Trump Threatens To Tax Companies Who Want To Leave Over Tarrifs

[Economy 52,861]

https://www.bnnbloomberg.ca/trump-harley-davidson-will-be-taxed-like-never-before-if-it-moves-1.1098794

 

https://www.google.ca/amp/s/www.independent.co.uk/news/business/analysis-and-features/trump-trade-war-us-car-factory-volvo-south-carolina-tariffs-a8417061.html%3famp

 

Volvo is complaining Trump's Tarrifs on steel is raising the cost of manufacturing a car in the US and that Trump's threats to slap Tarrifs on car parts will do even more damage

 

Volvo's words echo that of Harley Davidson a large US manufacturer that has threatened to move more of its production abroad if Trump does not stop with its tarrifs

 

Trump swore to tax the hell out of companies like Harley should they do good on their thread to move operations abroad

[The Louvre 3,423]

So he's gonna bully companies now? Isn't this against everything what Republicans are supposed to stand for? Free market and low taxes and all?

[Economy 52,861]

1 minute ago, The Louvre said:

So he's gonna bully companies now? Isn't this against everything what Republicans are supposed to stand for? Free market and low taxes and all?

Republicans also believe in smaller Government and larger private sector... AK less spending to fund the tax cuts

 

Instead he's doing both. Cutting taxes while raising spending exploding the very deficit and debt he kept criticizing during the campaign

 

Hypocrit Child running the office tbh

 

[Benji 20,113]

This and the steel tariffs are actually one of the things that Trump has my support on.

It's not right that cheap labour, materials and goods flood the west.  If companies want to leave because they no longer have access, let them and slap a tax on them.  If our materials and people aren't good enough for you, find another market to sell to.

[Bloody hooker 6,445]

Sourcing aluminum and steel from another country that offers it at a lower price could be better for the company. If a company cannot produce a certain number of products to meet demand due to the price of aluminum and steel in the U.S., then it is better off for them to source from outside the U.S. The company may be saving money, but it will keep the products at a lower price for the consumer if the company chooses to do so.

Putting a tax on products just because they are not fully American made is ridiculous. I get we need more jobs here in America, but sometimes you need to looks elsewhere in order to get the job done.

[Benji 20,113]

19 minutes ago, Bloody hooker said:

Sourcing aluminum and steel from another country that offers it at a lower price could be better for the company. If a company cannot produce a certain number of products to meet demand due to the price of aluminum and steel in the U.S., then it is better off for them to source from outside the U.S. The company may be saving money, but it will keep the products at a lower price for the consumer if the company chooses to do so.

Putting a tax on products just because they are not fully American made is ridiculous. I get we need more jobs here in America, but sometimes you need to looks elsewhere in order to get the job done.

On the flipside, forcing the hands of companies to use local materials / workers helps stimulate the economy through job creation.  The more people in work generally causes a trend in wage growth which would make the passed on cost of tax barely noticeable.

Buying cheap seems great but someone normally suffers; it's either you and quality of your product or the worker/s who created it having to suffer with poor wages or cruel working conditions. It makes sense to take steps to stamp this out.

[Economy 52,861]

1 hour ago, Benji said:

This and the steel tariffs are actually one of the things that Trump has my support on.

It's not right that cheap labour, materials and goods flood the west.  If companies want to leave because they no longer have access, let them and slap a tax on them.  If our materials and people aren't good enough for you, find another market to sell to.

I don't agree with you at all. Plenty of Wealthy Countries with higher wages have trade surpluses and keep good productive jobs. Germany for example. Japan till not that long ago etc. Some poor countries with low wages have trade deficits just the same

 

The way trade works is whatever your most proficient and efficient at selling is what you sell in bulk, and stuff u can't compete in you buy cheaper from elsewhere. The world as a whole produces things in bulk and each country produces what it's most efficient at producing. That benefits productivity everywhere

 

Trade deals are also not what determine if a Country has a trade deficit or Surplus but Trump doesn't understand that

 

Now granted some Countries like China are clearly unfair and in that instance I get it but Trump's view in trade as a whole is very flawed

 

What the US is going to do with Tarrifs is artificially increase prices of a product to make domestic production artificially competitive... It will take away labor from sectors the US can be more competitive in and sectors where the US could of made more lucrative exports in

 

For example the US is very good at Service exports and has good trade numbers there. Something Trump often likes to not include in the trade figures

 

Trump isnt wrong that same unfair trade deals may exist. Tho they are so long and complicated it's hard to say who's in the right sometimes, there's always counter arguments to be made on trade deals

 

But unfair trade deals merely reduce some income or access (to a smaller extent than he makes it sound) but it does not cause or prevent trade deficits

[Benji 20,113]

5 minutes ago, Economy said:

I don't agree with you at all. Plenty of Wealthy Countries with higher wages have trade surpluses and keep good productive jobs. Germany for example. Japan till not that long ago etc. Some poor countries with low wages have trade deficits just the same

The way trade works is whatever your most proficient and efficient at selling is what you sell in bulk, and stuff u can't compete in you buy cheaper from elsewhere. The world as a whole produces things in bulk and each country produces what it's most efficient at producing. That benefits productivity everywhere

Trade deals are also not what determine if a Country has a trade deficit or Surplus but Trump doesn't understand that

Now granted some Countries like China are clearly unfair and in that instance I get it but Trump's view in trade as a whole is very flawed

What the US is going to do with Tarrifs is artificially increase prices of a product to make domestic production artificially competitive... It will take away labor from sectors the US can be more competitive in and sectors where the US could of made more lucrative exports in

For example the US is very good at Service exports and has good trade numbers there. Something Trump often likes to not include in the trade figures

That's not the route the U.S. and for example England have gone though.  In England, many of the towns that had coal mines shut have been left to go to ruin and have created pockets across the country that have become ran down and still to this day have huge levels of un-employment.  This is the same in the U.S., towns ran down because they lost these jobs to other locations in the world.  Giving these areas their industries back will breathe new life into them and I support him trying to do that.

[Economy 52,861]

19 minutes ago, Benji said:

That's not the route the U.S. and for example England have gone though.  In England, many of the towns that had coal mines shut have been left to go to ruin and have created pockets across the country that have become ran down and still to this day have huge levels of un-employment.  This is the same in the U.S., towns ran down because they lost these jobs to other locations in the world.  Giving these areas their industries back will breathe new life into them and I support him trying to do that.

Well ur not wrong about that. There's always areas that loose with transitions in the economy that win if u try to fight the changes

 

I'm talking about the Nation as a whole tho. What Trump is doing is not a net positive

[Benji 20,113]

4 minutes ago, Economy said:

Well ur not wrong about that. There's always areas that loose with transitions in the economy that win if u try to fight the changes

 

I'm talking about the Nation as a whole tho. What Trump is doing is not a net positive

I used to look at it the same way as you but then realised my ideas were quite city based since I grew up and live in the city.  It was only seeing these other parts of my country and seeing how they reacted to the Brexit campaign that made me to start looking at a wider picture than just what I thought was the best move economically.  These are people's lives and the current quality of it is very poor.

We also don't know what the future holds.  You are correct, short term it will not be the best move for the economy but it's a small hit that will easily be absorbed and will be worth it for many people in the U.S.

[Economy 52,861]

1 minute ago, Benji said:

I used to look at it the same way as you but then realised my ideas were quite city based since I grew up and live in the city.  It was only seeing these other parts of my country and seeing how they reacted to the Brexit campaign that made me to start looking at a wider picture than just what I thought was the best move economically.  These are people's lives and the current quality of it is very poor.

We also don't know what the future holds.  You are correct, short term it will not be the best move for the economy but it's a small hit that will easily be absorbed and will be worth it for many people in the U.S.

I dunno guess we will have to agree to disagree. I respect ur opinion but I just don't think it's worth it

 

Trade protectionism will hinder efficiency Nationwide for the US (and others) that would be a net negative for most of the economy...

 

Its not even like we can say that it's rural vs city because... Not all rural areas even depend on the industries in question. So an even smaller percentage of the population would truly benefit from this when u take that Into account

 

I feel like it might be less costly to just find another way to revitalize these areas

 

I don't think Rural vs City is even what's on Trump's mind anyway. I think he genuinely has a lot of flawed understanding of macro economics. Its not just me that thinks so... Most analysts think he's crazy... Even many in his own party don't support him

 

Think of how many people he had to replace in his administration to get enough support by his own close advisors