Trump's trade war is economic suicide

[bostonangler]

Report: Sen. Graham Helped South Carolina Companies Avoid Trump Tariffs

 

Sen. Lindsey Graham (R-SC) has reportedly been trying to help seven companies in his home state avoid getting caught in the crosshairs of President Trump’s trade war with China, despite publicly supporting the administration’s tariffs on Chinese imports. The New York Times reports that Graham has written seven letters to the U.S. trade representative for companies seeking tariff relief, writing that tariffs would “economically harm consumers and stifle economic growth in South Carolina.” According to the newspaper, Graham has written more of these relief letters than anyone in Congress and at least four companies have received some kind of relief. The companies reportedly include Mitsubishi Chemical America, Standard Textile, and paper manufacturer Archroma. In a March statement, Graham wrote that he was “very pleased and supportive” of Trump’s efforts against Chinese “unfair trade practices.” “This pushback by President Trump is long overdue as a nation,” he wrote. “If we continue this policy, China will over time change the way they do business which will be a Godsend for the American worker.”

 

https://www.thedailybeast.com/report-sen-graham-helped-south-carolina-companies-avoid-trump-tariffs

 

 

 

Things that make you go Hmmmmm... Trade war good... Well only for people other than my voters... What a joke.

B/A

 

[Synopsis]

WOWZERS!!!

 

The Snowflake and Buttercup Idiot Brigade Volunteer Forces are all up in arms AND energized!!!

 

Fortunately or Unfortunately, all one must do is view the The Snowflake and Buttercup Idiot Brigade Volunteer Forces for text book IGNORANCE and to observe what just ISN"T SO!!!

 

Elitist Socialist Liberal Leftists - The Snowflake and Buttercup Idiot Brigade Volunteer Forces

 

                                 

 

              

[caz1104]

BA - "CENTER OF THE ROAD".....SADLY THAT ROAD TILTS MAINLY & HEAVILY TO THE LEFT, MUCH LIKE THE MSM.

[caz1104]

On ‎10‎/‎9‎/‎2018 at 12:47 PM, bostonangler said:

I'm sorry you guys can't deal with the reality of basic economics. Multi-Nationals are not just simply going to give their tax cut profits to American workers. I bring story after story of giant corporations and economic experts telling us the market bubble is just that a bubble, but some people refuse to see the light. Markets go up and markets go down. I only hope you take your profits from the last 10 years and put them on the sidelines so when this bubble does burst you will have cash to buy in low and ride the next wave. That's how investing works, not just sitting there thinking it will go up forever because of our government.... Wall Street is based on greed not party affiliation... JMHO

 

B/A

" Wall Street is based on greed not party affiliation" - True. But you & your posts are

[bostonangler]

1 hour ago, caz1104 said:

" Wall Street is based on greed not party affiliation" - True. But you & your posts are

 

Give it up caz… I just want people to enjoy the bull market and their profits before it changes. Did you see the markets today? A few more like that and those retirement accounts are going to feel the pain... Just take some profits and get ready to buy back in when the dust settles. This bull run has gone on for a decade, you don't really believe it will continue forever? I'm not being partisan, I'm being realistic.

 

B/A

[umbertino]

2 hours ago, caz1104 said:

" Wall Street is based on greed not party affiliation" - True. But you & your posts are

 

 

Looks like no one is exempt around here when it comes to that ( left, center, right, far-left, far-center, far-right)....Until now at least.....

 

So the one who is sinless can go ahead and cast the 1st stone.......Perfect objectivity does not belong to humans...I'm human and I quietly admit it......

[Synopsis]

Somebody started this thread entitled, "Trump's trade war is economic suicide" whereas it is overtly clear this very same person has committed intellectual suicide and demonstrates the aftermath of their deliberately chosen cognitive state perpetually.

 

                                 

 

              

[caz1104]

2 hours ago, bostonangler said:

 

Give it up caz… I just want people to enjoy the bull market and their profits before it changes. Did you see the markets today? A few more like that and those retirement accounts are going to feel the pain... Just take some profits and get ready to buy back in when the dust settles. This bull run has gone on for a decade, you don't really believe it will continue forever? I'm not being partisan, I'm being realistic.

 

B/A

"Give it up Caz" - nope ur lack neutrality tho you claim to be is sic. Just like your brethren on the left & MSM.. u cant stand Trump & the right and will say, write & post/repost anything that might further your beliefs....sadly and it doesn't even have to be factual. Then hide behind the keyboard or say it's just an opinion. The country is really doing just fine...and that just kills you & ur buddies 

[caz1104]

1 hour ago, umbertino said:

 

 

Looks like no one is exempt around here when it comes to that ( left, center, right, far-left, far-center, far-right)....Until now at least.....

 

So the one who is sinless can go ahead and cast the 1st stone.......Perfect objectivity does not belong to humans...I'm human and I quietly admit it......

"Honesty" should come naturally but for some here that's a lost virtue 

[yota691]

5 hours ago, bostonangler said:

Did you see the markets today?

Sure did...Your probably happy an think that winning..but anyway...The market drop is the concern of rising interest rates from the Fed....

[caz1104]

14 hours ago, yota691 said:

Sure did...Your probably happy an think that winning..but anyway...The market drop is the concern of rising interest rates from the Fed....

Left or Right we should all be interested in the market......funny I heard zip nada from the left when the market was poppin...

[bostonangler]

12 minutes ago, caz1104 said:

when the market was poppin..

 

It's been popping for 10 years... Why do Trump supporters refuse to admit that simple fact? 

 

B/A

[girljulieta]

On 8/30/2018 at 12:56 PM, bostonangler said:

Steel stocks are getting whacked after Trump expands tariff exemptions for 3 countries

 

• Steel stocks dropped after President Donald Trump announced that he was allowing the Commerce Department to grant "targeted relief" from quotas on imports from South Korea, Argentina, and Brazil.
• Steel stocks have been volatile this year amid Trump's tariff policies.
• Watch United States Steel, AK Steel and Steel Dynamics trade in real-time here.

 

---

Steel stocks are getting whacked in Thursday trading after President Donald Trump announced Wednesday the Commerce Department would "provide targeted relief" from quotas imposed on steel from South Korea, Argentina, and Brazil, and aluminum from Argentina. 

Here's the scoreboard:

• United States Steel: -6%
• AK Steel: -4%
• Steel Dynamics: -2%

"President Trump has once again shown his commitment to American workers and businesses, protecting our national security from the threat posed by steel and aluminum imports," Wilbur Ross, the Secretary of Commerce, in a press release.

“This proclamation provides the Department the same product exclusion authority for quotas that we already have for tariffs."

An existing exemption allows steel companies to apply for product-specific exclusions and avoid tariffs if US companies cannot meet their demand. Under Trump's new directive, companies can be granted quota exemptions but still have to pay a 25% tariff if they had ordered high volumes of steel prior to the quotas being enacted. 

Steel stocks have been volatile this year under Trump's tariff policies.

Back in May, steel stocks surged after Trump reiterated his tough stance on imposing 25% and 10% duties on steel and aluminum imported from China, and expanded the tariff lists to US allies including European Union, Mexico, and Canada.

Shares of United States Steel are down 23% this year; AK Steel's are down 31% and Steel Dynamics's are up 2%

https://www.yahoo.com/finance/news/steel-stocks-getting-whacked-trump-152825977.html

 

B/A

 

It’s surreal: Yahoo! News story used to corroborate Steele dossier was actually based on… the Steele dossier

https://www.bizpacreview.com/2018/02/03/surreal-yahoo-news-memo-used-corroborate-steele-dossier-actually-based-steele-dossier-597444

[girljulieta]

On 10/9/2018 at 6:40 AM, bostonangler said:

Ford Plans Layoffs After $1 Billion Trump Tariff Hit

Ford Motor Company is reportedly preparing to initiate major layoffs after suffering a blow to profits of at least $1 billion due to tariffs enacted by President Donald Trump.

The nation’s largest automaker hasn’t yet revealed how many workers will be affected. But a report by Morgan Stanley estimated that as many as 12 percent of the company’s 202,000 workers worldwide could be cut, NBC reported.

Layoffs will center on Ford’s 70,000-strong white-collar workforce as part of what the company is calling a “redesign” of its staff in an ongoing $22.5 billion reorganization, according to NBC.

Trump’s tariffs and the retaliatory tariffs they triggered are taking a toll on the U.S. auto industry.

Ford CEO Jim Hackett told Bloomberg last month that tariffs on imported aluminum and steel alone dealt a blow to company profits.

“From Ford’s perspective the metals tariffs took about $1 billion in profit from us,” Hackett said. “The irony of which is we source most of that in the U.S. If it goes on any longer, it will do more damage.”

The ongoing trade war is expected to continue to hurt the company’s bottom line. Earlier this year, Trump said that “trade wars are good, and easy to win.”

Ford announced a shift earlier this year to produce almost exclusively SUVs and trucks. Those vehicles continue to grow in popularity and are more profitable. 

Its only passenger car will remain the popular Mustang, but production of the iconic brand could also be hurt if profits continue to fall.

The automaker said last month that it was ditching plans to sell its new Focus crossover vehicle in the U.S. The Ford Focus Active is manufactured in China. Because of the U.S.’s new tariffs on imported cars, it’s no longer profitable for the company to sell it in America, officials said.

“This is the first of potentially many vehicles that will disappear from the U.S. market” due to the trade war, Kristin Dziczek of the Ann Arbor, Michigan-based Center for Automotive Research warned.

 

Ouch

B/A

 

[girljulieta]

 

[caz1104]

30 minutes ago, bostonangler said:

 

It's been popping for 10 years... Why do Trump supporters refuse to admit that simple fact? 

 

B/A

COME ON...EVEN U AND THE REST OF TRUMP HATERS HAVE TO ADMIT THE MARKET AINT SEEN ANYTHING LIKE THIS IN QUITE SOME TIME...BUT OF COURSE IT'S EASY TO SAY Eyore TYPE STATEMENTS - LOPSTERS DO IT DAILY HERE

[caz1104]

Of course dynamics (pro-con) of tariff's will be felt by some companies until everything weeds itself out......short term may be painfull .....but long term should be benefitial to all

[yota691]

Trump adviser: Federal independent and president does not interfere in monetary policy

 11 October 2018 06:22 PM
Directly: He said , "Larry Kodlo" chief economic adviser to US President The White House does not attempt to influence the country 's monetary policy.

Kudlo's comments come hours after US President Donald Trump described the Federal Reserve's interest rate move as "mad."

Speaking on Thursday with the US-based CNBC, he spoke of the current state of the economy and its impact on markets.

Although the White House adviser did not give an explicit comment on Trump's remarks, he said: "The administration understands that the Fed has a job to do."

He added that the president has his own views, explaining that everyone knows that the federal independent and Trump does not impose a policy on the bank.

He repeated the president's belief that the current conditions are strong, noting that the stock market downturn should not be seen as a reflection of what is happening with economic growth.

And the selling wave that hit the stock markets , he said: "I think it is a normal correction in a bull market."

"The economic figures are fantastic in all areas.

Stock markets around the world suffered heavy losses to lose the Dow Jones 830 points during yesterday's session, but witnessed fluctuations in today's transactions against the background of inflation data .

 

[bostonangler]

How Trump tariffs affect Ford, GE, Harley Davidson earnings

Hard evidence on how President Trump's tariffs, especially those on Chinese products, have actually affected U.S. manufacturers will come into focus this week as six major American corporations issue quarterly reports.

The companies report Tuesday and Wednesday, and results are expected to show a range of results in navigating the effects of the president's trade policies.

3M - earnings release expected Tuesday

Industrial-materials maker 3M has already revised its yearend outlook downward. It cited the U.S.-China trade situation, which have caused higher-than-expected costs, as well as a soft automotive market and expenses related to a divestiture of its communications market businesses. The company says it's prepared to make changes in where it sources its products as well as consider price increases if trade pressures continue.

Caterpillar - earnings release expected Tuesday

Caterpillar sells machinery to many industries, but one of its biggest revenue streams is equipment sold to farmers. The cutbacks in purchases of U.S. products announced by China are hitting the growers of soybean and pork goods particularly hard. And in the near term it will likely force many of them to hold off on equipment purchases. In addition, the company expects that Chinese tariffs will increase its own material costs by about $100-$200 million in the second half of this year and is planning to meet those challenge with price increases. Even in light of these concerns, Caterpillar has increased its full-year outlook after a strong first half of the year and because of planned price increases, as well as certain spending cuts. Some analysts are expecting the equipment maker's third-quarter earnings to "skyrocket" as much as 41 percent.

Harley Davidson - earnings release expected Tuesday

The motorcycle maker has recently stoked the president's ire after a very public announcement that it would be moving some of its U.S. production of motorcycles sold in Europe out of the country to three international hubs. The costs related to increased steel and aluminum pricing caused by the president's tariffs, as well as the costs of getting other facilities ramped up for the production move are estimated to be anywhere from $35 million to $45 million. Harley is also concerned that if current negotiations with the EU aren't concluded satisfactorily, more costs could be incurred on units sold there. Regardless, the company has had a good year so far, with earnings higher than the previous period last year and third-quarter earnings are expected to be up about 14 percent compared to the same quarter last year.

Ford Motor -- earnings release expected Wednesday

Although they were not in effect earlier this year, the country's No. 2 automaker still blamed the anticipation of future tariffs as a significant factor behind $480 million additional commodity costs that was paid during the first quarter. Ford, which is significantly exposed to trade uncertainties with China, has had to halt its plans to sell the Chinese-made Focus Active in the U.S. and also recent announced that it would need to cut as much as 12 percent (approximately 24,000) of its employees worldwide. All in all, CEO Jim Hackett has said that tariffs are costing around $1 billion. The company's stock has fallen about 30 percent as of last week and now stands at an eight-year low. Many are expecting Ford’s quarterly earnings to fall significantly, perhaps by as much as 23 percent.

Whirlpool - earnings release expected Wednesday

Steel and aluminum tariffs are already hitting this company hard. Like Ford, Whirlpool executives have frustratingly found themselves on the wrong end of price increases just because of the potential impact that higher tariffs will have on commodity prices. As a result, the company expects to spend an additional $350 million on materials within the next year -- which is about the same amount as its entire 2017 annual profits. That said, the company says it has continued to succeed in maintaining margins in the third quarter and benefit from increasing consumer demand, factors that, according to most analysts, should increase earnings by as much as 7 percent.

General Electric - earnings release expected Tuesday 10/30/18

 

GE has been having a terrible year, tariffs notwithstanding. There was an embarrassing de-listing from the Dow Jones Industrial Average – after a 111-year run -- due to its declining market capitalization. The company’s CEO was removed a few weeks ago after only 18 months in office due to the board’s frustration at the slow pace of change. A $23 billion charge was also incurred relating to the write-off of its power business, and more restructurings are planned. To add salt to its wounds, GE will also be hit hard by Chinese tariffs, which could increase its costs by $300-$400 million overall. After the company announced that it will likely “fall short of previously indicated guidance for free cash flow and earnings per share for 2018,” most analysts are expecting trade pressures, as well as the other factors mentioned above, to result in as much as a 28 percent earnings decline when the company announces its most recent quarter's earnings.

My takeaway

The Trump tariffs are having their effect on earnings, however some companies – like Whirlpool, Caterpillar and even Harley Davidson – seem to be weathering the storm so far. The ones above who aren’t faring so well in this strong economy can’t necessarily blame the president’s trade policies for all their woes.

https://finance.yahoo.com/news/trump-tariffs-affect-ford-ge-062140398.html

B/A

[bostonangler]

Who’s Benefiting from President Trump’s Tariffs?

President Trump’s tariffs

President Trump’s Section 232 tariffs were expected to lead to a revival in the US steel industry. There has been an increase in US steel production. Companies have been running their plants at high utilization rates to capitalize on higher margins. U.S. Steel Corporation (X) has restarted two blast furnaces at its Granite City facility, while Nucor and Steel Dynamics are posting record earnings. Even unionized workers at U.S. Steel Corporation have reportedly managed to get higher compensation. Higher steel prices have improved their bargaining power.

 

Price action

Meanwhile, markets have been pessimistic towards US steel stocks. Barring Cleveland-Cliffs (CLF), which supplies iron ore to US steel companies, most of the other steel plays including AK Steel (AKS) are trading with a year-to-date loss. Even a $2 billion share buyback program didn’t lift Nucor’s sagging stock price.

 

On the downstream side, end users have increased their pitch against higher steel and aluminum costs. This week, speaking at an event, Joe Hinrichs, Ford’s (F) president of global operations, said that US steel prices are the highest in the world. He added that the company has told the Trump Administration that “we need to have competitive costs in our market in order to compete around the world.” Other metal end users like the Coca-Cola (KO) have also noted higher input costs after the Section 232 tariffs.

Steel stocks haven’t seen any real rally after the tariffs. On the other hand, higher steel prices have only added to the woes of downstream users like the housing and automotive sectors.

https://marketrealist.com/2018/10/whos-benefiting-from-president-trumps-tariffs?utm_source=yahoo&utm_medium=feed&yptr=yahoo

[bostonangler]

Companies Say They're Ready to Move Supply Chains From China

(Bloomberg) -- Earnings reporting season is underway, and analysts are eager to hear from executives about how an escalating trade war between the U.S. and China is impacting their businesses. A common theme is that they are ready to relocate supply chains if the cost of importing Chinese goods becomes prohibitive.

U.S. President Donald Trump imposed a 10 percent tariff on $200 billion of Chinese imports in September -- following an earlier round of tariffs on $50 billion of goods -- and promised to raise the duty to 25 percent in January. He’s also threatened to expand the levy to all products imported from China -- an amount that totaled $531 billion in the 12 months through August, according to the latest data from the U.S. Department of Commerce.

Here’s what companies are telling analysts:

Lennox International Inc.

"We’re pro-actively taking action," Todd Bluedorn, chief executive officer of the Texas-based HVAC company, told analysts during an Oct. 22 earnings call. "I’m not sure the Chinese tariffs are going to be short term. And so we’re taking action to sort of avoid the tariffs by moving to southeast Asia and other low-cost countries that can meet our requirements."

Philips

"We have various levers to pull to mitigate the impact," Frans van Houten, CEO of the Dutch healthcare and lighting technology company, said during an Oct. 22 earnings call. "One is rearranging our supply chain. Of course, that is perhaps the easiest because we have manufacturing facilities in the United States, in Europe, and in Asia: about one third, one third, one third."

"We are already on a path to create so-called multi-modality factories where we can manufacture stuff from other business units. And we were already anticipating that we need to have regional representation in a world that is more polarizing," Van Houten said. "So, in fact, you could say mentally we were prepared for this. Now, it takes some time to effectuate, bringing some U.S. production into China and vice versa."

Acme United Corp.

"Only 10 percent of our products are covered. And those items tend to be folding knives, the Westcott ruler business, and some first aid components that go into our first aid kits," Walter Johnsen, CEO of the Connecticut-based maker of cutting, measuring and safety products, said during an Oct. 19 earnings call.

"There is a possibility of sourcing in other places for some of those products, but we currently don’t have the quality control teams in some of these countries where we might be sourcing," Johnsen said. "If it was a 25 percent tariff, which is what we’re talking about at year-end, if they can implement it on these items, that would probably drive us to put some people to be looking at quality control in some additional countries on a transient basis as we produce."

Vicor Corp.

"The cost going forward may not be inconsequential, given the volume of components currently sourced from China," James Simms, chief financial officer of the Massachusetts manufacturer of power converters, said during an Oct. 18 earnings call. "We are seeking non-Chinese alternate vendors. In addition, we have filed requests with the U.S. government for exclusions from tariffs on a limited number of components, for which no alternative vendor exists."

Skechers USA Inc.

"We do have capacity to move outside of China. We’ll be no different, I believe, than anybody else. We’ll look for where the best availability is as for production quality and price around the world," David Weinberg, chief operating officer of the California footwear company, said during an Oct. 18 earnings call. "We’ve been segregating some production of some styles from country to country depending on what the necessities are."

"There’s a lot of moving pieces. What happens to the Chinese currency? Does that make up a part of the tariff fees? There’s all kinds of moving parts and it’s too hard to be out up front," Weinberg said. "I think it’s fair to say we are very flexible, we are increasing our production capacity outside of China just in general, so we think we’ll be OK."

The Tile Shop

"With the Chinese tariffs, we are looking at moving. And right now, we’re at -- roughly 50 percent of our product comes out of Asia. My goal is to get that closer to 25 percent or even lower, and the potential for doing that right now is very good," Robert Rucker, CEO of the Minnesota-based retailer of stone tiles, said during an Oct. 18 earnings call. "We’re not waiting. We’re making moves now."

Kuehne & Nagel

"Many of our customers producing in China concentrate more and more of their production on the local Chinese market" while they set up mirrored production facilities in neighboring countries for exports, Detlef Trefzger, CEO of the Swiss freight company, said during an Oct. 18 earnings call. The shift has been going on for almost a decade, he said.

"I would say this trend is accelerating at the moment, but it’s also based on the clear five-year plan of the Chinese government” that “concentrates more and more on the local domestic Chinese market," Trefzger said.

W.W. Grainger Inc.

"Depending on how the tariff plays out, we have alternative sources already in many places and we may have to find some additional ones," Donald Macpherson, CEO of the Illinois-based distributor of maintenance, repair and operating supplies, said during an Oct. 16 earnings call. "We just look at the total economics, total landing cost and pick the one that’s got the best cost for the business. Much of our shifts could come -- if it’s China, if it’s shifted, it could go either to India, to Mexico or to the U.S., depending on the nature of the product."

"In many cases, we already have alternative sources that are identified. And so what we’re referring to is if we have an alternative source, depending on how the math works with the tariffs, we may be looking to switch that. We may not be if the cost is still better in China post the increase," Macpherson said.

https://www.yahoo.com/finance/news/companies-apos-ready-move-supply-143908195.html

 

Moving on up to the east side...

Of Asia that is..

B/A

[Pitcher]

There is a decoupling from China by many businesses and it’s been going on for several years now. Vietnam, South Korea, Taiwan, Japan, Indonesia, Mexico, India, and others are the beneficiaries.  

Go VN Dong

[bostonangler]

6 minutes ago, Pitcher said:

There is a decoupling from China by many businesses and it’s been going on for several years now. Vietnam, South Korea, Taiwan, Japan, Indonesia, Mexico, India, and others are the beneficiaries.  

Go VN Dong

I bet you never thought you'd say "Go Dong" LOL

B/A

[SgtFuryUSCZ]

***///

 

We can still get a gallon of White Vinegar for a Buck at our Dollar Store.  

 

So what's the beef...?   

[Pitcher]

I’ve thought for a long time that the Dong might give us a quicker return on our investment than the Dinar. Every quarter I buy a number of currencies like the Dong, along with gold and silver. It’s amazing how fast you can accumulate investments if you are focused and consistent in your buying!!!!!  Have a Plan and execute it. 

I started in 2007 when I saw the housing bubble getting ready to bust. I had a banker friend of mine tell me he was very nervous and scared for the future.  That was eye opening.