Mexico warns Trump on tariffs

[Morphine Prince 109,654]

Mexico's economy minister sent Donald Trump a fighting message: We will retaliate right away if you hit us with a "major border tax." 

"It's very clear that we have to be prepared to immediately be able to neutralize the impact of a measure of that nature," economy minister Ildefonso Guajardo said Friday on a Mexican news show.

Guajardo also predicted that Trump's threat of a 35% tariff against Mexico, if carried out, would result in a "global recession" because it would inhibit companies from producing outside the U.S.

"It would be a problem for the entire world," Guajardo warned. A Trump tariff "will have a wave of impacts that can take us into a global recession," Guajardo said, speaking in Spanish. 

In recent weeks, Trump has zeroed in on companies manufacturing in Mexico and selling products in the United States, threatening them with a "major border tax" of 35%.

Source: http://money.cnn.com/2017/01/14/news/economy/donald-trump-mexico-tariffs-response/

 

[LUO YI 6,089]

OK. The world is ****ed up. One way or another. 

[littlepotter 76,610]

Can somebody explain in simpler words please 

[ItsTommyBitch 12,640]

He's just so incompetent  

 

[GagaMyBlood95 9,915]

3 minutes ago, littlepotter said:

Can somebody explain in simpler words please 

Basically, Trump wants to "ban" all US companies from going abroad and doing most of the production process (since it's a lot cheaper to produce something, lets say in Mexico than anywhere in the US). He wants to do that by charging them 35% of tax, and if he does that, well most companies will just have to stick around and do their thing domestically since 35% in tax is ridiculous.

But that has major impact not just for the US, but on the whole world, since like most of the US companies do their business somewhere else. There is an interesting research online, try and find it, that gives you an example - an iPhone costs like 700$. But if it was produced in the US, its price would be around 2000$ just based on the place of production.

[LUO YI 6,089]

1 minute ago, GagaMyBlood95 said:

Basically, Trump wants to "ban" all US companies from going abroad and doing most of the production process (since it's a lot cheaper to produce something, lets say in Mexico than anywhere in the US). He wants to do that by charging them 35% of tax, and if he does that, well most companies will just have to stick around and do their thing domestically since 35% in tax is ridiculous.

But that has major impact not just for the US, but on the whole world, since like most of the US companies do their business somewhere else. There is an interesting research online, try and find it, that gives you an example - an iPhone costs like 700$. But if it was produced in the US, its price would be around 2000$ just based on the place of production.

[Delusional Aura 5,129]

Flop I guess 

[littlepotter 76,610]

10 minutes ago, GagaMyBlood95 said:

Basically, Trump wants to "ban" all US companies from going abroad and doing most of the production process (since it's a lot cheaper to produce something, lets say in Mexico than anywhere in the US). He wants to do that by charging them 35% of tax, and if he does that, well most companies will just have to stick around and do their thing domestically since 35% in tax is ridiculous.

But that has major impact not just for the US, but on the whole world, since like most of the US companies do their business somewhere else. There is an interesting research online, try and find it, that gives you an example - an iPhone costs like 700$. But if it was produced in the US, its price would be around 2000$ just based on the place of production.

Omfg im studying this exact same subject for a test tomorrow! 

Does he not have advisors?

[Morphine Prince 109,654]

16 minutes ago, GagaMyBlood95 said:

Basically, Trump wants to "ban" all US companies from going abroad and doing most of the production process (since it's a lot cheaper to produce something, lets say in Mexico than anywhere in the US). He wants to do that by charging them 35% of tax, and if he does that, well most companies will just have to stick around and do their thing domestically since 35% in tax is ridiculous.

But that has major impact not just for the US, but on the whole world, since like most of the US companies do their business somewhere else. There is an interesting research online, try and find it, that gives you an example - an iPhone costs like 700$. But if it was produced in the US, its price would be around 2000$ just based on the place of production.

You know it's funny because many Americans, myself included, would want more stuff to be produced in the USA because of jobs, etc. 

 But at the same time prices can go up for certain products.

Wait until these people realize they may be paying more for the same products  

 

[Gagaloo911 12,959]

Can't wait for this mess and to be able to blame for Trump for literally everything. 

I'm gonna read him for filth and then some once he's in office 

[GagaMyBlood95 9,915]

17 minutes ago, littlepotter said:

Omfg im studying this exact same subject for a test tomorrow! 

Does he not have advisors?

lol like international trading, economy and stuff like that? Yeah I had those already, pretty boring but it actually gives you a decent knowledge about how things work.

I mean, he has to have advisors on these matters, but I just think he is stubborn and talks a lot of things and not really thinking it through. I don't think he'll do such extreme movements.

 

9 minutes ago, Morphine Prince said:

You know it's funny because many Americans, myself included, would want more stuff to be produced in the USA because of jobs, etc. 

 But at the same time prices can go up for certain products.

Wait until these people realize they may be paying more for the same products  

 

Of course, there is a positive effect of this - more jobs for Americans, which is great, BUT on the other hand you have a huge increase in prices in A LOT of products we're used to buying. Also, not to mention the instability that this could cause - shipping companies, workers abroad, huge production centers - everything would just be for nothing and would have to stop working the way they worked for years now.

[Ricardo 8,131]

8 minutes ago, Morphine Prince said:

You know it's funny because many Americans, myself included, would want more stuff to be produced in the USA because of jobs, etc. 

 But at the same time prices can go up for certain products.

Wait until these people realize they may be paying more for the same products  

 

wait when all the Trump supporters see they have to pay the double for an iphone and a starbucks 

 

[PunkTheFunk 125,703]

20 minutes ago, littlepotter said:

Omfg im studying this exact same subject for a test tomorrow! 

Does he not have advisors?

His advisors are literally his son in law, Kellyanne Conway, and Kanye West

RECESSIONPOP Act II here we come  

[JevyDuty 2,961]

The retaliation could be devastating. We have a consumer based economy so when the rest of the world adds on their own taxes for goods going to the USA, what do you think is going to happen to our economy and the economy of the world as a whole?

Trading, innovation and cooperation will shoot downwards, hard.

[Luc 4,776]

I don't think it's happening. This kind of language 'not going to work' 'a disaster' etc. is not the kind of language Trump listens to by the way. If you face Trump with the truth in a way too blunt he will try as hard as he can to prove the opposite. They have to focus in simple terms of business, that's all he understands.