Business

CTA’s Gary Shapiro Rails on ‘Isolationist’ Trump Tariff Policy

CTA CEO Gary Shapiro tells Fox Business Network that new 25% tariffs hurt American companies and will slow 5G adoption. Manufacturers begin raising prices.

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11 Comments
Posted by David Casemore on May 23, 2019

I tried to bring this topic up with my friends at RemoteCentral.com

http://www.remotecentral.com/cgi-bin/mboard/rc-custom/thread.cgi?41843

Apparently this entire thing is my fault.

Posted by Blefadts on May 24, 2019

Short term pain for long term success, or move your manufacturing out of communist China.

Posted by Blefadts on May 24, 2019

Short term pain for long term success, or move your manufacturing out of China.

Posted by JerryS on May 27, 2019

We are a long-time (over 15 years) member of CTA, but are considering dropping our membership over this and other positions of Mr. Shapiro.
Yes, this is costing us in the short term.  But “trade” means it is equitable for BOTH parties.  A $500 billion per year trade imbalance is not sustainable.  Previous Presidents (of both parties) have been so eager to make trade agreements that they have given away too much.  If Mr. Shapiro ever ran a small business, he would understand this is not sustainable in the long run.  And although the U.S. has a bigger budget, it’s not sustainable for the country in the long run, either.
President Trump is a businessman and understand this.  He wants trade agreements which are fair to all parties.
Maybe Mr. Shapiro would be willing to trade a brand new 2019 Cadillac for a used ash tray.  This is what the U.S. has been doing for decades.
But it’s a really nice ash tray!

Posted by theloopboise on May 28, 2019

The part I wonder is where is all this money going?  This will bring in billions (if not trillions) into the US Government, basically as a tax to the end user.  My company like so many others is seeing our costs increase as a result, which we have to pass on to the customer.  So in reality this is just adding a tax onto the cost of everything made in China.  Unless the money is being passed back to Americans as a tax credit I don’t see how this is helping Americans.

Posted by ccolwell artisticsystems.net on May 28, 2019

JerryS.  Trade imbalance is a misnomer.  Imagine Sonance (or whoever’s speakers you buy) is a country.  You buy $10,000 worth of speakers from them and they send you speakers, and do not buy anything from you.  This is not a $10,000 trade imbalance, this is business.  They mae something you want at a price you want to pay for it.  Now if sonance stole from you that is something to discuss.  I personally have a trade deficit with Walmart and Titos Vodka, among many other items.

Posted by JerryS on May 28, 2019

ccolwell artisticsystems.net No, that’s where you’re wrong.  If you pay $10,000 to Sonance and get $10,000 worth of speakers, you have a balanced trade.  However, if you only get $5,000 worth of speakers, you have a trade imbalance.
Trade balance isn’t just the dollars involved - it is also the goods.  And for too many years we’ve been paying $10,000 for $5,000 worth of speakers.

Posted by ccolwell artisticsystems.net on May 28, 2019

JerryS - I Respectfully disagree.  Where exactly could you get these speakers for 5,000.00?  We bought from China because they were cheaper than anywhere else for a variety of reasons. If it wasn’t we would have bought somewhere else.  A trade deficit (or imbalance) is because we buy more from them than they do from us.  How exactly does the Tariff fix this? They will not buy more from us because we do not make what they want at a price they want to pay. There protectionist tariffs on us a are another issue.  Even if tariffs go to zero on both sides, we will buy more from them than they do from us. 

Posted by JerryS on May 28, 2019

ccolwell artisticsystems.net That’s oversimplifying the situation.  The speakers are cheaper because China artificially keeps it’s Yuan low.  Additionally, the Chinese government subsidizes many of the companies there, making their costs lower.  Add to that their theft of American intellectual property (instead of paying for their own research and development) and the result is the Chinese economy is growing at over 6% per year - which is what’s causing the real trade imbalance.
If it weren’t for these factors the price of products coming out of China would be more in line with that of the rest of the world and trade would be more equitable - not just with the United States but with other countries, also.

Posted by ccolwell artisticsystems.net on May 28, 2019

JerryS you didn’t explain how the tariff’s would fix any of that.  In fact your logic is the inverse saying we are getting 5k worth of product for 10k.

Posted by JerryS on May 28, 2019

ccolwell artisticsystems.net It brings the cost of the Chinese goods more in line with the real cost of goods, not the artificially low price of them.  And I was just using your speakers as a general example - not necessarily buying from China. The fact is trade imbalance is NOT just $$$.  It is a lot more complicated than that. 
And look at the results.  Black and Decker just announced they were closing a plant in China and moving manufacturing back to a new plant in Texas.  You’re telling me that is not good?

11 Comments
Posted by JerryS on May 28, 2019

ccolwell artisticsystems.net It brings the cost of the Chinese goods more in line with the real cost of goods, not the artificially low price of them.  And I was just using your speakers as a general example - not necessarily buying from China. The fact is trade imbalance is NOT just $$$.  It is a lot more complicated than that. 
And look at the results.  Black and Decker just announced they were closing a plant in China and moving manufacturing back to a new plant in Texas.  You’re telling me that is not good?

Posted by ccolwell artisticsystems.net on May 28, 2019

JerryS you didn’t explain how the tariff’s would fix any of that.  In fact your logic is the inverse saying we are getting 5k worth of product for 10k.

Posted by JerryS on May 28, 2019

ccolwell artisticsystems.net That’s oversimplifying the situation.  The speakers are cheaper because China artificially keeps it’s Yuan low.  Additionally, the Chinese government subsidizes many of the companies there, making their costs lower.  Add to that their theft of American intellectual property (instead of paying for their own research and development) and the result is the Chinese economy is growing at over 6% per year - which is what’s causing the real trade imbalance.
If it weren’t for these factors the price of products coming out of China would be more in line with that of the rest of the world and trade would be more equitable - not just with the United States but with other countries, also.

Posted by ccolwell artisticsystems.net on May 28, 2019

JerryS - I Respectfully disagree.  Where exactly could you get these speakers for 5,000.00?  We bought from China because they were cheaper than anywhere else for a variety of reasons. If it wasn’t we would have bought somewhere else.  A trade deficit (or imbalance) is because we buy more from them than they do from us.  How exactly does the Tariff fix this? They will not buy more from us because we do not make what they want at a price they want to pay. There protectionist tariffs on us a are another issue.  Even if tariffs go to zero on both sides, we will buy more from them than they do from us. 

Posted by JerryS on May 28, 2019

ccolwell artisticsystems.net No, that’s where you’re wrong.  If you pay $10,000 to Sonance and get $10,000 worth of speakers, you have a balanced trade.  However, if you only get $5,000 worth of speakers, you have a trade imbalance.
Trade balance isn’t just the dollars involved - it is also the goods.  And for too many years we’ve been paying $10,000 for $5,000 worth of speakers.

Posted by ccolwell artisticsystems.net on May 28, 2019

JerryS.  Trade imbalance is a misnomer.  Imagine Sonance (or whoever’s speakers you buy) is a country.  You buy $10,000 worth of speakers from them and they send you speakers, and do not buy anything from you.  This is not a $10,000 trade imbalance, this is business.  They mae something you want at a price you want to pay for it.  Now if sonance stole from you that is something to discuss.  I personally have a trade deficit with Walmart and Titos Vodka, among many other items.

Posted by theloopboise on May 28, 2019

The part I wonder is where is all this money going?  This will bring in billions (if not trillions) into the US Government, basically as a tax to the end user.  My company like so many others is seeing our costs increase as a result, which we have to pass on to the customer.  So in reality this is just adding a tax onto the cost of everything made in China.  Unless the money is being passed back to Americans as a tax credit I don’t see how this is helping Americans.

Posted by JerryS on May 27, 2019

We are a long-time (over 15 years) member of CTA, but are considering dropping our membership over this and other positions of Mr. Shapiro.
Yes, this is costing us in the short term.  But “trade” means it is equitable for BOTH parties.  A $500 billion per year trade imbalance is not sustainable.  Previous Presidents (of both parties) have been so eager to make trade agreements that they have given away too much.  If Mr. Shapiro ever ran a small business, he would understand this is not sustainable in the long run.  And although the U.S. has a bigger budget, it’s not sustainable for the country in the long run, either.
President Trump is a businessman and understand this.  He wants trade agreements which are fair to all parties.
Maybe Mr. Shapiro would be willing to trade a brand new 2019 Cadillac for a used ash tray.  This is what the U.S. has been doing for decades.
But it’s a really nice ash tray!

Posted by Blefadts on May 24, 2019

Short term pain for long term success, or move your manufacturing out of China.

Posted by Blefadts on May 24, 2019

Short term pain for long term success, or move your manufacturing out of communist China.

Posted by David Casemore on May 23, 2019

I tried to bring this topic up with my friends at RemoteCentral.com

http://www.remotecentral.com/cgi-bin/mboard/rc-custom/thread.cgi?41843

Apparently this entire thing is my fault.