]

Can I ask why this channel isn’t recorded in 4K?

[@coderider3022]

Too many people asking about his lip balm ?

[@Daytona2]

Because there's no need.

[@urbanpeasant1238]

Good job repeating all the mainstream media narratives. Maybe I should just subscribe to CNN or FOX, or god forbid, BBC instead.

[@fredatlas4396]

Plus the Huawei 5G network hardware etc is supposed to be better than the US companies and cheaper. And we the consumers end up paying more for things here in the UK, they don't want us to get cheaper Chinese EV's because they want to rip us off with expensive EV cars etc from the likes of tesla etc

[@bumblebee9288]

Lets see what happens I think Trump will save the USA again. Can't wait for the glory days again

[@whtwht]

Why are you always making things political?

[@bumblebee9288]

Trump is ALWAYS right ❤❤

[@johna9851]

I like people with a sense of humour.

[@ArdellBoothe]

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