20% Tax on Items from Mexico to pay for wall...

[Dan]

https://www.washingtonpost.com/world/the_americas/mexican-president-cancels-visit-to-washington-as-tensions-with-trump-administration-intensify/2017/01/26/ececc3da-e3d9-11e6-a419-eefe8eff0835_story.html?hpid=hp_rhp-top-table-main_mexicous-1210p:homepage/story&utm_term=.f6ce4cfd770c

I guess I better stock up on tequila soon!

 

[j_garcia]

And Mexican Coke.

Funny, I don't see him building a wall between us and Canada.

 

[KEW]

Wow!
Interesting time in world history to be alive.
I assume that would include a company shipping products they made in Mexico to go into an assembly performed in the US.
It looks like we will ultimately be footing the bill and a lot of companies are going to be increasing the cost of their goods.
It will drive production domestic, and there is a part of me that believes that if we are getting a check based on the US economy, we should buy goods made in the US economy, but another part believes this is something which should be on a schedule (maybe 4% he first year, 8% next year...to 20% in the fourth year) to allow companies to adapt/plan their business! I hope something like that is in the plan!!!

 

[j_garcia]

People want things cheaper, so companies moved manufacturing to other places where it is cheaper to build. Bringing them back is a great idea, just don't be surprised when those things made here go up in price. It is a good idea that I don't think will solve the problems he thinks it will.

 

[Dan]

It gets complicated very fast. What about items like electric or hybrid cars where the raw metals come from Africa and Sweden are processed into batteries in say Canada, then into engines in China or Japan then into a car in Mexico or the US. What country is that from? This is way out of my expertise but wasn't that the driving force behind all the trade agreements, the reality that things move about the world during manufacture now? I'm sure that's a gross oversimplification but the way things are going, I'm really gonna need that tequilla...

 

[j_garcia]

Hmmmm. My expected next speakers are built here, but will the cost go up if the drivers are sourced from outside the US? Hadn't thought of that.

 

[shadyJ]

What a dumb, needless, self-inflicted, unforced error a tariff against Mexico would be. If Mexico can manufacture things more inexpensively than the USA, then we should expand on our strengths, not double down on our weaknesses. A tariff and a wall. What is the point in an expression of hostility against our next door neighbor (aside from making a bunch of old racists feel better)? A trade war would only hurt poor and lower-middle income Americans by boosting the prices of Mexican made products, not that the president or his political party cares about poor or lower-middle income class people.

Unnecessary recession, here we come!

 

[mtrycrafts]

I guess I better stock up on tequila soon!

Good think that will keep for a very long time in storage.

 

[mtrycrafts]

Yep, seems like we will pay no matter what, most likely.
But, congress still has to pass the laws and agree on trade deals.

 

[Diesel57]

As Shady J stated, we're going to be getting a summons to appear and be the host of the recession...Is there a rebate involved for that 20% tax?

 

[shadyJ]

As Shady J stated, we're going to be getting a summons to appear and be the host of the recession...Is there a rebate involved for that 20% tax?

There was a tax rebate for lower-middle income home owners with federal housing administration mortgages, but Trumps very first act as president was to suspend that rebate. Since it was a tax break for poor people, not rich people. By the way, if you think the oncoming recession is going to be bad for the USA, just wait till you see how it will devastate Mexico. If you think the cartel wars along the border are bad now, they may get a lot worse as Mexicans become much more desperate.

 

[Diesel57]

There was a tax rebate for lower-middle income home owners with federal housing administration mortgages, but Trumps very first act as president was to suspend that rebate. Since it was a tax break for poor people, not rich people. By the way, if you think the oncoming recession is going to be bad for the USA, just wait till you see how it will devastate Mexico. If you think the cartel wars along the border are bad now, they may get a lot worse as Mexicans become much more desperate.

The cartel wars at the border no doubt will become worse, I relate it to tampering with a hornet's nest, tax rebate cancelled or shall I say it wasn't going to happen from the start...Control & Money...pass the scotch

 

[killdozzer]

People want things cheaper, so companies moved manufacturing to other places where it is cheaper to build.

NO!!

May this not disturb your spirit or rattle your soul, but it saddens me to see people accepting this simple reasoning that companies offer. It was never about people. It is ONLY about the higher profit margin. Don’t even let yourself be ‘blackmailed’ into submission by these seemingly reasonable arguments. Fight it!

Not just that it wasn’t about what people wanted, but this was actually used to, in Chomsky’s words, manufacture consent for outsourcing.

Even in this very thread people say they’d rather buy American. And I’ll give you an even stranger example; in my country people rather buy domestic product even when it is costlier and of poorer quality. People would pay more for the domestic product. I’m sure of it!

People even enjoy buying expensive products. It was never about how much it costs, but how much you have left after buying it.

Which is why it is of utmost importance both for economy and democracy to have the middle class as the most numerous and strongest (percentage-wise and buying power-wise).

 

[Chu Gai]

How do you feel when American goods are exported to other countries who then impose tariffs on them?

 

[herbu]

This is all going to be very interesting to watch. The pendulum swings.

Sound negotiation strategy is to begin the conversation stating more than your minimum acceptable position, then negotiate down to it. The Dems have been doing this quite effectively for years. The other side has not. So the result has been a consistent move to the left.

As a business man, Trump knows this strategy well. He wrote about it in his book years ago. The thing that tickles me the most is to see the Left reaction as Trump executes the same technique they've been using for years.

He is clearly not a politician. His speech is sometimes bumbling and anything but polished and politically correct. But I think his actions and direction will result in benefits to us all. We'll see.

I loved his interview w/ David Muir. When Muir kept pressing him to guarantee nobody would lose their health care, I sooo wanted him to say something like, "What do you want me to say? Do you want me to say if you like your health care plan, you can keep your health care plan? Do you want me to say the average family cost will decrease $2500 a year?".

 

[j_garcia]

NO!!

May this not disturb your spirit or rattle your soul, but it saddens me to see people accepting this simple reasoning that companies offer. It was never about people. It is ONLY about the higher profit margin. Don’t even let yourself be ‘blackmailed’ into submission by these seemingly reasonable arguments. Fight it!

Not just that it wasn’t about what people wanted, but this was actually used to, in Chomsky’s words, manufacture consent for outsourcing.

Even in this very thread people say they’d rather buy American. And I’ll give you an even stranger example; in my country people rather buy domestic product even when it is costlier and of poorer quality. People would pay more for the domestic product. I’m sure of it!

People even enjoy buying expensive products. It was never about how much it costs, but how much you have left after buying it.

Which is why it is of utmost importance both for economy and democracy to have the middle class as the most numerous and strongest (percentage-wise and buying power-wise).

It STARTS with people wanting everything cheaper. In order for companies to continue to increase revenue, they have to manufacture cheaper. Vicious circle, but it does not start with the companies.

Trump may inadvertently scare things into happening. People may say "Hey, this guy is a nut and things will go bad", so they start doing things in anticipation of that and something actually happens. Not because of his influence, but because of fear of the negative he creates.

 

[Diesel57]

This is all going to be very interesting to watch. The pendulum swings.

Sound negotiation strategy is to begin the conversation stating more than your minimum acceptable position, then negotiate down to it. The Dems have been doing this quite effectively for years. The other side has not. So the result has been a consistent move to the left.

As a business man, Trump knows this strategy well. He wrote about it in his book years ago. The thing that tickles me the most is to see the Left reaction as Trump executes the same technique they've been using for years.

He is clearly not a politician. His speech is sometimes bumbling and anything but polished and politically correct. But I think his actions and direction will result in benefits to us all. We'll see.

I loved his interview w/ David Muir. When Muir kept pressing him to guarantee nobody would lose their health care, I sooo wanted him to say something like, "What do you want me to say? Do you want me to say if you like your health care plan, you can keep your health care plan? Do you want me to say the average family cost will decrease $2500 a year?".

Herbu, you dotted the i, he's not a politician but business man yes and as you stated, this is going to be interesting.

 

[ski2xblack]

Trump is a buffoon. Negotiation tactics? He's dealing with presidents of foreign nations, not the teamsters or some NY real estate shyster. This is going to backfire into all of our faces (taxpayers will be on the hook for the wall, tariffs will penalize the poor consumers the hardest, this is just sheer stupid unleashed).

 

[Rickster71]

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[Irvrobinson]

May this not disturb your spirit or rattle your soul, but it saddens me to see people accepting this simple reasoning that companies offer. It was never about people. It is ONLY about the higher profit margin. Don’t even let yourself be ‘blackmailed’ into submission by these seemingly reasonable arguments. Fight it!

I think you're incorrect. It is about competitiveness. If you do not take advantage of lowest cost development and production alternatives you will be challenged to be as effective as your competition. Gross margins also translate into the funds available for R&D and modernizing production facilities. In competitive markets greed is not a factor. Don't confuse what is happening in the pharmaceutical industry with the automakers. High cost producers tend to go out of business. Trump's positions are all about ego, an obsolete view of the US economy, and pleasing the voter base that he thinks got him elected.