Another head-scratcher from the morons.
Question though is: In what currency is the new Chinese tariff in?
IOW if its in USDs, i.e. they want more USD to bring the US produced pork into China, then its just another typical scam by these disgraced hacker USD zombies to get EVEN MORE USDs for their account...
OTOH if they want CNY to be paid by whatever state institution that imports the US produced pork then it may act to retard the importation of US produced pork products if they are in domestic pork surplus in China.
China places a tariff on U.S. pork. This comes after China purchased largest U.S. Pork producer, Smithfield. China is taxing itself on its own U.S. products.— TheLastRefuge (@TheLastRefuge2) April 2, 2018
Methinks Panda is playing trade-warfare strategy without accepting the U.S. citizen has access to information. https://t.co/C22Y1EAQJb
6 comments:
The Last Refuge is out to lunch. The amount of pork that is produced by Smithfield is minuscule in comparison to the amount of pork and soybeans produced by American (Iowan) farmers — you know, Trump voters. This is targeting Trump's rural base with serious pain and living in Iowa, I can tell you that they are already squeezing. The loses are projected in the hundreds of millions already as prices have adjusted downward in expectation of lower demand from China, which will either produce more pork domestically or import elsewhere. They also know that once a market is lost, it never comes back as alternative supply is forthcoming.
"Squeezing" should be "squealing."
Yeah but what currency is the Chinese tariff in?
We know it is x%. But in what currency?
A tariff is like a tax or fee (in this case a "fine" for putatively bad behavior) collected from domestic importers based on the prices they pay in the currency zone. US importers will pay a tariff to the US government in USD and Chinese importers will pay a tariff in CNY to the Chinese government.
As long as China pegs CNY to USD, there won't be a significant adjustment in exchange rate.
China needs to float that sucker.
It’ll go up too much... they might be able to add an additional ration of dog brain soup to export workers daily compensation if that happens...
It’s just too radical...
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