Trump announces new 5% tariff on Mexican goods

[Marilyn MonHoe 11,011]

44 minutes ago, Maleficent said:

The amount of nonsense in this thread is staggering. 

Tariffs are placed on a country's imports. In order to make economic profit from the said good the country (in this case Mexico) has two options: either halt the export of goods into the US, or jack up the foreign price of the good in order to compensate for the tariff. If the good is an inelastic good that is not produced anyplace else, then the burden of the tariff falls mainly on the American people. If the good as a domestically produced alternative, then the American people will buy the domestically produced good--which is "better" for the economy. 

https://www.politico.com/story/2019/05/20/trump-trade-war-2020-1455474

“If the president moves ahead with 25 percent tariffs on everything China exports to the United States, it could amount to a tax hike of more than $2,000 on the average American family, swamping the reduction they won from Trump’s signature legislative achievement — the 2017 tax law.

“It’s sort of like when you have a bad leak in a boat and you are trying to plug it up,” said Beth Ann Bovino, chief U.S. economist at Standard & Poor’s, of efforts to ease the pain of a trade war. “Water is going to win every time. The impacts from the trade dispute with China, especially if it snowballs from here, are going to be felt and there is going to be a lot of pain. And I don’t think the federal government can catch up to it.”

The pain will be felt most acutely by lower-income voters who rely on cheap imports and Midwestern farmers who make up critical slices of Trump’s political base and will help decide the outcome of the 2020 election.

Trump’s central political narrative so far has been that the tariffs he’s levied — now at 25 percent on over $200 billion in imports — are being paid by the Chinese, money he’s said he will use to aid farmers now largely unable to sell soybeans, pork, sorghum and other products into the Chinese market due to retaliatory tariffs.

But studies done so far using actual data on prices for American businesses and consumers show that the opposite of Trump’s argument is true.

“The strong conclusion is that so far, U.S. consumers have borne substantially all of the tariff increase,” Deutsche Bank chief economist Michael Spencer wrote in a recent note analyzing available data.

If the China trade war escalates, Goldman estimated the hit to economic growth could be as much as 0.4 percent — worse if the stock market takes a big hit. Trump is banking much of his reelection campaign on delivering growth of over 3 percent in 2019 and 2020, and such a hit would make it much harder — if not impossible — to get there.”

 

Does that sound like it will be “better” for the economy?

[pink sushi 4,351]

1 hour ago, Morphine Prince said:

Mexico produces the most avocados. People are gonna be mad when their guac costs more

 

My life will be over.   

[Economy 52,839]

3 hours ago, davflz said:

How is a tariff supposed to stop immigration?  a tariff isn't going to solve all the social & economical issues within Mexico that motivate people to migrate in the first place 

Tarrifs aren't related what's so ever

 

He's such a moron

[Maleficent 6]

2 hours ago, Marilyn MonHoe said:

Does that sound like it will be “better” for the economy?

literally said it would only be "better" under certain conditions...

[Maleficent 6]

3 hours ago, Morphine Prince said:

Mexico produces the most avocados. People are gonna be mad when their guac costs more

 

oh shiitttttt lmaoooo

[FATCAT 60,886]

4 hours ago, Maleficent said:

The amount of nonsense in this thread is staggering. 

Tariffs are placed on a country's imports. In order to make economic profit from the said good the country (in this case Mexico) has two options: either halt the export of goods into the US, or jack up the foreign price of the good in order to compensate for the tariff. If the good is an inelastic good that is not produced anyplace else, then the burden of the tariff falls mainly on the American people. If the good as a domestically produced alternative, then the American people will buy the domestically produced good--which is "better" for the economy. 

But the American-made alternatives are already going to be higher than their mexican-made alternatives, so Americans will have to pay more no matter what. At the end of the day it's bullshit.

[Marilyn MonHoe 11,011]

7 hours ago, Maleficent said:

literally said it would only be "better" under certain conditions...

No that’s literally not what you said. You accused me of spreading nonsense because I said that these countries are not paying the tariffs, American consumers are.... and then you go and agree with me 

Increased prices for American consumers is not beneficial to the economy. In fact it decreases economic activity because most people will not be able to afford the increased cost and will just choose to not buy those products. How is that beneficial under any condition? 

And when are those “certain conditions” going to occur for America? Tell that to the US soybean farmers that had to go out of business because of China’s retaliatory tariffs. Trade wars almost never work... the last person that I would expect to execute one that would be beneficial to America would be a failed businessman 

[Chromatislaps 34,854]

[RAMROD 117,004]

11 hours ago, Morphine Prince said:

Mexico produces the most avocados. People are gonna be mad when their guac costs more

 

Also Takis, bish!