It seems to be taking the US forever to realise that China holds the better hand. America expended its stockpiles of rare earth elements by supplying Ukraine, and others, and now that it needs to replace its ordnance, China says, No, we're not going to help you do that.
The US has painted itself into a corner.
Listen up drop-kick New Zealand politicians; it is clear that Donald J. Trump sees things on the microeconomic level, rather like a businessman dealing with suppliers and customers. That said, here's a quality idea for free - just give me credit for being the FIRST to think of it:
Idea: ask Lydia Ko, the current LPGA world number 3 golf professional, to play a round of golf with Donald J. Trump's granddaughter, Kai Trump.
Kai Trump will be on a golf scholarship at the University of Miami soon, while Lydia Ko lives in Orlando, Florida. Maybe Lydia could do nine holes, and maybe let Kai have some tips, like how she does her fading drive, or expert chip onto the green. Donald J. Trump is a golf fanatic and would really appreciate the gesture.
The payoff is to get NZ exports to the US zero-rated from tariffs. This is not to have the baseline 10% removed, the better approach is to seek a concession, suspending the 10%. In customs clearances there are two columns, the first notes the tariff rate, while the next notes whether a concession applies - the goal would be to obtain a concession.
I'm sure Lydia Ko would be on board this, she's a trooper.
Heh, Donald Trump has walked back from his trade war, no doubt because an adult sat him down and pointed out how he was destroying the US economy and allegiances worldwide:
China has suspended imports of lumber from the United States, in retaliation for the imposing of additional tariffs on their exports to the US.
This benefits New Zealand as China is NZ's biggest trading partner. 60% of all wood exported to China comes from four producers; namely, Russia, United States, New Zealand and Canada. From this category of products NZ exports mostly logs (timber), and then sawn timber (lumber) to a lesser extent. I notice media are reporting China's suspension of imports, but then talk of logs, so they may be incorrectly describing, or if it is US logs affected (and not just sawn timber per se), that profits NZ greatly. (Checked this and it is US logs that China is no longer buying.)
For those interested in the process, the logs are trimmed and cut to length, then stockpiled according to grade. Machines that process the logs are often the Waratah brand, machines made in New Zealand and exported worldwide. This is what a Waratah looks like, it is the processor fitted on the end of an excavator dipper arm: https://www.youtube.com/watch?v=xX1d6c-clrM and https://www.youtube.com/watch?v=FwZJqI9xxWE
With Donald Trump proving he's insane, some stand to gain. The below video mentions how many of the lumber mills in the US are actually owned by Canadian interests, so profits resulting from Trump's move will ultimately find their way back to Canada. File this under the law of unintended consequences. Increases in prices within the US, benefit Canadian companies owning US-based operations.
Donald Trump talked to reporters after he arrived at Joint Base Andrews, near Washington DC. He outlined further measures, including stopping aid to South Africa, and tariffs on the EU but not on the UK at this stage. He seemed to suggest that the trade balance between the UK and US can be addressed.
I've found a useful explanation on how tariffs actually work. I don't talk about myself all that much, but something I can say is that I've done a lot of import and export, with goods heading all over the world. I find myself agreeing with the man from shoemaker, Deer Stags.
I now notice talk of the US soon to impose a worldwide 10% tariff on imports. But, I wonder how much of these moves from Donald Trump are actually targeting those who have criticised him, it's kind of convenient that the leaders of Mexico and Canada are both opponents of Trump. Using that logic, the UK must now be in the crosshairs since the UK Labour party sent activists to the US to actively campaign for Kamala Harris. That may come back to bight Keir Starmer on the arse.
Are we about to enter another era of tariff wars worldwide? We are if the soon to be imposed tariffs on Canada and Mexico come into effect.
Tariffs are usually a negative and are inflationary. They impact the less well off, as well as those on fixed incomes. The effect of this in the USA will also result in US manufactured goods that rely on imported components, becoming more expensive. Workers will lose their jobs.
However, on the other side of the equation; with oil and gas being fully exploited and with oil going into every part of our lives, then the lower prices at the pump will temper the inflationary effects of the tariffs.
It's a wait and see. By comparison, Japan play the game differently as they don't rely on tariffs, but they do use complicated regulations to protect their own industry. An example is with rice. Japan require all rice consumed to be grown in the country, as a matter of strategic importance. However, they do import rice, but it gets further processed into such things as rice crackers. In Japan, you cannot buy foreign rice to be consumed as rice itself.
Below embed is the best I can find so far on the effect of tariffs, apologies for the speaker treating everyone as if they're imbeciles:
