What does this mean? Is manufacturing finally coming back?

The reason China became such a huge economic power is due to its economic growth by employing central planning to utilise its most valuable resource: cheap human labour.
This worked because for the past 30 years it was cheaper to outsource your labour productions overseas, as machinery was too capital intensive and cheap chinese labour was, well... cheap.
To understand the following, you first need to understand two key terms:
capital expenditure - cost of investment. As in acquiring machinery that is more effective and efficient than labour
operational expenditure - the cost of keeping your operations running. As in paying your employees.
Now I want to introduce you to 'on-shoring'. Due to continuous downward pressure of prices on new machinery brought about my innovation, standardization and improvements in infrastructure, you no longer have to take a huge capital loss to invest in new machinery. The profit margins between operational expenditure (hiring cheap chinks) and capital expenditure (buying machinery to do the job) are growing ever closer and are soon going to flip.
How does this apply to western industry? Well, the USA in particular has huge deposits of natural resources and an even larger demand for them. Transportation costs from China to the USA, legal and bureaucratic hurdles, political pressure and many other factors all contribute to culminate in the miracle of on-shoring.
Within our lifetime industry will be brought back to the west, with robots doing the heavy lifting. Countries like China, India and Bangladesh, where cheap human labour is in abundance, will have to adapt or die. If they do not exponentially buff their infrastructure, economy and education then they will simply die. Yes, that's right. Hundreds of millions of them will have no employment and no skills. It'll be a glorious age for the Occident.

Pfffft... As if we have any manufacturing plants left here to use that steel.

BTC will skyrocket

it means your about to get raped on consumer good prices

Same thing that happened when he did Solar.

People will bitch about for a few months, and then the pressure is really on American Steel and Aluminium to become more efficient...

Who this hurts is Americans who NEED steel and aluminium like NOW, RN.

Other than that it’s not the dumbest thing for someone trying to even out trade inequities

The USA becomes a third world country

Just to clarify, on-shoring WILL happen because capitalists would rather purchase cheap domestic goods than import from overseas. Transportation costs, laws, regulations, etc. all factor into this.
Think occams razor.

a shit ton of chinese "steel" products are chromed, brittle, tainted garbage anyway. look up laws on what can be called stainless steel esp re imports. compare with your own experience

Hey guise, does that mean we should buy MTL coin?

it means price inflation in europe. chinese steel will flood into the eu even more. this will fuck up our economies. :'(

dear sir does mean this my turtlecoin going to stay at 2 satochi for next 2 decade sirs

inb4 china regs ban burgers from all exchamges and owning their (regulated, controlled) cryptos

No. It'll still be cheaper than domestic steel because American steel is fucking expensive.

On top of that now you have retaliatory tariff on other products. If you're gonna prop up an industry, fine. Don't swoop in under the guise of the betterment of the country's financials when in every way it's a worse financial decision.

But China is also heavily investing in automation (like that company that assembles iPhones) and gets a lot of know how from the West practically for free. Also transportation costs are super cheap by the sea. During age of sails it was cheaper for British in India to transport ice for their drinks from Europe by the sea than transport it from inland sources, it's even cheaper right now. Legal is the real hurdle.

Don't get me wrong, the things you describe will manifest, I'm just not sure they will be strong enough to overcome other changes.

It's shit though. Their robots are as shit as everything else they make. They spent too long as scammers - they forgot that underneath all the bullshit you still needs some sort of REAL product.

Chinks BTFO. They came close, but are too busy with their retarded Party politics and nepotism to fucking take the place at the head of the table.

CHINKS

KEK
this has to be the stupidest thing a president has done.
Although i think mexico does the same thing to chinese steel.

Their robots probably build your phone, this or next one...

Agree about the social problems, I heard stories about how western company had to train them to report problems to boss instead of covering it up. They care about "the face" and workers bringing up problem causes management to loose "face". Junior finding something wrong with seniors work? Unthinkable.

It started way before, just look at situation in aluminium, where someone probably wants to bring a lot of it to US pretending it's not from China.
mic.com/articles/153805/aluminum-stock-pile-nafta-free-trade-china-china-zhongwang-holdings#.KFtrwRnB9

No, this may have triggered the inevitable deflationary bust. Credit deflation the likes of which we have not seen for generations.

...

yeah manufacturing is coming back. it's just gonna be $300 for a toaster

fucking good chinese make shitty steel.

>Their robots probably build your phone, this or next one...
iphones are built at foxconn buy a bunch of underpaid chinks

>Chinese are the Jews of the orient, never trust them
Cliff notes version. You're welcome.

>underpaid
is there actually a price ceiling on labor there?

buy VEN NOW

Tariffs hurt us more than they help us imo

We cuck all the us companies that use steel (destroying jobs) to create different jobs

Breaking windows does not make society better

>hundreds of millions will die
My penis can only get so erect.

the only toaster you will ever need!

soon
futurism.com/apple-manufacturer-foxconn-to-fully-replace-humans-with-robots/

It means that industries relying on cheap Steel Will get cucked

Give me a solid proof that reducing competition brought on deflation and I'll reconsider.
And I mean solid proof or tariffs (or other taxes) bringing on reduced prices or a proof of monopoly(duopoly etc) doing so.
It can even be a proof of government regulations bringing on deflation in the long term.
I'm asking without the malice, I would really like to understand your thinking here.

...just off yourself the rebrand was a fail what do you expect from mainnet

economicshelp.org/blog/glossary/tariffs/

Smith and Ricardo must be turning on their graves..

you are competing with state run enterprises that don't have profit and loss considerations and almost infinite funding, not even close to free trade

in addition China has stolen unknown trillions of intellectual property from the west

Yeah.
I outlined for you my points from your example.
Since when higher prices for consumers = deflation?
Part 1

Part 2
I really asked for an example. I was not trying to be mean, just to understand something that I might be missing.
You send me econ101 link and proof nothing

Will this affect aluminium? I am about to start a small side business that imports a certain aluminium product.

Like construction, car manufacturing and power ?

i work as a longshoreman in LA/long beach and occasionally go to the terminals that unload gook metals. i've never been impressed with their steel but i'm not a scientist. i don't have to be to recognize poor quality though. a ching chong trade war would mean less ships and less work for me. if it's not the chinks then it's automation so i'm fucked either way.

it means chinas manufacturing party is over. now they will get a little taste of what we have been going through the last 20+ years.

Jetfuel can’t melt steel beams.

Yep. Your pres don't care about small businesses. Only the big boys donating to him.

I acknowledge that the Chinese would follow this trend, but I doubt that they would be able to implement it as efficiently as the west. First of all there would be the huge social and political upheaval that such changes would naturally cause, which the west has largely dealt with due to deindustrialisation and the rise of the service economy. Secondly, although I can't say for certain, I doubt China has the institutions or business culture in place to create anything, on a national scale, resembling what the west will in the coming decades. Thirdly, central planning is too frigid and I have a feeling that the Chinese political elite would maintain the status quo for as long as possible in order to maintain power, at the expense of their economic progress in the coming decades. To be sure, they have the potential to quickly pivot from existing circumstances and usher in a new age of innovation, but the challenges are simply too great in my opinion. One worrying trend is that while the complexity of economics has increased in the past few centuries the complexity of our minds has not increased in parallel. The free market will decide in the end, and it doesn't look too good for Mr. Chang.

This means stock market goes downnnn.

>What does this mean
It means a trade war with EU and China or nothing will happen. Bush tried this in 2002 and EU threated to retaliate which caused him to back down.

The fact that most powerful backers of both US parties means that either A. Trump pushes this through and loses his big backers while triggering a trade war with EU and China or B. Plan is dropped

Given how A. is a political and economical suicide even Trump with his pride on the line wont pick it. No fucking way

Get ready to get BTFO anime nigger.

Btfo by what? Either this spirals into both sides restricting and taxing imports or nothing will happen. We know that that is the general direction of things by having witnessed it countless times

Fml man. It's tough to find aluminium products in the States because if a company is manufacturing them they slap their brand on it and sell it full MSRP. Tough to break into any business where the product needs to be manufactured.

Will those import taxes apply to all countries? NAFTA probably won't be included if they would pass that law. Since Canada and Mexico are responsible for a big chunk of the steel the US imports.

Sure I too acknowledge that there is huge cultural gap to be closed and hey also suffer from typical communist problem of skilled/rich people running away... But I cant't help but rememberer that less than a decade ago our media were publishing funny propaganda stories about how China is building empty cities for lulz. Now most of them are already inhabited, some with population over a million.There are also huge infrastructural investments all over China, big bridge here, huge damp there, super computer over there... these are all in world top10. China can't be like the West, but West also can't play the game like China can. The officially published plan for China for next couple decades is moving people to big cities from country side increasing life standards and refocusing part of its industry to service growing middle class. Knowing them there will be corner cutting, but there is a chance to actually succeed...

It means the US steel industry will stop being competitive, prices of steel will rise, exports of steel will decline.

So basically bigger trade deficit.

Also say bye to jobs that needs steel as a resource and is intended to be exported (typically to Europe mainly).

My fucking ATI stock somehow dropped

according to the press briefing today that haven't thought that through yet, kek.

Wumao qian has been deposited into your SinaWeibo account. Keep up the good fight comrade.

well if chinese make quality steel cheaper than americans, this means every manufacturer in the world that doesn't put such heavy tariffs on chinese steel will be able to produce products cheaper than american companies

i don't see how this helps anyone beside american steelmakers? it's a different thing to put heavy tariffs on a consumer-product, because people will actually resort to american-made stuff which can be good for the overall economy of the us, but how will a tariff like this not royally fuck over exporters that consume steel?

if trump believes the us steel industry has better potential than the chinese, just need room to grow, why not subsidize the industry instead until they prove themselves? seems a lot less invasive toward other industries

Probably only china and russia. Maybe brazil.

Noooo I get a lot of work from steel ships

>Chinese
>quality steel
>quality
You don’t know much about the steel industry do you

Hey look! Free markets! Loooool

>If domestic steel keeps it's (sic) prices the same

it won't, it has no competition now, you brainlet

they're 100% correct to raise prices to the level where they have the same price as imported steel or only slightly cheaper

>unironically believing in intellectual property

kek

Trump wants to ramp up domestic steel production for WAR

America just can't stop winning!

Please tell me which country is going to fill the spot the US currently holds for consuming goods. Nobody ever talks about the fact that there is no one else for china to go sell their cheaply made shit to.

this

The American buyer doesn't care about quality. Have you walked into a Walmart in the last 20 years? I'll give you 1 ETH if you find something made in America.

>16 century economists relevant in any shape and form
Ancap kiddies need to go

This

The entire EU combined doesn't consume as much as America, so please tell me where china is going to go?

You mean those American organic wood "handmade with love" phone cases for Asian phones are not actually American? But... they were supposed to bring the jobs back!

It means that we don't lose shit. Chinese steel is of wildly inconsistent grade and is fraudulently sold as being something other than what it is. Hitting it with a heavy tariff plays better than enforcing tighter regulations on steel quality domestically, but has some nasty repercussions internationally.

I don't like Trump, but the Chinese have only themselves to blame on this one.

China domestic market in like 10 years from now if everything goes according to plan.

>futurism.com/apple-manufacturer-foxconn-to-fully-replace-humans-with-robots/
>hopes to achieve 30% automation by 2020
saying something and doing something are two totally different things

Most of the US steel industry is currently operating at about 75% capacity today.

In the short term, we'll see a spike in pricing beyond the $700-800/ton coil pricing we're seeing now. Most mills have already implemented pretty extreme efficiencies in processing to lower costs. Long term, we should see a spike in mothballed facilities/equipment in the US coming back online to cope with the additional demand with more jobs and higher wages.

As a side note, this might have a pretty large environmental impact just from rising scrap value for mini-mills and recycling. And if they do any sort of infrastructure package we'll be riding US Steel stock to the moon.

found the china man who doesnt see value in ideas.

Im not American so...

why the fuck do we need more steel jobs when theres a shortage of highly skilled labor?

Heh, if I only had such account.

Seriously thou, according to media the next big emerging economies are the BRICS countries. Brazil, Russia, India, China, South Africa. Now tell me, out of those, who do you think have the most chances to actually make it?

This, it will only fuck over any domestic industry that uses steel and give us unskilled labor jobs we don't need.

it's like the Govt never took a basic international economics class

hello brainlets

Your biggest steel manufacturer Arcelormittal was sold to Pajeets years ago Europoor cuck.

>if trump believes the us steel industry has better potential than the chinese, just need room to grow, why not subsidize the industry instead until they prove themselves?
US has had steel infrastructure for nearly 2 centuries. The reason it's leaving is since it's a labor intensive industry and we are abundant in capital NOT labor

I was proving your point, numbskull. I'm not the poster.

Do you even pay attention to IDs?

not an argument

lower competition from abroad guarantees higher prices

>the media says
user, I ...

Yeah, I know, was trying to add weight to my question, yeah that was silly.

But still who has bigger potential to move up a league? Certainly not Russia, Brazil is doubtful.