Trump Knows Who To Blame For Trade War With China, It Is Harley-Davidson
Here is a tip from us, about "economics": If you make stuff more expensive, people will buy less of it. Strangely, however, our Very Successful Billionaire (Maybe) Businessman president seems not to have anticipated this development.
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with… https://t.co/lPSkkolNRP— Donald J. Trump (@Donald J. Trump)1519987834.0
Okay, what we're saying is, it was entirely predictable that Donald Trump would have no idea how a trade war actually works. But YOU DID, because Yr Wonkette 'splained it to you months ago. Remember how we told you Donald Trump's 25 percent steel tariff was going to be paid by American consumers, not foreign producers? Well now the bill is coming due. Per the New York Times,
Mid Continent, the largest American producer of nails, imports steel from Mexico to make its nails. That steel is now subject to the 25 percent tariffs that Mr. Trump imposed on dozens of countries, forcing Mid Continent to raise its prices by nearly 20 percent.
Orders have plummeted by 50 percent this month as the company tries to compete with cheaper foreign-made nails. Those foreign manufacturers are not facing higher steel costs, giving them an advantage over Mid Continent.
The company, which employs about 500 workers, has already cut 60 jobs. It could potentially cut 200 more in the coming weeks.
Wow, what a totally foreseeable turn of events! AND YET, we still wish the Trump-lovin' owner of this company all the luck as he lobbies Democrat Claire McCaskill to help him save hundreds of jobs.
Say, you know what else a sentient person could see coming a mile off? GETTING PUNCHED BACK. Did Trump really believe he'd slap tariffs on China and Europe and they'd just roll over and let him blow up their markets? Can he really be that stupid?
JK! LOL! ROFLMAO!
China slapped retaliatory tariffs on American soybeans in March, causing American soybean prices to crater while Russian and Brazilian farmers rushed to get seeds in the ground. And Chinese and Mexican tariffs on pork are about to kick Iowa and Nebraska right in their pink bits just in time for the election.
Meanwhile, the European Union just bumped tariffs on American motorcycles to 31 percent, a 25 percent increase. Which means that Harley-Davidson motorcycles just got a lot more expensive to import into Europe. Never fear, though, because the company will just shift production of bikes sold in Europe from its Wisconsin factory to overseas plants -- PROBLEM SOLVED! NYT reports,
Rather than pass that cost along, the company said it would shift production to its overseas facilities to avoid the European Union tariffs.
"Harley-Davidson believes the tremendous cost increase, if passed on to its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers' businesses," the company said in the filing.
A Harley-Davidson should never be built in another country-never! Their employees and customers are already very an… https://t.co/iTUQaIXwHJ— Donald J. Trump (@Donald J. Trump)1530015469.0
Nice business you got there! Would be a shame if something were to happen to it, if you know what I mean!
How many jobs will disappear from the Wisconsin factory is not immediately clear. What is clear, however, is that our trade adversaries are enacting strategic levies, rather than swinging wildly and punching themselves in the dick. Unlike some people!
Okay. We're governed by a fucking idiot who appointed a nutbag crank to head up the National Trade Council, and now Trump voters are FUUUUUUCKED.
Follow your FDF on Twitter!
Liz Dye lives in Baltimore with her wonderful husband and a houseful of teenagers. When she isn't being mad about a thing on the internet, she's hiding in plain sight in the carpool line. She's the one wearing yoga pants glaring at her phone.