Economy Events

Trump Softens 10% Tariff Threat in Response to China’s Suspension of US Procurements and Yuan Devaluation

Unable to stand the economic pressure created by China’s counter-offensive of suspending the country’s procurement of US agricultural products, president Trump softens a bit by modifying coverage of the 10% tariff and by moving effectivity date to December 2019.

Typical of Donald Trump, he proclaims that the move is his way of making the new 10% tariff irrelevant to Christmas; and not as an acknowledgment that his tariff bullying against China has no effect.

Unlike Beijing’s claim that China can sustain its projected economic growth for 2019, despite yuan devaluation, Trump cannot offer similar assurances to the U.S. farmers who stand to lose its 4th largest buyer of farm products. In fact the yuan devaluation can even backfire and destroy Trump’s vision of collecting billions in additional taxes on Chinese goods that will enter the U.S.

China’s yuan devaluation actually brought down the exchange rate between U.S. and Chinese currencies: USD1 : CNY 7. The devaluation means it will only cost US importers only around USD 1 to buy every CNY 7 worth of Chinese goods. That being the case, the lowered value practically offsets whatever additional tariffs they have to pay on importation of Chinese goods come September 01 and December 01, 2019.

E en if the 10% tariff pushes through, U.S. importers of Chinese goods therefore, will not pay heavy tariffs that they subsequently pass on to retailers, and eventually to consumers.

Splitting of Goods in Deferment of September 01, 2019 10% Tariff to December 15, 2019

In trying to put a brave front, POTUS Trump still intends to impose the 10% tariff by September 01, 2019 but not on all Chinese goods as previously planned.

The September effectivity will be imposed on imported various agricultural products, clothes, footwear, kitchenware and antiques. According to Bloomberg News, the total value of which is around USD110 billion.

An estimated $2 billion worth of China-made products such as bibles and shipping containers will be eliminated from the list of goods subject to the impending 10% tariff imposition.

The bigger lot that includes electronic items like smartphones and laptops as well as children’s toys, which Bloomberg estimated as worth USD160 billion, will be subject to the 10% tariff after December 15, 2019.

Modifications on Trump’s chaotic tariff policies are still subject to the outcome of another round of talks being set up by U.S. negotiators with Chinese trade officials. Although Trump claims that Beijing wants to renegotiate for a better deal, Commerce and Foreign Ministries at Beijing’s end is not responding to faxes seeking confirmation of Trump’s current claim. .

Personal Loan To Refinance Existing Debts

Personal loans are one of the many ways that allow you to consolidate various debts. Personal loans usually have higher rates of interest compared to secured loans but they are lower compared to credit card interest rates. On the hand, you can get the best personal loan to consolidate your loan through specialized lending institutions versus traditional banks and it also depends on a number of factors. One of which is your credit standing.

What is a debt consolidation loan?

Debt consolidation is obtaining a new loan for the purpose of paying out smaller loans, debts, or bills. Debt consolidation allows a person to successfully bring all of these financial obligations together as one combined loan, therefore, having only one payment per month.

Why get a debt consolidation loan?

People get a debt consolidation loan for a number of reasons. The top reasons for consolidating loans are as follows:

  • Easier loan management
  • Predictable fixed repayments
  • Monthly repayments become lower

Debt consolidation also allows solopreneurs to start fresh thus consolidation is part of financial planning towards a successful new business.

The way debt consolidation loans work

For example, you currently have $20,000 in credit card debt from four different accounts. Your minimum payment on all of them is at $800 every month. Getting a personal loan of $20,000 allows you to pay off your existing credit card debts and may have you paying a lower monthly repayment.

The Ideal Debt Consolidation Loan

The best debt consolidation loan provides the following:

  • lower interest rate compared to the average rate on a standard debt consolidation
  • lower monthly payment compared to the total of the consolidated debts
  • enough to meet your goals in debt consolidation

How Debt Consolidation Loans are Released

Once you are given a standard debt consolidation loan, the lending company either makes use of the money to pay the financial obligations you both agree to pay, or the lending company may deposit the money in your current bank account. The responsibility of paying off the debts will be on you.

Regardless of whether a consolidating your loan is best for you eventually is determined by numerous points together with your financial objectives, your credit rating, and if you abide by a budget. Do not enter a consolidation loan as being a crutch for making life less difficult just for the time being.

STARTUP FUNDING EXPLAINED - EVERYTHING YOU NEED TO KNOW
Learne more about business and investment from this... Life of Starting a Startup - such an informative and fun to watch video. This explains the mechanics well, implementing is easier said than done. Applies to tech startups that have a ridiculously high market potential.
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