Quote:Trump spokesman Sean Spicer added a stunning new detail about the proposed wall project later Thursday, saying that Trump intended to pay for it by imposing a 20-percent tax on all imports from Mexico.
RE: Trump will ask Congress to initiate trade war with Mexico
(01-27-2017 04:25 AM)DavidSt Wrote: Mexico said they will imposed a 20% increase on goods made in Mexico going to the US which means we will still pay for the wall, and not Mexico.
I don't think Mexican government actually said this
But
If that were true it's now going to cost 40% more to make something in mexico and send it to the US. I bet it would be cheaper to make it in the U.S.
RE: Trump will ask Congress to initiate trade war with Mexico
(01-27-2017 04:25 AM)DavidSt Wrote: Mexico said they will imposed a 20% increase on goods made in Mexico going to the US which means we will still pay for the wall, and not Mexico.
Then We stop bringing anything made in Mexico. Nothing there We can't make here anyway.
RE: Trump will ask Congress to initiate trade war with Mexico
(01-27-2017 05:53 AM)solohawks Wrote:
(01-27-2017 04:25 AM)DavidSt Wrote: Mexico said they will imposed a 20% increase on goods made in Mexico going to the US which means we will still pay for the wall, and not Mexico.
I don't think Mexican government actually said this
But
If that were true it's now going to cost 40% more to make something in mexico and send it to the US. I bet it would be cheaper to make it in the U.S.
The stuff made in Mexico are products made by American Companies. That means the burden would be on them which in turns a lost of jobs for Americans in the USA.
"The U.S. trade deficit with Mexico is only $60.6 billion. That's largely because Mexican labor is less expensive, and most Mexican consumers can't afford expensive, U.S. made products.
China, on the other hand, has a $367 billion trade deficit with the United States. Germany's is $74.9 billion, and Japan's is $68.6 billion."
"And like any bully, Trump picks only on the country that has the least ability to fight back. A trade war with China would bring down the entire global economy, while Germany and Japan are too strategically important to anger. But when he needs to rally his supporters by vilifying another country and ethnic group, Mexico is an easy target."
"The U.S. trade deficit with Mexico is only $60.6 billion. That's largely because Mexican labor is less expensive, and most Mexican consumers can't afford expensive, U.S. made products.
China, on the other hand, has a $367 billion trade deficit with the United States. Germany's is $74.9 billion, and Japan's is $68.6 billion."
"And like any bully, Trump picks only on the country that has the least ability to fight back. A trade war with China would bring down the entire global economy, while Germany and Japan are too strategically important to anger. But when he needs to rally his supporters by vilifying another country and ethnic group, Mexico is an easy target."
To be fair, he has called out the others, particularly China
"The U.S. trade deficit with Mexico is only $60.6 billion. That's largely because Mexican labor is less expensive, and most Mexican consumers can't afford expensive, U.S. made products.
China, on the other hand, has a $367 billion trade deficit with the United States. Germany's is $74.9 billion, and Japan's is $68.6 billion."
"And like any bully, Trump picks only on the country that has the least ability to fight back. A trade war with China would bring down the entire global economy, while Germany and Japan are too strategically important to anger. But when he needs to rally his supporters by vilifying another country and ethnic group, Mexico is an easy target."
To be fair, he has called out the others, particularly China
Nixing TPP alone shows that he's also addressing issues with trade with Asia. Logically it makes sense to start with NAFTA and proceed from there.
"The U.S. trade deficit with Mexico is only $60.6 billion. That's largely because Mexican labor is less expensive, and most Mexican consumers can't afford expensive, U.S. made products.
China, on the other hand, has a $367 billion trade deficit with the United States. Germany's is $74.9 billion, and Japan's is $68.6 billion."
"And like any bully, Trump picks only on the country that has the least ability to fight back. A trade war with China would bring down the entire global economy, while Germany and Japan are too strategically important to anger. But when he needs to rally his supporters by vilifying another country and ethnic group, Mexico is an easy target."
China is the outlier. How many American companies are moving jobs to Germany? to Japan? They are doing it in Mexico because of proximity and that crap NAFTA deal that Ross Perot was spot on about in the early 1990's.
So bully or not - Mexico is shafting us. Throw in their currency is now 21:1 roughly and it's a sticky situation because even with a 20% tax on those imports it still may be cheaper down there. But at least we get something back and close the gap a bit. Just put our freaking corporate tax rate something close to 10% or lower and then see what happens. That's where we are not competitive.
China is a complete different animal. Their currency doesn't freely float against ours so you are not dealing with true market forces anyways. They follow no safety or other burdensome regulations like we have to, so we are again screwed there. Deal with what you can control for now.
"The U.S. trade deficit with Mexico is only $60.6 billion. That's largely because Mexican labor is less expensive, and most Mexican consumers can't afford expensive, U.S. made products.
China, on the other hand, has a $367 billion trade deficit with the United States. Germany's is $74.9 billion, and Japan's is $68.6 billion."
"And like any bully, Trump picks only on the country that has the least ability to fight back. A trade war with China would bring down the entire global economy, while Germany and Japan are too strategically important to anger. But when he needs to rally his supporters by vilifying another country and ethnic group, Mexico is an easy target."
China is the outlier. How many American companies are moving jobs to Germany? to Japan? They are doing it in Mexico because of proximity and that crap NAFTA deal that Ross Perot was spot on about in the early 1990's.
So bully or not - Mexico is shafting us. Throw in their currency is now 21:1 roughly and it's a sticky situation because even with a 20% tax on those imports it still may be cheaper down there. But at least we get something back and close the gap a bit. Just put our freaking corporate tax rate something close to 10% or lower and then see what happens. That's where we are not competitive.
China is a complete different animal. Their currency doesn't freely float against ours so you are not dealing with true market forces anyways. They follow no safety or other burdensome regulations like we have to, so we are again screwed there. Deal with what you can control for now.
The companies are moving the jobs to China because it is cheap labor than Mexico.
"The U.S. trade deficit with Mexico is only $60.6 billion. That's largely because Mexican labor is less expensive, and most Mexican consumers can't afford expensive, U.S. made products.
China, on the other hand, has a $367 billion trade deficit with the United States. Germany's is $74.9 billion, and Japan's is $68.6 billion."
"And like any bully, Trump picks only on the country that has the least ability to fight back. A trade war with China would bring down the entire global economy, while Germany and Japan are too strategically important to anger. But when he needs to rally his supporters by vilifying another country and ethnic group, Mexico is an easy target."
China is the outlier. How many American companies are moving jobs to Germany? to Japan? They are doing it in Mexico because of proximity and that crap NAFTA deal that Ross Perot was spot on about in the early 1990's.
So bully or not - Mexico is shafting us. Throw in their currency is now 21:1 roughly and it's a sticky situation because even with a 20% tax on those imports it still may be cheaper down there. But at least we get something back and close the gap a bit. Just put our freaking corporate tax rate something close to 10% or lower and then see what happens. That's where we are not competitive.
China is a complete different animal. Their currency doesn't freely float against ours so you are not dealing with true market forces anyways. They follow no safety or other burdensome regulations like we have to, so we are again screwed there. Deal with what you can control for now.
The companies are moving the jobs to China because it is cheap labor than Mexico.
I didn't disagree with that - I'm just saying we can't deal with China the same we can deal with other countries.
RE: Trump will ask Congress to initiate trade war with Mexico
Now I'm not an Econ Major or anything, so please correct me if I'm wrong.
But doesn't Mexico's industries become more competitive as the Peso falls? So wouldn't punishing Mexico's economy be like a double edged sword for the US?
RE: Trump will ask Congress to initiate trade war with Mexico
(01-27-2017 10:16 AM)BobcatEngineer Wrote: Now I'm not an Econ Major or anything, so please correct me if I'm wrong.
But doesn't Mexico's industries become more competitive as the Peso falls? So wouldn't punishing Mexico's economy be like a double edged sword for the US?
Yes, if they had some industries of their own outside avocados and tequila they'd be much better off. Tourism wouldn't suffer because the exchange rate is pretty damn attractive. Real Estate is attractive because you can buy it at a depressed level if you think the currency will appreciate down the road. But, yeah as you can see, they benefited a hell of a lot more than we did from NAFTA.
(This post was last modified: 01-27-2017 10:29 AM by BuffaloTN.)
RE: Trump will ask Congress to initiate trade war with Mexico
(01-27-2017 04:25 AM)DavidSt Wrote: Mexico said they will imposed a 20% increase on goods made in Mexico going to the US which means we will still pay for the wall, and not Mexico.
Yup, the only losers in this are people buying products made and grown in Mexico.
RE: Trump will ask Congress to initiate trade war with Mexico
(01-27-2017 06:12 AM)CardFan1 Wrote:
(01-27-2017 04:25 AM)DavidSt Wrote: Mexico said they will imposed a 20% increase on goods made in Mexico going to the US which means we will still pay for the wall, and not Mexico.
Then We stop bringing anything made in Mexico. Nothing there We can't make here anyway.
Perhaps not if you are willing to pay double or triple for it.
Quote:Trump spokesman Sean Spicer added a stunning new detail about the proposed wall project later Thursday, saying that Trump intended to pay for it by imposing a 20-percent tax on all imports from Mexico.
I don't know what's more frightening here...
The prospect that he is serious
or
The prospect he is playing chicken
a 20% tariff is bat-**** crazy. And I am far from a free trade guy.
Quote:Trump spokesman Sean Spicer added a stunning new detail about the proposed wall project later Thursday, saying that Trump intended to pay for it by imposing a 20-percent tax on all imports from Mexico.
I don't know what's more frightening here...
The prospect that he is serious
or
The prospect he is playing chicken
a 20% tariff is bat-**** crazy. And I am far from a free trade guy.
I agree. Im afraid Mr. Trump has overplayed his hand by about 17% or more. Shoot high and hope for what?
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Trump will ask Congress to initiate trade war with Mexico
