❤️️How a Trump Trade War Impacts You and SAM★INK® Customers? January 29 2018, 2 Comments
OFFICE of the UNITED STATES TRADE REPRESENTATIVE.
EXECUTIVE OFFICE OF THE PRESIDENT.
The United States has consistently enjoyed trade surpluses with Singapore. In 2016, US-made Goods surplus totaled $9.1 billion while Services surplus totaled $9.7 billion.
United States exports of agricultural products to Singapore totaled $754 million, including prepared food, fresh fruit, vegetable oils, animal fats, and dairy products.
Singapore is a small island of 5.5 million people. No water. No farms. No oil. No import duty. No trade barriers. No list of trade wars. No trade retaliation examples.
Singapore is the United States 13th largest goods export market, including machinery, aircraft, electrical machinery, optical and medical instruments, and mineral fuels.
Because the effects of a trade war would be devastating, Singapore has chosen to be a free trade port with zero import duties. Therefore, she has no trade wars in history. No trade war example. No examples of trade retaliation.
In recent years, Singapore's biggest trade deficits were recorded with the United States of America. Despite such trading deficits with the U.S., Singapore has no history of retaliation in international trade.
From this chart, you can predict how Trump will fight. Trump will start at the top with China and then work his way down.
China 30% tariff on solar panels. South Korea 50% tariff on washing machines.
I think China electrical machinery, like wide-format printers, will be next?
The Dow Jones Industrial Average, Dow Jones Index, the Dow 30, the stock market index suffers worst single-day percentage fall in history. Down 8% from its all-time high. US dollar strengthens against a basket of currencies.
For all the reasons we know about, a new fed chairman Jerome Powell takes over, worries over rising interest rates, concerns about higher inflation, deep worries over rising wages, and a big number of heavily indebted companies. Such a scenario can only fuel, give a reason for, and exacerbate trade wars.
“We have a very, very bad trade deal with Korea,” Trump said. “For us, it produced nothing but losses.” Trump singled out South Korea and China, along with Japan, over their trade surpluses with the United States, accusing them of "getting away with murder."
"We cannot continue to let people ... rob us blind and charge us tremendous tariffs and taxes and we charge them nothing," Trump said at the White House. "They've gotten away with murder." Reciprocal tax is on the table.
Trump's steel and aluminum trade war begins.
Commerce Secretary Wilbur Ross recommended significant new protectionist tariffs on steel and aluminum imports. Ross wants Trump to place steep tariffs and quotas on the world’s biggest dumpers of aluminum and steel—most notably, Brazil, China, Turkey, Russia, Venezuela, and Vietnam.
Ross’s proposal includes a 23.5 percent tariff on aluminum from China, Russia, Venezuela, and Vietnam (7.7 percent on other countries) and a minimum 53 percent tariff on steel from Brazil, China, Costa Rica, Egypt, India, Malaysia, Korea, Russia, South Africa, Thailand, Turkey, and Vietnam (24 percent on other countries). There would also be quotas on aluminum and steel imports, limiting countries to 2017 export levels or lower, depending on the country.
Recommendations of the Steel Report:
- A global tariff of at least 24% on all steel imports from all countries, or
- A tariff of at least 53% on all steel imports from 12 countries (Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam) with a quota by-product on steel imports from all other countries equal to 100% of their 2017 exports to the United States, or
- A quota on all steel products from all countries equal to 63% of each country’s 2017 exports to the United States.
Recommendations of the Aluminum Report:
- A tariff of at least 7.7% on all aluminum exports from all countries, or
- A tariff of 23.6% on all products from China, Hong Kong, Russia, Venezuela and Vietnam. All the other countries would be subject to quotas equal to 100% of their 2017 exports to the United States, or
- A quota on all imports from all countries equal to a maximum of 86.7% of their 2017 exports to the United States.
Reciprocal tax for all countries is also under consideration.
Despite all the trade war news, because the United States has a trade surplus with Singapore and because U.S. goods and services enter Singapore duty-free, this small trade partner is unlikely to draw any punitive trade action from the Trump administration. SAM★INK® in Singapore should continue shipping customers eco-solvent, mild-solvent, and latex inkjet inks.
If you like this post, Click here to create an account and keep up-to-date with the wide-format and large format print market.
Sam Leong, BSc., MSc., MBA.
CEO SAM★INK® WhatsApp +65 9011-2282.