20% Tax on Mexican Imports

[Arkady]

So much for Mexico paying for the wall. Trump has decided, instead, that you, the American consumer, should pay for his pet project, by way of higher prices on goods. A tariff like that works effectively like a national sales tax, only on a particular sub-set of goods. If he goes through with it, there will also almost certainly be retaliatory tariffs by Mexico, so if you work for a US business that exports to them, you'll be hit a second time. It's also a regressive tax, in that Mexican goods tend to be lower end products, meaning the poor will tend to pay higher prices on a greater share of their purchases than the rich do, as a result of the tax (as opposed to slapping such a tariff on somewhere like Switzerland).

I suppose the good news is that in short order it should mostly be made moot by way of trade networks. Mexico can just export to some other country which can act as a straw man for low-tariff trade with the US. That will raise costs for those goods slightly, just because of the added waste of that kind of route, but nothing like 20%.

But, even that silver lining comes with another cloud buried in it. If Trump freaks out about his plan failing, and starts to slap tariffs on other countries that send us goods that have Mexican-sourced parts, it could mean a full-scale trade war. We saw something like that with the infamous Helms-Burton act, which wanted to slap tariffs on third-party goods containing Cuban material (e.g., German chocolate that uses Cuban sugar). Both Republican and Democratic presidents used executive powers to block aspects of Helms-Burton from ever coming into play, because if it did we'd have been in a full-scale trade war with the rest of the developed world, since those kinds of tariffs are disallowed by multiple treaties.

 

[PhilFish]

So much for Mexico paying for the wall. Trump has decided, instead, that you, the American consumer, should pay for his pet project, by way of higher prices on goods. A tariff like that works effectively like a national sales tax, only on a particular sub-set of goods. If he goes through with it, there will also almost certainly be retaliatory tariffs by Mexico, so if you work for a US business that exports to them, you'll be hit a second time. It's also a regressive tax, in that Mexican goods tend to be lower end products, meaning the poor will tend to pay higher prices on a greater share of their purchases than the rich do, as a result of the tax (as opposed to slapping such a tariff on somewhere like Switzerland).

I suppose the good news is that in short order it should mostly be made moot by way of trade networks. Mexico can just export to some other country which can act as a straw man for low-tariff trade with the US. That will raise costs for those goods slightly, just because of the added waste of that kind of route, but nothing like 20%.

But, even that silver lining comes with another cloud buried in it. If Trump freaks out about his plan failing, and starts to slap tariffs on other countries that send us goods that have Mexican-sourced parts, it could mean a full-scale trade war. We saw something like that with the infamous Helms-Burton act, which wanted to slap tariffs on third-party goods containing Cuban material (e.g., German chocolate that uses Cuban sugar). Both Republican and Democratic presidents used executive powers to block aspects of Helms-Burton from ever coming into play, because if it did we'd have been in a full-scale trade war with the rest of the developed world, since those kinds of tariffs are disallowed by multiple treaties.

Perhaps this will prompt fewer purchases of Mexican goods.

 

[worldlymrb]

Trump is NOT proposing a 20% tax on all products made in Mexico. Although a tax on illegal immigrant exports may be something to look into further.

Trump is only going after a NAFTA loophole that provides a profit incentive for US manufacturers to move production to Mexico and take advantage of lower labor/regulatory costs and ship to USA.

 

[Dawg]

"that you, the American consumer".............that would be YOU as well............

I need nothing from Mexico

after PESO drop today they may reconsider☻

 

[Bernard_Fokke]

Nothing I need that's Hecho in Mexico just, remember lave sus manos

 

[Constitutional Sheepdog]

So much for Mexico paying for the wall. Trump has decided, instead, that you, the American consumer, should pay for his pet project, by way of higher prices on goods. A tariff like that works effectively like a national sales tax, only on a particular sub-set of goods. If he goes through with it, there will also almost certainly be retaliatory tariffs by Mexico, so if you work for a US business that exports to them, you'll be hit a second time. It's also a regressive tax, in that Mexican goods tend to be lower end products, meaning the poor will tend to pay higher prices on a greater share of their purchases than the rich do, as a result of the tax (as opposed to slapping such a tariff on somewhere like Switzerland).

I suppose the good news is that in short order it should mostly be made moot by way of trade networks. Mexico can just export to some other country which can act as a straw man for low-tariff trade with the US. That will raise costs for those goods slightly, just because of the added waste of that kind of route, but nothing like 20%.

But, even that silver lining comes with another cloud buried in it. If Trump freaks out about his plan failing, and starts to slap tariffs on other countries that send us goods that have Mexican-sourced parts, it could mean a full-scale trade war. We saw something like that with the infamous Helms-Burton act, which wanted to slap tariffs on third-party goods containing Cuban material (e.g., German chocolate that uses Cuban sugar). Both Republican and Democratic presidents used executive powers to block aspects of Helms-Burton from ever coming into play, because if it did we'd have been in a full-scale trade war with the rest of the developed world, since those kinds of tariffs are disallowed by multiple treaties.

I don't buy Mexican

 

[Arkady]

Perhaps this will prompt fewer purchases of Mexican goods.

Perhaps. But that's just another way of Americans paying for it. If they would have purchased a Mexican product but the higher price drives them elsewhere, then that suggests the alternate product is either more expensive (thus still effectively a tax on the consumer), or of inferior quality (meaning you're taking it out of the American consumer in the form of lost value). Whichever way you come at it, Americans are still paying for Trump's pet project -- he's just trying to hide the bill from those who can't think their way through even the simplest of economic transactions. It's the kind of scam that'll work on the sort of dummy who shelled out good money for Trump University, but to anyone else the con is obvious.

 

[oicu812]

LOL!

"by hook or by crook,,mexico will pay"

 

[Arkady]

Trump is NOT proposing a 20% tax on all products made in Mexico. Although a tax on illegal immigrant exports may be something to look into further.

Trump is only going after a NAFTA loophole that provides a profit incentive for US manufacturers to move production to Mexico and take advantage of lower labor/regulatory costs and ship to USA.

http://www.foxnews.com/politics/2017/01/26/trump-spokesman-says-20-percent-tax-on-mexican-goods-could-fund-wall.html

 

[Mr. Friscus]

then that suggests the alternate product is either more expensive (thus still effectively a tax on the consumer), or of inferior quality (meaning you're taking it out of the American consumer in the form of lost value).

If those products are American, the money stays in the country and benefits our infastructure.

It allows more American companies to compete.

I say tax all non-American products to some extent.

Let's get middle class people who want to start a small business a fighting chance.

 

[Dawg]

supporting 11------20 million illegals cost more than the 20% tax

you libs deserve all of them in your states and no federal fund to support them

stop the $50billion illegals send back to Mexicao yearly and pay for the wall in 3 years

http://immigrationreform.com/2014/10/29/illegal-immigrants-send-home-50-billion-annually-but-cost-taxpayers-more-than-113-billion/

 

[Arkady]

I don't buy Mexican

You probably do and don't even realize it.

 

[Arkady]

If those products are American, the money stays in the country and benefits our infastructure.

It allows more American companies to compete.

I say tax all non-American products to some extent.

Let's get middle class people who want to start a small business a fighting chance.

There's no reason to expect any substantial number of replacement products to be American, if he only goes after Mexico this way. The reason those products are made in Mexico is lower costs. Unless Trump drives US wages down to Mexican levels, the sourcing would only tend to move to the next most comparable labor pool -- for example, India, China, Brazil, Nicaragua, El Salvador, Panama, Belize, etc. Unless he slaps a similar tariff on every low wage country, the math doesn't magically start working to make America the most profitable place to meet the demand, if it wasn't before.

 

[RickWA]

Perhaps. But that's just another way of Americans paying for it. If they would have purchased a Mexican product but the higher price drives them elsewhere, then that suggests the alternate product is either more expensive (thus still effectively a tax on the consumer), or of inferior quality (meaning you're taking it out of the American consumer in the form of lost value). Whichever way you come at it, Americans are still paying for Trump's pet project -- he's just trying to hide the bill from those who can't think their way through even the simplest of economic transactions. It's the kind of scam that'll work on the sort of dummy who shelled out good money for Trump University, but to anyone else the con is obvious.

Agreed entirely. I'll post to you the same thing I post to several other lefties who have also been MIA in the role of citizen-scrutinizer the past eight years (I'm no longer allowed to mention anyone by name as I understand it...it's all hints/cloak-and-dagger posting now).

Welcome back prodigal son. Welcome, welcome! We shall, together, call out our political class...ensuring their accountability. Please stay this time. Do not falter when someone with a (D) is in office.

Yes, indeed - the market is either free or it is not. Price controls, or tariffs, or any other artificially-layered cost is mere sleight of hand. So it is with VAT, so it is with tariff, so it is with...say...minimum wage mandates.

Agreed entirely - the cost will be borne by us. It is as it ever was, albeit selectively observed.

 

[Arkady]

supporting 11------20 million illegals cost more than the 20% tax

you libs deserve all of them in your states and no federal fund to support them

stop the $50billion illegals send back to Mexicao yearly and pay for the wall in 3 years

http://immigrationreform.com/2014/10/29/illegal-immigrants-send-home-50-billion-annually-but-cost-taxpayers-more-than-113-billion/

The wall won't meaningfully alter the number of people here illegally, since that's a demand side problem, not a supply side one. Even Trump has admitted we'll need to keep providing a whole bunch of agricultural visas, because our agricultural economy can't function at globally competitive prices without augmenting it with a huge dose of low cost foreign labor at harvest time. But, let all those people across the border and they can simply overstay their visas -- if the wall doesn't prove to be as porous as people are expecting, that'll just mean slightly higher wages for illegal workers, raising the incentive for people to overstay visas until the demand is met. Unless you address the demand side problem , the wall doesn't matter. And if you do address the demand side problem effectively, the wall is just an expensive and unneeded symbol.

 

[Spamature]

I don't buy Mexican

You should. Ariel is the best laundry detergent on the market. Phosphates are still legal in Mexico.

 

[Dawg]

The wall won't meaningfully alter the number of people here illegally, since that's a demand side problem, not a supply side one. Even Trump has admitted we'll need to keep providing a whole bunch of agricultural visas, because our agricultural economy can't function at globally competitive prices without augmenting it with a huge dose of low cost foreign labor at harvest time. But, let all those people across the border and they can simply overstay their visas -- if the wall doesn't prove to be as porous as people are expecting, that'll just mean slightly higher wages for illegal workers, raising the incentive for people to overstay visas until the demand is met. Unless you address the demand side problem , the wall doesn't matter. And if you do address the demand side problem effectively, the wall is just an expensive and unneeded symbol.

I have a much better plan............the 4 million on food stamps in California either harvest crops or cut off food stamps if able to work............bam, millions of employees to harvest crops............

Close 17 agencies posted and create New agency to go door to door and check if those living on taxpayers expense, put to work with harvest or removed from hud free homes..............

it's why your libs are protesting, the FREE ride is over, trade in the Bush/Θ cell phones for alarm clocks............no wonder you buying a GUN.......freeloaders going to protest and riot............☻

but............do you have the balls to shot someone?

 

[PhilFish]

Perhaps. But that's just another way of Americans paying for it. If they would have purchased a Mexican product but the higher price drives them elsewhere, then that suggests the alternate product is either more expensive (thus still effectively a tax on the consumer), or of inferior quality (meaning you're taking it out of the American consumer in the form of lost value). Whichever way you come at it, Americans are still paying for Trump's pet project -- he's just trying to hide the bill from those who can't think their way through even the simplest of economic transactions. It's the kind of scam that'll work on the sort of dummy who shelled out good money for Trump University, but to anyone else the con is obvious.

or.. Americans may simply buy less Mexican product.

Simple.

 

[RickWA]

You should. Ariel is the best laundry detergent on the market. Phosphates are still legal in Mexico.

Honestly, I buy quite a bit of Mexican food products. It's good stuff...and, as a capitalist free market guy...I buy what I like.

 

[PhilFish]

Honestly, I buy quite a bit of Mexican food products. It's good stuff...and, as a capitalist free market guy...I buy what I like.

I like Fabuloso.

Damn fine stuff