Trump To Slap Tariffs On Up To 900 Chinese Products, Sending Dollar To 2018 Highs

While it was extensively reported previously that Trump is set to slap China with new tariffs as soon as Friday (here and here), there were few actual details what this latest escalation in the trade wars would entail. Moments ago, CNBC provided some much needed clarity, when it reported that list of products subject to new tariffs is expected to include between 800 and 900 products, slightly less than the original list of about 1,300 products published by the U.S. Trade Representative in April; still, the dollar value of goods subject to protectionism remained unclear.

Trump would make a final decision whether to impose the tariffs on Thursday afternoon when the president meets with his advisors, however, a CNBC source said the move was "fait accompli."

The person notes that the administration has circulated talking points for the tariff actions among 10 government agencies. In addition, a list of products has already been uploaded to a government database for implementation.

The White House, U.S. Trade Representative and Treasury Department did not immediately respond to requests to comment.

One factor that could influence Trump's thinking is China's response to the possible tariffs. Earlier on Thursday, China's state news agency Xinhua reported that President Xi Jinping told Secretary of State Mike Pompeo that he wishes the U.S. carefully and appropriately handle sensitive issues including Taiwan and trade conflicts to avoid major disturbance to bilateral ties, citing his comments during meeting with Pompeo in Beijing.

In other words, Xi urges Trump to "tread lightly"

Xi also said the two nations should increase communications and coordination on significant global and regional matters and contribute to world peace and maintain international order; China's president also stressed that Trump-Kim summit is a significant step and sent his congratulations to the U.S. and North Korea o Said that China is willing to keep playing a proactive, constructive role in resolving Korean peninsula issue via political way.

That, of course, was a reminder that without China's influence, Trump would never have been able to have a summit with Kim.

And while Pompeo expressed appreciation to Xi’s "important" opinion and help on Korean peninsula issue and said the U.S. is willing to work together, he certainly did not say that Trump would not escalate the trade war.

Which is ironic, because as we said yesterday, it was the summit between President Donald Trump and North Korean leader Kim Jong Un this week that ultimately opened the door for the trade war with Beijing, because as we - and Rabobank said overnight - China lost leverage to use its influence on North Korea against the U.S.

The result, according to Rabobank, would be a much higher dollar, and sure enough, moments after the CNBC report, the Bloomberg Dollar Index spiked to new 2018 highs, seemingly unstoppable even if it means Emerging Markets are about to puke blood.

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ParkAveFlasher wadalt Thu, 06/14/2018 - 14:20 Permalink

Stronger dollar lowers cost inputs for imported parts and materials.  Savings can be passed to consumer without HD losing its profit in nominal terms, allowing for higher volume in units in domestic markets, who are trading with dollars.  HD shakes off the inefficiencies of having to finance through currency fluctuations to grow and distribute globally and now relies on high volume of dollars (which consumers trade for more, lower-priced motorcycles) to fund its activities.  This creates a dearth of demand for local financing.  This is how a nation plows through high-interest rate environments.  It's just weights and balances, junior.

HD loses access to the European market place (tariff + strong dollar = cost-prohibitive for Euro consumers of HD) but that says nothing of cutting production.  It would behoove them to keep production steady / overproduce (in relation to prior units-geography allocations) and then sell cheap domestically in order to keep the benefit of low cost inputs and their profit margins in the same place before the tariff.

You don't work in supply chain, or sales, do you?

In reply to by wadalt

ParkAveFlasher cheoll Thu, 06/14/2018 - 14:30 Permalink

If I lose market access, I can't sell my goods, what does that do to the price generally, ya crumb bums?

Now if I have full market access domestically, and my strong dollar means my imported parts and materials are cheaper, where does that put my margin?

I have a condition where:

A) can't sell abroad

B) my costs are lower

So I can reduce my price and thus sell more locally.

This is not rocket science, pencil-necks!

In reply to by cheoll

raging-chihuahua ParkAveFlasher Thu, 06/14/2018 - 14:38 Permalink

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NOTE WALDALT talking with himself through CHEOLL!    DARWIN, our Master Spammer is whacked!!!

RIP :: "ll951983" who has gone to join Mr Hankey and The Fallen Spammers!

Biblicism     AND    TodaysFox ("I made $7000 sucking cock on the Internet")  IT's ALL THE SAME SPAMMER!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki
sanctificado
  <<<  NEWBIE
Powow  <<<  NEWBIE
Cheoll   <<<  NEWBIE

Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"
gzcekkyret     <<<  NEWBIE

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

In reply to by ParkAveFlasher

rejected wadalt Thu, 06/14/2018 - 15:30 Permalink

"Stronger dollar means American products become too expensive to export. "

That's all BS.... it's what's taught to college pukes today.  First America has little in the way of consumer goods to trade. Agriculture, Dairy and Weapons are the major exports. And with the corporate farms going Monsanto, a lot of the world don't want our food.

They look at all the fat slobs and want no part of it.

In reply to by wadalt

Simplifiedfrisbee wadalt Thu, 06/14/2018 - 15:54 Permalink

Park argued that less competition and a stronger dollar will fuel domestic consumption and make up for the loss of international makets. 

 

What a fucking inbred Nazi.

 

He must also think that Americans consume the worthless technology and lifestyle trends of the early 20th century. 

 

First, US domestic wages are not competitive internationally. A downward shift of non-labor input prices would not offset the increase in labor prices. Furthermore, American labor is inefficient relative to international labor. Productivity would decrease and be absorbed in prices. So much for exporting inflation. 

 

Second, the stock market would crash for two main reasons. A stronger dollar policy from tariffs would reduce overall trade. This means layoffs would occur at exporting based companies and R&D/buybacks would come to a halt. The short term rates would explode leading to a credit crunch. The treasury and fed would then need to finance themselves. This could send the dollar into a short position internationally. Volatility would be crazy. 

In reply to by wadalt

Whoa Dammit ParkAveFlasher Thu, 06/14/2018 - 14:17 Permalink

OT: 

Georgia residents need to earn $17.53/hour to afford a modest 2-bedroom apartment. At minimum wage, you'd have to work 97 hours per week to afford that apartment.

That is according to a new report from report from the National Low Income Housing Coalition, which found minimum wage workers currently cannot afford a two-bed apartment anywhere in Georgia or the entire United States.

 

https://www.wsbtv.com/news/georgia-minimum-wage-workers-can-t-afford-2-…

In reply to by ParkAveFlasher

rejected wadalt Thu, 06/14/2018 - 15:26 Permalink

"Those Trump tariffs mean, things will become MORE EXPENSIVE for the average American."

How much do you suppose the average American is paying for all the unemployment and welfare for those out of work because American corporations ditched America?

I grew up in a time when most everything was made in USA. Had a new car, and a decent house. Of course we didn't buy those cheap $1000 Ipads and phones nor did we purchase $40-80,000 vehicles or $300,000 houses. Seems money for these things are no problem to Americans today....

In reply to by wadalt

Simplifiedfrisbee rejected Thu, 06/14/2018 - 15:59 Permalink

You stupid inbred.

 

Don't blame others because you became a complacent and ignorant person. 

The point here is your elected Americans (same denomination, same colored eyes, same pale buttery skin, and same accent) sold you out. Not the Jews and not the Chinese.

 

You didn’t read between the lines and thought your coal job was guaranteed for you and little tommy.  

 

 

In reply to by rejected

hxc Idiocracy Thu, 06/14/2018 - 21:25 Permalink

How many operating systems do people actually use? Windows, mac (now unix), various flavors of linux (also unix based) and a few random ones like os2 back in the day, which was basically windows.

My problem with cryptos is that, not only is the potential number of crypto's staggering, but most of them are backed by FUCKING NOTHING... and why own a crypto with backing if you can just own the asset itself? Ridiculous

In reply to by Idiocracy

Scipio Africanuz arcanebear Thu, 06/14/2018 - 16:10 Permalink

It seems to me that some people are sabotaging Pompeo, they won't let diplomacy work, either out of pique, jealousy, or hatred. Every effort to restore US credibility, and achieve survival as a great and cooperative power, is being frustrated. Now, doubts are once again being sown in the hearts of partners, and by that, I don't mean the EU, that entity is done, regardless of what it does.

It's the USA I'm concerned about, she still has a very slim chance to snatch her chestnuts from the fire, and decision makers need to realise the world has changed significantly!...

In reply to by arcanebear

Conax Thu, 06/14/2018 - 14:08 Permalink

"the Bloomberg Dollar Index spiked to new 2018 highs" as silver spot also rose above 17. 

Gee, a higher dollar and higher silver simultaneously?

Bu..but I thought silver only goes up when the dollar goes down..?

I guess they will need to bring out the hammer to make the above statement true again.