China hits back at Canada with fresh agriculture tariffs

[大汉奸柳传志]

White House says Amazon's plan to display tariff costs is "hostile and political act"​

White House press secretary Karoline Leavitt lashed out at Amazon for its plan to display the price of President Trump's tariffs on products. "This is a hostile and political act by Amazon," Leavitt said during her briefing on Tuesday, which marked Mr. Trump's first 100 days of his second term. Treasury Secretary Scott Bessant was also at the briefing.

 

[ARMalik]

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[Michael]

Regarding the incident of Chinese airlines returning Boeing aircraft.

Recently, this matter has been very popular. But the truth is a bit psychedelic. The following are the details revealed by professionals.

According to US law, the tax rates generated by companies when exporting finished products and semi-finished products are completely different. In order to pay less taxes, Boeing has adopted a "smart" method.
Boeing of the United States has established a company in Zhoushan, China, Zhoushan Boeing Completion Center Co., Ltd.
After the aircraft is completed (excluding interior finishing and exterior painting), Boeing of the United States exports it to Zhoushan Boeing Company in the form of semi-finished products. This is equivalent to Zhoushan Boeing Company purchasing semi-finished aircraft from Boeing of the United States.
After the aircraft arrives at Zhoushan Boeing Company, the company completes the final work (interior finishing and exterior painting). Then, the company sells the aircraft to Chinese airlines.
Under normal circumstances, this method can reasonably avoid a large amount of taxes.

After the United States launched a tariff war, Zhoushan Boeing Company needs to pay high tariffs to the Chinese government for importing semi-finished aircraft from Boeing of the United States. However, the price of the aircraft purchase contract between Zhoushan Boeing Company and Chinese airlines has been locked. If Zhoushan Boeing continues to deliver aircraft to Chinese airlines, it will lead to huge losses. Therefore, Zhoushan Boeing had to resort to breach of contract, refusing to deliver aircraft to Chinese airlines and returning the aircraft to Boeing in the United States. Of course, Zhoushan Boeing needs to pay liquidated damages to Chinese airlines.

Upon inquiry, Zhoushan Boeing Completion Center Co., Ltd. is a joint venture between Boeing (Singapore) and COMAC. Boeing holds 60% of the shares and COMAC holds 40%. This means that COMAC will also share part of the liquidated damages.

However, in the English media world controlled by the United States, this matter has completely changed. The essence of the incident is that Zhoushan Boeing refused to accept American Boeing's aircraft. After media hype, it became a Chinese airline refusing to accept Boeing aircraft...

Special note: Zhoushan Boeing is only responsible for Boeing 737 MAX, not other models of Boeing aircraft.

Boeing (Zhoushan) ：About Us

 

[Menthol]

White House says Amazon's plan to display tariff costs is "hostile and political act"​

White House press secretary Karoline Leavitt lashed out at Amazon for its plan to display the price of President Trump's tariffs on products. "This is a hostile and political act by Amazon," Leavitt said during her briefing on Tuesday, which marked Mr. Trump's first 100 days of his second term. Treasury Secretary Scott Bessant was also at the briefing.

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I don't know if this stupidity???

I just don't understand why the White House is trying to deny it?

Why do they feel attacked if the price goes up because of the tariffs?

 

[Viet]

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I don't know if this stupidity??? I just don't understand why the White House is trying to deny it? Why do they feel attacked if the price goes up because of the tariffs?

easy to understand
It’s all about face.
tariffs are import tax or sales tax, or much like the value added tax.
if you buy a product that is not made in USA you pay an extra fee to the gov.
if Trump and MAGA admit american consumers pay the tariffs then they will lose face, they will be exposed as liars.
Trump knows, MAGA knows they lie but they don’t want to be called as liars.
They believe the average americans are dumber than themselves.

 

[MH.Yang]

One aspect to predict the outcome of this US global trade war is to monitor 10y US gov bonds.
The US now 4.239 yields on debts
much higher than China gov debts with 1.640

should the US yield rise over 5 or in worst scenario 6 percent the fiscal burden for the giant $37 trillion debts will become unsustainable.
the US insolvency will become a possibility.
Trump’s plan to eliminate income tax will push the US faster into bankruptcy.
maybe that’s Trump’s endgame: zeroing all US debts

US 10 Year Treasury Yield - Investing.com

Get our 10 year Treasury Bond Note overview with live and historical data. The yield on a 10 yr treasury bill represents the return an investor will receive by holding the bond for 10 years.

www.investing.com

These Americans still don't realize what's about to happen.

There are two types of defaults on national debt. One is a material default, which means it cannot be repaid. Usually treasuries don't materially default, even Zimbabwe and Argentina didn't choose to materially default. The second is tactical default, which means that they choose to increase their currency issuance to pay it off. This was Trump's inevitable choice after the failed restructuring of the national debt.

But the amount of $6.5 trillion in U.S. Treasuries maturing in June of this year, and the $3 trillion in U.S. Treasuries maturing in the second half of this year, is simply too large. So much additional currency issuance means an inflation and currency devaluation far beyond what Americans can imagine.

Americans must remember the inflation that lasted from 2019 to the present day, which was caused by the $2 trillion in additional currency issued by the U.S. during the COVID19 epidemic. Now it's not $2 trillion, it's $9.5 trillion!

 

[j_hungary]

Turkey can't, nobody can frankly. The entire industrial supply chain is only available in China. From raw materials to finished products including every component and parts. The countries that can substitute some of Chinese products still are dependent on at least some components that's from China.

It really depends.

The reason why China having this much industrial capacity is not because of their resource, but their subsidiary.

Let me use my own business in China as an example, we (our family) have a few factory in Guangdong, making steel bar by pulling them from blast furnace and then supply said steel bar to contract like fans, furniture making and stuff like that.

For us to be profitable, we need to centralise production in a single location instead of having a factory here and there. And to make steel bar, you need

1.) Iron Ore
2.) Coal
3.) Electricity

We buy 35% of Iron ore from China, the other rest 65% high grade ore from Australia.
Coal is black coal also from Australia but run the furnace with brown coal which sourced from China. Tactically, the factory should be located in Australia if we were to streamline the process (We an source both low grade iron and brown coal from Australia), but there are 2 factors against Australia.

1) is very obvious wages gap, I can't hire a person working in Australia lower than $25.25 an hour, for the same price I can hire 2 workers working for an entire 8 hours day in China.

2.) China subsidise both electricity and shipping, which you paid around 20% less for both, and in a long run that save us around 150,000 to 200,000 a year because I can ship Australian coal and Iron ore to China and then make the steel bar and reexport them both at a discounted price, it takes tons of coal and Iron ore to make 100 kgs of steel bar, so the shipping discount is an important issue

That's why that particular line of factories (there were 2) were in China, while the textile factory is in Vietnam and US. We can move to some other countries, if they offer the same subsidiary for us.

 

[MH.Yang]

It really depends.

The reason why China having this much industrial capacity is not because of their resource, but their subsidiary.

Let me use my own business in China as an example, we (our family) have a few factory in Guangdong, making steel bar by pulling them from blast furnace and then supply said steel bar to contract like fans, furniture making and stuff like that.

For us to be profitable, we need to centralise production in a single location instead of having a factory here and there. And to make steel bar, you need

1.) Iron Ore
2.) Coal
3.) Electricity

We buy 35% of Iron ore from China, the other rest 65% high grade ore from Australia.
Coal is black coal also from Australia but run the furnace with brown coal which sourced from China. Tactically, the factory should be located in Australia if we were to streamline the process (We an source both low grade iron and brown coal from Australia), but there are 2 factors against Australia.

1) is very obvious wages gap, I can't hire a person working in Australia lower than $25.25 an hour, for the same price I can hire 2 workers working for an entire 8 hours day in China.

2.) China subsidise both electricity and shipping, which you paid around 20% less for both, and in a long run that save us around 150,000 to 200,000 a year because I can ship Australian coal and Iron ore to China and then make the steel bar and reexport them both at a discounted price, it takes tons of coal and Iron ore to make 100 kgs of steel bar, so the shipping discount is an important issue

That's why that particular line of factories (there were 2) were in China, while the textile factory is in Vietnam and US. We can move to some other countries, if they offer the same subsidiary for us.

The cost of the vast majority of goods (except labor-intensive industries) comes not from labor, but from logistics and warehousing.

I am a foreign trade manager who sells tungsten carbide. If I get an order for a drill bit, I will first go to a tungsten rod factory and customize different grades of tungsten rods for different applications. Then I have to go to a dozen different factories for wire cutting, isostatic pressing and other processes. Because all these factories are concentrated in one city, I can finish the product in two or three days with one vehicle. Logistics and warehousing costs are close to zero.

While other countries usually can only complete one or two industrial processes in their own country, other industrial processes need to be constantly mailed. And the logistics cost alone can be more than three or four times the cost of the product itself, and the time spent is an even bigger number.

So China's price advantage has never come from labor costs; China's labor costs have never actually been the lowest. China's price advantage comes from the fact that China is the only country that has all the industrial segments, and the industrial layout is very good, usually a series of products will be concentrated in one city.

It's the countries that want to beat China on labor costs that are ridiculous. Even if we don't take into account the rapid spread of industrial robots in China, just the complete industrial chain and the urban layout and division of labor from the national level, these are not those countries can do. The correct approach is to integrate into China's production chain, like Vietnam and Cambodia, where China allocates some of the industrial links, and then develops industries based on the Chinese-led industrial system.

 

[LeGenD]

Exclusive: China waives tariffs on US ethane imports, sources say

 

[Han Patriot]

To the genius in this thread, it is SUBSIDY, not SUBSIDIARY. FFS, where did you learn your Hinglish.

' We can move to some other countries, if they offer the same subsidiary for us.'

 

[ety]

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[gambit]

So now you know that your country is responsible for the suffering of other countries.

So, are you happy that you have the most billionaires per capita?

GDP per capita is at the top of the world.

Etc.

So other poor countries deserve to suffer even more?

Sorry, but that is not going to work regarding China.

 

[gambit]

China's export to the US is only roughly 14%

There is an old saying...

If you owe the bank $100, that is your problem. But if you owe the bank $1,000,000, that is the bank's problem.

That %14 is about $500 billions rounded figure.

China Exports By Country

Trading Economics provides data for 20 million economic indicators from 196 countries including actual values, consensus figures, forecasts, historical time series and news. China Exports By Country - was last updated on Monday, May 25, 2026.

tradingeconomics.com

The next closest is HK with about 1/2. And that was 2023. That is the equivalent of the bank holding that $1,000,000 note. That $500 billions is China's problem.

Who else in the world can take up that $250 billions difference? You maybe lucky and get $50 billions. But China cannot force other countries to buy. So yes, looks like we will be seeing more and more of those TT videos in the coming months.

 

[j_hungary]

The cost of the vast majority of goods (except labor-intensive industries) comes not from labor, but from logistics and warehousing.

I am a foreign trade manager who sells tungsten carbide. If I get an order for a drill bit, I will first go to a tungsten rod factory and customize different grades of tungsten rods for different applications. Then I have to go to a dozen different factories for wire cutting, isostatic pressing and other processes. Because all these factories are concentrated in one city, I can finish the product in two or three days with one vehicle. Logistics and warehousing costs are close to zero.

While other countries usually can only complete one or two industrial processes in their own country, other industrial processes need to be constantly mailed. And the logistics cost alone can be more than three or four times the cost of the product itself, and the time spent is an even bigger number.

So China's price advantage has never come from labor costs; China's labor costs have never actually been the lowest. China's price advantage comes from the fact that China is the only country that has all the industrial segments, and the industrial layout is very good, usually a series of products will be concentrated in one city.

It's the countries that want to beat China on labor costs that are ridiculous. Even if we don't take into account the rapid spread of industrial robots in China, just the complete industrial chain and the urban layout and division of labor from the national level, these are not those countries can do. The correct approach is to integrate into China's production chain, like Vietnam and Cambodia, where China allocates some of the industrial links, and then develops industries based on the Chinese-led industrial system.

China never is the lowest in wages, the wages we paid in Vietnam is about 20,000,000 dong a month (about 1000 USD) and we paid Chinese worker about 9000 RMB a month (about 1500 USD)

It's probably cheaper in Philippine and Thailand too

Not sure about other business, we don't need much industrial chain for our family, we needed only Blast Furnace, but we do need a port that close to the factory and rail link to hook it up, that's why we set up our factory in Guangdong. And since you only need sewing machine, we have the textile factory set in Vietnam.

Another thing China is preferred destination is clearing the waybill, It's a lot quicker to clear a waybill (like a flight plan but for ships) than anywhere in the world, on average a waybill is done in 24 hours in China, then you can ship the thing, if you try to secure a waybill for your cargo in Australia or US, this generally takes weeks, sometime months.

 

[ety]

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