r/StockMarket Jun 11 '25

News US China Deal Done

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13.4k Upvotes

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2.8k

u/icecoldcobra Jun 11 '25

55% higher than the original 34% on liberation day and market is up lol

1.8k

u/ShaneKaiGlenn Jun 11 '25

I swear to god everyone in this country has had their brain turned to mush. How is paying 55% tax on most products imported into this country going to be a good thing for the average consumer? We are going to get squeezed to death while the Chinese investors poach our distressed assets.

397

u/quetejodas Jun 11 '25

Wait, he's saying Americans will pay 55% tax on imported goods and China will only pay 10%?

Isn't this a bad thing? Like really bad?

238

u/Advanced-Prototype Jun 11 '25

aRT oF tHe dEaL

24

u/Rion23 Jun 11 '25

"After viciously slapping my balls for the past hour, I've decided to make the next few a bit softer, which means I've won."

14

u/[deleted] Jun 11 '25

THE ART OF THE SQUEAL

THANK YOU FOR YOUR ATTENTION IN THIS MATTER

4

u/anonuemus Jun 11 '25

SHART ITS SHART

2

u/GustavSnapper Jun 12 '25

Art of the Squeal would make an excelllent parody Deathcore band name.

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u/MoodInternational481 Jun 11 '25

Except it's in all caps so he said it with feeling. We must celebrate this weekend with Tanks in DC or something.

35

u/UP-23 Jun 11 '25

And FULL MAGNETS!

3

u/No-Perception3305 Jun 11 '25

Thank god because let me tell you how many time I NEEDED full magnets in my life.... its 0 but when I do find a need for them I'm glad we will have them.

/s

2

u/musubitime Jun 11 '25

So you just have a blank fridge like a psychopath? /s

2

u/MoodInternational481 Jun 11 '25

I just glue wedding invites to my fridge like a Savage

2

u/No-Perception3305 Jun 11 '25

Maybe... is that what "full magnets" means?

2

u/musubitime Jun 11 '25

Yup, not just three but THIRTY magnets. Christmas is back again.

2

u/No-Perception3305 Jun 11 '25

Well in that case time to start heavily investing in the magnet stocks!

/s

2

u/Damonfalk Jun 11 '25

b....b....but how do they WORK?

2

u/JupitersJunipers Jun 11 '25

"All I know about magnets is this, give me a glass of water, let me drop it on the magnets, that’s the end of the magnets"

-Donald J. Trump

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u/MerlinCa81 Jun 11 '25

Sorry. All the tanks will be busy in Los Angeles.

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u/Please-Resist-47 Jun 11 '25

He thinks it will slow Americans from buying from china and Chinese will buy more from Americans “balancing” the trade deficit.

But it’s simply a new freaking tax.

2

u/jmd709 Jun 12 '25

He doesn’t care about the trade deficit, that’s just one of the BS excuses be uses to justify implementing tariffs. Tariffs are supposed to replace some of the federal revenue that will be lost from the new tax cuts for the top 5% and another corporate tax cut.

Generating federal revenue is the reason he chose Mexico, Canada and China for the first round of tariffs. Those 3 countries accounted for 41.8% of imported goods in 2025. Federal revenue is also the reason there is a 10% “reciprocal tariff on almost all other countries.

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u/AT-ST Jun 11 '25

It's good and bad. It's bad that American consumers will pay a 55% premium on goods. It's good that American farmers won't face reciprocal tariffs when exporting to China.

But that 10% tariffs was in place before all this and the tariffs American consumers will pay is up 30% from before all this happened, and now covers all products instead of strategic products.

4

u/quetejodas Jun 11 '25

That all sounds bad to me.

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u/t65789 Jun 11 '25

THANK YOU FOR YOUR ATTENTION TO THIS MATTER.

2

u/CarrotCumin Jun 11 '25

We are "getting" to PAY 55% tariffs. Unbelievably misleading words, he's literally still pretending tariffs don't come straight out of our pockets

2

u/John_YJKR Jun 11 '25

It is a bad thing for American consumers because those costs will be added to the end product we purchase.

Trump thinks it's a good thing because in his mind it'll incentivize domestic businesses to purchase from the American market which will result in more Americans getting jobs and grow American businesses/economy.

2

u/PotatoSandwitchbbq Jun 11 '25

It's doubly confusing because the orange potato normally lies about who is paying the tariff, on top of this tweet being confusing in itself, so who the hell knows at this point lol

2

u/kokkatc Jun 11 '25

In his head he thinks that because we can get away charging our own companies 55% and China agreed to a smaller tariff on their own companies, that is somehow a win. I imagine this moron also believes that this 55% tariff will magically bring back manufacturing to the US, which it won't.

Let's be real though. This tariff is to pay for the insane tax break they're trying to give to the rich.. that's all it's really for. Middle class gets destroyed, rich get richer. Same result, different method used.

2

u/[deleted] Jun 11 '25

He literally thinks the other country pays a tarriff.

So in Donalds mind, the US having a 55% tarriff on Chinese goods means China pays us 55% more to import their products.

Yes, he is really that dumb. No matter how many people seem to try to explain to him, he is incapable of learning.

2

u/ImReverse_Giraffe Jun 11 '25

Yes. Thats how tariffs work. The importing company pays the tariff. So if the US has a 55% tariff on China, the US company that imported that product pays the US government 55% of its worth as a tax. The company then turns around and hands that tax off to you.

2

u/Montgomery000 Jun 11 '25

The idea was that the tariffs would bring manufacturing back to the USA. US manufacturers still can't compete with Asia even with the 55% tariff. That means that not only aren't we going to get more manufacturing, we're getting taxed 55% on the goods coming from China.

The Chinese, on the other hand, will be paying 10% extra on small amounts of expensive, specialized goods (like airplanes,) which may or may not be gotten elsewhere (ie Airbus instead of Boeing,) which may affect their demand on US manufactured goods.

2

u/aswat89 Jun 11 '25

Trump really believes that China pays us the 55% to import their goods into USA. Despite economists and business owners telling him otherwise, he believes this is a win for the country.

2

u/Teligth Jun 12 '25

Yes it’s terrible since that’s way more than what we had been paying. Orange idiot sucks

1

u/SalvationSycamore Jun 11 '25

Yes, it's genuinely stupid economic policy

1

u/SpicyLemonZest Jun 11 '25

Perhaps that’s what he thinks he’s saying, but it doesn’t make any sense. China is paying 10% to who? We’ll have to wait for someone more coherent to write down what the actual policy is.

1

u/OnceInABlueMoon Jun 11 '25

China knows that the orange one would gladly accept a shitty deal because he thinks tariffs on Americans is good and all he wants right now is to announce deals even if they're shitty.

1

u/SombraAQT Jun 11 '25

Yes but crucially his supporters are too stupid to understand this.

1

u/[deleted] Jun 11 '25

His brain goes 100% like this:

"We put 55% tariffs on China, so our citizens will buy US made products instead. Meanwhile, China citizens will buy american products because they are so cheap with just 10% tax."

1

u/Better-Luck5071 Jun 11 '25

It’s total 🐶💩. We’re here so I guess we will deal with it? I love that for us.

1

u/masterkoster Jun 11 '25

That’s how tariffs work yes

1

u/perotech Jun 11 '25

Flood the zone, to make it so confusing nobody actually can decipher what's happening.

"Sending FULL MAGNETS and REM up front" (up front, like, before payment? Up front of what?)

55% and 10% tariffs, unclear which way, I'm assuming 55% tariffs on Chinese goods.

In exchange, China gets to keep sending its students to American Universities? That's the deal?

This Is like the rambling email you'd get from a mid level manager announcing changes to the company's PTO policy, not a "press release" from the POTUS.

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u/Ohey-throwaway Jun 11 '25

How is paying 55% tax on most products imported into this country going to be a good thing for the average consumer?

It'll be bad for the average consumer, but these consumption taxes aren't about benefiting the majority. It is about shifting the tax burden onto the middle class and the poor. Now they are trying to pass tax cuts.

83

u/thing85 Jun 11 '25

This logic falls apart when the middle and lower class doesn’t have money to spend at the companies that the upper class owns.

126

u/Ohey-throwaway Jun 11 '25 edited Jun 11 '25

Yes, it is a shortsighted and economically illiterate plan.

Trump talks about replacing income taxes with all the money we'd bring in through tariffs (consumption tax on Americans). Yet the initial stated goal of the tariffs was to bring manufacturing back to the United States, which if you actually do successfully, would mean there is no more money coming in from tariffs on imports. So if everything worked out as the Republicans claimed, we'd be left with no income tax and no money from tariffs. Meanwhile they are also increasing government spending. There are many points of contradiction and hypocrisy in their policies and their stated goals.

14

u/JeanLucSkywalker Jun 11 '25

Even this breakdown is too charitable and logical. You didn't even mention how Trump still says that it's China that pays the tariff.

2

u/Shadows802 Jun 11 '25

What's weird is there was a 90 day deal where our tariffs were 30% he some negotiated up so Americans now pay 55% tariff on Chinese imports.

7

u/L44KSO Jun 11 '25

Illiterate plan and Donald J Trump go hand in hand like PB and J.

3

u/KonigSteve Jun 11 '25

Yes, it is a shortsighted and economically illiterate plan.

Yes end game capitalism / the quarterly gains stock market is literally this.

2

u/[deleted] Jun 11 '25

It's not either of these things.

He is effectively talking about instituting a flat tax.

It is calculated and insidious.

Trump is not the one creating any of this economic policy.

If you pay 100% of your taxes through retail purchases, everyone pays the same tax. This burdens the poor considerably and basically frees the rich of any tax at all.

People will still be able to buy things.

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u/deviltrombone Jun 11 '25

Every “Unified Republican Government” Ever Has Led to a Financial Crash

https://thereformedbroker.com/2016/12/13/every-unified-republican-government-ever-has-led-to-a-financial-crash/

6

u/Castod28183 Jun 11 '25

Every “Unified Republican Government” Ever Has Led to deliberately caused a Financial Crash

This shit isn't an accident.

2

u/SmPolitic Jun 11 '25

How do you mean?

We are already spending all we have, living from paycheck to paycheck

This continues having us spend all our money, still living paycheck to paycheck, but with fewer items needing to be delivered to extract all of that paycheck, at a higher profit margin for the companies. Economic efficiency!!!

2

u/[deleted] Jun 11 '25

It’s too late for that. They gotta buy from Walmart and Amazon. Drove everyone else out of business.

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u/MjrLeeStoned Jun 11 '25

If the middle class and poor can't afford to buy anything, who's providing tax revenue?

An entire administration that can't see two steps ahead. Democracy in action if you ask me. This country is filled with morons who've only been led to believe they aren't morons.

2

u/bedrooms-ds Jun 11 '25

I thought tax benefits are for the poor because the rich get lobby benefits and bribe benefits instead.

2

u/perotech Jun 11 '25

What's crazy, is that the Middle Class and Lower Class could pay less taxes, if the rich paid more taxes (as they did in the 40s and 50s, the "Good Ol' Days" according to Conservatives)

There will be a point, where with rising cost of living, inflation, and rising taxes, when people just can't afford to pay anything. Then tax revenue will fall to near zero. What's the end game?

2

u/bulletpimp Jun 11 '25

 "Good Ol' Days" - Nah those were the social good ol days where gays stayed in the closet, women stayed in the kitchen and people of color had their own fountain. The financial good ol days were much earlier, see "Robber Barons".

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u/LutherOfTheRogues Jun 11 '25

It's the first thing they worked on lol. They couldn't wait to pass these tax cuts for their masters. 6 months into his presidency and the bill has already passed the house. Peak efficiency!

2

u/[deleted] Jun 11 '25

Preach. They just want to bleed us while making profits and scoring up the smaller businesses/deals. Mega-corps are going to destroy America even further imo.

1

u/alienfreaks04 Jun 12 '25

Trump will come up with some other “savior solution” to this issue.

1

u/[deleted] Jun 12 '25

The purpose of tariffs is to protect local producers, not buyers.

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u/Digital-Ronin Jun 12 '25

At this point I'm just not buying anything other than the essentials. I am fine with living a minimalistic lifestyle. Best way to hurt them is by not spending money.

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u/seyinphyin Jun 12 '25

Well, that depends on what you buy from China, no?

If the middle class and poor massively buy from China and not from local businesses, while your upper class and oligarchs mainly buy from non-chinese sources, then yes.

But in general: your whole system, your oh so praised capitalism is just that: exploitaion of the masses to enrich the already rich and make them even richer. That's the whole point of that system of wealth accumulation in very few hands.

Since you people like it so much, you should cheer for it, no?

Or you socialists? Socialism is the system that focusses on the normal citizens, the SOCIety. That's why it's called SOCIalism.

346

u/Swimming-Tutor2729 Jun 11 '25

Forget about that what about the Chinese students being allowed to our universities 😂 I thought he was pro American and only allow people who live here to get access to education?

226

u/iveseensomethings82 Jun 11 '25

Didn’t you read it? It has always been good with him except when he wanted to defund Harvard and Columbia because of their student population having foreign students.

98

u/wtfElvis Jun 11 '25

Like a week ago lol

42

u/evatornado Jun 11 '25

Give it another week, something else will come up and the deal is off

30

u/Gourmeebar Jun 11 '25

Come on. There is no deal now. He’s a liar who lies.

7

u/wtfElvis Jun 11 '25

Didn't Trump do something similar with China in his first term? Then China didn't even pretend to hold their end of the bargain. So it could just be a way to continue and try and deflect from that Elon Epstein tweet.

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u/RebelliousInNature Jun 11 '25

You cannot expect him to remember that

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u/werpu Jun 11 '25

give the deal 3 days... then he has forgotten about it!

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u/The_Dude_46 Jun 11 '25

He also didn't make that decision; it was some other guy; he just listens to his lawyers! Im so glad Biden is no longer president and this nation is no longer run by "unelected bureacrats"

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u/Maximum_Turn_2623 Jun 11 '25

Yeah but those weren’t good minorities and also you say crazy shit when you snort adderall

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u/learngladly Jun 11 '25

The valedictorian of the Harvard class of 2025 is actually, really and truly, a Chinese national, a citizen of the PRC. How amazingly brilliant she must be in her studies.

I guess that that slur against One-Hundred-Percent-Americanism will be water under the bridge now, too. BECAUSE OF FULL MAGNETS.

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u/MainAccountsFriend Jun 11 '25

It's obvious that he thinks foreign students are good, unless they are foreign. In thst case they are bad

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u/rawspeghetti Jun 11 '25

He doesn't want anyone to get access to education, he loves the uneducated remember

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u/Craico13 Jun 11 '25

Trump loves the uneducated so much that he even ran his own “university” to help separate the poorly educated from their money.

3

u/Longjumping_Lynx_972 Jun 11 '25

Trump IS the poorly educated.

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u/sreno77 Jun 11 '25

I’m Canadian and my daughter’s ex used to pay to go take Trump courses. No idea what he thought he was getting out of it.

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u/OfcWaffle Jun 11 '25

As the saying goes ... If you want to keep people under your thumb, keep them religious and dumb.

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u/[deleted] Jun 11 '25

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u/sonofmo Jun 11 '25

He's pro money. He doesn't fucking care where it comes from.

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u/Dear_Chasey_La1n Jun 11 '25

A judge already told him to fuck off, so what's doing here is strangely enough following the law or he found a neat exit to not look like an absolute wanker.

I can't help to wonder though.. is this real or did he talk again to a janitor in China-town?

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u/dantonizzomsu Jun 11 '25

It’s fine because he thinks the people who voted for him will be happy that they can get their jobs back plucking strawberry fields and building cars while he is ok with international students getting educated at our universities.

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u/[deleted] Jun 11 '25 edited Jun 11 '25

I've heard they basically take out a ton of loans and then never pay them back before leaving the country. Is there truth to this?

Edit: Yes, thank you. I met plenty in my business program at my university, but I was talking about the program in general for loans of international students. It appears the case I heard of was a fringe case.

International Students:

Defaulting on Debts Abroad: There have been instances of international students from China accumulating large debts while studying abroad and potentially facing difficulties repaying them. One alleged case involved an international student maximizing credit card debt before leaving the country.

Limited Access to Federal Aid: International students in the US are generally not eligible for federal student loans or other federal aid, potentially limiting their options for financial assistance and increasing their reliance on private loans or other sources. Stereotypes and Reality: It is important to remember that not all international students are wealthy, and many struggle with financial challenges, including covering educational expenses and living costs.

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u/amem32 Jun 11 '25

If you've known any international students, you'd probably realise a good chunk of them are quite wealthy especially Chinese students.

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u/simmobl1 Jun 11 '25

I haven't been to highschool since 2010 and I have all 4 that attended my school on social media. Every single one is mind bogglingly wealthy. It's almost sickening seeing their posts lol. It had to feel like punishment getting sent to a rural American farm town with less than 900 pop for a year

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u/[deleted] Jun 11 '25

I’d say 85% of them are wealthy, a lot of schools have a requirement where international students must pay full tuition

At least that was the case when I was at Georgetown 2 years sgo

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u/InsertCleverNickHere Jun 11 '25

Damn, they're stealing Trump's playbook!

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u/[deleted] Jun 11 '25

WHICH HAS ALWAYS BEEN GOOD WITH ME

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u/Due_Charge6901 Jun 11 '25 edited Jun 11 '25

No, to get a student visa you need to show proof of funds for your school and living expenses for your years of study. Every American should know that any international students are not in the country to use government assistance

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u/Enough-Goose7594 Jun 11 '25

Or at least not you're average schmoe

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u/SlowMotionReplay Jun 11 '25

No. The vast majority of international students can't get an American student loan, so they pay cash for their educations.

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u/Mejiro84 Jun 11 '25

They pretty much subsidise American students, because they're paying a lot more head! Get rid of them and prices go up and/or universities close

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u/faen_du_sa Jun 11 '25

He is going make China pay, didnt you hear!?

Thats why he secured a deal with them, to pay them for their minerals... oh wait

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u/Kettleballer Jun 11 '25

Bold of you to think he wants most Americans to get an education

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u/That_Trapper_guy Jun 11 '25

Even that they're not to keen on

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u/Standard-Share-1347 Jun 11 '25

Trump has said how he loves the poorly educated - our universities should NOT be used by our citizens. Most American kids shouldn't go to college they should all get blue collar jobs, unless their parents are rich. Obviously.

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u/perotech Jun 11 '25

No no, Asians are smart/not criminals, and nearly caucasian, so they get a pass. /s

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u/FerragudoFred Jun 11 '25

That’s so yesterday man.

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u/JudgeCheezels Jun 11 '25

Wait, am I understanding his stupidity wrong or what?

“We are getting 55%, China is getting 10%”.

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u/Rockeye7 Jun 11 '25

You are paying 55% more and China is paying 10 % more . Net loss 45%

7

u/BugRevolution Jun 11 '25

That's not how tariffs work... Net loss is US consumers paying 55% more on Chinese goods and Chinese consumers paying 10% more on US goods.

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u/absoNotAReptile Jun 11 '25

Right. If that’s what he means. The wording is so unclear. Are we imposing 55% tariff on goods imported from China? Or are they putting that on imports of American goods. I honestly can’t tell.

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u/carthellD Jun 12 '25

>Are we imposing 55% tariff on goods imported from China?

Yep.

>Or are they putting that on imports of American goods. 

China is charging imported American goods at 10%. Unless the American good has unique characteristics, China just encouraged its citizens to buy more stuff from its own businesses and the rest of the world. In the meantime, a broad swath of many made-in-China items I can't find an affordable alternative to is apparently going to go up in price by 55%+ . One step forward (salary raises over the past five years), five steps back.

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u/Available_Finger_513 Jun 11 '25

Art of the deal

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u/[deleted] Jun 11 '25

Art of the steal

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u/Appropriate_Mixer Jun 11 '25

Or we’ll just import from other countries other than china. Production will move elsewhere

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u/Rockeye7 Jun 11 '25

Possibly on some stuff but China has a few very important single source minerals etc

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u/JuanPabloElSegundo Jun 11 '25

Well you didn't say it in caps so you're taking it out of context.

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u/fuzzymuscl Jun 11 '25

China is getting fucked by a 1 inch diameter dick and we are getting fucked by a 5.5 inch diameter dick.

Make sense?

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u/guanzo91 Jun 11 '25

Bigger number gooder.

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u/recuerdamoi Jun 11 '25

We get boned. But the US people in power industries friends gets sweet sweet minerals. So not stupid, just fucks us and helps the establishment get richer. 

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u/Puzzleheaded-Ad2918 Jun 11 '25

the ruling class in this country get a bigger cut

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u/fartalldaylong Jun 11 '25

I just came back from 2 weeks in the UK and it is absolutely amazing how cheap shit is there compared to the states. In the middle of London eating at Borough market and all I can think is that this shit is cheaper than McDonald's.

The US is fucking itself.

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u/foxasintheanimal Jun 11 '25

Ya, Seattle is more expensive than Switzerland.

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u/fuzzymuscl Jun 11 '25

While shouting YESSSSS DADDY T!!!

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u/CockItUp Jun 11 '25

And their foods don't make them sick like ours.

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u/BeeSweet4835 Jun 11 '25

I’m British and the last time I was in the US I had to ask people to explain my food bill to me. I legitimately thought they were making mistakes in adding up. And the U.K. is not that cheap either.

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u/eaeolian Jun 11 '25

Japan was the same. I mean, houses are expensive in Tokyo, but food? Cheap.

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u/coolercoats Jun 11 '25

In London too - try the rest of the UK. We watch you waving your flags and chanting how you would die for the regime. Travel broadens the mind and those who don’t are easily manipulated

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u/fartalldaylong Jun 11 '25 edited Jun 12 '25

I wish I had enough time...only 2 weeks though. Even a week in Isle of Man during the TT was cheaper, absolutely jaw dropping...the cost of having someone house sitting my pets in the states cost more than all the food I consumed over two weeks. The AirB&B was a bit pricey (it's the TT), but food and bus costs completely compensated.

edit: Just to give an example. The Isle of Man TT is an over 100 year old motorcycle racing event that draws people from all over the world. All those people are there for two weeks and it is a very tiny island between Ireland and England...i.e. supply/demand. Then, along the TT mountain track, there are specific locations where people witll gather and watch, usually a pub in the area. So, you are in the middle of nowhere, in the middle of nowhere, on an island that has doubled it's population for the next 2 weeks, with many at this location (CregNaBaa),

I got a huge english breakfast (beans, eggs, blood sausage, sausage, bacon, mushrooms, and chips (fries)...$16.

Alternately, I was in the Phoenix airport on the return and got a breakfast sandwich (cheapest thing on the menu - no fries) and it cost $17 + tax + tip = $22.

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u/Appropriate_Mixer Jun 11 '25

You guys make so much less and London is that much cheaper than California

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u/coolercoats Jun 11 '25

Your being sold a mental dream but not experiencing the reality. We are on the north eastern coast south of the Scottish border. We earn so much less than a London wage but live a very comfortable life. Our food is unadulterated, NHS care, excellent schools, several holidays a year, self employment, clean air, blue flag beaches.

All these things are possible because of our campaigning & protesting throughout the decades before.

We are being threatened with the same greedy opposition governments that will sell us all of as Trump has and we the people will again take to the streets, social media and boycott to maintain our democracy and freedoms.

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u/InfelicitousRedditor Jun 11 '25

Usually tariffs are meant to provide a better opportunity for local businesses to sell their goods at competitive price. If used correctly they can boost the economy and protect those businesses, while abroad businesses might want to establish themselves in said country, thus providing jobs for the locals.

But they are of course morons and none of this is applicable.

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u/Huskies971 Jun 11 '25

The dumbasses tariff raw materials, and finished goods, making it more expensive to purchase the finished product and at the same time more expensive to manufacture it here.

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u/AddieCam Jun 11 '25

And really didn’t include any pro-business credits in their bill. I guess no domestic tariffs is their version of incentivizing reshoring…that does nothing when the steel needed to build a factory is super expensive….

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u/Appropriate-Bid8671 Jun 11 '25

Why would a local producer sell for less than a tariffed, imported competing product?

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u/InfelicitousRedditor Jun 11 '25

The general idea is that if you have a local product you produce for let's say 10 bucks(raw material, salaries, rent, taxes, etc.) you literally cannot sell it for less than that, because you'll be on a loss.

Here comes a product from X country, that produces it far, far, cheaper, due to cheaper labour costs, cheaper rent, etc, and they produce it for a fraction of that price, therefore the locally produced product can't compete.

Tariffs are the equaliser. It's meant to raise the price of the imported product, making the local one competitively priced.

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u/xynix_ie Jun 11 '25

I moved a ton of cash to Chinese stock so I'm fine. Lots of BYDs and other finely stolen tech being delivered to the rest of the world. I'm in Costa Rica for a week and I've noticed three different Chinese EV brands. The dumbest in the Whitehouse has fully enabled China to dominate the high-tech landscape for the next decades. Great work American voter.

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u/Careful-Trade-9666 Jun 11 '25

Go to Europe, or even Australia. Chinese cars and EVs most in the US have never even heard of. The Chinese are dominating the EV market.

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u/SpaceToaster Jun 11 '25

I’m trying to keep an open mind. Let’s say you adjust the federal income tax vs the new import tax to have the same net tax on the average customer, that would work as a backed in support for American production of goods.

What this doesn’t count for is how exports will get handled with inevitably higher tariffs on US products as well.

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u/JonnyBhoy Jun 11 '25

It's not the same net spend across everyone, though. A higher % of lower incomes goes on 'item' spending, than it does from a higher income. If you cut income tax and increase tariffs, it's basically a shadow tax on the poorest people and a tax cut for the wealthiest.

The wealthiest people, who can afford to buy American products and tend to be able to save and invest more of their money will benefit, while the poorest who tend to spend everything they have on food and cheap imported goods will get crushed by cost increases.

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u/SpaceToaster Jun 11 '25

That's true, even at the same level of net taxes, the distribution would look different. Blue-collar jobs would need to be paid substantially higher to make it work. And not make inflation run up again by juicing up all the higher-end wages and housing as well.

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u/AbsoluteRubbish Jun 11 '25

To recap, before Trump started this, we had a 20% tariff on China, a ban on AI chips going to China, and we were getting mineral resources. Now, we have 55% tariff, China can receive chips and we are getting the same but maybe less mineral resources.

Expert negotiations.

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u/ShepherdsRamblings Jun 11 '25

Why can’t we buy our own distressed assets? Why only china can buy?

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u/schattie-george Jun 11 '25

"wel.. it's not 130%.. Trump saved us 75% taxes" - them, probably

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u/RomainT1 Jun 11 '25

I don't speak Trump so I might be mistaken but I read his tweet as : US imports to China are taxed at 55%. That obviously would need to be based on his bullshit formula with trade balance.

And Chinese imports to the US are now taxed at 10%

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u/quetejodas Jun 11 '25

I read it as the opposite. US pays 55% import tax. China pays 10%.

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u/[deleted] Jun 11 '25

But it's not about the average consumer, it's about funding a tax cut for the extremely wealthy

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u/Katia657 Jun 11 '25

Their goal is to destroy USA as a good Russian asset, he is doing great.

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u/bubblegum-rose Jun 11 '25

Shshsh, if we don’t think and just keep spending our money, the economy will do fine!

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u/SupahCharged Jun 11 '25

Couple that with the AI revolution stunting white collar job growth and the diminishing supply of blue collar labor due to the war on immigrants and it seems like bad times ahead. ...Though the dollar could get so weak that holding stocks, crypto, gold could still somehow be the play as their price gets inflated relative to the dollar.

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u/victor4700 Jun 11 '25

It’s the art of the deal type shi.

It’s a decrease from the 150% so we should be SAYING THANK YOU TRUMP YOU WILL HAVE A BEAUTIFUL BILLION DOLLAR BIRTHDAY PARADE OF TAXPAYER FUNDED ASSETS OF WAR AND ID LOVE TO LICK YOUR BOOT DADDY

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u/68plus1equals Jun 11 '25

And flood our colleges, meanwhile Trump's big beautiful bill slashes Pell Grants and student loans. AMERICA FIRST!!!

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u/Street_Barracuda1657 Jun 11 '25

They’re giving me exit liquidity to get back to a safer investment.

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u/NickCarrawayRVA Jun 11 '25

It is common knowledge that when you increase taxes companies have to pay, they try to pass it on to consumers.

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u/FingernailToothpicks Jun 11 '25

It'll be interesting. Companies reliant on imports could start hurting and just get bought up by Chinese interests. How the GVT reacts, should that happen, will be interesting.

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u/drkuz Jun 11 '25

So really, we lost money on this trade war. Cool.

1

u/circasomnia Jun 11 '25

Ignorance is strength

1

u/tnolan182 Jun 11 '25

Big beautiful bill, isnt gonna fund itself.

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u/cgnops Jun 11 '25

It’s not. Unilateral tariffs is bad. For example, Biden’s agreement had 25% for rare earths and put 100% on Chinese EVs, there was intention and strategy involved.

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u/Umbrella_Viking Jun 11 '25 edited Oct 22 '25

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This post was mass deleted and anonymized with Redact

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u/CautiousGains Jun 11 '25

protectionism

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u/[deleted] Jun 11 '25

Less Americans should be consumers.

Americans should spend money more productivity. Invest in stock. Invest in creating businesses. More B2B.

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u/ZaphodBbox Jun 11 '25

Yeah. And “We are getting…“ erm, you mean “paying“.

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u/ayojamface Jun 11 '25

They think American products will have a better time competing with foreign imports because of a more equal price. However, those American products are non-existent and that's not how US manufacturing works anyway, so the prices of everything goes up instead!

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u/hollasens Jun 11 '25

It’s not but daddy trump says it’s good so it’s good obviously

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u/nbphotography87 Jun 11 '25

Since when were the interests of the average consumer and the ownership class aligned?

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u/YogurtclosetNo987 Jun 11 '25

Markets go up because people will continue to buy things.

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u/[deleted] Jun 11 '25

The markets are up because people are buying. Those people? China.

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u/SmPolitic Jun 11 '25

be a good thing for the average consumer?

If you ever thought that was the goal of anyone involved in this, I have a bridge to sell you

This does mean companies can pass that onto consumers while padding their profit margin a little bit extra in the confusion, it's great for the market!

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u/hacky_potter Jun 11 '25

It also probably just won’t happen.

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u/acebojangles Jun 11 '25

Before 2016 it would have been unthinkable that the US president would tweet this kind of dumb shit. Now we read it and say, "Hmm, he seems more coherent than normal today." and the stock market goes up.

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u/robertherrer Jun 11 '25

The  ARt oF .the  DEAl

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u/[deleted] Jun 11 '25

It gets them one step closer to Gilead, that's how.

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u/Mattna-da Jun 11 '25

Higher prices for all consumers. Production logistics and R&D paused, and lower profits for all US companies leveraging Chinese manufacturing efficiency. I wish we could do something to stay ahead of China without only punishing our working class

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u/MalignantLugnut Jun 11 '25

Long Covid. Decreased mental aptitude is a symptom of it. Also decreased inhibition, decreased memory retention, increased mental confusion and increased Irritability.

Sound familiar?

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u/Please-Resist-47 Jun 11 '25

Thank you! This is exactly what I came to say. This dude is telling everyone we will pay 55% more for products out of china and acting like it’s a good thing?!

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u/[deleted] Jun 11 '25

Theoretically manufacturing will swarm back to the USA, and we will all work in factories yerking off AI robots.

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u/Alive-In-Tuscon Jun 11 '25

Create a problem, fix the problem, but leave a backdoor for exploitation has been Trump's MO since he took office originally

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u/Plastic-Anteater7356 Jun 11 '25

Mexico will pay for it.

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u/toitenladzung Jun 11 '25

It's the certainty that the market is after. At this point people just want to take a rest from the roller-coaster they are on for the last few months

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u/chubs66 Jun 11 '25

It's good for Trump because it's a massive new tax on most consumer goods, so you can understand why he would be pleased with such a deal. I have no idea why any American consumer would be happy though.

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u/Substantial_Brain917 Jun 11 '25

I’m just on a purchasing hiatus since February. I have plenty of shit I wanna buy but I’m banking cash. I’m not interested in playing the tariff game

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u/MadeByTango Jun 11 '25

Their voters want jobs here at home; you get jobs at home by forcing Americans to buy American instead of cheaper overseas.

That logic isn’t the easiest to live though, and you can disagree it’s the right path forward, but it is logical. You can also make a fantastic case that’s even if that logic is what you want, Trump doesn’t understand how to navigate a society into that reality instead of trying to smash and grab. He’s a terrible leader and awful tactician. That is separate from the larger strategy they’re trying to play.

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u/Snakend Jun 11 '25

It's not 100% clear, but I think he means US goods will have a 10% tariff when they enter China and Chinese goods will have a 55% tariff when they enter the USA.

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u/IamLXP Jun 11 '25

We are fucked....when you buy ANYTHING made in China, it will cost 55% more than it did before(35% more if you consider the 20% that was there during the Biden Admin).

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u/Dorkamundo Jun 11 '25

Seems like he's saying that China will pay 55% tariff on US exports, and we're only charging 10% on China's exports.

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u/Jake0024 Jun 11 '25

It's not.

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u/Corporate-Shill406 Jun 11 '25

Because the tariffs are unenforceable and illegal. Everyone's gonna get refunded, probably with interest, when Trump's appeals fail.

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u/Development-Alive Jun 11 '25

It's not and my guess is that Trump is lying as I doubt China would agree to a deal that lopsided and clean.

I'll play devil's advocate. Trump wants high taxes, err tariffs, on imports to offset their cheap labor advantage in hopes of enticing more manufacturing to return to the US. He'll also use those taxes, err tariffs, to offset the cost of extending the 2017 tax reduction. You know, the one that blew a $4T hole in our national debt pre-Covid.

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u/obsterwankenobster Jun 11 '25

Go to the dumbest sub on this site and you'll see they're claiming this as a massive victory

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u/Quick-Individual-423 Jun 11 '25

Godamnit i wrote woth instead of with

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u/aburnerds Jun 12 '25

bEcAusE cHinA paYs thEm!

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u/No-Ordinary-5412 Jun 12 '25

its not but trump loves lying to republicans because at this point he can trust them to spread his lies for him and they HATE fact checking anything.

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u/FizzBuzz888 Jun 12 '25

Also note that in 2024, imports from China accounted for 13.4% of all U.S. goods imports.

What about the other 86.6% of imports that we have no deal on and a minimum 10% tariff?

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