Tag: Tariffs

China vs. the US: shipbuilding, subsidies, and the Jones Act

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Hypocrisy thrives where double standards prevail.

Earlier, I stupidly tweeted out an article about the Jones Act and shipbuilding and Colin Grabow, from the Cato Institute, liked it (he was quoted in the article). I looked him up and decided to listen to this video on the shipbuilding competition between China and the US, where he and a lawyer for United Steelworkers were on the panel. China is eating their lunch, and it’s the ruling elites’ own fault, yet they scapegoat China for it. The double standards over China’s “unfair economic practices” AKA the subsidizing of their shipbuilding industry irritates me (liars irritate me even more). States give subsidies, grants, and tax breaks to corporations, all the time. Fincantieri Marinette Marine is just one example, but Wisconsin had done the same for Foxconn. Foxconn received tax breaks and $3B in subsidies, which was “the largest ever subsidy provided by a state to a foreign company”, despite not living up to their promises.

Rumble

Colin Grabow wants to end the Jones Act. I’ve made at least three video clips regarding the Jones Act, two with Sal Mercogliano from What’s Going On With Shipping and one from the government-funded CSIS (I’ve posted them, below). Spoiler alert: Sal says that the problem isn’t the Jones Act. Meanwhile, both CSIS and the Cato Institute (part of the Atlas Network) blame the Jones Act. Deregulation is a wet dream of big corporations (which fund both the Cato Institute and CSIS).

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Trump and Biden, Republicans and Democrats all agree: affordable Chinese cars should be banned

Ms. Cat
Trump and Biden, Republicans and Democrats all agree: affordable Chinese cars should be banned

Related:

Trump’s attacks on Chinese cars strike a chord — with both parties

“Ohio knows all too well how China illegally subsidizes its companies, putting our workers out of jobs and undermining entire industries from steel to solar manufacturing,” Brown said in a statement. “We can’t wait for China to run this same playbook in the auto industry — we need strong rules, including but not limited to tariffs, to stop a flood of Chinese electric vehicles that threaten Ohio auto jobs.”

…

He said the average price gap between a Chinese vehicle and its U.S.-made counterpart ranges from 44 percent to 179 percent. “That is a massive gap,” the executive said. “Tariffs alone aren’t going to take care of that.”

Reuters: Mexico yields to US pressure on incentives for Chinese car makers

He said that such incentives have declined during the government led by President Andrés Manuel López Obrador, who took office in late 2018, although they have been offered to large investors such as Audi.

Hypocrisy, Thy Name is the United States:

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Biden’s push for more Chinese steel tariffs is a political decision, not an economic one: Analyst

Ms. Cat
Biden’s push for more Chinese steel tariffs is a political decision, not an economic one: Analyst

Biden wants to hike tariffs on imports of Chinese steel and aluminum

Chinese steel imports account for less than 1% of U.S. demand, officials told reporters. But Chinese subsidies and programs mean its steel prices are 40% lower than U.S. prices, and the Biden administration is worried that there could be a surge of exports.

Related:

Trump’s tariffs are equivalent to one of the largest tax increases in decades

New Democrat Coalition Trade Task Force Statement on Section 301 Tariffs Announcement

Trump invites Chinese to build US auto plants

Ms. Cat

Trump invites Chinese to build US auto plants

Trump’s offer to China went unreported in virtually all media. Mainstream US media attacked the former president for using the term “bloodbath” to describe the impact of prospective Chinese imports on the American auto industry, implying that he had threatened actual violence if he was not elected. But the transcript of his remarks at a Dayton, Ohio, rally makes clear that he was referring to industry conditions.

PH: Compared To China, US Trade, Investment Offers Laughable + More

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Compared To China, US Trade, Investment Offers Laughable

On the other hand, the BRI (Belt and Road Initiative) donations of China alone that are reality– Chico River Irrigation Pump, Davao Bucana Bridge, Estrella-Pantaleon and Binondo-Intramuros Bridge, the ongoing Kaliwa Dam Project that would provide 600/mld (million liters per day) to drying Metro-Manila and hundreds other projects– already count billions of dollars, not to mention private investments like DITO Telecoms’ $ 3.9 billion investment in our telecom sector.

Related:

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The Protectionists, the Free Traders and the Working Class

Ms. Cat
Source

The protectionists have never protected small industry, handicraft proper. Have Dr. List and his school in Germany by any chance demanded protective tariffs for the small linen industry, for hand loom-weaving, for handicraft production? No, when they demanded protective tariffs they did so only in order to oust handicraft production with machines and patriarchal industry with modern industry. In a word, they wish to extend the dominion of the bourgeoisie, and in particular of the big industrial capitalists. They went so far as to proclaim aloud the decline and fall of small industry and the petty bourgeoisie, of small farming and the small peasants, as a sad but inevitable and, as far as the industrial development of Germany is concerned, necessary occurrence.

The Protectionists, the Free Traders and the Working Class

Pakistan’s misery continues

Ms. Cat

Pakistan has a general election today. It will decide on the next government of the world’s fifth-most populous nation and the governments of its four provinces — Punjab, Singh, Balochistan and Khyber Pakhtunkhwa. Around 128 million people can vote to pick 266 representatives to form the 16th parliament in a first-past-the-post system. They will also vote to elect the legislatures of the country’s four provinces.

Pakistan’s misery continues

U.S. raids Chinese auto parts maker in Ohio

Ms. Cat

U.S. raids Chinese auto parts maker in Ohio

In September, the House Select Committee on the Chinese Communist Party in September wrote a letter to DHS Secretary Alejandro Mayorkas accusing Qingdao Sunsong of moving some of its production to Thailand to evade U.S. tariffs.

The letter identified Qingdao Sunsong’s public filings, which say the company’s products are subject to U.S. import tariffs of 25% imposed on certain goods made in China and that “in order to reduce tariff costs, the issuer has accelerated production in Thailand.”

In the letter to Mayorkas, Republican congressmen Mike Gallagher* of Wisconsin and Darin LaHood of Illinois called Sunsong’s actions a “case of blatant trade fraud that is having a catastrophic impact on American manufacturers.”

*Racist piece of 💩!

H/T: Johnsonwkchoi

Countries Eye Weight Tax To Counter Public Safety Threat Of Extremely Heavy, Large EVs

Ms. Cat

Countries Eye Weight Tax To Counter Public Safety Threat Of Extremely Heavy, Large EVs

The electric Ford Lightning, for example, is a whopping 6,500 pounds. The Hummer EV is even heavier, clocking in at 9,000 pounds. Its battery alone weighs more than a Honda Civic. Experts have pointed out the significant safety ramifications of this transition for a while, but it’s still not clear that we’ve prepared the regulatory and policy landscape for such a transition.