Report: President Trump Likely to Initiate Round #2 of Chinese Tariffs…

Bloomberg reported earlier today that President Trump was likely to pull the trigger on round #2 of tariffs against $200 billion in Chinese imported goods. Duh. Surprise fail. President Trump has not bluffed on a single tariff initiative since he started executing new U.S. trade policies to reset all trade relationships.

According to Jennifer Jacobs reporting (one of the few reliable) Secretary Ross, Secretary Mnuchin and Ambassador Lighthizer met Thursday to review the current status of ongoing trade deals. This is a good nugget, because it’s likely that same meeting contained the forward instructions toward Lighthizer for the Canada discussions.

According to the report, President Trump, Ross and Lighthizer are adjusting the specifics of the $200 billion Chinese products targeted based on the two-weeks of domestic feedback they received. I would actually anticipate a combination of increased tariffs on the Round #1 sector (25% on $50 billion), and the application of new sectors within the $200 billion Round #2 target.

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This entry was posted in Auto Sector, Canada, China, Donald Trump, Economy, Election 2018, Mexico, NAFTA, Taxes, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

110 Responses to Report: President Trump Likely to Initiate Round #2 of Chinese Tariffs…

  1. pgroup says:

    The wolverines have been released. Bloodshed is inevitable.

    Liked by 16 people

    • fleporeblog says:

      It truly is! China 🇨🇳 is facing off against an Economic Giant! Our Lion 🦁 needed time to build our Economy backup before taking them on. We are there!

      The Economic Train 🚂 is back at it once again today! Just like our President, she never takes a day off!

      From the article linked above:

      The revision reflects stronger personal consumption expenditures, also known as consumer spending, and industrial production. It does not factor in the very strong build in business inventories that also came out Friday.

      While the advance estimate of U.S. retails sales for the month of August was slightly weaker than expected, upward revisions to an already-strong July was a big score.

      Adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, retail sales were $509.0 billion. That’s 6.6% (±0.5%) above the levels in August 2017.

      From the article linked above:

      The preliminary reading for consumer sentiment by the Survey of Consumers rose to the second high level since 2004, second only to the record broken in March 2018.

      The Index of Consumer Sentiment rose to 100.8, crushing the 97.0 median forecast and shy of the 2018 (101.4) record. That’s a 4.8% gain for the month and a 6.0% gain on the year.

      “Importantly, the gains were widespread across all major socioeconomic subgroups,” Richard Curtain, chief economist for Survey of Consumers, said. “The Expectations Index reached its highest level since July 2004, largely due to more favorable prospects for jobs and incomes.”

      The Index of Consumer Expectations rose to 91.1%. That’s a 4.6% gain for the month and a 7.9% gain on the year. It’s also a new 15-year high.

      Absolutely amazing data in terms of the reduction in the number of SNAP recipients since MAGAnomics went into effect in January 2017.

      Fiscal Year 2016 there were 44,219,363 / June 2018 there were 39,344,449

      That is 4,874,914 fewer SNAP recipients!

      From the article linked above:

      Winning: Americans’ use of food stamp assistance has now fallen for the eighth straight month as the POTUS Trump economy continues to expand, raising all boats and not just those of “the rich.”

      Using the latest data from the USDA, here is the breakdown of how many people discontinued their SNAP benefits each month over the past eight months of FY 2018:

      October to November – 4,050,688
      November to December – 360,995
      December to January – 737,465
      January to February – 385,456
      February to March – 39,701
      March to April – 426,085
      April to May – 139,570
      May to June – 143,834

      Liked by 27 people

  2. ck says:

    I love watching these guys work.

    Liked by 7 people

  3. Ryan H. says:

    Just got hired today for a truck driving job. (First steady job in over 7 years) Most money I have ever been paid. I still do not even have my CDL yet! (2 Weeks away until test). The economy is MAGA for sure. Thank you God, Thank you President Trump, Thank you all Deplorables!
    Truly have a lot to be thankful for.
    MAGA!!!

    Liked by 62 people

    • 🍺Gunny says:

      If your in the market move some stuff around

      Getting ready for a jump in steel and things that make steel

      Liked by 8 people

    • The Boss says:

      I hope you get a nice new rig to drive too Ryan. Congrats. Drop us a note from the road from time to time.

      Liked by 14 people

    • Vince says:

      Congratulations!

      Liked by 3 people

    • dio says:

      Congrats Ryan!!! That’s fantastic news. Let us know what your handle will be and kick some butt! We LOVE our truckers!!!

      Liked by 7 people

    • Amy2 says:

      Congratulations Ryan H.!! Try some investing down the line!! Best wishes!

      Liked by 4 people

    • Erik Dee says:

      Good job Ryan! Congrats! I wish you all the success you can eat. 🙂

      Also check out the Permian Basin here in Texas. They are very short on truckers (for the oil industry here) and kids in their 20s are starting at 6 figures.

      Liked by 6 people

    • Joshua2415 says:

      God Bless you Ryan. Good luck on the new job!

      Liked by 5 people

    • mopar2016 says:

      Good for you Ryan.
      Thanks to the Trump economy there’s a big increase in shipping.
      There’s also a back log of orders for big rigs.
      MAGA
      https://www.foxbusiness.com/markets/truck-orders-surge-as-economy-heats-up
      Good luck with that career.

      Liked by 4 people

    • L4grasshopper says:

      Congrats! And keep the shiny side up!

      Liked by 1 person

    • WSB says:

      Congratulations, Ryan! Some of us are finally getting calls. I have had two this week out of the blue, and am forging ahead!

      Cheers!

      Liked by 8 people

    • Boris Dabot says:

      Truck driving positions have been strong for some time now. Be careful. Companies will lie and work you to death.

      Liked by 1 person

      • SwampRatTerrier says:

        Yes. He better buy a really good seat cushion and very good lumbar back support cushion too.

        Liked by 2 people

        • Small study showed that sitting on a “grounding” pad conductive to the steel frame of the cab can help drain off the positive charge that comes from driving. Positive charges create oxidative stress in the body.

          So, less stress, less fatigue, maybe even less pain were some of the outcomes. I read about this years about in a book entitled, “Earthing” and tried it out. Seems to “work.”

          Like

    • Best of luck to you in your new job, Ryan…..Keep on Trucking!

      Liked by 2 people

      • USMC_grunt says:

        Congratulations Ryan that is awesome, I wish you the best of luck with your new position!

        I am not unemployed but was curious to see how responsive the job market was locally, in Portland, OR (ew I know). I began submitting resumes to company’s across the city ranging from Union Pacific rail worker, construction contractor, facility director, private security contractor , production manager, and a few others. I have heard back from six different places since Wednesday! Three of them wanting to set up interviews that day! I was truly shocked.

        I then went to my employer and requested a meeting with our VP and CFO, which was granted. Long story short I am getting the opportunity to move from Portland to Vegas to be the Production Manager of a newer facility we recently opened up there. I AM FINALLY GETTING OUT OF PORTLAND!!!! sorry for the caps but I am sure you all understand! MAGA and god bless the USA and PDJT.

        I am not trying to steal your thunder Ryan, I truly am excited for you to have a steady job and a great income! I just think it is good for other people to know that if you are unhappy now is not the time to settle. Now is the time to step up, seize the day, and make it happen!

        Liked by 13 people

        • SwampRatTerrier says:

          OBAMA COULD NOT BUILD THAT!!!!!!!!!!!!!!!!!

          Liked by 5 people

        • Alison says:

          Good for you USMC Grunt !!!! Keep us posted , 😘💖🇺🇸

          And Ryan too💖💖🇺🇸🇺🇸 I love hearing these uplifting stories about you guys seizing opportunities. It’s the Trumpian way ,

          Liked by 4 people

        • Ryan H. says:

          USMC
          AWESOME!!!!
          I am a (Thankfully) 30 year former resident of Portland, OR, and I left that crap hole 10 years ago and have never even thought about looking back.
          It is terrific that you are getting to leave and expanding your horizons at the same time.
          Your news is actually MORE important than mine was. Good for you! Congrats!
          Best wishes to you and yours, and may God continue to smile on you, us, the USA, and the rest of the world!
          MAGA!!!

          PS. Thank you to all who have commented.
          I did not wish to fill up the screen with multiple comments.
          I will be starting out as a “Yard Dog”, basically moving trailers around all day. Nothing fancy or difficult, but steady income and advancement opportunities galore.
          From there, I will have the options of long haul, or management, or whatever, so yes, my wife and I are extremely happy and grateful.
          Thanks again to y’all.
          God Bless the USA and TRUMP!!!!!
          MAGA!!!

          Liked by 7 people

        • Go, USMC: Setting the pace!
          CONGRATS on escaping LaLaLand.
          Here I was about to feel sorry for you.
          Friends from Illinois escaped to Vegas this year, 😎
          As posted before, we escaped Illinois for Texas last year. 😎

          Liked by 3 people

        • MB224 says:

          Awesome on the ground intel and CONGRATS!!!

          Like

    • Pammipoo says:

      Good for you Ryan! I’ve been trucking for fifteen years now and this is the first year I’ve broken the $50,000 mark!

      Liked by 2 people

    • White Apple says:

      Ryan, learn about “Investment Tax Credit” and its application. In a relative very short period of time you will be self-employed owning your own Truck.

      Liked by 1 person

    • Evelyn says:

      My youngest son (early 30s) was disabled for 10 years and started making a miraculous recovery approximately 2 years ago. He became seriously ill while attending community college. Hadn’t worked since he had a part time job stocking shelves in high school. It was as if Jesus himself appeared and said “Arise, take up your bed and walk.”

      As always, God’s timing is perfect. Needed something where he could potentially support a family without too much expense and with no recent work history. Long story short he found trucking. He had been so sick for so long, I privately thought the whole thing was going to be impossible from the first time he came to me and told me he was going to take his life back and we set up a meeting with our local DVR (department of vocational rehabilitation). His dad and I paid for him to attend CDL school. The kid got knocked down again and again but would not give up. Still has short term memory issues but found ways to work around them, and has a great attitude, which is probably the single best determinant of success. Today, 2 years later, he drives for an LTL company and is making 80K a year with full benefits. He still lives with us and is saving up and has his sights on becoming an owner operator some day, starting his own small business.

      Trucking can be dangerous but I know, for many reasons, that my son is where the Lord has put him, and if His child asks for a loaf of bread, the Lord will not give him a stone. So, to borrow from Q, I am trusting the plan (the BIG PLAN). May God bless and keep both of you. MAGA on!!!!

      Liked by 3 people

  4. Sentient says:

    The Dems are trying to drive a wedge between farmers and Trump by saying that the tariffs will hurt farmers. I think most farmers understand that the tariffs are – we hope – a needed, temporary tactic to open up China to FAIR trade for other products. Besides, the tariffs provide the revenue needed to mitigate any pain felt by farmers.

    Liked by 5 people

  5. William Dorritt says:

    CHINA IS A TAX EVASION PLAY AND A SLAVE LABOR PLAY

    AND A ZERO REGULATIONS PLAY

    “In addition to hammering earnings, Goldman also expects that the PE multiple of the S&P would also contract, dropping from the current 17x to 15x, and resulting in an S&P plunge of 25% from the current 2,888 to 2,200, which would lead to a bear market and wipe out over $6 trillion in market capitalization. ”

    $500B tariffed at 25% = $125B in tax revenue

    The labor content on an I=phone is only $5 in China, so if it is $20 in the US so what, not the $2000 I-Phone the Fox girls whine about non stop, however if made in the US Apple and other manufacturers will be paying taxes instead of sheltering all of their profits off shore. Just like the little people.

    Liked by 9 people

    • Well done.
      Has Goldman shorted the S&P?
      What, NO?
      President Trump should start the Goldman investigation for MARKET MANIPULATION.

      Liked by 5 people

    • USTerminator says:

      If 25% tariff on cell phone. I would guarantee that iPhone for most of the world will be made in US. First Foxconn will need to ship a lot of components into US for assembly but then the supply chain will be established in US in a few years. The States to net that assembly plants will be WI, TN, NC. It will take several plants to build 100M phone annually and the Mid West and South will be winners. Making iPhones in US will solve many trade problem worldwide with US. Trade deficit reduction with China, EU, Canada, Mexico, Japan and ASIAN…. which will remove trade friction. The only loser is China.

      Liked by 9 people

      • WSB says:

        Add automation, maybe?

        Liked by 1 person

        • SwampRatTerrier says:

          Of course..

          Labor being the resource in shortest supply historically in the U.S. has been a GREAT Blessing.

          It was the motivation for Americans to invent all those labor saving devices, machinery, and technology.

          Liked by 3 people

      • Solves the IP Theft issue as well!
        China’s Technology Industries will see exports dry up.
        This could well evolve into the solution for IP Theft in general for U.S. Trading Partners.

        Liked by 5 people

      • MB224 says:

        And don’t forget tax cuts 2.0 coming to a Congress near you. If GOP gets corporate to 15%, freezes federal hiring and gives early retirement to MILLIONS of bureaucrats, we could really stick it to China, and Canada and everyone else. If they were really smart they’d disband the IRS, abolish ALL income taxes, create a 10% national sales tax and a 20% universal import tax and wrap it all in the words CONSTITUTIONAL AMENDMENT. Then we’d really see what the American System can really do.

        Like

  6. fleporeblog says:

    Our President is going to continue to make China’s life a living hell. After this announcement today, our President will tell our Wilburine to begin the process for the remain $267 billion dollars that are left from imports from China 🇨🇳! Those tariffs will be 37.5%.

    At that point, you will see us begin to negotiate terms with India 🇮🇳 so that we can reduce the products from China 🇨🇳 being imported into our country. While all of this is taking place, our President will continue to build the manufacturing base in our country so that we no longer need to import as much as we do.

    Ford was ahead of the curve anticipating this announcement and future announcements.

    https://www.wsj.com/articles/ford-scraps-plan-to-import-china-built-small-car-due-to-tariff-cost-1535729401?redirect=amp

    From the article linked above:

    Ford Motor Co. F -2.27% has ditched plans to import its Focus compact vehicle from China to the U.S., citing an expected hit from import tariffs the Trump administration put into effect in July.

    The U.S. auto maker had planned to begin shipping a new version of the Focus from China, starting in the second half of 2019. But a new 25% tariff upended the economic case for the import plan, said Kumar Galhotra, the company’s head of North America.

    Ford will instead discontinue the Focus nameplate for the U.S. market after selling down the current supply.

    The tariff made it a “very difficult business case for us, so we’re choosing to deploy these resources elsewhere,” Mr. Galhotra told reporters during a conference call Friday.

    Mr. Galhorta said Ford didn’t seek a tariff exemption for the Focus.

    Mr. Galhotra said the decision would have “marginal” impact on the auto maker’s future sales in the U.S., where Ford plans to increase the number of nameplates it offers to 23 within five years—from 20 today—despite plans to eliminate several car lines. Ford has said it would add more trucks, SUVs, and electric and hybrid models to respond to consumer demands.

    Don’t forget that there is a cause and effect to our GDP and theirs. By squeezing them already with tariffs of 10% on the first $34 billion plus 25% on another $16 billion coupled with the newest tariffs of 25% on $200 billion and what I believe may be as high as 50% on the remaining $250 billion, PDJT is swinging our GDP up & killing China’s GDP.

    Let’s look at the math:

    USA 🇺🇸 Tariffs on China:

    $34 billion x 10% tariffs = $3.4 billion dollars to our Government

    $16 billion x 25% tariffs = $4 billion dollars to our Government

    $200 billion x 25% tariffs = $50 billion dollars to our Government

    $250 billion x (being a bit conservative) 37.5% tariffs = $93.375 billion dollars to our Government

    China 🇨🇳 Tariffs on USA:

    $34 billion x 10% tariffs = $3.4 billion dollars to their Government

    $16 billion x 25% tariffs = $4 billion dollars to their Government

    $60 billion x 25% tariffs = $15 billion dollars to their Government

    $40 billion x (THAT IS ALL THEY HAVE LEFT) 37.5% tariffs = $15 billion dollars to their Government

    That totals $150.775 billion dollars in tariffs for our Government versus $37.4 billion dollars to their Government.

    That shrinks the trade deficit by $113.375 billion dollars a year.

    What does that mean for each country’s real GDP rate?

    Just last Quarter we shrunk the trade deficit by $53 billion dollars and it added 1.16% to the 4.2%.

    Please keep in mind with my math above, China 🇨🇳 and the USA 🇺🇸 brought in the same $7.4 billion in tariffs. They washed each other out.

    However, going forward, that isn’t the case! Your talking about an additional 2.32% real GDP rate for each year using the tariffs on China 🇨🇳and them losing that same percentage.

    Our President is absolutely right that WE CAN’T LOSE!

    Xi saw the data I referenced in the post above and understands damn well HE CAN’T WIN!

    Every corporation that complains will get their own tweet from our President!

    Liked by 22 people

    • Flep, it may just get BETTER:

      For China’s future tariffs on $100 Billion of our Exports, netting them $30 Billion, consider the possibilities:

      • President Trump tweets an invitation for American Exporters to RAISE PRICES by the $30 Billion … since China has decided their business importers can afford that much.

      • American Exporters realize that could TRIPLE their profits (on a 15% margin) … enabling them to Break Even if they lost 2/3 of their Export volume.

      • Every $100 Billion in lost Exports to China translates into an ADDITIONAL $100 Billion in Imports from China to be ELIMINATED before we wipe out our Chinese Trade Deficit, and can THEN begin to wipe out the Chinese Theft of IP.

      Liked by 8 people

    • Curry Worsham says:

      Liked by 5 people

    • Oliver Twist says:

      Apple said iPhone will be 20% more if made in US. If the phones are made n China there will be a 25% duty, still 5% cheaper to make the phones here!
      Previously all duty did not have to be paid and the shipment was released. Now no payment no release–US Customs is asking for importers to set up ACH so they can go get the duty from their bank account before any shipment is released. A big cash flow problem with a lot of importers, another way to discourage imports. Great job President Trump

      Liked by 12 people

    • USTerminator says:

      Make products in India is almost impossible. The regulation and bureaucracy of India would make California pale in comparison. There is almost no infrastructure in India to support, no supply chain, no industrial engineering know how. I would rather see Trump push heavily for North America (US and Mexico, sorry no Canada for now).

      Liked by 4 people

  7. filia.aurea says:

    PDJT and his “killers” will chew up the yuan and spit it out. #MAGA

    Liked by 3 people

  8. Doppler says:

    Congratulations, Ryan. It truly is a robust economy.

    Part of me is angry that the establishment is so committed to raining on the Trump ecomony’s parade, that China would have already come to terms were it not for so many Americans willing to help China resist Trump. While part of me hopes that the NSA and Huber prosecutors with secret FISA warrants have every digital communication incriminating all of them, And that perp walks by the worst of them will coincide with China coming to terms with a new, fairer trade deal that will add further momentum to the best economy in my long lifetime. And sooner rather than later.

    Liked by 5 people

    • USTerminator says:

      China is pulling Kerry’s advise to wait out the Trump Administration. So that is why President Trump put China tariff on fast track to put extreme pressure on China for a equitable trade deal or build up the US manufacture base quickly. In the meantine tempt congresses with $125B tariff for spending. Once congress got used to the money. Let go of the tariff is like taking candy out of the baby mouth. The 25% tariff on SUV and truck import supposed to be temporary to help Detroit fend off the Japanese imported. It is still on now and will never go away

      Liked by 4 people

  9. tav says:

    How will we ever make due without Chinese molding dry wall and poison pet food?

    Liked by 4 people

  10. Nom de Blog says:

    GDP estimate for China based on satellite imagery: between 7 and 11 trillion. Lower end likeliest.

    American GDP: closing in on 21 trillion.

    China is based on a mercantilist export economy.

    You do the math.

    Liked by 4 people

  11. tav says:

    I think it’s a contest between China and Canada to see which can be the most ridiculous negotiators. Canada may still be ahead, but China is closing fast.

    Liked by 4 people

  12. Curry Worsham says:

    But he’s only doing it to distract from THE WORST WEEK OF HIS PRESIDENCY!!!! /s

    Liked by 3 people

  13. kltk1 says:

    Yesterday, it was reported the IRS collected a record amount of income taxes (I forget the exact number but it was up). Obviously, as a result of all the people going back to work. However, business tax collections dropped as a result of the tax cut on business. The tariffs are very likely going to make the vast majority of the difference allowing for corporate taxes to remain low. If they keep putting pressure on work visas American worker wages will continue to rise as more Americans find work. Win, win, win for the USA. POTUS is serving us very well and the entrenched interests aren’t liking it one bit. More winning for Patriots.

    Liked by 8 people

    • L4grasshopper says:

      Record amount from individual taxes.

      Revenue from corporate and other(like tariffs) was down some.

      Deficit for FY18, which ends in a couple weeks, will be close to $900B. About 23% of all money spent is being borrowed.

      Not good.

      Liked by 2 people

    • MORE Tax-Revenue WINNING:
      • The first-year Capex Write-off is TEMPORARILY reducing taxes – in the year of investment ONLY – for any business investing to expand capacity and productivity!
      • By mid-year of typical investments, sales from expanded capacity are RISING, costs per unit have DROPPED and profits start to JUMP.
      • That gooses Tax Receipts.

      But wait, there’s MORE:
      • Workers replacing Visa Holders aren’t just earning more and paying MORE Taxes.
      • Workers replacing DEPORTED ILLEGALS are earning more and paying NEW Taxes.
      • PLUS both groups of Workers are coming OFF Government Support, CREATING Unused Taxes.

      Whoa Nellie POTUS STRKES AGAIN:
      • The PROVEN MULTIPLIER on Tax Receipts plus Unused Taxes justifies Tax Cuts 3.0 (after Tax Cuts 2.0 makes 1.0 permanent).
      • Tax Cuts 3.0 can Drop the Personal & Corporate Tax rates to 15%!
      • Tax Cuts 4.0 can then Eliminate the “duplicative” Capital Gains Tax!

      END of TRAPPED INVESTMENTS in lower-performing businesses to avoid the Capital Gains Tax … Investments move IMMEDIATELY to their highest opportunity uses.

      DEATH of the FED: We won’t need their Stimulus Fake Money and won’t need their Suffocating Fake Interest Hikes.

      THAT’s what President Trump meant when he said we won’t BELIEVE what’s coming!

      Liked by 14 people

    • SwampRatTerrier says:

      Revoke Google employees’ Visas and send those Fake workers packing.

      Liked by 1 person

  14. SwampRatTerrier says:

    Raise that Tarriff!

    Raise that Tarriff!

    Like

  15. jmclever says:

    Will all Dollar Tree stores change their name to Buck and a Quarter Tree? Will Walmart be forced to sell quality items instead of engineered to fail junk? Tune in next week when you’ll hear our President say, “Stop whining and build your plant in America.”

    Liked by 4 people

  16. TheWanderingStar says:

    Ahhh! Grasshopper Xi, bamboo forest is shrinking fast!

    Liked by 1 person

  17. powderdayrules says:

    Entitlement spending and a bloated federal government are primary causes of the deficit. The tax free status of rich private educational and religious organizations should be examined. The government should also sell much of its land holdings. How much of that deficit is due to interest payments on government debt? Much more can be done to dig our country out of the hole we are in.
    And Social Security is not an entitlement program, it is a promise to be kept to the people who paid into it.

    Liked by 3 people

  18. Phil says:

    That magic wand is called a HAMMER! Double meaning included- it means work and it means putting the hammer down!

    Liked by 3 people

  19. David says:

    There will be no agreement with China as China can’t agree to collapse their economy. These tariffs are about driving our supply chain out of China and into China’s natural rivals. Some higher value manufacturing will return to the US but the rest will move to countries like India , Vietnam , Taiwan , etc.. Direct imports to the US from China account for 16% of the Chinese economy and indirectly a much higher percentage of their economy. The tariffs are the most effective means to crush the Belt and Road and made in China 2025 programs and end the imperial ambitions of China. We’re seeing and monumental shift in the global economy starting.

    Liked by 1 person

  20. thedoc00 says:

    Noticed in the news over the past week that China also has a big problem with disease on its pig farms, that they cannot solve.

    Also, bitcoin needs to be hammered as hard as possible as China is attempting to use it as a source of foreign currency, to replenish the reserves being used to buy friends and influence their domestic market.

    Like

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