China retaliates, slaps duties on U.S. soybeans, planes; markets skid

[bucolic_frolic]

This discussion thread was locked as off-topic by muriel_volestrangler (a host of the Latest Breaking News forum).

Source: Reuters

U.S.-made goods that appear to face added tariffs in China based, on an analysis of Beijing’s list, include Tesla electric cars, Ford’s Lincoln auto models, Gulfstream jets made by General Dynamics and Brown-Forman Corp’s Jack Daniel’s whiskey.

Unlike Washington’s list, which was filled with many obscure industrial items, China’s list strikes at signature U.S. exports, including soybeans, frozen beef, cotton and other key agricultural commodities produced in states from Iowa to Texas that voted for Donald Trump in the 2016 presidential election.

While Washington targeted products that benefit from Chinese industrial policy, including its “Made in China 2025” initiative to replace advanced technology imports with domestic products in strategic industries such as advanced IT and robotics, Beijing’s appears aimed at inflicting political damage.

Tobacco and whiskey, for example, are both on Beijing’s list and are produced in states including Kentucky, home of Senate Majority Leader Mitch McConnell.

Read more: https://www.reuters.com/article/us-usa-trade-china/china-retaliates-slaps-duties-on-u-s-soybeans-planes-markets-skid-idUSKCN1HB0G6

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Dow futures currently down 508 points. This could not come at a worse time for the markets, still digesting the initial volley in the trade war. Elections, policies, tweets all have real world consequences.

[CentralMass]

1. This is surreal. The @$$hole's reign of terror just keeps getting worse.

[Kittycow]

2. I was reading that farm profits were already down

7% and now this. Trump is really looking after the concerns of his farmer voters. Wonder how their economic anxieties are doing.

[bucolic_frolic]

3. Maybe he hopes to buy all the farmland for development after foreclosure?

Trump is an asset grabber.

[Bernardo de La Paz]

4. Tourism is down too. . . . nt

[NurseJackie]

5. I wish there was some way that the pain could be felt ONLY by Trump & Stein voters. Sadly...

... this will affect everyone.

Didn't tariffs have a large part in causing the Great Depression? Are we headed in that direction again?

[bucolic_frolic]

6. Economists pretty much agree on that yes

though not as much attention is paid to FED credit tightening late in the roaring twenties, and stock could be bought on very little margin at that time, 10% down, so the markets were a credit bubble. And there was a real estate crash particularly in Florida early on or preceding the stock market crash.

I personally think tariffs are used by conservative economists to tarnish FDR. FDR used the tariff to raise farm prices because of credit problems, foreclosures, violent actions by farmers in the farm belt. He knew if he could stabilize commodity prices it would help stabilize corporate profits. He used higher business taxes to pay for the New Deal at least initially and in exchange relaxed monopoly enforcement. Food and jobs were pretty important in the Depression and to fight WWII.

[safeinOhio]

7. Perfect storm.

Long term rising stocks start to fall.

Drought in the West.

Trade war.

Got to pack up the car and move to California.

[duforsure]

8. Expect more rising prices on our goods because of trump

China, then others like Mexico and many more he'll create division with to damage our economy with, then they'll do like they've been doing , blame everyone else for the recession, or depression they have caused . He's working for Putin, not us to hurt this country.

[Dopers_Greed]

9. Where the hell are Dems?

They need to start swinging on this immediately.

I'm sure Chump and McTurtle will start blaming Obama.

[unc70]

10. Plus the dollar is tanking

[asiliveandbreathe]

11. Hope corps are fat enough to withstand a downward trend - just no one paying

attention to history - we could very well go back to the poor financing the govt..while the fatcats skate..

FDR, regarded protectionism as antithetical to the average worker -- first, because in FDR's view high tariffs shifted the burden of financing the government from the rich to the poor, and secondly, because he believed that high tariffs concentrated wealth in the hands of the industrial elite, who, as a consequence, wielded an undue or even corrupting influence in Washington.

Sound familiar....

[workinclasszero]

12. No worries folks, stable genius at work

[muriel_volestrangler]

13. Locking - duplicate thread

of https://www.democraticunderground.com/10142029427 . Please continue discussion there. Thanks.