Tariffs Here We Come
Nov 25 (Reuters) - U.S. President-elect Donald Trump on Monday pledged a 25% tariff on all products from Mexico and Canada from his first day in office, and an additional 10% tariff on goods from China, citing illegal immigration and the trade of illicit drugs.
"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Trump said in a post on Truth Social.
Oh boy. Who's ready for higher prices?
Trump's threatened new tariff would appear to violate the terms of the U.S.-Mexico-Canada Agreement on trade, which Trump signed into law and took effect in 2020, and continued the largely duty-free trade between the three countries.
Mexico and Canada are the United States' largest trading partners. More than 83% of exports from Mexico went to the U.S. in 2023 and 75% of Canadian exports go to the country.
On China, the president-elect accused Beijing of not taking strong enough action to stop the flow of illicit drugs crossing the border into the U.S. from Mexico.
"Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America," Trump said.
Economists say that Trump's overall tariff plans, likely his most consequential economic policy, would push U.S. import duty rates back up to 1930s-era levels, stoke inflation, collapse U.S.-China trade, draw retaliation and drastically reorder supply chains.
They say tariffs are paid by the companies that import the products subject to the duties, and they either pass on the costs to consumers or accept lower profits.... And which option do you think they'll choose?
So Trump promised to lower prices? Who's excited about the tariffs?
https://www.reuters.com/world/us/trump- … 024-11-25/Two-thirds of Americans think Donald Trump’s tariff plans will only add to rising costs if implemented, and many are planning purchases ahead of his inauguration anticipating higher prices, according to a Harris poll.
Trump has called tariffs the most “beautiful word in the dictionary”, yet about 69% of Americans think tariffs on imports will lead to higher prices, according to the poll.
Economists largely disagree with Trump’s argument that tariffs will mean a significant uptick in domestic manufacturing. Companies will likely simply pass increased costs onto customers.
Americans seem to think so too. Over three-quarters (76%) of those polled said they believe companies will pass along the price of tariffs to consumers. Tariffs could cost American households an additional $2,600 a year, according to the Peterson Institute for International Economics.
Multiple executives have already said tariffs will mean higher prices. Walmart’s chief financial officer, John David Rainey, said “there probably will be cases where prices will go up for consumers” with tariffs. Lowe’s CFO Brandon Sink has said that tariffs “certainly would add product costs”.
The poll also showed some voters don’t know how tariffs work. Though 78% of Americans felt confident they understand what a tariff is, only 48% correctly answered that American companies pay the tariffs. Nearly half of Republicans (47%) incorrectly said that foreign countries are responsible for paying tariffs, compared to 32% of Democrats.
https://www.theguardian.com/us-news/202 … arris-pollYou beat me to it. I just read the article and posting some backup graphics for highlights and the article address for the curious.
and,
The article for the curious is
Two-thirds of Americans think Trump tariffs will lead to higher prices, poll says by the Guardian (Nov 26)
https://www.theguardian.com/us-news/202 … arris-poll
Exclusive: a Harris poll raises questions about the popularity of one of Trump’s key economic policy platforms
Of course, anyone can speculate whatever they want what the information means, yet more information will be arriving. This is a significant announcement since the 'Zero Point' of Nov 6th. I've been keeping an eagle's eye on what inflationary changes aimed at price increases will take place predicted by many economist. I'm amongst the poor some would say, and from my reading the greatest impact will be the lower income levels.
I will be keeping an eye on how Canada's energy will affect us, though I live in California. I will be keeping an eye on Mexico's agriculture.Thank you! There is a lot at stake here. The tariffs cover 40% of total US trade. These three are our largest trading partners. We will most likely be looking at a trade war. Bailing out farmers again?
Mexican president Claudia Sheinbaum’s suggests that the country could retaliate with tariffs of its own. Trump faces a much different Mexican leader than he did in his first term.With jest from one article I read this morning I will have to give up my Guacamole I see. It looks like the Chipotle menu will have a sharp spike in the nearing future. They are expensive to begin with.
Trump's Tariffs Will Likely See These Seven Products Become More Expensive by Newsweek (Nov 26, 2024)
https://www.newsweek.com/trump-canada-m … ds-1991660
** Automobiles and Automotive Parts
** Agricultural Products
** Electronics
** Mineral Fuels and Oils
** Plastics and Plastic Products
** Machinery and Industrial Equipment
** Aluminum and Steel Products
Another article to consider is . . .
Trump’s tariff plan is likely to push up grocery prices, economists say by Grocery Dive (Nov 20, 2024) Though was before the announcement the wisdom just may hold.
https://www.grocerydive.com/news/trump- … es/732675/
I too read about Trump's tariff plans. He was mainly targeting Canada and Mexico. So, imported goods from those places will become expensive.
But, I am thinking about his tariff plans against other countries.It is actually more than possible other countries could benefit if Trump does choose to add tariffs on Canada and Mexico.
It is not only possible but likely that other countries could benefit if Trump implements tariffs on Canada and Mexico. Tariffs, which are essentially taxes on imports, can increase the cost of goods entering the United States. This often leads to higher prices for U.S. consumers and businesses that rely on imported materials or products. In response, American companies may seek alternatives, turning to other countries with lower trade barriers or more favorable terms. For instance, countries in South America or Asia could become more attractive trading partners, taking advantage of the reduced competitiveness of Canadian and Mexican exports due to the tariffs.
Trump appears to be using tariffs as a strategic tool to pressure Mexico into addressing key issues affecting the U.S., particularly illegal immigration and drug trafficking. By imposing economic penalties, he aims to incentivize Mexico to take stronger action to prevent migrants from traveling through the country to the U.S. border and to crack down on drug production and trafficking. This approach seems rooted in common sense, targeting the source of the problems rather than merely addressing the symptoms.
Mexico's leniency toward cartel activity has allowed drug cartels to generate billions in illicit revenue while facilitating the migration of people across its borders, leading to significant challenges for the U.S., including a humanitarian and security crisis at the southern border. Trump's plan appears to be an effort to force Mexico to take accountability and actively combat these issues. The use of tariffs as leverage may push Mexico to strengthen its enforcement efforts against cartels and to manage migration flows more effectively. Notably, taking a firm stance against the cartels is a bold move, as few leaders have directly confronted these powerful organizations in a meaningful way.
It's time to stop ignoring the problems that Mexico is responsible for. We now have a president who shows strength and is determined to solve huge long-term problems. he Mexican government will cave, they now depend on America. The economic integration between the two nations has led to Mexico becoming one of the largest trading partners of the U.S., with over half-trillion dollars exchanged in goods and services annually.In response, American companies may seek alternatives, turning to other countries with lower trade barriers or more favorable terms.
Mexico is the largest foreign supplier of auto parts to the United States: there are not options to easily and quickly replace them as a supplier. And that's just one example. China Mexico and Canada are our top trading partners.
I'm buying a car is about to get a lot more expensive lol and how do we think that the people who have been whining about the cost of bread are going to take that? Actually just about everything we buy will become more expensive with Trump's tariffs.
Also, Tariffs don't address our broken immigration system. This is just another look here not there... Tariffs will make up for some of the lost revenue due to his tax cuts for the wealthy. I mean he's got to find some way to fund the giveawaysYou make a valid point that Mexico is a major supplier of auto parts to the U.S., and it's true that there aren't many alternatives to quickly replace them. However, I think it's important to consider the broader economic impact and recognize that trade relationships are interdependent. While the U.S. would certainly face disruptions if there were a breakdown in trade with Mexico, Mexico would suffer much more financially. Mexico’s economy is heavily reliant on exports to the U.S.—over 75% of its exports go to the U.S.—so any disruption to that flow would hit Mexico’s economy very hard. For example, if the U.S. stopped importing auto parts from Mexico, it wouldn’t just be about finding new suppliers; Mexico’s auto industry would face significant job losses and factory closures.
On the other hand, while the U.S. would definitely feel the pain, especially in sectors like automotive and agriculture, the U.S. economy is much larger and more diversified. It has a greater ability to absorb economic shocks, while Mexico's economy is more vulnerable to changes in its primary export market, which is the U.S. A study by the Peterson Institute for International Economics suggests that trade disruptions would push Mexico's economy into recession.
China’s economy is highly dependent on exports, particularly to the U.S., which is one of its largest markets. A significant portion of China’s manufacturing sector is geared toward meeting U.S. demand. If the U.S. were to reduce imports from China, China would certainly experience economic contraction, but it could pivot more easily to other markets, especially in Asia and Europe, as the US would do the same... Much more complicated.
Canada also depends heavily on the U.S. market. More than 70% of Canada's exports go to the U.S., and a large portion of Canadian jobs are tied to this trade relationship . If trade between the two countries were significantly reduced, Canada's economy would likely experience immediate difficulties, particularly in sectors like energy, manufacturing, and agriculture, where exports to the U.S. play a major role.
Trump doesn't offer any giveaways. Instead, he's using tariffs as a strategic tool to pressure Mexico and Canada to take more responsibility for addressing immigration issues that he believes they could help mitigate. By imposing tariffs, he aims to create economic incentives for both countries to more actively manage migration flows and enforce border control measures. This approach reflects his broader stance on using economic leverage to influence foreign policy, particularly in areas he sees as directly affecting U.S. interests, such as immigration and national securitySeems like Trump is asking Mexico to pitch in and resolve the border issues that our Congress is unwilling to do. And Trump wants all of us to pay more for everything we buy to do so?
Their new president looks completely unwilling to help out. Why not just reform our immigration policy? Just waiting on that 20 cents less per loaf of bread...I think you’re right that Trump is fully aware of the Congress he’d be dealing with, and I believe he’ll have their support, especially given the overwhelming polls showing that citizens are deeply, and justifiably, concerned about the problems caused by the flood of migrants in some communities. Trump takes a more common-sense approach to identifying stumbling blocks and finding ways to move past them.
I wouldn’t even try to predict what tariffs might or might not do to the economy. However, I’ve come to realize that Trump thinks things through carefully, and I doubt he’d want to risk a failing economy because of his own decisions. Unlike Biden, who came in like a wrecking ball and sank the economy, Trump has too much ego to let himself become "Joe 2.0."
I’ll even go out on a limb and predict that Mexico will cave—and quickly. Their new president is very intelligent and won’t risk losing jobs or the economic growth they’ve enjoyed in recent years due to trade with America. You can hold me to that prediction.
Mexican leaders have often navigated a complex relationship with powerful drug cartels, whose influence reaches deep into the country's politics, economy, and society. Cartels like the Jalisco New Generation Cartel (CJNG) maintain control in regions such as Puerto Vallarta, where their economic influence creates jobs, funds infrastructure, and supports tourism. However, this comes at a significant cost, as these groups also perpetuate violence, drug trafficking, and human exploitation, often hidden in less-traveled areas of the city.
The assassination of former Jalisco governor Aristóteles Sandoval in 2020 at Distrito 5, one of my favorite eateries, is a striking example of this dynamic. Most diners in the restaurant were unaware of the crime until Sandoval’s body was quietly removed, underscoring the seamless integration of violence into public life under cartel dominance. The crime scene was reportedly cleaned and tampered with to avoid scrutiny, reflecting the impunity cartels often enjoy.
As for Mexico’s new president, she is likely to cave to Trump’s demands on trade and border policies. Like her predecessor, she seems intent on preserving respectable jobs and positioning Mexico as a credible player on the global stage while still grappling with the challenges posed by several major cartels that continue to wield significant influence. Balancing these competing priorities will remain a daunting task.
The government takes in billions in taxes from cartel businesses, this was not so in the old days-- but now they are like mafia, they run huge businesses, and pay tons of taxes ---Businesses pay income tax based on their profits. The standard corporate tax rate in Mexico is 30%. This tax applies to companies operating in Mexico, whether they are Mexican or foreign-owned.A good negotiator could work with congress. Could work both sides of the aisle. LOL what happened to the "art of the deal?"
How is Mexico going to lose jobs? They are making most of the parts that go into cars that are assembled here. How is that going to work? They're going to keep making those parts, keep shipping them here, the importer will pay the tariff and cars will become more expensive.
The alternate scenario? We don't buy these parts from Mexico anymore? So then what happens? There are not alternative options. And if assembly factories in our country don't have the parts from Mexico, then who's going to be out of job? The American on the assembly line.
"I wouldn’t even try to predict what tariffs might or might not do to the economy.
You don't have to predict, all one needs to do is look back at the previous Trump administration to see the impact of tariffs.Don't worry, the President of Mexico will eventually have to yield. Simply put, she can't afford not to.
As for Biden, he never removed Trump's tariffs on China, and these tariffs take time to show their full impact. I believe Trump now has a stronger position to negotiate better trade terms with China, especially since those tariffs have remained in place, providing leverage for future talks.
The tariffs imposed by President Trump's administration generated significant revenue, particularly from Chinese imports. By March 2024, the U.S. government had collected over $233 billion in higher taxes due to these tariffs. Around 38% of that revenue, or about $89 billion, was collected during Trump's time in office, with the remaining 62% accruing under President Biden's administration. These tariffs were largely seen as a way to force trade concessions from China, but they also had broader economic impacts, such as raising consumer prices and affecting U.S. businesses that relied on imported goods
Mexico would suffer much more financially. Mexico’s economy is heavily reliant on exports to the U.S.
How so? Their goods will still flow, it is not Mexico that pays anything additional. It is the importers in this country that will pay the tariff and the companies will pass it along to the consumers. It is the American consumer that will suffer.
Folks went crazy because covid caused food inflation. Does anyone really think the population in general will happily take Trump choosing to enact measures that will knowingly and purposely raise prices on almost everything? No, they won't.
He was hired because of his promise to lower all sorts of costs on day one. This is going to backfire on him spectacularly.
And yes he is offering lots of giveaways and he expects the American consumer to pay for them. Number one on that list is his tax plan. Let's remember, his plans do not bring in enough revenue.Trump's strategy will be a wait and see... I trust Trump's skills to not increase problems with the economy.
Wait and see? The impacts of tariffs are well documented, no one remembers tariffs the last time he used them? Just as one example, the price of washing machines rose and we bailed out Farmers to the tune of billions. Why would it be different this time? Actually, it will be worse this time because he's going all in on tariffs. When someone tells me the stove is hot, I don't need to touch it to find out.
As far as Trump's skills lol, he has none. He's a washed up TV reality star who bankrupted his businesses that were funded by his father cash. His only skill, that has made him money, is branding himself and his name.You dive into very complicated issues, and even economists often fail to predict outcomes, as we've seen with Biden's policies. I’ve pointed out how many of the same individuals who have bashed Trump's economic plans have a poor track record when it comes to predictions. Their historical accuracy leaves much to be desired, and yet their voices often dominate the conversation. Predicting the economy, or any major political shift, is a highly complex task, and even experts can miss the mark—just as they did when projecting the impacts of Biden's policies. I think it's important to acknowledge that no one has a crystal ball, and sometimes waiting to see how things unfold is a wiser approach.
Right now, it's a wait-and-see.
Goldman sees 'significant' hit to US from Trump's Canada tariffs...
US consumers face “significant consequences” from President-elect Donald Trump’s proposed tariffs on Canada, according to Goldman Sachs Group Inc., with the bank casting doubt over its implementation.
The 25% levy on all products from Canada proposed by Trump would likely raise the price of fuels in the US, Daan Struyven, the head of commodities research for Goldman, said during a roundtable interview.
Oh no, not the gas?!You need to do a bit of research on Goldman Sachs---it is one of the largest and most influential investment banks. They ave their interests at heart.
I think Goldman Sachs is so against Trump’s tariffs because they’re more worried about their own bottom line than the well-being of the American people. Big financial institutions like Goldman have a lot at stake in maintaining the global trade systems that benefit them, even if those systems haven’t worked out as well for the average American worker. Tariffs disrupt their investments and international operations, and that’s what I believe they’re truly afraid of—losing money and control. They don’t seem as concerned with the long-term impacts on industries and jobs here in the U.S., which is why they push back so hard against policies that challenge the status quo.The cost of tariffs are passed on to the consumer. Are you comfortable with paying more for just about everything? Do you think the people who have been complaining about inflation due to the impacts of covid will happily accept the cost of tariffs?
Mexico suggests it would impose its own tariffs to retaliate against any Trump tariffs...
President Claudia Sheinbaum suggested Tuesday that Mexico could retaliate with tariffs of its own, after U.S. President-elect Donald Trump threatened to impose 25% import duties on Mexican goods if the country doesn’t stop the flow of drugs and migrants across the border.
Sheinbaum said she was willing to engage in talks on the issues, but said drugs were a U.S. problem.
“One tariff would be followed by another in response, and so on until we put at risk common businesses,” Sheinbaum said, referring to U.S. automakers that have plants on both sides of the border.
I think this was particularly scathing but totally on point...
"Sheinbaum said Mexico suffered from an influx of weapons smuggled in from the United States, and said the flow of drugs “is a problem of public health and consumption in your country’s society.” BINGO
And she continued to roast us...
Sheinbaum also criticized U.S. spending on weapons, saying the money should instead be spent regionally to address the problem of migration. “If a percentage of what the United States spends on war were dedicated to peace and development, that would address the underlying causes of migration,” she said.
Oh my. Trump faces a much different Mexican president than he did in his first term.
She is quite properly calling us out though. These tariffs are a distraction, a diversion from the real work that needs to be done.Your first post about the Mexican president's comments was spot on, but the inclusion of the defense statement in this one hurt that standing. It is about a national intangible that she can't judge. What's right for one nation, relative to its desired global standing, isn't right for another.
Her defense statement was the text equivalent of the Hippies' picture of a flower in the gun barrel.
GAIf Trump wants to blame Mexico, in part, for this nation's addiction problem then I feel she has standing to say we exacerbate violence in their country with our stockpile of guns that are on a pipeline into Mexico. Wouldn't it be better to negotiate these issues rather than igniting a trade war that does nothing to address the concerns.
But also, what's the plan to deal with the Americans who are largely responsible for running the drugs into our country? No mention of that anywhere. All I hear is blame for another country, demonization of another country. Wanting to bully another country with no regard to our contribution to the problem.My point was about the defense spending statement, not what Trump will do. Even in agreeing with her statement about our drug use and the pipeline used to get them here, Mexico's hands aren't entirely clean. The drugs must get into Mexico—in large quantities—before they can be smuggled across the border. How is that happening? Is the Mexican government addressing that?
I also think negotiating is the best choice. But I can't say that President Trump's tariff statements aren't a negotiating tactic, and I don't think you can either.
A thought wandered by: Could the change in NATO nations' defense spending after President Trump's threatening statements be a result of similar 'negotiating'?
GA"Mexico's hands aren't entirely clean. The drugs must get into Mexico—in large quantities—before they can be smuggled across the border."
Well I understand that's a China issue also. The focus on drugs traveling across boarders seems a little misguided, even futile. A drug abuse, addiction really, problem has been a part of our culture for a very long time. If fentanyl disappears tomorrow morning, someone will have already cooked up the next cocktail in the kitchen sink by dinner time. Drug cartels exist because Americans want drugs. One would think that we would invest in addressing root causes of addiction? Treatment maybe? Attempting to ameliorate this country's drug problem through a border security is sort of akin to filling a cup with water that has a hole in it. Or is it trying to catch a deluge in paper cup? I don't know but for me it's misguided.The answers you are looking for are the same ones of the prohibition era.
We've tried jail, that didn't work. We've tried offering a helping hand efforts (safe-use houses, Public Narcan(?) availability, rehabilitation, and ween-off programs) that haven't worked.
I don't think throwing more money at the problem will fix it.
GA
Since folks seem to have forgotten that Trump used tariffs during his first administration here is one look at how that panned out...
This citation is from 2020
Did Trump’s tariffs benefit American workers and national security?
President Trump used this power to increase tariffs on solar panels, washing machines, steel, and aluminum, as well as on a broad range of products from China. Overall, in 2019, the U.S. government brought in $79 billion in tariffs, twice the value from two years earlier and a sharp break from recent trends.
The $79 billion brought in by the Treasury could in principle come from three different sources: the foreign companies exporting goods to the United States; the American companies importing goods from abroad, or using imported inputs in their production processes; and American households as final consumers.
The Trump administration has repeatedly argued that foreign companies are paying for tariffs. But multiple studies suggest this is not the case: the cost of tariffs have been borne almost entirely by American households and American firms, not foreign exporters. While estimates vary, economic analyses suggest the average American household has paid somewhere from several hundred up to a thousand dollars or more per year thanks to higher consumer prices attributable to the tariffs.
Did tariffs benefit American workers?
While tariffs benefited some workers in import-competing industries, they hurt workers in sectors that rely on imported inputs and those in exporting industries facing retaliation from trade partners.
Did tariffs help the US negotiate better trade agreements?
Trump’s tariffs did not help the U.S. negotiate better trade agreements or significantly improve national security.
So why are we doing this again and pretending we have no idea about how tariffs work? Pretending it's something new?
https://www.brookings.edu/articles/did- … -security/That was 2020 --- I posted upto date stata on the review we made over the last 4 years ... The tariffs imposed by President Trump's administration generated significant revenue, particularly from Chinese imports. By March 2024, the U.S. government had collected over $233 billion in higher taxes due to these tariffs. Around 38% of that revenue, or about $89 billion, was collected during Trump's time in office, with the remaining 62% accruing under President Biden's administration.
I posted the information from 2020 because it was an analysis of what happened in the Trump administration in regard to his imposed tariffs.
As to the revenue generated, where do you think that revenue came from?China --- The U.S. government collected substantial revenue from tariffs imposed on Chinese goods during Donald Trump's presidency. According to estimates from the U.S. Treasury and the U.S. Customs and Border Protection (CBP), the revenue from these tariffs reached approximately $80 billion annually during the peak years of the trade war, particularly in 2018 and 2019.
From January 2021 to mid-2023, tariff revenue continued to be substantial. The U.S. Customs and Border Protection (CBP) reported that in 2021, tariff revenue totaled about $90 billion. This was an increase from the Trump administration's final year, as many of the tariffs on Chinese goods remained in place under Biden.
In 2022, tariff revenue slightly decreased, totaling around $85 billion, largely due to shifts in trade patterns.
In 2023, tariff revenue from imports to the U.S. totaled approximately $97 billion
TAX POLICY CENTER
TAX FOUNDATION
. This represented an increase from previous years, as tariffs on Chinese goods, along with other trade measures from the Trump era, continued to contribute to the federal budget.
Biden left Trump China, Mexico, and Canada tariffs in place.
In 2018, President Trump imposed tariffs of 25% on steel and 10% on aluminum imports from both Canada and Mexico, citing national security concerns under Section 232 of the Trade Expansion Act of 1962.
Regarding Mexico and Canada --- The U.S. government is still collecting revenue from the steel and aluminum tariffs imposed during President Trump's administration. As of 2024, the tariffs continue to generate income, though they have also been subject to adjustments. The steel and aluminum tariffs have been a source of ongoing revenue for the U.S. Treasury, with figures estimated at over $2 billion annually, although these figures fluctuate based on global trade dynamics and adjustments to tariff rates. President Biden's administration has continued to enforce some of these tariffs."The U.S. government collected substantial revenue from tariffs imposed on Chinese goods during Donald Trump's presidency..."
Would anyone like to take a stab at where the revenue came from?
Why is this issue being skirted?The tariffs on Chinese goods imposed during Trump’s presidency did increase costs for certain imports, but their impact on overall consumer prices was relatively limited. Many companies absorbed some of the tariff costs or shifted to alternative suppliers, mitigating the direct effect on consumers. The higher prices we see today are primarily driven by broader factors unrelated to tariffs. The COVID-19 pandemic disrupted global supply chains, creating shortages and delays that drove up costs. At the same time, Biden's economic stimulus measures pumped significant amounts of money into the economy, increasing demand for goods while supply struggled to keep up. Rising energy prices, influenced by geopolitical tensions like the Russia-Ukraine war, further contributed to inflation by increasing transportation and manufacturing costs. Additionally, labor shortages in the post-pandemic economy have driven up wages, which businesses often pass on to consumers. While tariffs may have played a role in higher prices in specific sectors, they are far from the primary driver of today’s inflation. Blaming tariffs alone overlooks the global and systemic factors at play.
When the Trump administration imposed tariffs on various imports in 2018, the stated purpose was to boost US industries and punish foreign exporters. But rather than hurting foreign exporters, the economic evidence shows it is American firms and consumers hardest hit by the tariffs. The tariffs resulted in higher prices for a wide variety of goods that US consumers and businesses purchase.
Economists Pablo Fajgelbaum, Pinelopi Goldberg, Patrick Kennedy, and Amit Khandelwal examined the tariffs on washing machines, solar panels, aluminum, steel, and goods from the European Union and China imposed in 2018 and 2019. They found that US firms and final consumers bore the entire burden of tariffs .
Using a slightly different methodology, economists Mary Amiti, Stephen J. Redding, and David E. Weinstein also found nearly complete pass-through for the tariffs, noting that “US tariffs continue to be almost entirely borne by US firms and consumers.”
Trump's agenda brings in little revenue. Tariffs are his scheme to fund the giveaways particularly renewing his tax act. He wants the American people, to pay for the tax break for the top few percent by paying more for literally everything.
The "revenue" from tariffs is gained almost entirely by picking the pockets of the average American. Do you actually think we will stand for this? Not a chance. Trump was hired to lower prices. He is conning people with the notion the exporting country pays the tariff. The American people can be slow at times but they'll figure it out...tariffs are a tax on American consumers.
But bravo for acknowledging the issue. Trumpian heads are in the sand on this one.
https://taxfoundation.org/blog/trump-ta … estimates/We have no indication of Trump's true economic plan, and it will certainly not be centered solely on tariffs. He has discussed plans to incentivize industries to return to America by reducing regulations, offering monetary rewards, and implementing other economic measures. His approach is expected to involve a combination of actions, utilizing a variety of tools to achieve his goals. While some focus narrowly on tariffs, they represent only one potential aspect of his strategy, to be used as necessary. Many economists and industry leaders have expressed satisfaction with his broader economic vision, suggesting a robust and multi-faceted plan. Instead of wringing our hands over predictions, it would be wise to wait and see how his comprehensive policies unfold if he becomes president. After all, economic forecasts are often unreliable.
When tariffs are integrated with complementary strategies, they can become part of a powerful economic toolkit. I believe pairing tariffs with investments in domestic industries—such as infrastructure, innovation, and workforce development—ensures that protected sectors grow stronger and more competitive. For example, countries like South Korea and Taiwan have successfully combined tariffs with other measures to support key industries while driving technological progress and expanding exports.
Tariffs can also serve as a strategic instrument in trade negotiations. They create leverage to secure more favorable agreements, as demonstrated in the U.S.-Mexico-Canada Agreement (USMCA), which improved terms for U.S. industries after tariffs encouraged cooperation. By targeting specific industries of national importance, such as steel or semiconductors, we can strengthen critical sectors and support downstream industries through targeted policies like subsidies or tax credits.
Coordinating tariffs with broader fiscal and monetary policies can amplify their effectiveness. For instance, combining them with subsidies for exporters or incentives for affected industries ensures broader economic benefits. Encouraging the diversification of trade partnerships further enhances resilience, reducing dependence on specific countries and maximizing global opportunities.
By aligning tariffs with a well-rounded combination of domestic policies, strategic trade agreements, and coordinated planning, we can unlock their potential as part of a larger plan for growth and self-reliance.
Ultimately, the economy is a true balancing act—a complex combination of many variables that must be managed carefully. Tariffs, like any economic tool, are most effective when used in harmony with other policies, adjusting dynamically to changing global and domestic conditions. By considering the full spectrum of actions, from regulatory reform to strategic trade deals, we can create a robust framework for long-term economic stability and growth."We have no indication of Trump's true economic plan,"
I think we have a clear picture of his plan, why? Because he is told us over and over..
On his Truth Social site Monday evening, Trump unveiled plans to place a 25% tariff on all imports from Mexico and Canada on January 20, his inauguration day. The president-elect also said he intends to levy an additional 10% fee on all imports from China.
Listen to this: "we're going to be a tariff Nation".
https://x.com/highbrow_nobrow/status/18 … 4611950020
Pretty clear.
"Tariffs can also serve as a strategic instrument in trade negotiations. They create leverage to secure more favorable agreements, as demonstrated in the U.S.-Mexico-Canada Agreement (USMCA), which improved terms for U.S. industries after tariffs encouraged cooperation.
His new tariff scheme violates the usmca though? So was it no good then? Why the about face?You are ruminating, beating a dead horse. I will stick with Sheinbaum cave, and cave pretty quickly... And again, he has put together an expert team to aid in his economic plan---- Scott Bessent as Treasury Secretary to oversee economic strategy.
Howard Lutnick as Commerce Secretary to manage trade and industry policies.
Lori Chavez-DeRemer as Labor Secretary to handle workforce-related initiatives.
Trump has also appointed Elon Musk and Vivek Ramaswamy to lead a newly formed Department of Government Efficiency. This team is tasked with drastically cutting federal bureaucracy, reducing wasteful spending, and restructuring federal agencies.
It is clear that Trump plans to approach the economy with a unique and innovative strategy, combining fresh perspectives and practical tools to drive results. His approach will leverage a mix of experienced business leaders, innovative thinkers, and bold actions to address economic challenges, ensuring he uses the best resources available to create meaningful change. This combination of strategies is designed to deliver impactful results for the nation's economy. He is a man that solves problems, not makes them.How did the president of Mexico cave? Seems like she put him in his place pretty soundly.
"Trump Mocked After Mexico's President Blows Up His Brag About Their Call"
He's getting trounced on social media
"Critics mock 'Donny deals' after Trump met with brutal fact check from Mexico's president
Trump claims he got Mexico to stop illegal immigrants from crossing the border. That is not true according to Mexican President Claudia Scheinbaum.".
He lied. This lie is hiding in plain sight: It’s the underlying suggestion that Mexico is not doing anything to stop migrants from coming and that Trump’s threat of tariffs is needed to change that.
The lie was laid bare by the sharp response to Trump’s threat from Sheinbaum.
We now get a glimpse how he will deceive people about some of his most potentially destructive designs, on tariffs and immigration alike.They certainly have different stories, but I prefer to believe Trump will get any cooperation he asks for, no matter what rhetoric we might hear from the president of Mexico.
Odd you feel our president is lying. I feel we will hear this week on more of the deal he has made with Canada and Mexico. Her comments certainly won't sit well with Trump, his ego is too big. Yikes, one would think she would have thought about her words, I mean it appears she has a different report on that call."They certainly have different stories, but I prefer to believe Trump will get any cooperation he asks for, no matter what rhetoric we might hear from the president of Mexico.
But Mexico was already cooperating.. with Biden.
Trump said Sheinbaum ”has agreed to stop Migration through Mexico, and into the United States, effectively closing our Southern Border.
No she did not say this.
Sheinbaum indicated separately on social media that she told Trump that Mexico is already “taking care of” migrant caravans. We reiterate that Mexico’s position is not to close borders but to build bridges between governments and between peoples,” Sheinbaum added.
She wrote:
"You may not be aware that Mexico has developed a comprehensive policy to assist migrants from different parts of the world who cross our territory en route to the southern border of the United States. As a result, and according to data from your country’s Customs and Border Protection (CBP), encounters at the Mexico-United States border have decreased by 75% between December 2023 and November 2024."
What this polite language says is that Mexico is already acting extensively to thwart migrants who travel through that country.
It’s darkly amusing that Sheinbaum would cite U.S. statistics to make this point, because trump does not allow that the reality depicted by our own data even exists.
The latest numbers show that in November, apprehensions hit a new low under Biden and sank lower than some months under Trump.
Those numbers are relatively low partly thanks to Mexico. Adam Isacson, who tracks migration for the human rights group Washington Office on Latin America, put together a chart using Mexican government data that illustrates the point. It shows that Mexican forces have been apprehending tens of thousands of migrants traveling to the U.S. through Mexico each month (and sometimes over 100,000) up through August, the last month of available data:
As Isacson shows, another big thing keeping illegal border crossings down is Biden’s CBP One app, which allows migrants to make appointments to enter temporarily via various programs in an orderly, lawful manner. (Trump will also end that program, nixing something that’s contributing to reductions in crossings.
The reporting bears out the bigger dynamic. As The Washington Post and The Wall Street Journal document, the Mexican government is using elaborate security operations to shuttle migrants heading for the U.S. border back south through Mexico. According to The Post, Mexican officials call this “El Carrousel,” or “the merry-go-round.”
Some experts see Biden’s private diplomacy with Mexico’s previous president as a critical ingredient in making all that happen. This cooperation, plus Biden’s recently imposed restrictions on asylum seeking and the CBP One app program, are all major contributors to this year’s lower apprehension numbers, Isacson says.
“If Trump wants Mexico to crack down on unauthorized migration through its territory,” Isacson told me, “then Biden has already gotten Mexico to do that to a greater extent than anyone has ever done before. He did it without tariffs.”
So his lying bluster is very timely. He can slink into office and take credit. That's what he is setting up, and his followers have grabbed onto it.
Bro is claiming victory on the border in Mexico even though border crossings are at the low and he had absolutely nothing to do with it.
"The tariffs imposed by President Trump's administration generated significant revenue, particularly from Chinese imports.
Anyone:
Where did this revenue come from?
Mexico's president is a pistol... She's not taking his nonsense for a minute.
Trump, Mexican president give differing reviews of "wonderful conversation" on border, illegal immigration...
The two spoke just days after Trump threatened to impose sweeping new tariffs on Canada and Mexico as part of his effort to crack down on illegal immigration and drugs — a threat that drew a prompt and terse response from Sheinbaum, who said any U.S. tariffs would be met with reciprocal measures from her government — stressing: "There is no subordination here."
Trump said in his social media posts that Sheinbaum had "agreed to stop Migration through Mexico, and into the United States, effectively closing our Southern Border." lol
Sheinbaum indicated on social media, however, that she'd "explained" to Trump that Mexico is already "taking care of" migrant caravans, calling it an "excellent conversation," but indicating no major changes in her government's policies.
"I explained to him the comprehensive strategy that Mexico has followed to address the migration phenomenon, respecting human rights. Thanks to this, migrants and caravans are assisted before they reach the border," the Mexican leader wrote. "We reiterate that Mexico's position is not to close borders but to build bridges between governments and between peoples."
Illegal migration across the Mexico border is down in part because the Biden administration secured some stepped-up cooperation from Mexico — the sort Trump seems to be celebrating.
Arrivals at the U.S.-Mexico border have dropped 40% from an all-time high last December. U.S. officials mostly credit Mexican vigilance around rail yards and highway checkpoints.
You know what this sounds like? Pretending that something is a problem that isn't be addressed but since it clearly is being addressed, he can come in and claim credit after having done absolutely nothing. Immigration numbers have been moving in the right direction for some time now. No thanks to Trump.
https://www.cbsnews.com/news/trump-mexi … migration/"By Sheinbaum’s account, Trump appeared to lack basic knowledge about current conditions in Mexico. She said he asked about fentanyl use, which is far lower than in the United States. He expressed concern about a migrant caravan that formed recently in southern Mexico. While video images of such processions alarmed Americans in 2018, during Trump’s presidency, no similar caravan has reached the United States since then. She assured him that this one wouldn’t, either, she said."
He needs to start reading the intelligence reports and stop relying on Fox news for his information. He looks like a fool.
https://www.washingtonpost.com/world/20 … k-tariffs/Trump and company are out in left field if they think undocumented migrants are bringing drugs into the country. increasing tariffs is not going to stop the drug cartels.
According to Immigration Impact, in order to smuggle fentanyl through a port of entry, cartels hire primarily U.S. citizens, who are the least likely to attract heightened scrutiny when crossing into the United States. In 2018, 77% of all people sentenced on federal drug trafficking crimes were U.S. citizens. For example, five out of five drug busts over a single recent weekend at the El Paso port of entry involved a U.S. citizen.
https://immigrationimpact.com/2022/09/0 … orm=MG0AV3Trudeau flew in today to Florida Trudeau told a press conference earlier on Friday that Trump's tariff threats should be taken seriously.
"Donald Trump, when he makes statements like that, he plans on carrying them out. There's no question about that," he told reporters.'to meet with Donald Trump in the wake of the tariff threat. "
It would appear Trudeau is taking Trump very seriously, and willing to beat it to Florida to have a meeting on the issue.
It’ll be interesting to see how Trump responds to Sheinbaum’s statement. It seems like her and Biden’s focus was just on ensuring humane treatment for those crossing through Mexico. Sure, that’ll sit well with Trump—LOL.
Honestly, she’s completely out of her depth. Under her predecessor, countless migrants poured through Mexico during Biden’s tenure, and I couldn’t care less about any recent decrease. It’s absurd to even frame that as a positive. The Biden administration has already overwhelmed our country with migrants, and nothing they do in their final months can undo the damage they’ve caused America.So in terms of Trump's tariff threat, who is that going to hurt? Who will bear the brunt of the cost? So in all of his bloviating bluster about tariffs, you do realize that all of us out here complaining about the cost of ground beef are going to pay the cost of his tariffs? We are going to pay more for literally everything.
And the president of Mexico is out of her depth? I think you just called her intelligent in a previous post? But she dares to call out dear leaders lies and now she's out of her depth?
"It seems like her and Biden’s focus was just on ensuring humane treatment for those crossing through Mexico. Sure, that’ll sit well with Trump—LOL."
I don't see any evidence of this but why is it so horrible to treat other human beings with dignity? God forbid, especially from the party that talks about their Christianity all the time. Cruelty really is the point isn't it? But in reality, apparently you didn't read about Mexico's Merry-Go-Round policy...
Trump followers really are still buying his lie that the exporting country will be hurt by tariffs...LOL
And absurd to call the immigration numbers positive? Trump will be taking credit for them, after doing absolutely nothing, in a couple of days...As I mentioned, I’m not going to assume Trump is lying, as you have. I believe she will follow through on whatever Trump asks of her, particularly when it comes to addressing immigration and the drug issues stemming from Mexico. I’m not sure why you keep going on about this—but I’ll circle back when I can say, “Told you so,” just like I did when you were convinced the stock market would crash because of Trump’s choices.
You should hold off on making predictions unless you're certain they're a sure thing.I believe she will follow through on whatever Trump asks of her, particularly when it comes to addressing immigration and the drug issues stemming from Mexico.
But Biden beat him to it. She has cooperated with the Biden administration and along with his asylum orders, we can see noticeable changes in numbers at the border.
It would appear that maga followers aren't reading the latest data on the border and fentanyl. Trump will not be able to take credit for any of this.
MAGA is cheering that Trump closed the border with one phone call.
Trump... lied... to... you.
Mexico is not closing the border just like it didn't pay for the wall. Mexico is laughing at Trump, like everyone else.
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