Potential Increased US Customs Duties on Vintage Vehicle Imports of 25 Percent - Page 5 - Alfa Romeo Bulletin Board & Forums
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post #61 of 70 (permalink) Old 06-20-2018, 10:12 PM
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One of the dangers of increasing tariffs is that they have the capacity to create artificially distorted markets. This is, of course, what trade protection sets out to do but since trade protection is antagonistic to the operation of free markets, there is an almost guaranteed reduction in trade. A number of years ago I found myself at a table with some very accomplished economists who were very interested in this phenomenon. One of them was Gordon Tullock who discussed the political consequences of trade barriers which tended to produce the practice of "rent seeking".

When businesses find that they are encouraged by government to operate in artificial tariff protected markets, they naturally enough militate against any return to the rough-and-tumble world of free-market competition. To protect their tariff-aided interests, they typically turn to political arrangements to ensure that the tariff status-quo is maintained. This "rent seeking" behavior is dangerous to free markets because it tends to institutionalize tariffs and make them permanent.

While I understand Trump's use of tariff brinksmanship as a negotiating tool to create trade relationships based on equitable tariffs, there is always the present danger that political forces will seek to make high tariffs permanent, thereby defeating the initial purpose of raising tariffs. We live in interesting times.

From Wikipedia . . .

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"Tullock developed a theory referred to as rent-seeking. Rent seeking, according to public choice theory, is securing profits through the political process rather than the market process of exchange. An example of rent seeking is when a firm, union, or special-interest group lobbies political actors (e.g. politicians or bureaucrats) to influence legislation in a beneficial manner. This can lead to moral hazard when politicians make policy decisions based on the lobby instead of the efficiency of the policy.
'

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post #62 of 70 (permalink) Old 06-21-2018, 06:17 AM
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Rent seeking by Jeff Immelt has led to the fall of the once mighty GE. He thought that GE would prosper by close association with the (Obama) government and hired scores of lobbyists to get government projects. The strategy failed and GE were dropped from the Dow Jones index to be replaced by Walgreens!
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post #63 of 70 (permalink) Old 06-21-2018, 06:49 AM
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This is just a guess.
Between the US and Canada, I think Trump is going for free-er trade.
NAFTA was an agreement between bureaucrats and was for bureaucrats. Then, they screwed up whatever agreements by allowing each central bank to continue currency depreciation.
C$ went from 100 to 63. A blatant cheat.
It should be completely free trade with the C$ pegged to the US at par. No rules nor tariffs and no cheating on the currency.

Every great financial bubble has been followed by a severe contraction. That is when the world turns to protection. Politicians in each country have to do something about soaring unemployment at home.
Following the 1825 Bubble, it was called, in real time, the "Tariff of Abominations".
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post #64 of 70 (permalink) Old 07-03-2018, 01:24 PM
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25 % Tax on classic Alfas

from an article: ( I hope Weathertech imported their $70M GTO in time !! )


Trade War
July 3, 2018 11:43 am
Classic And Used Cars Are Falling Victim To US Trade War

The trade war between the United States and Europe may lead to severe repercussions for car enthusiasts worldwide. While the trade war is aimed at new car manufacturers, itís one classic car and even used car buyers worldwide can fall victim to.

Classic cars are traded on a global scale by dealers, auctions and private collectors. Low import duties on classics, along with record-low ocean shipping rates, allow automotive enthusiasts to purchase cars from overseas with ease.

The U.S. is one of the largest sources of cars popular with classic car enthusiasts. According to data provided by Piers, there are more than 35,000 classic cars exported from the U.S. each year in containers. Everything from American classics like the Mustang and the Camaro, to European sports cars like the Porsche 911 are exported from the U.S. Just in the U.S., auctions sold $1.31 billion worth of classics in 2017.

Open trade benefits classic car owners on each side by making it easy to purchase and sell, increasing the value and preserving the very special examples. The recently proposed import duty of 25 percent will be met with a reciprocal 25 percent in Europe, essentially removing foreign buyers from U.S. and European markets. The end result will be that collectors on both side of the Atlantic will see less demand for their cars.

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post #65 of 70 (permalink) Old 07-03-2018, 01:28 PM
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We have a thread on this topic in the Off Topic Forum.

Jim . . . '72 Super 1300, '70, 1750GTV, 2nd series,
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post #66 of 70 (permalink) Old 07-03-2018, 02:18 PM
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post #67 of 70 (permalink) Old 07-03-2018, 10:36 PM
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This is just a load of mis-information.....

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post #68 of 70 (permalink) Old 07-05-2018, 01:27 PM
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we must be 'winning ' pres. daft dogger bones spurs, putin lovin' ' says so..
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post #69 of 70 (permalink) Old 07-05-2018, 02:07 PM
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Quote:
Originally Posted by 180OUT View Post
The macroscopic view is clearly evident: America in the immediate post-war years understood that nations damaged by the war would use tariffs as a way of shielding their recovering industries. This country was wealthy enough in the post-war years that the resulting trade imbalances, if not popular, could be understood and accommodated. Our trading partners became used to this structure, maintained it over decades, and now are "shocked-shocked" that Trump is advocating "fair-trade" relations which allow our goods to be sold in their markets at tariff rates that are similar to what we charge them for selling their goods in our market. . . .
Indeed. Glad the Marshall plan was around and there was some tariff leniency from us while Europe and Japan rebuilt (notably with modern technology that beat our industries and put them out of business). And like many a government helping hand program it turned into a bloated bureaucracy hammock with no sunset. The Bilderbergs just loved it. Some saw no real benefit like Mexico after NAFTA but then nothing would help them with their corruption, nepotism and other issues. The problem here is that the world has gotten accustomed to this American welfare in the trade/tariff disparity, $850 billion a year total from virtually every country. This as well as welfare in national defense: the WSJ had an article today showing how only 4 of some 30 NATO countries are putting their required 2% of GDP into NATO (not including Estonia at 2.08% but including mighty Germany 17th on the list at 1.24%) . Again taking advantage of our generosity. And then the UN. And then Foreign Aid. The list goes on and on. Across the board we are getting raped. Time to call unfair trade what it is and level the playing field. Level the field on NATO and the UN. And our import cars and car parts may get hit until it sorts out. Costs also get hit with $15/hr arbitrary wage deals. Bring more of the jobs home and let the market sort out a fair wage. I am seeing no great love for the US overseas anyway unless we are sending them our billions and those are no friends. Personally if it comes to that, I can afford a bit more tariff tax to provide many more Americans real jobs and not unemployment, welfare and SCHIP. Just my 2 cents.

PS: US at 3.57% and that is a big GDP and a big number. I suspect Estonia's contribution while important would not pay for one missile. Check out the WSJ article, 24 of 28 are not paying their fair share including some big names. Again letting Joe Schmoe US taxpeyer pay their way.
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post #70 of 70 (permalink) Old 07-05-2018, 02:30 PM
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Reading though all the comments now two things become obvious:

1. Europeans, including Canadians, don't like tariffs, "they benefit no one" . . . unless they are theirs (to fill the government coffers and support their lavish social programs and protect their native industries and products). Note the deficit is $850 billion a year "benefiting no one". Duh? Like the man says, let's all eliminate our tariffs and just play the game mano-a-mano?

2. Liberals want someone/the rich/companies/everyone? to pay more taxes for free stuff and waste but not to pay tariffs on things they buy to create American jobs and reduce dependency. Give a man a fish and he eats (from your plate) for a day, teach him how to fish (and give him a job) and he eats forever on his own.

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