09/3/19

Tariffs — The Tariffs Are Working

A lot of folks whose opinions I respect have been saying that the Trump admin tariffs against China will simply impact our lives in the form of increased prices.

I have maintained otherwise. I have consistently said the imposition of tariffs will create structural changes in the way American importers source and deliver goods to the US economy; and, they will change the way individuals buy/boycott Chinese goods.

As a personal example, I no longer buy any Chinese goods. None. I check everything to see where it was made. Made in China? Adios!

Now, we are seeing the truth of that. I was right. <<< Obnoxious utterance ALERT!

Allow me to rub your nose in it, may I, please?

Comes now the story of the American dollar store industry in the specific exemplars of Dollar General and Dollar Tree who were literally created by their ability to access low cost foreign made goods and to sell them to a slice of America who not only wants a bargain, but desperately needs one.

These stores are ground zero when it comes to selling foreign sourced goods. They are the canary in the mine shaft. The canary has begun to sing.

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07/28/19

Tech, Taxes, Tariffs, Trade — And French Wine

France has imposed/threatened a “digital services tax” on the likes of Amazon, Apple, Facebook, and Google — all American companies.

The tax is 3% of gross revenues from digital services earned in France, but only for companies with more than 25MM Euros in French revenue and 750MM Euros in worldwide gross revenue. The tax money goes to France.

When you work through the math it puts a bullseye on Amazon, Apple, Facebook, and Google while giving a pass to many European companies who collectively are just as big as these digital behemoths. This is not an accident.

This tax was discussed for some time period, but its enactment caught a lot of folks by surprise. One who was not caught by surprise was President Donald J Trump.

President Trump had spoken to the French President Emmanuel Macron cautioning him that such a tax would be met with an American response.

Image result for images macron

President Trump, in his inimitable fashion said, “Don’t do it because if you do it, I’m going to tax your wine.” Macron blew him off. French wine is a huge industry.

The French Finance Minister, Bruno Le Maire, sniffing at the ruffian DJ Trump, suggested that taxes and tariffs were completely unrelated. Good luck with that, Bruno.

Taxes and tariffs are core elements of trade while technology, digital services are a critical element of American commerce.

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