New Tariff on Travel Goods from China

Today, 84% of all travel goods sold in the United States are imported from China.

I would have thought it was closer to 100%
Just another tariff that hurts American workers and consumers.

Hmm. Maybe Rick should open a branch store in Vancouver.

Rick Steves is correct about travel being educational. Now we are learning first hand about the economics of international trade. It's a good time to reread Adam Smith's "An Inquiry into the Nature and Causes of the Wealth of Nations". For those who don't have the time to reread Wealth of Nations, Smith believed that specialization and trade led to the creation of weath for ALL people. Trade makes all peoples wealthy and restrictive tariffs and policies makes all peoples poorer.

Ironically, the American political party of free trade and business is now the protectionist party of tariffs and trade restrictions. Those of us who travel for pleasure are the beneficiaries of economic surpluses beyond bare survival. Will tariffs reduce those surpluses, making travel luggage unneeded?

The same punitive, protectionist situation would have been IDENTICAL if Bernie Sanders had won the Presidency. From either his own platform or from Bernie supporters:

http://feelthebern.org/bernie-sanders-on-trade/

If you want to buy luggage, don't wait but do it now.

I think it depends upon a number of factors - some brands may not, thinking that may help them become more price competitive vis a vis Samsonite.

Something the Travel Goods Association and Americans should perhaps ponder.... isn't corraling North Korea worth this small sacrifice?

Since America was capable of putting a man on the moon about 50 years ago, surely someone there today knows how to manufacture a suitcase.

Since America was capable of putting a man on the moon about 50 years ago, surely someone there today knows how to manufacture a suitcase.

Of course they do. It's just that it's often at a much higher price for the same quality, or in some cases a lower quality. Manufacturing costs in the US are so high.

Of course they do. It's just that it's often at a much higher price for the same quality, or in some cases a lower quality. Manufacturing costs in the US are so high.

And the main reason US manufacturing costs are high is that US wages and standard of living are high compared to much of the rest of the world. We Americans demand good wages for ourselves but are happy to buy products made in other countries by workers who make much lower wages and have a much lower standard of living.

This will affect everyone. My industry is going to be very much affected. Millions of jobs. We are the promotional products industry. Items are mft overseas but then decorated meaning embroidered, printed etc by very well paid factory workers with good salaries and benefits in the US. . Those jobs may be hurt. These items are not going to be mft in the states they are finished in the states and then shipped out. Most people don’t realize how big this is. Less people can travel. Etc etc. I am thinking part of the reason for this is to make up the tax cuts. Tariffs are taxes. Ok I normally don’t ever talk about politics here but I don’t think people understand the jobs at stake. We think this is farmers or tech items. It is so much more.

Just an FYI. The average tariff imposed by the US on all imported goods is 1.6%. China's tariff on imports is 3.5%. That may sound small, but that 1.9% difference multiplied by billions is a lot of money. Its no secret. Both parties and all presidents have known this and have complained in the past and done nothing. Trump is the only one who has made a move to stop it. Also, Mexico's import tariff average is 4.4%. That is why NAFTA was a huge snafu and manufacturers scurried to Mexico to avoid the 2.6% difference. Canada is .08%. Andrew H. hit it the nail on the head. We in the US want high wages, but are delighted to pay low prices on foreign goods. If we really wanted a true global economy all countries would agree on a minimum wage globally. However, as long as countries use slave labor rates, the US will never be able to compete. Larger tariffs on imports into the US actually level the playing field somewhat for US workers.

Respect all opinions. I am with travel man. Lets get back to travel, wine, and food!