BUD (ASX) Questions for the Webinar

Originally posted by goldbear77: ↑

it makes absolute sense if you understand how it works

the mechanical payment is made by the importer. but they get those funds from the US buyer of their products.

the misleading aspect is what trump keeps telling ignorant voters. ie he keeps implying its Chinese companies pay the tariffs. its true in a technical sense of who;se visa card register the transaction. But in effect its US consumers who pay the tariffs.

the only net benefit the US (or any govt) gets from tariffs in in how price affects demand -
- tariffed importes lift prices to offset tariff
- some buyers buy imports still
- some buyers shift to buying domestic products if they are cheaper

this is why the world spent 50 years dismantling global tariffs after they cause the great depression

its dumb economics but great for populist leaders who pitch to uneducated voters

tariffs main true value is if you want to grow a single industry - you can stop it getting flooded by existing offshore established producers.

other than that they are hugely counterproductive for everyone

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@goldbear, your analysis of the whole tariff debate is also woefully inadequate.

There's no argument that tariffs are destructive, but the question is how do you deal with a trading partner that will not trade fairly and does whatever it takes (free land, low rent, low wages, poor working conditions, access to cheap loans, tax breaks, ignoring environmental issues, technology theft, sabotage etc etc etc) to ensure they can be the most price competitive in every industry and basically destroy the manufacturing industry in every developed economy (thereby damaging the middle class, causing a deficiency of demand in those economies, prompting central banks to lower rates and governments to deficit spend, blowing property and share market bubbles, sowing the seeds of a global financial crises, providing the excuse for QE 1,2,3...., introducing the insane idea of modern monetary theory, taking us to the "zero bound" yadda, yadda, yadda).

Well, every % of tariff eats away at that unfair competitiveness and yes there are a range of consequences and adjustments that need to be made, including a reversal of the lower prices that we have enjoyed in the short term.

This is a negotiation and calling it "dumb economics" and a populist ploy to get votes tells me that your command of macroeconomics and geo-politics is woefully deficient.