₦airaland Forum

ajailer:
It's cheaper to produce goods in China, which I believe is the reason behind Chinese tariffs being higher on imported goods from America as compared to the otherwise. America might lose this tariff war except they can bring down the cost to produce goods too, and by the way, why is Trump forcing importers to bring manufacturing of their products back to America when the system is a capitalist system and it makes no business sense to operate in an environment where you expend more resources when you have a cheaper alternative.

Trump has bitten more than he can chew right now. He is a realtor abi, when he is constructing his buildings, will he use cheaper building materials from abroad or more expensive ones from his country when he is in the business to take profits?

No, they wouldn't. It's all propaganda.

A man who's down cannot fall. He's down already. If you take a look at that board on President Trump's hands, it reads: Reciprocal tariffs.

America has been absorbing these tariffs from the countries on that board for months and even for years. Increasing it in retaliation by a notch would not make any difference. A country absorbing as high as 40% on tariffs (on all products it imports) would not suddenly pass out if you decide to make it 60%, 70% or even more. They have been at it for years so it is not going to move jack. Trump's got to be the wisest man alive. I doff my hat for him. It's all noise. Nothing is going to happen. The US would not feel a prickle of heat from this brouhaha unless these countries conspire to stop sending products into the country altogether.

Na propaganda bros.

Baldwretch:
No, they wouldn't. It's all propaganda.

A man who's down cannot fall. He's down already. If you take a look at that board on President Trump's hands, it reads: Reciprocal tariffs.

America has been absorbing these tariffs from the countries on that board for months and even for years. Increasing it in retaliation by a notch would not make any difference. A country absorbing as high as 40% on tariffs (on all products it imports) would not suddenly pass out if you decide to make it 60%, 70% or even more. They have been at it for years so it is not going to move jack. Trump's got to be the wisest man alive. I doff my hat for him. It's all noise. Nothing is going to happen. The US would not feel a prickle of heat from this brouhaha unless these countries conspire to stop sending products into the country altogether.

Na propaganda bros.

If you said it's propaganda, then let's look at Nigeria's case. Tariff on imported cars(99% of cars in Nigeria is imported btw, as we don't have a local car manufacturing industry ) has been increased by the government. This has lead to the citizen now paying more to own cars, but economically, lesser people can afford this new prices, so people buying cars are not as many as before, and this has lead to a drop in revenue for the government. On the long run, the government is killing itself cos they are not innovative enough to figure out a winning solution for everyone. Now Trump is doing something like this to America.

QuinQ:
The thing is, China is NOT trading fair. They BAN some American companies and slap very high tarriffs on foreign products (which Nigeria also does) meanwhile American market is wide open for them. Is that fair?
Best thing is NO banning any companies and NO tariffs

I know China is using unfair trading practices, and they won't stop cos this method is making them a world power economically, but is it possible for Trump to fix their local industry so that America will be less dependent on Chimes imports? This is what China is doing to them.

hayzed1090:
I just hope your are not one of those criticizing tinubu government

What has my analogy go to do with Tinubu.

I'm not a fan of Tinubu anywhere.

ajailer:
If you said it's propaganda, then let's look at Nigeria's case. Tariff on imported cars(99% of cars in Nigeria is imported btw, as we don't have a local car manufacturing industry ) has been increased by the government. This has lead to the citizen now paying more to own cars, but economically, lesser people can afford this new prices, so people buying cars are not as many as before, and this has lead to a drop in revenue for the government. On the long run, the government is killing itself cos they are not innovative enough to figure out a winning solution for everyone. Now Trump is doing something like this to America.

The ultimate goal of imposing tariffs is not to make more money for the government - at-least not in the long run.

In a self-reliant or almost self-reliant country like the US, tariffs would serve its purposes - it would discourage purchase of certain imported items and boost local production of these products because the ones being imported would be more expensive compared to locally sourced ones.

That is going to be the case because the US dollar is the medium of exchange and is not susceptible to fluctuation like other currencies. Besides, most citizens can afford the US dollar because it is the... LEGAL TENDER!

When a country relies lesser on imported products and more on what its citizens produce, everyone fares well and everyone is happy. What you said of Trump doing same for the US is false equivalence. Just because we have been unable to stoke local production of vehicles in a way that discourages importation does not mean that America would experience similar fate. We have been unable to stoke local production of almost everything we used to import in the past, not just vehicles.

A lot of countries, and I mean a lot, are less reliant of importation and these countries aren't even at the standards of the US, economically speaking. Nigeria's problem is more than a peculiar problem. So many nuances and variables at play. Don't compare them.

Moroccoguy:
AFRICAN COUNTRY SHOULD LOWER THERE OWN TARIFF TO ENCOURAGE FOREIGN INVESTORS.

Then go back to IMF and World Bank to borrow dollar loans for foreign investors to repatriate profits back home

SmartPolician:
The damage was heaviest in companies whose supply chains are most dependent on overseas manufacturing.

Trump has warned you guys to stop taking your businesses outside America so you can boost the local economy. In a couple of years, we'll know if Trump is taking the right steps or destroying American economy.

Have you ever been a part of a major decision making session on an organisation?

Major business decisions are made based on data and how it will affect the company.

It's a known fact that production is cheaper outside the US because of labour costs and some other factors.

So why produce in the US when you can produce in China at a cheaper cost?

Goodvibes007:
There some jobs that Americans would never do. Like all those nike and apparel factories in Vietnam or bangladesh. And if Americans by miracle decide to, a nike shoe would cost 500 dollars instead of 50 dollars.

Wow.. that won't be funny anymore o!

Dude is just wrecking the US economy.

Asonaijaaso:
The $2.5 trillion wipeout in the S&P 500 would have ripple effects on Nigeria’s economy:

1. Oil Prices: The slowdown in global growth due to tariffs could decrease demand for oil, leading to lower oil prices — a direct blow to Nigeria’s oil-dependent economy.
2. Foreign Direct Investment (FDI): With rising global uncertainty, investors may pull back from emerging markets like Nigeria. The prospect of a US recession would deter investment in Nigeria’s non-oil sectors.
3. Inflation Pressure: The devaluation of the dollar globally and disrupted supply chains could drive inflation in Nigeria, increasing the cost of imported goods and affecting the already fragile purchasing power.
4. Remittances: A potential US recession may affect Nigerians living abroad, reducing remittances, which make up a significant portion of Nigeria’s foreign exchange reserves.
5. Dollar Shortages: As the US dollar weakens or fluctuates, Nigeria, already struggling with a dollar shortage, may face more severe FX crises, worsening import costs.

The US-China tariff war would likely trigger global economic deceleration, making it harder for Nigeria to meet its growth targets and increasing the risk of an economic downturn.

That is the type of analysis I want to see often, not coconut head that full nairaland all their contributions is to insult people along ethnic line. Some of them don't even read the text of the story the next is to start insulting Peter Obi and his Obedient family. Anyway than you for your insightful American tariffs analysis as it may affects us as a nation Nigeria.

SmartPolician:
The damage was heaviest in companies whose supply chains are most dependent on overseas manufacturing.

Trump has warned you guys to stop taking your businesses outside America so you can boost the local economy. In a couple of years, we'll know if Trump is taking the right steps or destroying American economy.

since he came in January, you think they should canceled all production they've ordered before inauguration? Besides, they produce in china to help their own economy.

Asonaijaaso:
The $2.5 trillion wipeout in the S&P 500 would have ripple effects on Nigeria’s economy:

1. Oil Prices: The slowdown in global growth due to tariffs could decrease demand for oil, leading to lower oil prices — a direct blow to Nigeria’s oil-dependent economy.

2. Foreign Direct Investment (FDI): With rising global uncertainty, investors may pull back from emerging markets like Nigeria. The prospect of a US recession would deter investment in Nigeria’s non-oil sectors.

3. Inflation Pressure: The devaluation of the dollar globally and disrupted supply chains could drive inflation in Nigeria, increasing the cost of imported goods and affecting the already fragile purchasing power.

4. Remittances: A potential US recession may affect Nigerians living abroad, reducing remittances, which make up a significant portion of Nigeria’s foreign exchange reserves.

5. Dollar Shortages: As the US dollar weakens or fluctuates, Nigeria, already struggling with a dollar shortage, may face more severe FX crises, worsening import costs.

The US-China tariff war would likely trigger global economic deceleration, making it harder for Nigeria to meet its growth targets and increasing the risk of an economic downturn.

True that.