WEBVTT 00:01.490 --> 00:04.660 [Music] 00:07.799 --> 00:09.880 hi this is Anita from the global trade 00:09.880 --> 00:11.960 gal where we like to talk about all 00:11.960 --> 00:14.519 different things to do with trade as 00:14.519 --> 00:16.880 many of you may know I am here in Hanoi 00:16.880 --> 00:20.400 Vietnam I've spent my life in the export 00:20.400 --> 00:22.960 business so I've seen a lot of changes 00:22.960 --> 00:26.000 take place during my lifetime but one of 00:26.000 --> 00:28.560 the changes I've seen which is happening 00:28.560 --> 00:31.320 recently is a lot of these talks about 00:31.320 --> 00:35.120 tariffs or protectionism or that somehow 00:35.120 --> 00:37.960 countries or companies or people feeling 00:37.960 --> 00:40.120 like well if we could just bring it all 00:40.120 --> 00:42.960 back and make it all ourselves then 00:42.960 --> 00:45.360 wouldn't that be better but the truth is 00:45.360 --> 00:47.120 that there's a lot of products for 00:47.120 --> 00:49.399 example that we make which will never be 00:49.399 --> 00:51.719 made again in countries like the United 00:51.719 --> 00:54.320 States for example nobody wants to go 00:54.320 --> 00:56.399 into the furniture IND business anymore 00:56.399 --> 00:59.160 to manufacture Furniture sure you might 00:59.160 --> 01:00.800 say well there could some people they're 01:00.800 --> 01:02.079 doing it with you know high-tech 01:02.079 --> 01:04.600 machines and other things when it comes 01:04.600 --> 01:06.920 stuff to some of the handmade finishes 01:06.920 --> 01:09.479 the hand scrape finishes even for 01:09.479 --> 01:10.960 furniture some of the weaving that needs 01:10.960 --> 01:13.680 to take place some of the other things 01:13.680 --> 01:15.640 people in America just don't have the 01:15.640 --> 01:18.439 skills anymore to be able to do that and 01:18.439 --> 01:20.400 I just don't see where the younger 01:20.400 --> 01:22.960 generation really wants to do it so 01:22.960 --> 01:24.520 where does this take us for 01:24.520 --> 01:26.280 globalization you know if you if you 01:26.280 --> 01:28.119 start to tariff everything or put 01:28.119 --> 01:30.439 tariffs on every single thing that 01:30.439 --> 01:32.479 enters a country like the United States 01:32.479 --> 01:34.759 well essentially the people that are 01:34.759 --> 01:36.200 going to be paying for this and I've 01:36.200 --> 01:39.200 said this many times in this podcast is 01:39.200 --> 01:41.840 the consumer the consumer is the one who 01:41.840 --> 01:44.280 pays it's not the country that's 01:44.280 --> 01:48.600 exporting it we as exporters we we quote 01:48.600 --> 01:51.240 a price which is basically a price which 01:51.240 --> 01:54.600 is known as an fob price fobb price 01:54.600 --> 01:56.520 means that it's a price basically free 01:56.520 --> 01:59.320 on board essentially means that it's our 01:59.320 --> 02:00.399 role 02:00.399 --> 02:03.240 as the manufacturer to get the goods to 02:03.240 --> 02:05.560 the port so the port can get on the 02:05.560 --> 02:08.479 ship our customers then will usually 02:08.479 --> 02:11.400 nominate who they want to ship the goods 02:11.400 --> 02:14.400 we will pick up the container from them 02:14.400 --> 02:16.800 we will load the container we will seal 02:16.800 --> 02:19.160 the container we'll get the container 02:19.160 --> 02:21.599 back to the port we'll do the local 02:21.599 --> 02:23.720 Customs for the country we're exporting 02:23.720 --> 02:26.239 for and then we will get the container 02:26.239 --> 02:29.120 on the ship once the container is on the 02:29.120 --> 02:31.879 ship it's out of our hands it's in the 02:31.879 --> 02:33.160 hands of the 02:33.160 --> 02:36.239 shipper or the shipping company we no 02:36.239 --> 02:37.959 longer have anything to do with the 02:37.959 --> 02:39.840 container we couldn't even get the 02:39.840 --> 02:41.599 container back if we wanted to get the 02:41.599 --> 02:43.280 container back because it's already in 02:43.280 --> 02:46.920 the hands of the shipping company itself 02:46.920 --> 02:49.720 and once it hits the United States then 02:49.720 --> 02:51.959 when it comes things for like the taxes 02:51.959 --> 02:54.480 the tariffs all the other things they 02:54.480 --> 02:56.680 need to be paid by the 02:56.680 --> 02:59.159 Importer and so it's the US company 02:59.159 --> 03:01.040 that's paying them so when the US 03:01.040 --> 03:04.239 company has to pay say 25% more on 03:04.239 --> 03:06.840 something being imported they are going 03:06.840 --> 03:10.040 to have to us Le almost always pass that 03:10.040 --> 03:13.319 on to you as the consumer or pass it on 03:13.319 --> 03:16.120 to the person who's buying the product 03:16.120 --> 03:18.599 why because of the fact that they won't 03:18.599 --> 03:20.120 they don't have that kind of money in 03:20.120 --> 03:22.599 the product itself to be able to swallow 03:22.599 --> 03:25.440 that cost and second of all it is not 03:25.440 --> 03:28.040 the exporter who's paying so you know 03:28.040 --> 03:29.280 when something is exported from a 03:29.280 --> 03:31.200 country like China and goes to the 03:31.200 --> 03:32.920 United States there's some kind of 03:32.920 --> 03:34.760 disbelief where many people believe that 03:34.760 --> 03:38.159 somehow China's paying the extra 25% 03:38.159 --> 03:41.879 China is not paying it it is being paid 03:41.879 --> 03:46.159 by the Importer or the US company is 03:46.159 --> 03:48.879 paying that and then ultimately it's the 03:48.879 --> 03:51.400 consumer who will pay more for that 03:51.400 --> 03:53.519 product or pay more for you know 03:53.519 --> 03:56.840 whatever they're buying essentially why 03:56.840 --> 03:57.760 you know 03:57.760 --> 04:00.200 globalization or you know the Tariff 04:00.200 --> 04:02.920 hurt Bas hurt business make prices 04:02.920 --> 04:05.040 increase and one of the things which has 04:05.040 --> 04:06.560 happened in the world which I'm a great 04:06.560 --> 04:09.480 believer in is you know this this belief 04:09.480 --> 04:11.560 of globalization where countries should 04:11.560 --> 04:14.079 do what countries are good at and if 04:14.079 --> 04:16.359 that if that happens where you know if 04:16.359 --> 04:17.639 somebody's really good at weaving 04:17.639 --> 04:19.600 baskets well let them weave the baskets 04:19.600 --> 04:21.199 you know people in the United States 04:21.199 --> 04:22.639 want to sit in their home and weave 04:22.639 --> 04:25.280 baskets you know so so let them weave 04:25.280 --> 04:28.120 the baskets import the baskets from them 04:28.120 --> 04:29.400 and then if you're really good at 04:29.400 --> 04:32.960 something else like like selling cars or 04:32.960 --> 04:34.840 airplanes or whatever else it is let 04:34.840 --> 04:37.199 them buy those from you because they're 04:37.199 --> 04:40.160 not producing those so that's really 04:40.160 --> 04:42.759 what trade is or free trade is about 04:42.759 --> 04:45.000 it's about people using what they're 04:45.000 --> 04:47.039 good at and then buying and selling from 04:47.039 --> 04:50.639 each other so trade policies really can 04:50.639 --> 04:54.680 have a huge impact on global economies 04:54.680 --> 04:57.120 it basically hurt everyone if if 04:57.120 --> 05:01.039 suddenly a you know tax or teror of 50% 05:01.039 --> 05:04.320 or 25% or whatever it may be is put onto 05:04.320 --> 05:06.600 a product first of all the consumer is 05:06.600 --> 05:08.280 paying more so the consumer will buy 05:08.280 --> 05:10.800 less of that because they just simply 05:10.800 --> 05:13.479 won't be able to afford it the Importer 05:13.479 --> 05:16.120 will have to put that cash out and you 05:16.120 --> 05:17.479 know that gets very expensive so that 05:17.479 --> 05:19.000 means that they won't be buying much of 05:19.000 --> 05:21.319 anything else because they're using a 05:21.319 --> 05:23.800 lot of their cash or their cash flow to 05:23.800 --> 05:26.800 be able to import that product the other 05:26.800 --> 05:28.840 thing is that the manufacturer also 05:28.840 --> 05:31.039 loses out because the companies aren't 05:31.039 --> 05:32.680 going to be buying as much cuz 05:32.680 --> 05:34.840 essentially you know sales have stopped 05:34.840 --> 05:36.400 and so they're not buying as much as 05:36.400 --> 05:38.520 they used to so that means that 05:38.520 --> 05:40.800 everybody in this sense is basically 05:40.800 --> 05:45.080 losing out because of the higher tariffs 05:45.080 --> 05:48.759 or taxes or or whatever else that is is 05:48.759 --> 05:50.520 going on with this that's why trade 05:50.520 --> 05:54.199 policies have a huge Global impact for 05:54.199 --> 05:56.720 everybody and this does not just extend 05:56.720 --> 05:59.120 for products such as you know baskets 05:59.120 --> 06:01.160 that I've been talking about it can also 06:01.160 --> 06:04.319 have to do for things like um steel for 06:04.319 --> 06:07.759 example if a tariff is put on steel then 06:07.759 --> 06:09.919 suddenly if somebody needs to buy steel 06:09.919 --> 06:11.560 for you know maybe they need the steel 06:11.560 --> 06:13.800 for housing for building for 06:13.800 --> 06:15.360 manufacturing some type of product 06:15.360 --> 06:18.880 suddenly that is going to cost them more 06:18.880 --> 06:21.039 than if if they didn't the Tariff on the 06:21.039 --> 06:23.680 steel this is one reason why I'm really 06:23.680 --> 06:25.440 quite anti- tariff not only because I'm 06:25.440 --> 06:28.360 an exporter but also because I just see 06:28.360 --> 06:30.680 that there's a lot of craziness going on 06:30.680 --> 06:33.240 for example I recently found out for 06:33.240 --> 06:35.520 almost everything we buy in my Industry 06:35.520 --> 06:38.319 Home Furnishing home decor from China is 06:38.319 --> 06:41.840 under a 25% tariff that is just usually 06:41.840 --> 06:43.560 a given almost everything we do is under 06:43.560 --> 06:46.240 a 25% tariff but then I was looking the 06:46.240 --> 06:49.240 other day at toys in fact plush toys and 06:49.240 --> 06:50.759 discovered that plush 06:50.759 --> 06:54.199 toys have no tariff so you would think 06:54.199 --> 06:55.599 that you know if you're going to 06:55.599 --> 06:58.240 equalize it between you know the 06:58.240 --> 07:00.280 different type of categories you know 07:00.280 --> 07:03.280 why is it plush toys don't have a tariff 07:03.280 --> 07:08.400 and then something like a tray or a lamp 07:08.400 --> 07:09.879 has a 07:09.879 --> 07:11.919 tariff you know the United States 07:11.919 --> 07:13.680 certainly could make plush toys if they 07:13.680 --> 07:15.560 wanted there's people there that are 07:15.560 --> 07:17.440 actually producing plush toys but yet 07:17.440 --> 07:20.039 toys don't for some reason didn't come 07:20.039 --> 07:22.000 under the Tariff but then some of the 07:22.000 --> 07:23.680 raw materials which you have 07:23.680 --> 07:26.080 manufacturers need in order to produce 07:26.080 --> 07:28.080 their products in the united states are 07:28.080 --> 07:30.759 under the Tariff so so for me all of the 07:30.759 --> 07:33.400 tariffs just do not make sense they're 07:33.400 --> 07:34.720 they're they're kind of like a little 07:34.720 --> 07:38.199 bit of um craziness going on in my own 07:38.199 --> 07:40.479 this is just my own opinion about it 07:40.479 --> 07:42.520 because I sort of feel like why not put 07:42.520 --> 07:44.240 a tariff on plush toys if you're going 07:44.240 --> 07:45.400 to put a tariff on anything you would 07:45.400 --> 07:46.800 think toys would have something to have 07:46.800 --> 07:49.879 a tariff on it you know get more toys 07:49.879 --> 07:52.440 produced in the United States but the 07:52.440 --> 07:53.879 truth is that nobody in the United 07:53.879 --> 07:55.360 States probably going to be producing 07:55.360 --> 07:58.960 many toys so that's why plush toys are 07:58.960 --> 08:01.800 probably not under not under the Tariff 08:01.800 --> 08:03.080 I don't know why they're not under the 08:03.080 --> 08:04.639 Tariff it doesn't make sense to me at 08:04.639 --> 08:07.120 all but that is just an example of how 08:07.120 --> 08:09.599 crazy tariffs can be that there can be 08:09.599 --> 08:11.639 tariffs on certain things and not 08:11.639 --> 08:14.840 tariffs on other things and so you know 08:14.840 --> 08:17.759 tariffs can also hurt us manufacturers 08:17.759 --> 08:19.319 as I pointed out before let's say a 08:19.319 --> 08:20.960 paint is put on a tariff and they have 08:20.960 --> 08:23.120 to buy a special paint from overseas 08:23.120 --> 08:24.479 suddenly that paint becomes more 08:24.479 --> 08:26.479 expensive they can't buy the paint in 08:26.479 --> 08:28.159 the United States or they can't buy it 08:28.159 --> 08:30.120 where they needed they're not able to 08:30.120 --> 08:32.000 get the quality or maybe not the color 08:32.000 --> 08:34.240 or maybe they're not able to get exactly 08:34.240 --> 08:35.919 what they need or maybe the price is so 08:35.919 --> 08:37.800 much more expensive that they need to 08:37.800 --> 08:39.719 buy the paint overseas well suddenly if 08:39.719 --> 08:42.039 paint is under tariff they need to pay 08:42.039 --> 08:43.640 more for that paint and that doesn't 08:43.640 --> 08:45.560 make sense because they're trying to 08:45.560 --> 08:47.200 manufacture in the United States but at 08:47.200 --> 08:50.040 the same time they need to pay more for 08:50.040 --> 08:52.480 that product I don't know personally 08:52.480 --> 08:54.480 whether paint is under a tariff but I'm 08:54.480 --> 08:57.040 just use as an example as to how a 08:57.040 --> 08:59.560 tariff will hurt hurts basically every 08:59.560 --> 09:02.200 body another big problem with a lot of 09:02.200 --> 09:04.040 the trade policies too is that they are 09:04.040 --> 09:06.839 not static in other words they can 09:06.839 --> 09:08.720 change according to the 09:08.720 --> 09:11.200 geopolitical shifts and we see this 09:11.200 --> 09:13.680 quite a bit in the United States what's 09:13.680 --> 09:15.240 happening now you know suddenly we have 09:15.240 --> 09:17.800 a new president coming in and so tariffs 09:17.800 --> 09:19.320 are being threatened again because 09:19.320 --> 09:22.200 tariffs seem to be the popular word that 09:22.200 --> 09:23.920 many people like that somehow they're 09:23.920 --> 09:27.200 under this impression that a tariff is 09:27.200 --> 09:29.480 paid for by someone else not by the 09:29.480 --> 09:32.120 country that's importing it so that's 09:32.120 --> 09:34.200 one of the issues with a lot of the 09:34.200 --> 09:35.760 trade and one of the challenges of 09:35.760 --> 09:38.079 global trade itself is that it's 09:38.079 --> 09:39.839 constantly changing there's political 09:39.839 --> 09:42.120 Landscapes changing things are changing 09:42.120 --> 09:44.720 so it's it's kind of a fluid uh type of 09:44.720 --> 09:46.320 Industry where it's where things are 09:46.320 --> 09:48.160 changing suddenly within a heartbeat 09:48.160 --> 09:50.160 somebody could put a tariff for you on a 09:50.160 --> 09:51.880 product you're exporting and suddenly 09:51.880 --> 09:53.720 you're no longer competitive 09:53.720 --> 09:56.720 anymore my co-author James Johnson has 09:56.720 --> 09:58.760 written a Blog on this a globalization 09:58.760 --> 10:00.640 effects on imports and exports we've 10:00.640 --> 10:03.160 gone into more detail on this I just 10:03.160 --> 10:05.680 wanted to add a few of my thoughts to 10:05.680 --> 10:08.079 his thoughts that he has put on this but 10:08.079 --> 10:10.800 this you know really tariffs and and 10:10.800 --> 10:13.000 trade that's why I'm a great believer in 10:13.000 --> 10:16.399 free trade that we should really all 10:16.399 --> 10:19.040 work you know as as country should work 10:19.040 --> 10:22.160 together to make trade as fair and free 10:22.160 --> 10:24.240 as possible thank you so much for 10:24.240 --> 10:25.839 listening this is Anita from the global 10:25.839 --> 10:27.959 trade gal we hope you've enjoyed this 10:27.959 --> 10:30.760 podcast and we'll put a link to our our 10:30.760 --> 10:32.279 blog in the description so that you can 10:32.279 --> 10:34.040 be able to check it out if you're 10:34.040 --> 10:36.240 interested in checking out our blog post 10:36.240 --> 10:38.920 on this and if you are in the trade and 10:38.920 --> 10:40.399 you've had problems with tarff other 10:40.399 --> 10:42.079 things we'd love to hear from you love 10:42.079 --> 10:44.040 to hear your thoughts on this and we 10:44.040 --> 10:45.560 just thank you so much for being part of 10:45.560 --> 10:48.110 our community 10:48.110 --> 10:51.279 [Music]