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Tariffs
AOG
Member Posts: 1,944
Prediction of effect of 25% Canada and Mexico?
You MAGAs are on board I assume.
Comments
“No one — on either side of the border — wants to see American tariffs on Canadian goods,” Prime Minister Justin Trudeau of Canada
except who???
All these counties place tarrifs in our products. We can do the same. They'll move our automotive plants back to America and we'll get the jobs not the Canucks. Trump just posted "why do we send vanadium 250 billion a year? Trudeau didn't know. But he asked Trudeau what would happen if we stopped and the redone was it would destroy Canada. Trump said sounds like your or 51st state! I say we name it Canukia.
actually I think we need details which I will look up later, present search is not fruitful. But I think in general the tariffs in place are pretty low (excepting some categories)
Allthe euro countries and nearly every country in the world places tarrifs on U.S. goods. We don't do that and we should. We'd make billions maybe trillions. Everyone wants to sell here but they tariff our goods in their countries. Enough.
I am for placing tariffs on countries that charge us tariffs. Its only fair. Balance it out.
As for those countries who flood our markets with slave labor products and technology that they have stolen from us, max tariffs.
Well, the details matter a lot here. I do know offhand that tariff revenue is tiny now compared to tax revenues. Basically this is around a 25% tax to the buyer now on goods from Mexico/Canada. Basically like Mr T, "pain." And also if you invest in a business that sells to those countries, you don't keep any tariffs, you just sell less.
Just round numbers US imports $4T.
Income Tax revenues ~$2T
Federal government spends ~$7T
I'm all for the Chilean model, sign bilateral actual free trade with anyone willing to (that isn't an authoritarian adversary). Then match/exceed tariffs with anyone who doesn't.
China exports $1/2T to the US and steals billions if not trillions in IP. Start with them. It's easy enough to replace 80% of that cheap manufacturing with onshoring and moving to countries not intent on our destruction.
Good luck with the search. I tried myself
If tariffs bring back jobs it's a double win
Numbers alone show it's a spending problem.
The dem elite were either sold on MMT or were content to destroy the nation while cashing checks. Abundance.
Tariffs are small potatoes compared to spending. It's why the first round were left in place. The inflation was barely noticeable.
Doge needs to get Massie on the team. The spending freeze is a start but we need the budget to freeze while growing the economy to have any chance
Off the top, I'm in favor of the Mexican tariffs and we need a large tax on remittances to Mexico from those who don't have a valid Social or green card. Between the cartels, human trafficking, fentanyl, the Mexican government being a pipeline for the world's shit holes to export their criminals and military age males we save a lot of money if we get the border closed and stop the largely cash paid employment of illegals in the US. I'll pay more for avocados and tomatoes.
Canada I'm not so sure about it. I haven't seen any analysis of what our current tariffs are versus their tariffs. I know there is some problems with the Northern Border but nothing like the Southern. Not sure how much Canada is subsidizing the US automakers in Canada. Don't know what the US trade deficit (if any) is with Canada. I do know they get a free ride on our drug pricing and with Big Pharma and the US Congress banning drug imports from Canada we pay full boat (R&D plus testing) and Canada just has to cover marginal cost production with a normal price margin to the manufacturer.
I’m guessing since the USA has the leverage and this is a negotiating tactic, we will get a more favorable trade partnership than what CUSMA currently offers as structured.
Have you even negotiated any business deal from a position of power? Trump’s not operating like Biden-Obama, who were apologizing for our dominance and deliberately not using it in negations with other countries.
I export things to Alberta every day and as it is, the US dollar’s strength compared to Canada and Mexico is a negative for selling goods there. It puts our distributors at a disadvantage compared to others who are buying from India or Pakistan.
We stay as the leader at this company because our plants make excellent parts that last for pump in the patch.
Canada and Mexico have huge advantages exporting to us than we do to them, and all transactions are affected. I’m sure the last administration didn’t mind at all, nor did the UniParty GOP corporatists.
Do proceed, though. Tell me your thoughts on trading with Canada.
It won't be a good start:
Linda Hasenfratz, the executive chairwoman of the Canadian auto parts maker Linamar, said that the 25 percent tariffs President Trump intends to impose tomorrow on exports from Canada and Mexico could shut down North American auto production within a week. “Nobody can absorb this kind of cost, not the automakers, not the suppliers, not consumers,” Hasenfratz, whose Canada-based company has plants in all three countries, said in a statement to The New York Times. “Demand will collapse, and vehicle production will grind to a halt, putting millions of workers out of work, the vast majority of which are in the U.S.”
Or
https://www.reuters.com/business/autos-transportation/ces-trumps-tariff-threat-spurs-auto-suppliers-rethink-production-plans-2025-01-09/
25% will not get passed onto the consumer on most products. There will major pain for the exporter, if there wasn’t then Trudeau wouldn’t be crying like a bitch.
Idealistically in Utopia, NAFTA was supposed to elevate Mexico (Canada being an afterthought and not needing the help) into a more equal neighbor in terms of economy and elevate GDP.
Unfortunately, corruption in Mexico, along with their willingness to allow countries like China use Mexico as a staging area to export their products to the USA, has gone against what the intention of NAFTA/CUSMA (or USCMA if you want) and has undercut US manufacturing.
It needs to be restructured, and that’s what will happen.
.
Sure looks like I'm right on this…
Let’s go!!!!!!! Fuck Germany for the two year VAT audit they put me through where they ended up sending me a check. Fuck the French too, mostly for just being fags.