Trump will raise tariff rates on Chinese goods in response to trade war retaliation

Because bankruptcy donnie is warring against the whole world. No one wins tariff wars and this is why he was a business disaster

 

You seem to have very limited imagination

I’m confident in America’s ability to overcome challenges

But you may not get a new iPhone every two years

 

The robots won't be made in China if we have a tariff on them.

 

Wishing won't make it happen.

 

Well if you believe Trump, and I'm sure you do. Since everyone has a job, the new ones go to the bots.

 

I dont know what the economic value for china is when they produce phones for America

But I think its more than you ant us to believe

Just think about 300,000 unemployed chinese workers and you might begin to understand

 

Yeah, it would be terrible. Their unemployment might go up 0.07 %.
Apple, on the other hand, would be out of business.
But Samsung would love it.

 

You seem to have a very limited understanding of global economics

 

Unemployment isnt really a huge concern in a communist nation. Although your figure is laughable.

 

I’m with you

I grew up expecting the best from and for America

But the most recent debutants from the education system were brainwashed to believe thst America’s best days are behind us

 

Why would Apple go out of business?

They have the best product that other companies want to imitate

Maybe their profits in china would suffer

But so would chinese phone makers who lose business in America

 

Ah, yes. I forgot. The new policy is to use the government to force companies to buy more expensive equipment elsewhere.

This kind of government regulated system is known as "socialism".

Socialism = a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

 

No, you'll get what the government allows you to get.

 

Not quite

The market will decide

 

Bingo!

 

Why would Apple go out of business?

How many companies do you know that have survived losing 25% of their business to one customer?

What do you think would happen to Apples world wide sales if their price increased 25% over their competiton?



China does not sell phones in America.
I can see this is another well thought out idea you have.

 

China makes virtually every phone sold in America no matter which brand name its labeled with

And thats not by accident

 

The policy which you promote is the type where the government influences prices to a point where it is no longer "markets decide" economy, but "government decide".

If you allow Apple to run their business the way they want, you can get an iPhone for $600, but if you want the government to control it, it might cost $1500, and no one will buy them.

 

Seriously? You're blaming immigrants because you're unemployable. That's pathetic

 

It's always been hard to make the decision and take the risk of buying a home. But at 3.60% a mortgage is like manna from heaven these days.

 

Where are you getting this 300,000 number from ? I see it in one of ronv's posts .. and that was the total employed by Apple. What fraction is in China ?

Anyway - I have posted previously info on the cost to manufacture a cell phone in China. It ain't much like 3% max .. and I think this is on the manufacturing cost - not the sale price (which makes a difference as the manufacturing is say 350 and the retail is 1000) ... buts lets go on the high side and call it on 1000 .. we are talking a 3x multiple.

Now lets go on the high side of the% and call it 5%. That's the max limit ... we are still at 20-1 vrs my previous estimate of 45 ... my estimate being the far more realistic number.

But, even if we go on the high side ... thats a lot ... 5% is a very small percentage of the trade imbalance.

That said - This is just for electronics... and phones in particular. Many other products would have a higher % Chinese value add.

Top of my head best guess the % electronics of the total trade with china is roughly a third - perhaps a little more of the total.

So call my initial estimate ... of the percent value add for China ... and that takes care of 1/3 at 5% Lets say the other 2/3rs are way higher - say 25% ... this would give a total of 20% on the whole deal. 5 to 1 .. best case scenario.

I am guessing the total of the other 2/3rds is much lower.

So then - when you look at the trade imbalance numbers - you have to factor the above - into that calculation.

 

As usual you are wrong.

 

Just my part of the deal.

The factory, run by the Taiwanese electronics manufacturer Foxconn, employs about 350,000 people and produces about half of the world's iPhones. In the busy summer months before the fall release of a new iPhone, the factory produces 500,000 phones a day, or up to 350 a minute.May 7, 2018

An amazing story.

Spanning more than 2.2 miles and dozens of buildings, the business park looks like any other. Trees are everywhere, police and security guards stand on every street corner, and workers on break camp out in the shade. A decade ago, this area had only dirt and fields of corn and wheat. In 2010, the government bought out local farmers, and the factory was up and running within the year.


https://www.businessinsider.com/apple-iphone-factory-foxconn-china-photos-tour-2018-5

 

Cool but as you pointed out .. this is a fraction of a rounding error in terms of the Chinese labor pool ... and at the end of the day the value add from China in the total cost of an Iphone is something like 3%.

Compare to a soybean where the value add is 90% (plus) .. So for every dollar of pain for China we experience roughly 30 times the pain. .. at least for this sector. .

 

Yeah, if it wasn't so serious it would be funny.
Add to that the fact that probably half or more of the companies in China being hit are partially owned by US companies. So they not only lose sales in the US but they lose revenue from manufacturing.