Tariff scare in force.

[Richard]

So President Trump started the 200 billion tariff against China,

Reactions are a bit amusing,in watching CBSN the sky is falling and we are going into a deep ression.

They say the cost of washers and dryers is going up.

But from the great state of Michigan there is a little known company that makes washers and dryers in America,it is called Whirlpool.

They said the cost of Chick fillet will double,so why did they say that,it is a Christian based company that is supported by many.

The reason for the cost increase they say is because the price of the pressure fryers used will increase the operating costs.

Chick Fillet does not use Chinese pressure fryers,any food based company does not use Chinese made equipment because it is junk,use it until it breaks and throw it away,food service uses American made equipment Because it is dependable and reliable,why would they risk thier business trying to save a few hundred dollars.

I buy steel,in 2006 it was expensive and scrap prices was $12 a hundred pounds.

Market crashes and scrap prices drop to 65c a hundred the price of steel drops because of less demand.

Now the market picks up,demand picks up and the steel prices are back up to 2006 levels and the price of scrap is creeping back up.

Is that market correction or Tariff related,the steel prices started going up as soon as the president was elected before even the tariffs went into effect.

A lot of the materials that I buy now are 40% higher then last year and during the crash and everybody says because of tariffs but the prices are actually back to 2006 levels when the market was booming,so they have not actually increased because of tariff action.

Back when Harley Davidson was on the skids they begged then President Reagan to impose tariffs on imported Japanese motorcycles,he implemented the tariffs,Harley Davidson had five years in order to retool and reorganize and by the time the recession was over with and sales increased for Harley.

They used the tariffs to thier benefit at that time,now they had already built an overseas factory years ago because a 60% tariff was placed on them overseas,thier goal in order to save labor costs was to import the parts here and at that point Harley would become assembled in America instead of actually built here.

They actually already left or at the very least laid the groundwork,the tariffs aspect is a way out for them so they save face to thier customer base,a handy excuse.

The same happen for the steel industry but they also choose to invest in other ereas instead of retooling and refitting in order to compete.

The Germans built steel mills in the south to supply the auto manufacturers there,they make profit,if not they would shut down,How come US steel could not do the same in the north?


We are just little pawns in all of this but remember there are others that are all about the $ and like to manipulate things.

[JBMcB]

The company I work for sells software to global manufacturing companies. We watch manufacturing activity indexes around the world *closely* It's been a bit wavering in the last half year or so, but overall things are going fine. People are still importing stuff, making stuff, and exporting stuff at a healthy rate. It may change later if any of the tariffs actually take effect, but not many are operating as if that is going to be the case.

[Ray1936]

Much ado about nothing. It all balances out.