IndianRenegade Posted February 21 Posted February 21 (edited) So if everyone is at 10 what relative advantage does India have over say Vietnam? Edited February 21 by IndianRenegade ravishingravi 1
MK55 Posted February 21 Posted February 21 55 minutes ago, IndianRenegade said: So if everyone is at 10 what relative advantage does India have over say Vietnam? Most countries have exemptions on at least a portion of their trade based on what they negotiated / or already existing - those r almost 50 percent for India. So depends if they r gonna adhere to that.
G_B_ Posted February 21 Posted February 21 Rupee has declined 7 to 8% v usd.. So comparitive advantage with india.
rkt.india Posted February 21 Posted February 21 14 hours ago, coffee_rules said: Indian media is celebrating this as a win, but I think the SC has only called the reciprocal tariffs that were imposed, using emergency powers of the president as unlawful. But not the tariffs that were negotiated with trade deals. So for example, india exports will still be taxed at 18% after the trade deal. Trade deal is not signed yet
rkt.india Posted February 21 Posted February 21 (edited) 8 hours ago, MK55 said: How is it 28? The tarrifs under section 301 (requires investigation n hearing) were only applied to very few countries and even there only a portion of their trade. So India should be paying less now? Will have to see under what sections India’s tarrifs lied - MFN 232 etc) Also even with a blanket 10% tarriff, the effective tarriff rate (overall) will be something like 11.4% vs 13.6% (if existing exemptions remain - put in place due to domestic inflationary pressures). And if these exemptions r not followed then yeah it will be 16.5% vs 13.6% (source - Bloomberg) So I expect the exemptions to remain - else will be digging an even bigger hole for inflation. And that means the tarrifs overall will be a little lower. And applying new ones under section 301 is not that straightforward. It’s a lengthy process. That’s why he is using that 10% 180 day privilege for now. I will repeat no country pay tariffs. They are paid by American importers and citizens. Tesla attract 100% stamp duty in India which isn't paid by Tesla but people who buy Tesla. Edited February 21 by rkt.india ravishingravi 1
MK55 Posted February 21 Posted February 21 2 hours ago, rkt.india said: I will repeat no country pay tariffs. They are paid by American importers and citizens. Tesla attract 100% stamp duty in India which isn't paid by Tesla but people who buy Tesla. The country dies not pay but the businesses of that country “pay” indirectly if their products become less competitive due to tariffs n people choose alternatives. coffee_rules 1
mishra Posted February 21 Posted February 21 (edited) 3 hours ago, rkt.india said: I will repeat no country pay tariffs. They are paid by American importers and citizens. Tesla attract 100% stamp duty in India which isn't paid by Tesla but people who buy Tesla. Agree, Tarriff is like GST. At the end, it comes from consumer. Its just that Chinese have massive advantage in manufacturing the product cheaper than rest of world. Tarrif rate by country was supposed to give US leverage to control cost of Chinese products. But Trump being Trump over used it and fukked up. Edited February 21 by mishra
rkt.india Posted February 21 Posted February 21 46 minutes ago, MK55 said: The country dies not pay but the businesses of that country “pay” indirectly if their products become less competitive due to tariffs n people choose alternatives. That's a different matter altogether. Point is countries do not pay tariffs. Here Trump keeps talking about collecting tariffs from countries which is false. ravishingravi 1
ravishingravi Posted February 21 Author Posted February 21 1 hour ago, MK55 said: The country dies not pay but the businesses of that country “pay” indirectly if their products become less competitive due to tariffs n people choose alternatives. But that logic doesn't work unless US has a domestic option ( Even then consumer surplus reduces ). Because 10% across the board means everyone is hit and no one has comparative advantage.
coffee_rules Posted February 21 Posted February 21 4 hours ago, rkt.india said: Trade deal is not signed yet Deall is always agreed upon and later the details are negotiated in the BLA, which is signed. The BLA has small details about how much percentage is imposed on each product, their quotas. If we had agreed on 18%, evenltually would have paid much less based on the product and quotas. I know we in the sense, the US importers and consumers. It affects us on competitive advantage and also trade deficits
MK55 Posted February 21 Posted February 21 (edited) 2 hours ago, rkt.india said: That's a different matter altogether. Point is countries do not pay tariffs. Here Trump keeps talking about collecting tariffs from countries which is false. I don’t want to be lost in the literal meaning n semantics. Point is they penalize businesses and that’s why countries went through all this pain to get a “deal” done. I know countries don’t pay directly. And I’m also not saying imposing tariffs is a good economic decision. Edited February 21 by MK55
MK55 Posted February 21 Posted February 21 (edited) 1 hour ago, ravishingravi said: But that logic doesn't work unless US has a domestic option ( Even then consumer surplus reduces ). Because 10% across the board means everyone is hit and no one has comparative advantage. 1: Every country has got specific carve outs that basically have zero tariff. The portion that’s not covered will have a 10% tariff. Now they may ignore carve-outs initially for logistics but not expected eventually (even inside that 150 days limit) as that defeats the entire purpose of a “deal”. 2: A country may not have a relative advantage from a tariff perspective vs other other countries competing but they still need consumers. Where r German can manufacturers sell their cars? To Uk? Infact Germany will require market access even if they r charged a higher tarriff vs other countries. Edited February 21 by MK55
singhvivek141 Posted February 21 Posted February 21 12 hours ago, IndianRenegade said: So if everyone is at 10 what relative advantage does India have over say Vietnam? Quantity. We can produce goods in amazingly large numbers courtesy of our massive workforce.
MK55 Posted February 21 Posted February 21 Guy has lost it. Tarrifs raised to 15 percent from 10. Tantrum in full swing
IndianRenegade Posted February 21 Posted February 21 16 minutes ago, MK55 said: Guy has lost it. Tarrifs raised to 15 percent from 10. Tantrum in full swing Even a baby would not change its mind like this. The guy is destroying the world’s top economy just like he destroyed every line of his businesses. MK55 and ravishingravi 2
IndianRenegade Posted February 21 Posted February 21 15 hours ago, FischerTal said: more and more it looks like there will be an attack on Iran so Trump can save his behind in the midterms. An attack on Iran won’t save him in midterms, Americans are tired of war. If he gets them into one w/o Iran attacking American homeland, Republicans will go down.
IndianRenegade Posted February 22 Posted February 22 (edited) Rofl….amazing trolling Edited February 22 by IndianRenegade
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