Originally Posted by
Little Chuchok
Personally, I believe that tariffs should be imposed if you are protecting a local manufacturer from overseas products.You should look after your own. However, it's a two way street. If you are protecting your own country, then you can't complain if somebody does the same to you. This is no different to what Thailand does now.
There is virtually no tariff on goods imported into NZ (Except booze,oil and ciggies).Been like this for almost 20 years now.The result is that we make almost nothing now except for Timber, meat and dairy. A slow death to our manufacturing Industry.
What Trump is doing, is saying that because they have a trade deficit with China, he wacks on a tariff for the sake of it The same people that he is trying to protect (on face value) are the same people that shop at Walmart and buy cheap Chinese crap.
What he doesn't understand is that the Chinese govt. might whip up Chinese nationalism so much, that a large portion of the population will shun American goods like the plague. They could cut off their nose despite their face and go much harder on US imported goods. This is where the concept of 'Face' rears its ugly head, no matter what the price.
Other Countries in SEA and South America must be licking their lips in the anticipation on being much more competitive.People will always buy cheap goods. If he stops them coming from China, they will still come from somewhere else.
The USA no longer have a national Sea Freight carrier. American President Lines was sold years ago to the Singaporeans, who then on sold to the froggies two years ago.
China has merged it's two national carriers and have just bought OOCL to make them probably the third largest carrier owner(COSCO), behind Denmark (Maersk) and Switzerland (MSC).
Any pull out of COSCO in the Trans Pacific trade, would mean that freight rates would triple in the short term )