Current events discussion

[spokey9 5,000+ posts]

What is the "bluff" that he is playing on Canada, Mexico, China, when he plans to impose trade tariffs on goods WE willingly import from them?

And who will pay the tariffs?

Dense...

 

[spokey9 5,000+ posts]

 

[Jimi77 Premium Member]

What is the "bluff" that he is playing on Canada, Mexico, China, when he plans to impose trade tariffs on goods WE willingly import from them?

And who will pay the tariffs?

In the end "nobody" or "everybody" depending on how you want to look at it. Ultimately the goal of the tariffs is to bring manufacturing back to the US.

 

[spokey9 5,000+ posts]

In the end "nobody" or "everybody" depending on how you want to look at it. Ultimately the goal of the tariffs is to bring manufacturing back to the US.

Not only that but to slow illegal immigration and the drug coming across the border...I'm ok with paying higher prices if need be to at least try something to deal with it. I'm not ok paying higher prices because the govt is borrowing money to pump into woke or dei bs programs

 

[Speed Chaser]

happy thanksgiving everyone

 

[Eggs 5,000+ posts]

Political theater? Was hope for some Chuck Norris delta team, shark filled molts and drone strikes on cartels since Sicario 3 been scrapped

 

[Eggs 5,000+ posts]

 

[RobGMN Premium Member]

Wow... really? What's the bluff?

What do Tariffs do Rob?

Yes, what's the bluff?

A 25% tariff gets paid by the importer. Do you really think that an importer is going to eat a 25% increase on the cost of good sold, or do you think that the importer is going to pass that on? If the importer is selling the product directly, they're going to pass it directly onto the customer.
If the importer is selling that good to a retailer, the cost gets passed on the retailer. Then, that cost gets passed onto the consumer.
The exporter doesn't pay a dime on an import tariff, any more than I pay a value added tax when I sell something to a Canadian and ship it up there.
I simply declare a value, and ship. It's on the importer to deal with tariff, taxes, duties, etc, not me.

Trump attempted these tariffs when he was president the first time around. And it failed.
What is the modification to his plan that indicates it will work on his next attempt?

Let's suppose he smacks a 25% tariff on $100 TV. That TV is going to sell for a bit less than $125, as the tariff gets passed on.
Are you thinking that that extra $25 is going to be enough For a whole new manufacturing industry to ramp up in America, produce the goods in America, and sell the goods in America? Where are the materials for that TV coming from?

To produce and sell all of those imported goods that we now get from other countries, we probably have to pay double the retail price that we are now.
You could tack a 50% tariff on most of that stuff, and still be ahead of the game by buying imported goods.
If this is strictly about keeping money in the American economy, then we need to just shut down importing altogether and figure out how we can make this stuff at a price that people can afford, we can pay the people who make it a living wage, And how we can do it all without relying on other countries.
Unless we can do that, international trade is always going to be something that we deal with.

 

[Speed Chaser]

 

[spokey9 5,000+ posts]

The exporter doesn't pay a dime on an import tariff, any more than I pay a value added tax when I sell something to a Canadian and ship it up there.
I simply declare a value, and ship. It's on the importer to deal with tariff, taxes, duties, etc, not me.

The higher price due to the tariff leads less demand for the product...which reduces sales which leads to lower profits...

It's basic economics...

 

[Jimi77 Premium Member]

Not only that but to slow illegal immigration and the drug coming across the border...I'm ok with paying higher prices if need be to at least try something to deal with it. I'm not ok paying higher prices because the govt is borrowing money to pump into woke or dei bs programs

I would hope they try and offset the higher prices with income tax cuts/credits.

 

[Jimi77 Premium Member]

Yes, what's the bluff?

A 25% tariff gets paid by the importer. Do you really think that an importer is going to eat a 25% increase on the cost of good sold, or do you think that the importer is going to pass that on? If the importer is selling the product directly, they're going to pass it directly onto the customer.
If the importer is selling that good to a retailer, the cost gets passed on the retailer. Then, that cost gets passed onto the consumer.
The exporter doesn't pay a dime on an import tariff, any more than I pay a value added tax when I sell something to a Canadian and ship it up there.
I simply declare a value, and ship. It's on the importer to deal with tariff, taxes, duties, etc, not me.

Trump attempted these tariffs when he was president the first time around. And it failed.
What is the modification to his plan that indicates it will work on his next attempt?

Let's suppose he smacks a 25% tariff on $100 TV. That TV is going to sell for a bit less than $125, as the tariff gets passed on.
Are you thinking that that extra $25 is going to be enough For a whole new manufacturing industry to ramp up in America, produce the goods in America, and sell the goods in America? Where are the materials for that TV coming from?

To produce and sell all of those imported goods that we now get from other countries, we probably have to pay double the retail price that we are now.
You could tack a 50% tariff on most of that stuff, and still be ahead of the game by buying imported goods.
If this is strictly about keeping money in the American economy, then we need to just shut down importing altogether and figure out how we can make this stuff at a price that people can afford, we can pay the people who make it a living wage, And how we can do it all without relying on other countries.
Unless we can do that, international trade is always going to be something that we deal with.

I know somebody that dealt with this issue the first time Trump introduced tariffs. How it really worked (in that case) was the exporter ate some of the cost and the importer ate some of the cost and they kept prices flat. Ultimately, anybody to everybody can end up paying for the tariff. Hypothetically, if an unemployed person gets a manufacturing job in the US due to the tariffs, then he could be considered a net tax beneficiary.

 

[spokey9 5,000+ posts]

happy thanksgiving everyone

Happy turkey day buddy

 

[spokey9 5,000+ posts]

I would hope they try and offset the higher prices with income tax cuts/credits.

I'm hoping that no tax on overtime or tips thing comes to pass but I'm not gonna hold my breath

 

[ThxOne Premium Member]

Rob is literally looking at Tariffs from one point of view. His.