Trade Wars

[trochetier]

Other countries don't necessarily add tariffs for their imports from US thus raising prices for their own people. Instead they could simply source same/similar products made elsewhere. Buy Airbus instead of Boeing planes, buy French fighters instead of F series. Except for a few very specialized items virtually everything can be found made elsewhere.

 

[trochetier]

Republicans in congress are starting to see the writing on the wall.

>>>Ted Cruz warns of midterm ‘bloodbath’ if Trump tariffs cause a recession . . .

Ted Cruz, the US senator from Texas, has warned that his fellow Republicans risk a “bloodbath” in the 2026 midterm elections if Donald Trump’s “liberation day” tariffs cause a recession.

Cruz also warned that the president’s tariffs, if they stay in place for long and are met by global retaliation on American goods, could trigger a full-blown trade war that “would destroy jobs here at home, and do real damage to the US economy”.<<<

Ted Cruz warns of midterm ‘bloodbath’ if Trump tariffs cause a recession

Texas senator’s comments another sign of Republican unease over ‘reciprocal tariffs’ and stock market plunge

www.theguardian.com

Like see Ted the blow hard gone.

 

[trochetier]

That's what they've said in the past, as I recall. But Social Security is really a pay-as-you scheme depending on taxation.

You might find the following primer about Social Security informative:

The Clean Little Secret of Social Security

It’s a pretty good program, and we can afford it

paulkrugman.substack.com

IMO a part of the SS and Medicare trust funds should be invested in the Total Stock Market fund similar to Thrift Savings C Fund for greater returns. Long term S&P 500 has returned 8.6% it has been up more years than down.

U.S. Stock Market Returns - a history from the 1870s to 2024 | The Measure of a Plan

Facts and figures on U.S. stock market returns from 1871 to 2024. Annual returns, likelihood of losing money, best / worst months, and more.

themeasureofaplan.com

 

[trochetier]

Tariff to fund Tax cuts -

Republicans Like to Cut Taxes. With Tariffs, Trump Is Raising Them.

President Trump’s tariffs are scrambling the Republican plan for the economy, long centered on tax cuts and growth.

www.nytimes.com

 

[highfigh]

And if they want to privatize Social Security, will it be invested in the market?

I'm not sure how they could do that, since it's not money that they provided, it's in a trust and unless 'privatize' means 'admininstrated by private businesses', how would this work?

If they make ANY changes, they need to make sure it can't be raided, wasted or scammed. I don't want ANYONE in admin to make the money corporate heads can in privately held businesses. It needs to be run with an absolute hands off policy.

 

[Dude#1279435]

Tariff to fund Tax cuts -

Republicans Like to Cut Taxes. With Tariffs, Trump Is Raising Them.

President Trump’s tariffs are scrambling the Republican plan for the economy, long centered on tax cuts and growth.

www.nytimes.com

I'd like to know how a tariff funds a tax cut?

>>>“They’ve never had a deduction. Deductions are supposed to be for rich people, and it’s unfair to have that,” Mr. Trump said in the Oval Office recently about his plan. “I think I know more about deductions than any human being on earth.”<<<

I'm guessing Trump knows more about anything than anyone. I'm concerned. I see now recently the headline is a universal 10% tariff with adjustments depending upon the country. So did the math not work out, or is it still these extremely high rates?

 

[Dude#1279435]

Like see Ted the blow hard gone.

I'll give Cruz a wee bit of credit for once saying this.

https://www.cnn.com/2016/05/03/politics/donald-trump-rafael-cruz-indiana/index.html

>>>Ted Cruz on Tuesday unloaded on Donald Trump, accusing him during a news conference of being a “pathological liar,” “utterly amoral,” “a narcissist at a level I don’t think this country’s ever seen” and “a serial philanderer.”<<<

 

[highfigh]

I'd like to know how a tariff funds a tax cut?

>>>“They’ve never had a deduction. Deductions are supposed to be for rich people, and it’s unfair to have that,” Mr. Trump said in the Oval Office recently about his plan. “I think I know more about deductions than any human being on earth.”<<<

I'm guessing Trump knows more about anything than anyone. I'm concerned. I see now recently the headline is a universal 10% tariff with adjustments depending upon the country. So did the math not work out, or is it still these extremely high rates?

The money from tariffs would replace revenue from taxation. In theory.

Deductions are for anyone who wants to look for them and use them. Find out what's available and use them. Someone who goes to an office relatively close to home won't have deductions tied to their job unless they're required to wear specific clothes, use specific items, etc. If someone works in construction or other job that requires tools that aren't provided by the employer, clothing/safety gear and travel to job sites has plenty of deductions in the tax code. That includes insurance for the tools because losing tools/tool theft is far too common to risk that.

If you want deductions, start a small business on the side.

If various countries are imposing new tariffs (including Canada & China, on each other), it would seem that the WTO has work to do. Also, when one country has a billion workers, a history of trade & monetary manipulation and almost no adherence to intellectual property rights, problems are bound to occur.


From the link, "Canada has a quota system for imports, and above a certain volume, it imposes high dairy tariffs ranging from 201.5 percent to 313.5 percent. Before those quotas are met, dairy products enter Canada duty-free or subject to much lower rates."

FACT CHECK: Does Canada Charge A 270% Tariff On US Dairy?

'Our Tariffs are in response to his of 270% on dairy'

checkyourfact.com

 

[Trell]

The money from tariffs would replace revenue from taxation. In theory.

Not even in theory will that work.

 

[Dude#1279435]

Not even in theory will that work.

Just cut taxes LOL.

 

[mtrycrafts]

....


From the link, "Canada has a quota system for imports, and above a certain volume, it imposes high dairy tariffs ranging from 201.5 percent to 313.5 percent. Before those quotas are met, dairy products enter Canada duty-free or subject to much lower rates."

FACT CHECK: Does Canada Charge A 270% Tariff On US Dairy?

'Our Tariffs are in response to his of 270% on dairy'

checkyourfact.com

And how often does that 201% and more kick in? From what I read, almost never.

 

[mtrycrafts]

I'll give Cruz a wee bit of credit for once saying this.

https://www.cnn.com/2016/05/03/politics/donald-trump-rafael-cruz-indiana/index.html

>>>Ted Cruz on Tuesday unloaded on Donald Trump, accusing him during a news conference of being a “pathological liar,” “utterly amoral,” “a narcissist at a level I don’t think this country’s ever seen” and “a serial philanderer.”<<<

Maybe T stopped lying after that day.

 

[GO-NAD!]

The money from tariffs would replace revenue from taxation. In theory.

Deductions are for anyone who wants to look for them and use them. Find out what's available and use them. Someone who goes to an office relatively close to home won't have deductions tied to their job unless they're required to wear specific clothes, use specific items, etc. If someone works in construction or other job that requires tools that aren't provided by the employer, clothing/safety gear and travel to job sites has plenty of deductions in the tax code. That includes insurance for the tools because losing tools/tool theft is far too common to risk that.

If you want deductions, start a small business on the side.

If various countries are imposing new tariffs (including Canada & China, on each other), it would seem that the WTO has work to do. Also, when one country has a billion workers, a history of trade & monetary manipulation and almost no adherence to intellectual property rights, problems are bound to occur.


From the link, "Canada has a quota system for imports, and above a certain volume, it imposes high dairy tariffs ranging from 201.5 percent to 313.5 percent. Before those quotas are met, dairy products enter Canada duty-free or subject to much lower rates."

FACT CHECK: Does Canada Charge A 270% Tariff On US Dairy?

'Our Tariffs are in response to his of 270% on dairy'

checkyourfact.com

Taxation deductions are available to those who can afford to take advantage of them. You have to be able to purchase a home in order to claim a deduction for mortgage interest (this isn't tax deductible in Canada). In order to claim a tax deduction for investing in a pension plan, you have to have the money to do that. Capital gains? Same thing.

The US dairy industry doesn't bother to export enough product to Canada to trigger tariffs, so the complaints about them is just a red herring. Canada supports its dairy industry through supply management. The US does it through subsidies. What makes Canada's system unfair?

 

[trochetier]

From WP today -

A sobering topic! -

https://www.washingtonpost.com/business/2025/03/29/tariffs-alcohol-cocktails-wines/

 

[mtrycrafts]

From WP today -

A sobering topic! -

https://www.washingtonpost.com/business/2025/03/29/tariffs-alcohol-cocktails-wines/

Good thing I have a vine cellar that should last to my expiration date.

 

[highfigh]

Taxation deductions are available to those who can afford to take advantage of them. You have to be able to purchase a home in order to claim a deduction for mortgage interest (this isn't tax deductible in Canada). In order to claim a tax deduction for investing in a pension plan, you have to have the money to do that. Capital gains? Same thing.

The US dairy industry doesn't bother to export enough product to Canada to trigger tariffs, so the complaints about them is just a red herring. Canada supports its dairy industry through supply management. The US does it through subsidies. What makes Canada's system unfair?

Uh, look into the tariffs on butter and cheese- once Canada imports enough, the rate is close to 300%. However, the threshhold is very high.

FACT CHECK: Does Canada Charge A 270% Tariff On US Dairy?

'Our Tariffs are in response to his of 270% on dairy'

checkyourfact.com

 

[lovinthehd]

Quotas and varying quantities/rates can confuse a lot of people. Am sure it confuses drumphy;....

 

[GO-NAD!]

Uh, look into the tariffs on butter and cheese- once Canada imports enough, the rate is close to 300%. However, the threshhold is very high.

FACT CHECK: Does Canada Charge A 270% Tariff On US Dairy?

'Our Tariffs are in response to his of 270% on dairy'

checkyourfact.com

Yes, I know. The threshold is so high, that it hasn't ever been triggered. American dairy exports to Canada have been steadily rising, year over year.
U.S. dairy exports to Canada up 67 per cent - AgCanada

In the last few years, American exports of cheese, butter, whey and other dairy products to Canada have climbed by 67 percent – going from C$525 in 2021 to $877 million in 2024.

Two American economists, one from Oklahoma State University and the other from Cornell, have recently studied the trade in dairy between the United States and Canada.
They concluded that CUSMA is working as intended by expanding dairy exports from the U.S. to Canada.

Dairy Farmers of Canada is familiar with the import data and is frustrated with the recent threat of tariffs on Canadian dairy exports to the U.S.

“During the renegotiation of CUSMA, the United States secured substantial tariff-free access to the Canadian dairy market,” David Wiens, Dairy Farmers of Canada president, said March 8.

“The U.S. enjoys a significant dairy trade surplus with Canada, exporting $877.5 million in dairy products while importing $357.9 million in return.”

If Canadian dairy producers were enjoying unfettered access to the US market and earning far higher returns than US dairy does in Canada, I'd say there would be grounds for complaint. But, that's not the case.

I don't know why, in the face of Trump administration complaints, Canadian politicians do not shine a light on the rank hypocrisy emanating from the Whitehouse by highlighting American protectionist measures.

Merchant Marine Act of 1920 - Wikipedia

The Merchant Marine Act of 1920 is a United States federal statute that provides for the promotion and maintenance of the American merchant marine.[1] Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Merchant Marine Act is known as the Jones Act and deals with cabotage (coastwise trade). It requires that all goods transported by water between U.S. ports be carried on ships that have been constructed in the United States and that fly the U.S. flag, are owned by U.S. citizens, and are crewed by U.S. citizens and U.S. permanent residents.

Sugar-Coating Failure: How Protectionism Sours the American Economy

The U.S. sugar program exemplifies how protectionist policies can distort market prices. Through tariffs and import quotas, American consumers pay nearly twice the global price for sugar. This system restricts imports, allowing only a limited amount of sugar to enter at low tariffs, while imposing prohibitively high tariffs on excess imports. As a result, the program costs the U.S. economy an estimated $2.5-$3.5 billion annually, benefiting a small group of sugar producers at the expense of consumers and food manufacturers. This stark price disparity highlights the inefficiencies created by protectionism, ultimately reducing competitiveness for U.S. businesses in the global marketplace.

Canada–United States softwood lumber dispute - Wikipedia
Despite repeated losses from NAFTA and WTO appeals, the US still insists that Canadian softwood lumber enjoys unfair subsidies.

Look, when a country wants to protect any particular industry they deem to be of strategic value, I get it. There are domestic political and economic considerations that can supersede simple math calculations. But, you can't have your cake and eat it, too.

 

[Trell]

But, you can't have your cake and eat it, too.

Sure about that?

 

[highfigh]

Yes, I know. The threshold is so high, that it hasn't ever been triggered. American dairy exports to Canada have been steadily rising, year over year.
U.S. dairy exports to Canada up 67 per cent - AgCanada


If Canadian dairy producers were enjoying unfettered access to the US market and earning far higher returns than US dairy does in Canada, I'd say there would be grounds for complaint. But, that's not the case.

I don't know why, in the face of Trump administration complaints, Canadian politicians do not shine a light on the rank hypocrisy emanating from the Whitehouse by highlighting American protectionist measures.

Merchant Marine Act of 1920 - Wikipedia


Sugar-Coating Failure: How Protectionism Sours the American Economy


Canada–United States softwood lumber dispute - Wikipedia
Despite repeated losses from NAFTA and WTO appeals, the US still insists that Canadian softwood lumber enjoys unfair subsidies.

Look, when a country wants to protect any particular industry they deem to be of strategic value, I get it. There are domestic political and economic considerations that can supersede simple math calculations. But, you can't have your cake and eat it, too.

It's too late now, but the protection should have included US workers. Free trade is great, but this country has far too many people who wanted more, always more, MORE, MORE! and when they got is, they wanted more money because the cost of US-made goods climbed due to high wages that couldn't be controlled, often because of strongarm tactics of the unions. I'm not saying that unions are always bad, but as I have posted before, they increase costs without adding value for the user very often. They priced union workers out of jobs because it was no longer possible to compete with foreign manufacturers and they need to own that fact. Just saying "But it's better because they're in a union" is BS- I have worked with and known a lot of union workers and they certainly didn't do their jobs better- they were usually more concerned with their snack/lunch/snack breaks coming on time (Yes, those are mandatory in many jobs), hating scabs (non-union workers on the same jobsite) and striking for higher pay & benefits, intentionally hurting their employers.

The cost of farming in the US is higher than in other countries for these reasons, so it's impossible to compete on a 1:1 basis.

WRT lumber- the US has plenty, but the environmental groups won't allow harvesting it. With sensible management, we wouldn't need as much from other countries, but there aren't a lot of alternative materials that won't increase the cost of a project.