[NewUser123]

For anyone who thinks this can help the US re-industrialise, here is a great article about what challenges lie ahead.

https://open.substack.com/pub/hereco...droid&r=2o2kcj

[Samurai]

Originally Posted by NewUser123

For anyone who thinks this can help the US re-industrialise, here is a great article about what challenges lie ahead.

https://open.substack.com/pub/hereco...droid&r=2o2kcj

This is a great article, as an entrepreneur who builds products and supplies to USA and other countries, I can see he talks from real experience. Stock market pundits don't really have this kind of clarity. Yet, governments listen more often to Wall Street than people who actually build stuff.

[am1m]

Originally Posted by NewUser123

For anyone who thinks this can help the US re-industrialise, here is a great article about what challenges lie ahead.

https://open.substack.com/pub/hereco...droid&r=2o2kcj

This is a fabulous article! Made sense to even someone like me who has no idea about manufacturing. To be able to write that plainly about something so complex and to manage to convey the basic concepts to people who don't really have in-depth knowledge, truly shows the experience and expertise of the author.

Thanks for sharing!

[Chetan_Rao]

Originally Posted by NewUser123

For anyone who thinks this can help the US re-industrialise, here is a great article about what challenges lie ahead.

https://open.substack.com/pub/hereco...droid&r=2o2kcj

Unfortunately and ironically - as the author alludes to himself in the article - the people who need to read, understand and react to the nuances are literally incapable of doing so, given the state of American primary education.

Both erosion and accumulation of education - when applied to a large population - are generational; not something doable overnight.

[dragracer567]

Originally Posted by NewUser123

For anyone who thinks this can help the US re-industrialise, here is a great article about what challenges lie ahead.

https://open.substack.com/pub/hereco...droid&r=2o2kcj

Many of these points are relevant to India as well, it's no secret that India is a manufacturing laggard. Specifically the points 2, 3, 5 and 9. Are mold-makers in India made locally or imported?

[m8002?]

Looks like China is going the whole hog against US.

https://m.rediff.com/news/commentary...bf12f830b462ca

China to raise its retaliatory tariff on US to 84 per cent, up from 34 per cent, effective April 10.

Earlier in the day, China released a white paper criticising the US for imposing tariffs on over USD 500 billion worth of Chinese exports since 2018, calling it a form of "unilateralism and protectionism" that undermines global trade cooperation.

This will hit the US farming sector as China imports a lot of farm produce. Interesting times

[dragracer567]

Originally Posted by dragracer567

The few competent American cars like the F150 or Tahoe are models only the Americans and perhaps those in the Gulf states will purchase, sort of like how vehicles like the Bolero or Force Gurkha would only sell in India and some other limited markets.

Couldn’t help having a chuckle when I saw the following on X!

[AltoLXI]

What will Trump do after watching this?

https://www.youtube.com/watch?v=67tHtpac5ws

Who needs a pencil? Here, take these pens

https://www.youtube.com/watch?v=0JG3DC_ZeQ0

[Jeroen]

Originally Posted by AltoLXI

Who needs a pencil? Here, take these pens

It says a lot about the man. Nothing worth mentioning though.

Jeroen

[ads11]

Originally Posted by maddy42

Anyone watched the Death by China documentary on Youtube or netflix? Its based on a book by Peter Navarro who is a senior counsellor for Trade and Manufacturing with Trump in this term.

This the same Peter Navarro who extensively interviewed the expert "Ron Varra"? The same expert who turned out to be a made up character whose name was an anagram of Navarro. If you ask me the man is exactly the kind of hack who has sadly been elevated to a position of power by this unscrupulous administration. His life long hawkish stance on China got his foot in the door and then his Jan 6 insurrection support cemented his position as a trusted lieutenant to Trump.

It's frankly shocking the calibre of "expert" that seems to find themselves in the corridors of power in the US these days. Don't get me wrong, it was equally bad in the UK too in the Johnson and Truss premierships. I think the last decade or so of anti-subject-matter-expertise thinking from the Western public has really allowed some nefarious characters and some absolute cretins into positions of power. The way I see it, they have no leg to stand on anymore when it comes to hectoring the Global South. Anyway enough of my rant. I've digressed enough.

[PreludeSH]

Looks like only China is stuck with tariffs for next 90 days ? India waiting out and not responding might be a good thing.

Vietnam, Bangladesh and Brazil gave permission to starlink to avoid tariffs but got them anyway.

Starlink has lost subsidies in Canada (it servers 400000 customers in north). They were turned down for 900 million subsidies in US since FCC determined speeds are lower than limit. But they are poised to get billions in subsidies now. What a open way of benevolent corruption.

[DigitalOne]

Three relevant news about India, China, and the Trump Tariffs.

In a pointed critique of global trade imbalances, Union Commerce Minister Piyush Goyal said China’s economic ascent was built on "unfair trade practices", hidden subsidies, and distorted labour models—ignored by much of the world since Beijing joined the WTO in 2001.

Source: Economic Times

“This growth was fuelled by unfair trade practices. This growth happened at the cost of fair play,” Goyal told the India Global Forum in Mumbai. “Its foundation lay in actions which, by the rules of the game, would be considered improper.”

He said China’s rise had come “at the cost of national economies and the manufacturing ecosystem” in many countries—including India. The current trade standoff, he argued, is not a flashpoint but the result of years of myopia by the international community.

---

At 79%, China has most cases of dumping cheap products in India: Data

Source: Hindustan Times

China is under the scanner for unfair trade practices such as dumping of goods cheaper than their manufacturing costs in the Indian market to hurt domestic manufacturers. Such items include polyethylene terephthalate resin, aluminium foil, saccharin, decor paper, titanium dioxide, azo pigments, glufosinate, T-shaped elevators, aniline, cold rolled non-oriented electrical steel, black toner powder cartridges, and solar cells.

------

India looks to fortify anti-dumping wall as US-China trade war heats up

Source: Moneycontrol

India is considering a multi-pronged mechanism to curb dumping of goods by China as US President Donald Trump announced additional tariffs, intensifying trade war with Beijing.

Trump on April 9 announced a 90-day pause on higher tariffs for over 75 countries, sending global markets into a celebration mode. However, China was the exception as Trump announced more tariffs, taking the total duties on Chinese goods to a whopping 125 percent.

These developments have worried the Indian policymakers as experts have flagged that China may reroute its exports to its neighbour to beat the tariff barrier.

[V.Narayan]

Originally Posted by DigitalOne

Three relevant news about India, China, and the Trump Tariffs.



Source: Economic Times

Thank you @DigitalOne for sharing the opinions of Hon'ble Minister Piyush Goyal.


All,

To an extent what Goyal states is true that China used State subsidies, stolen IP etc to build its manufacturing base. Those State subsidies have also been used for funding dumping activities. That is only a part of the story. He misses out on the elephant in the room that China created an entire eco system of laws, finances, taxes, ease of doing business, logistics etc that enabled and encouraged the West to set up large manufacturing facilities in China. To ignore these overwhelming factors is convenient because the Indian Govt's over the last 30 years have done only a fraction of all that comes under the umbrella of "ease of doing business". And the Hon'ble Minister is a part of that shortfall.

Further he talks about China dumping. Yes they do. They are notorious. But even more notorious is our Govt when Indian industrialists go with dumping evidence, painfully collated, and get thrown out repeatedly by our own Ministries mainly the one headed by the Hon'ble Minister. We are known amongst Indian industry to not have the courage to take China on where anti-dumping goes.

But he is an Hon'ble man*

*with apologies to Shakespeare and Marcus Antonius.

[m8002?]

Whats the opinion on the 90-day pause? Has Trump blinked after seeing the impact of his actions? Is it possible for US to work out a tariff strategy for each country in this 90 day period?

And what happens if the major economies follow China and hold out?

[amitoj]

Originally Posted by m8002?

Whats the opinion on the 90-day pause? Has Trump blinked after seeing the impact of his actions? Is it possible for US to work out a tariff strategy for each country in this 90 day period?

And what happens if the major economies follow China and hold out?

All good questions. No great answers.

With just over an hour to close of market, the Dow Jones is down almost a 1000 points. This is clearly reflecting the market's lack of confidence in the government's policy making. Right now Trump is talking about the possibility of extending the pause beyond 90 days. This wishy washy behavior is grinding the economy to a halt. Corporations issue debt to fund growth as generally the cost of debt is cheaper than that of equity. Keeping that in mind, below news article tells you that companies are in a holding pattern.
US credit spreads continue to widen, no new bonds announced

Yesterday, before the announcement of pause, the 10 year treasury yield touched 4.5%. That is quite significant as this increases the US government's cost of refinancing their debt and thus increasing the deficit. This could have been a major reason behind the pause.

China, Japan and EU are all holding US treasuries and they can use that as a bargaining chip too.

We are living through some interesting times.