Chapter 828 Tariff War
After Australia became independent, Britain had completely given up direct confrontation with Russia.
The reason is very simple. The British Empire has not even defeated Theo, who is supported by the Grand Duchy of Yuriev. If Russia fails, the consequences will be disastrous.
Although Germany's total industrial value has surpassed that of Britain, Mustache has not dared to completely break the shackles of the Versailles system. The army still only has 100,000 people, and at least it looks easy to bully.
Macdonald was not declaring war on Germany, he was just diverting domestic conflicts. This was his usual method.
Hoover really wanted to declare war.
After the economic crisis broke out, Hoover did not do anything. He had been actively thinking of ways to deal with the impact of the stock market crash on the U.S. economy.
The effect was indeed effective. After entering 1930, the U.S. stock market stopped falling and began to slowly rebound. This made Hoover confident, claiming that the economic crisis would be over within 60 days.
Before taking office, Hoover promised American farmers that he would increase import tariffs on American agricultural products to protect the interests of American farmers in order to win farmers' votes.
Now it's time to deliver on that promise.
At the beginning of this year, Hoover and Meilong planned to increase import tariffs on agricultural products by 50% to protect American agriculture.
This decision is very American, because the U.S. government has done this in previous economic crises, using tariffs to regulate the U.S. market.
After knowing the news, Joseph and Ford took the initiative to go to Whitehall to visit Hoover, hoping to increase the tariff on imported cars from the United States by 50% to protect the interests of the American auto industry.
This request is legitimate.
After the economic crisis broke out, both Delaware Automotive Group and Ford began laying off workers and cutting wages, triggering market panic to a certain extent.
In order to avoid wider impacts, Hoover hoped that Delaware Motors and Ford would not do this and assume their due social responsibilities.
Joseph fully cooperated and proactively released a signal, promising not to relocate the factory to Mexico, and the storm disappeared.
Ford even took the initiative to increase workers' wages from $5 to $7 a day, showing strong confidence in the U.S. economy.
It's time for Delaware and Ford to demand payback from the U.S. government.
Delaware and Ford also have good reasons. The import of Russian cars has indeed had a certain impact on Delaware and Ford.
Ford deserves it. The Model T, which has remained unchanged for more than ten years, has completely fallen behind. Even Americans are tired of it and have begun to choose Russian cars with brighter colors, more fashionable appearance, and more advanced performance.
The cost of Delaware is too high. The salary offered by Siberian Automobile Group to Korean workers is much lower than that of American workers in the Delaware factory.
"So, Russian cars are taking advantage of low prices to dump into the US market. This is unfair competition and violates the principle of free trade. We must impose sanctions on Russian cars!"
Joseph was filled with righteous indignation and completely cut off from Russia.
"You have to think clearly, if we increase import tariffs on Russian cars, Russia will definitely retaliate."
Mei Long is still very rational, and Russia is not powerless to fight back.
"Hey, Henry, how many cars did Ford sell to Russia last year?"
Joseph did not answer this question directly.
Ford spread his hands and looked embarrassed. Could you please stop slapping him in the face like this?
When the Siberian car was launched in St. Petersburg, Ford was still working as an engineer at the Edison Illuminating Company.
It was precisely because of that expo that the current Delaware Automotive Group came into being.
"Okay, you don't want to say it, but for me, Delaware exported a total of 99 cars to Russia last year——"
Joseph was not afraid of embarrassment, and the number was auspicious anyway.
Hoover suddenly understood.
As the largest automobile company in the United States, it sells less than 100 cars in Russia a year, which is almost negligible compared to Delaware's production.
No wonder Delaware and Ford are not afraid of Russian counterattack.
Mei Long still frowned.
Russia is not a character that does not fight back when beaten.
"Since you strongly demand it, as the president of the United States, I have an obligation to protect the interests of American companies."
Hoover followed suit.
As Joseph's car left Whitehall, it passed little Morgan's car.
In 1901, Andrew Carnegie sold the steel company he founded to Morgan for $500 million.
Joseph did not say hello to little Morgan. He was a good Taoist but a poor Taoist.
No need to ask, little Morgan came to Whitehall for the purpose of imposing tariffs.
"If we do this, it will trigger a tariff war of unprecedented scale——"
Joseph Jr. reminded Joseph that raising tariffs was unwise.
"Before that, we must first ensure the interests of the family."
Joseph is indifferent, capital knows no borders, and at least Delaware is not the initiator.
This is not the first time that the United States has used tariffs to affect the international trade market. Even if Delaware does not do this, it will not be able to survive alone in the crazy environment.
The fact was just as Joseph expected. Hoover and Meilong initially only wanted to increase tariffs on agricultural products, but by the time they were submitted to Congress, the tax increase items had increased to more than 2,000 items, covering all commodity types. In order to prove the necessity of price and tax, the U.S. government submitted as many as 11,000 pages of supporting documents.
With so many supporting documents, members of Congress certainly don’t have the patience to read them word for word.
Just turn to the end of the document and say, tax increases are necessary and reasonable.
Then add it!
On June 29 and 30, the U.S. House of Representatives and the Senate respectively passed the U.S. government’s proposal to increase taxes, and the tariff war officially began.
The news reached the League of Nations, and Nicholas, the ambassador of the Kingdom of Montenegro to the League of Nations, took action.
"The Americans have gone too far! From now on, the Kingdom of Montenegro will completely stop importing any goods from the United States!"
Nikolai is confident that more than 99% of the imported goods of the Kingdom of Montenegro come from Russia and the Kingdom of Yugoslavia.
"Since the Americans have taken the initiative to provoke a tariff war, there is no reason for us not to fight."
Kostic stayed in formation.
"This is a serious harm to the international trading system, and we must fight back resolutely!"
Read the error-free version at 69 Book Bar! 6=9+Book_Bar debuts this novel.
Alan fanned the flames.
Edward frowned and said nothing.
“We should remember that this is a common tactic used by certain offshore countries, and they have been using this method to manipulate the European continent——”
Putales finally found the opportunity to scold Britain as well.
Some domestic media in the UK have recently carried out anti-German propaganda in the UK. Although the British government has repeatedly denied it, it is obvious that there must be a push by the British government behind the scenes. Otherwise, the British may not be as interested in Germany as royal gossip.
"Yes, we should fight back."
What is unexpected is that even Pierre Laval is so active.
France has kept a low profile in the past two years and does not easily express its position on many issues. The French economy has been relatively less affected by the economic crisis. This may be the reason why Pierre Laval is active.
Again, at least so far, the impact of the economic crisis on Europe is not as serious as Americans claim.
In other words, Americans are not as important to the world as they think.
"Since the United States has taken the initiative to close its doors, Russia will completely cut off all trade with the United States."
Andrei made the final decision, Russia has made up its mind, it is up to you what to do.
What Mei Long was worried about finally happened. Europe did not let the United States dominate, but launched a more severe counterattack against the United States.
In addition to Russia, Montenegro, Romania, Yugoslavia, the Grand Duchy of Yuriev, Korea, Australia, Germany, and France all immediately stated that they would stop trading with the United States.
Germany has completely turned to Russia, and it is normal to cut off trade with the United States.
France surprised many people.
George was not surprised.
France has always been the backbone of the European economy and can manufacture all industrial products including aircraft and automobiles.
France is not targeting the United States. While cutting off trade with the United States, it also significantly increased import tariffs like the United States, with an average increase of more than 50%.
This is an accidental injury.
French tax increases include oil and natural gas.
Guchkov decided to take revenge on France.
George reminded Guchkov that France was not targeting Russia.
France's tax increase does not hurt Russia. The increased tax is borne by French companies that import oil and natural gas. Russia will earn as much as it deserves, and it will not lose a penny.
Throughout Europe, Germany was not alone in suffering from the abuse of the Hebrews. France was not much better. When the Gestapo asked the French police to arrest the Hebrews, the enthusiasm of the French police surprised the Gestapo.
As long as the French police used one percent of their enthusiasm to arrest the Hebrews to fight against the German invasion, France would not be defeated in 38 days.
Compared with France, the U.S.’s retrograde policies are being opposed by the whole world. In addition to European countries, even Canada, which has just embraced the U.S., is fighting back against the U.S. and levying a 3.0% tax on 16 types of goods imported from the U.S. times the tariff.
Canada does not dare to do anything absolutely, it is more like a gesture. These 16 kinds of goods only account for 30% of the goods imported from the United States.
The most uncomfortable thing is the United Kingdom, because the United Kingdom simply does not dare to fight back against the United States.
After the collapse of the U.S. stock market, a large amount of money fled from New York back to London. It seems that London's status as a global financial center is becoming more and more stable.
However, this is not a good thing for the UK. The massive influx of capital is pushing up the British stock market. Once a stock market crash breaks out in the UK, the UK's already struggling economy will be even worse.
To the surprise of many people, Russia not only did not increase tariffs, but also launched an initiative within the Free Trade Alliance to further reduce tariffs to promote the flow of goods and effectively improve people's living standards.
Not to mention whether the tax increase can protect domestic enterprises, it will definitely have an impact on the price of imported goods.
Many countries in the free trade alliance, such as Romania and Yugoslavia, simply do not have the ability to produce cars, so tax increases cannot protect relevant companies and will only increase costs for consumers.
Relative to import taxes, taxes generated during the sale and use of cars are higher.
(End of chapter)