Trump starts his Rose Garden border wall announcement 40 minutes late, with a digression on China. He says there are "billions of dollars pouring into our treasury," but doesn't mention that money actually comes from Americans paying the cost of tariffs
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Replying to @AdrianMorrow
That’s complete hogwash. Chinese manufacturers pay for most of it. Inflation is very low. Unless you have data to prove it, don’t report what you don’t have actual information about.
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Replying to @Bfklin @AdrianMorrow
Chinese manufacturers pay for it? They're paying in the form of bankruptcy and fewer orders...but American importers are paying the tariffs.
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Replying to @Molson_Hart @AdrianMorrow
The FOB price is negotiated. Why would the importer not ask the factory to take a price cut? If it’s a large importer?
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Replying to @Bfklin @AdrianMorrow
Right, but it's FOB China port, not FOB USA, so the importer is paying. Because that importer already asked for them for a discount? A lot of Chinese exporters don't have the margin for a 10% tariff on cost including shipping. So the importers go to SEA and the mfr go bust.
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Replying to @Molson_Hart @AdrianMorrow
I disagree how much profit they make. Many of the managers make quite a bit and pay little in labor. Yes it’s FOB China port but a large importer will dictate price on next order. It may be less than 10% but factories don’t want them moving to SEA in some cases.
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Replying to @Bfklin @AdrianMorrow
You can't say that they make money but that the importer dictates the price. These statements are contradictory.
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Replying to @Molson_Hart @AdrianMorrow
The other data point that is interesting is how low inflation has been. And the impact on China.
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Well...inflation lags tarriffs and I don't always trust the numbers but agree generally. We're seeing inflation in our prices but because of china. It's because of freight and delivery costs.
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