Trump Wants 20% Import Tax to Pay for Wall With Mexico

originally posted by: earthling42
a reply to: Snarl

The only problem is, he can't.
Any import tax will simply be passed on to the consumer.
Mexico will find other trading partners who are reliable and impose some import tax on products made in the US.
It goes both ways.

Yep, China and the rest of economies that Trump is going to try to start trade wars with, aren't going to need American if they band together and make bilateral trade deals.

And besides:

www.worldstopexports.com...

The following export product groups represent the highest dollar value in Mexican global shipments during 2015.

Also shown is the percentage share each export category represents in terms of overall exports from Mexico.

Vehicles: US$90.4 billion (23.7% of total exports)
Electronic equipment: $81.2 billion (21.3%)
Machines, engines, pumps: $58.9 billion (15.5%)
Oil: $22.8 billion (6%)
Medical, technical equipment: $15.2 billion (4%)
Furniture, lighting, signs: $9.9 billion (2.6%)
Plastics: $8.3 billion (2.2%)
Gems, precious metals, coins: $7.1 billion (1.9%)
Iron or steel products: $5.7 billion (1.5%)
Vegetables: $5.6 billion (1.5%)

Furniture, lighting and signs were the fastest-growing among the top 10 export categories, up 65.2% in value for the 5-year period starting in 2011.

In second place for improving export sales were vehicles which rose 43.7% led by sales of exported Mexican cars, trucks, automotive parts, tractors and trailers.

Mexican medical and technical equipment posted the third-fastest gain in value at 39.5%.
Posting the severest decline were Mexican oil exports, down -49.1% from 2011 to 2015.

So those things...which mostly go to America, are going to get more expensive for American businesses to buy. And it's going to take years to create the manufacturing capabilities to match Mexico.

What does America do in the meantime?

~Tenth

originally posted by: Natas0114

originally posted by: Natas0114
He should bump it to 25 and provide legal support for those immigrants who'll renounce Mexico citizenship and pay taxes here as proud American citizens. Felony free of course.

Remittance payments should be illegal by American citizens naturally..

Great idea! Let's have the government tell us what we can and can't do with the money a citizen earns. Just like North Korea. Really?

a reply to: Snarl

We should do that with the US on a worldwide scale, let's see how fast the US is on its knees.
Ohh, and of course protect Canada by building a wall which will be paid for by the US.

I think many corporations will begin to realize that they don't want to be demonized as an importer. They will begin to jump on the band wagon and begin downsizing their foreign interests and expanding here in America. Also, many right now, are most likely realizing the longer they hold out the least likely the individual states will give them 'extras' to expand their industries.

I say this since one corporation I know (family member has inside info) tends to be a follower of trends and right now, they are closing up some foreign markets and down sizing others in the next few months- year. They are planning on centralizing in USA. The downsized foreign manufacturing will not be shipped to America but to other global interests. This will be a win for them publicity and $$$. That is what matters and Trump does seem to know this. Side benefit: more jobs for Americans.

a reply to: xuenchen

What does this mean for websites like aliexpress, banggood, Tmart, Gearbest, etc? No more cheap stuff?



I ask because I want to get into FPV RC flying and ill be damed if I pay 100 dollars for a us part that I can get for 10-20 on one of these websites that performs just as good or better.



Ahh nevermind. 20% wouldn't be THAT bad, for parts that are 10-50 dollars.

originally posted by: iTruthSeeker
a reply to: xuenchen

What does this mean for websites like aliexpress, banggood, Tmart, Gearbest, etc? No more cheap stuff?

That's exactly what it means. Figure out how the Black Market works and you should be fine.


Don't forget shipping. That's going thru the roof with tariffs. The added paper work will be a nightmare.

How many people work for Amazon that will lose their jobs? Their profit margin is so small anyway, tariffs will shut them down fast. Didn't think of that did ya?

a reply to: olaru12

Capitalism....Inflation under Trump will skyrocket and your American dollars will be worth less....much less.

Inflation ain't got SNIP to do with tariffs.

Inflation is the direct result of the Feds manipulation of fiat currency by printing more of it.

a reply to: CynConcepts

That would be a healthy step for the US, although it should not be a surprise that with higher labor costs, products will cost more for the consumer as well, so a rise in price of products should be expected in my opinion.
I wonder how it will equalize between lower tax rates and a higher labor participation rate.

originally posted by: Konduit
a reply to: reldra

That's the point darling. Less imports means less companies moving to Mexico.

Also less exports because Mexico is now trading with other nations more because of tariffs, this hurts America as well. Lots of American farm products are shipped to Mexico.

originally posted by: tothetenthpower

originally posted by: earthling42
a reply to: Snarl

The only problem is, he can't.
Any import tax will simply be passed on to the consumer.
Mexico will find other trading partners who are reliable and impose some import tax on products made in the US.
It goes both ways.

So those things...which mostly go to America, are going to get more expensive for American businesses to buy. And it's going to take years to create the manufacturing capabilities to match Mexico.

What does America do in the meantime?

~Tenth

so if those things usually go to America, then how would those bilateral trade deals you spoke of work out for them?

If we have lower taxes, higher wages, and more labor force participation, that will help offset the higher costs.

originally posted by: neo96
a reply to: olaru12

Capitalism....Inflation under Trump will skyrocket and your American dollars will be worth less....much less.

Inflation ain't got SNIP to do with tariffs.

Inflation is the direct result of the Feds manipulation of fiat currency by printing more of it.

Sometimes I feel like i'm talking to Children. Trump will not slow the Feds and there are also other
causes.

www.forbes.com...

originally posted by: FauxMulder

originally posted by: tothetenthpower

originally posted by: earthling42
a reply to: Snarl

The only problem is, he can't.
Any import tax will simply be passed on to the consumer.
Mexico will find other trading partners who are reliable and impose some import tax on products made in the US.
It goes both ways.

So those things...which mostly go to America, are going to get more expensive for American businesses to buy. And it's going to take years to create the manufacturing capabilities to match Mexico.

What does America do in the meantime?

~Tenth

so if those things usually go to America, then how would those bilateral trade deals you spoke of work out for them?

If we have lower taxes, higher wages, and more labor force participation, that will help offset the higher costs.

How long do you think it will take to rebuild the infrastructure? Trump isn't like Jesus and able to snap his fingers when he wants a miracle. Hint, It will take at least a decade and Trump will be gone.
www.cnbc.com...


We used to make steel in America...now we make chicken McNuggets....

a reply to: olaru12

Sometimes ?

I feel like that all the time.

Listening to Trump critics throw a fit every day.

20% tax from Mexico
20% corporate tax cut from the US.

Cancel each other out and the consumers will not pay extra.

originally posted by: xstealth
20% tax from Mexico
20% corporate tax cut from the US.

Cancel each other out and the consumers will not pay extra.

This assumes that our trade with mexico is as large as our corporate taxes. I assure you they are not the same.

originally posted by: earthling42
a reply to: Snarl

We should do that with the US on a worldwide scale, let's see how fast the US is on its knees.
Ohh, and of course protect Canada by building a wall which will be paid for by the US.

www.cbc.ca...

Up to a couple of billion bricks so far.....

a reply to: xuenchen

To hell with Mexico. They have had no problem with Tariff's on our crap in the past.


www.wilsonelser.com...

California, an important supplier of fresh fruits, dried fruits and nuts to Mexico, will be hit the hardest.

A 45 percent duty will be imposed on table grapes at the Mexican border; almonds, juices and wine, among other agricultural products, will pay 20 percent. Some 90 percent of Christmas-tree exports from California and 65 percent from Oregon go to Mexico. The volume of these exports will likely decrease beneath a 20 percent tariff.

Under the new tariffs, American pears, which are mostly shipped from Oregon and Washington states, now face a 20 percent tariff, as do a host of paper products from the Pacific Northwest and Wisconsin. Southern and western states will not be the only ones affected by the trade war. New York's $24 million annual exports in personal hygiene products or its exports of $250 million in precious-metals jewelry will not be as competitive after it pays a 20 percent tariff. Nor will Wisconsin's scrap battery industry, which exports $128 million annually to Mexico.

a reply to: olaru12

So are you saying we should do nothing because it will take a while to rebuild our infrastructure? Doesn't matter that he will be gone, the ball will be rolling.

From your link:

Rebuilding America won't be easy.

Of course it wont be east but we are Americans and we can handle challenges.

Maybe I will finally be able to buy a tomato grown in America!! Think about it.

a reply to: xuenchen

Remember: there is nothing stopping the rest of the world from assessing an equal tariff on all of our goods and services.