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OverSword

Escalating Tariffs on Mexico - Do You Agree?

Escalating Tariffs on Mexico - Do You Agree?  

37 members have voted

  1. 1. Do you agree with President trumps escalating tariffs on Mexico in order to stop ilegal aliens from crossing the border?

    • Yes, I agree. Mexico should be made to pay because Ilegals cost us money
      17
    • No, I disagree. Tariffs only make things more expensive for consumers
      16
    • Who cares? I'm moving to Canada.
      4


345 posts in this topic

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OverSword
Quote

 

President Trump on Thursday abruptly announced a new 5 percent tariff on Mexico beginning in early June, saying the levy will "gradually increase" until the ongoing illegal immigration surge at the southern border is "remedied" and illegal migrants "STOP."

"On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP," Trump wrote. "The Tariff will gradually increase until the Illegal Immigration problem is remedied, ... ..at which time the Tariffs will be removed. Details from the White House to follow."

Fox News is told the tariff on all goods by land, sea, and air from Mexico will hike to 10 percent on July 1 -- and potentially increase substantially from there.

"If Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019," Trump said in a statement released later by the White House on Thursday. "Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory."

The statement added: "Thousands of innocent lives are taken every year as a result of this lawless chaos.  It must end NOW! ... Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States."

 

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Dumbledore the Awesome

Is there one single thing that he has a clue what he's doing? How does he think that's going to prevent hordes of immigrants sweeping across the border? The Mexicans are going to be so alarmed at the Orange Genius's economic warfare that they'll lay minefields at the border to prevent them?

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RAyMO

Did the US not sign a trade agreement with Mexico and Canada recently?

Take this as a warning from the Trump administration - agreements made with the USA are not worth the paper they are written on.

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OverSword
5 minutes ago, RAyMO said:

Did the US not sign a trade agreement with Mexico and Canada recently?.

No.  It has not been ratified.

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RAyMO
Posted (edited)
18 minutes ago, OverSword said:

No.  It has not been ratified.

It has been signed though.

"The Agreement between the United States of America, the United Mexican States, and Canada is a signed but not ratified free trade agreement between Canada, Mexico ..."

Edited by RAyMO
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Uncle Sam
Posted (edited)
1 hour ago, OverSword said:

I have no problem. Let him raise the Tariff, we need to get this crisis under control and Mexico is allowing it to happen. Their pockets needs to hurt before they do something.

Edited by Uncle Sam
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XenoFish

Maybe Mexico should fix itself so that its citizens don't want to leave. 

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Desertrat56
24 minutes ago, Uncle Sam said:

I have no problem. Let him raise the Tariff, we need to get this crisis under control and Mexico is allowing it to happen. Their pockets needs to hurt before they do something.

It's not their pockets that will be hurting.  Check out how many products used in the U.S. are made in Mexico.

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Desertrat56
14 minutes ago, XenoFish said:

Maybe Mexico should fix itself so that its citizens don't want to leave. 

Lately most of the immigrants are not from Mexico but rather South America.

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Gromdor

You know, this most recent president of Mexico really isn't that assertive.  He has let Trump dump all kinds of abuse on himself and his country. Most of the push back we have seen is from American corporations and the like- remember when Trump threatened to close ports of entry?  So I think the tariff threat might work in this case unless US corporations shut it down again.  Not really seeing what Mexico will do other than break apart some of the larger caravans, though.  The immigrants from Guatemala listen to him as much as they listen to Trump, which is to say not at all.

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Captain Risky
2 hours ago, Dumbledore the Awesome said:

Is there one single thing that he has a clue what he's doing? How does he think that's going to prevent hordes of immigrants sweeping across the border? The Mexicans are going to be so alarmed at the Orange Genius's economic warfare that they'll lay minefields at the border to prevent them?

Simple solutions often work the best. Maybe Mexico needs to clean its act together and not push all the dregs and ills of its society towards the U.S. I think Trump should also have tied this to drug violence to since they seem to go hand in hand. 

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DarkHunter
2 hours ago, Agent0range said:

Uhhh...can you explain to us how the tariff hurts "their pockets."  Do you even understand what a tariff is?  Let's say Wal-Mart is buying some avocados.  Or tequila, or tomatoes, or Corona...whatever.  WAL-MART PAYS 5% MORE for the product, and it turn, we pay more for the product.  It has nothing to do with Mexico's pockets.  It is a tax on American corporations that gets passed on to consumers.  

That is an extremely simplistic understanding of how tariffs work and the economy in general, simplistic enough actually to be completely worthless.

Your analogy would work if Mexico was the only supplier of the good in question but in most cases that is not true at all as there are normally multiple suppliers of any good.

A better example would be the 5% tariff causes the goods coming from Mexico to cost 5% more, which causes retailers to either switch to a different producer entirely, which would cost Mexico everything as they are no longer selling, or the goods on the Mexican produced items are still bought at 5% higher and are marked up as such while competitors' goods are kept at their same price causing less Mexican goods to be bought and more of the competitors goods to be bought.

While often fariffs causes an increase in prices on the consumer that is not always true and the increase can often times be less then what the tariff is set at.

Ultimately the tariffs will do damage to the Mexican economy and pretending they wont is either showing a lack of understanding of how economics work or being extremely blinded by hate.

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Piney
4 hours ago, OverSword said:

No.  It has not been ratified.

I was the "who cares" but could you change that to Kyoto or Yorkshire? :yes:

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Desertrat56
24 minutes ago, DarkHunter said:

That is an extremely simplistic understanding of how tariffs work and the economy in general, simplistic enough actually to be completely worthless.

Your analogy would work if Mexico was the only supplier of the good in question but in most cases that is not true at all as there are normally multiple suppliers of any good.

A better example would be the 5% tariff causes the goods coming from Mexico to cost 5% more, which causes retailers to either switch to a different producer entirely, which would cost Mexico everything as they are no longer selling, or the goods on the Mexican produced items are still bought at 5% higher and are marked up as such while competitors' goods are kept at their same price causing less Mexican goods to be bought and more of the competitors goods to be bought.

While often fariffs causes an increase in prices on the consumer that is not always true and the increase can often times be less then what the tariff is set at.

Ultimately the tariffs will do damage to the Mexican economy and pretending they wont is either showing a lack of understanding of how economics work or being extremely blinded by hate.

I don't know where you live but I bet the local grocery store you use (if you are in the U.S.) gets the produce it sells you from Mexico.

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Agent0range
46 minutes ago, DarkHunter said:

That is an extremely simplistic understanding of how tariffs work and the economy in general, simplistic enough actually to be completely worthless.

Your analogy would work if Mexico was the only supplier of the good in question but in most cases that is not true at all as there are normally multiple suppliers of any good.

A better example would be the 5% tariff causes the goods coming from Mexico to cost 5% more, which causes retailers to either switch to a different producer entirely, which would cost Mexico everything as they are no longer selling, or the goods on the Mexican produced items are still bought at 5% higher and are marked up as such while competitors' goods are kept at their same price causing less Mexican goods to be bought and more of the competitors goods to be bought.

While often fariffs causes an increase in prices on the consumer that is not always true and the increase can often times be less then what the tariff is set at.

Ultimately the tariffs will do damage to the Mexican economy and pretending they wont is either showing a lack of understanding of how economics work or being extremely blinded by hate.

No.  The fact is, there are many goods that ONLY come from Mexico.  And in cases that it doesn't, if 5% was the difference in an American company being able to sell substantially more product, they would cut prices by 5%, as the price to yield would more than make up for the difference.  Trump tries to play this off as hurting MEXICO the country, when in fact, a majority of the goods coming in are from American companies anyway...aside from produce, of course.  No matter how you spin it, this affects the COUNTRY of Mexico not at all.

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DarkHunter
53 minutes ago, Agent0range said:

No.  The fact is, there are many goods that ONLY come from Mexico.  And in cases that it doesn't, if 5% was the difference in an American company being able to sell substantially more product, they would cut prices by 5%, as the price to yield would more than make up for the difference.  Trump tries to play this off as hurting MEXICO the country, when in fact, a majority of the goods coming in are from American companies anyway...aside from produce, of course.  No matter how you spin it, this affects the COUNTRY of Mexico not at all.

Then what are some of these many goods we only get from Mexico and cant possibly shop around to get from anywhere, should be rather easy for you to name a few specific goods then.  

Most companies cant just cut 5% off of a product and still be profitable, a simple thought experiment would show you how what you suggest just isnt realistic or always possible.  Just consider some random American good that cost $1.02 to produce and is sold for $1.04, for a lot of goods the profit margins are rather small so it's not that unrealistic.  Now imagine a Mexican good that cost $1 to produce and sells for $1.02.  A 5% tariff would increase the selling price of the Mexican good to $1.07 making the American good significantly cheaper.  Now if the the American product tried to knock 5% off they wouldnt be profitable anymore regardless of how much they sold.

You just refuse to accept that this will effect Mexico largely cause you are so blinded by your hatred of Trump.

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OverSword
1 hour ago, Piney said:

I was the "who cares" but could you change that to Kyoto or Yorkshire? :yes:

I figured you were the traitor :lol: jk

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Piney
4 minutes ago, OverSword said:

I figured you were the traitor :lol: jk

:lol:

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OverSword
2 hours ago, DarkHunter said:

That is an extremely simplistic understanding of how tariffs work and the economy in general, simplistic enough actually to be completely worthless.

Your analogy would work if Mexico was the only supplier of the good in question but in most cases that is not true at all as there are normally multiple suppliers of any good.

A better example would be the 5% tariff causes the goods coming from Mexico to cost 5% more, which causes retailers to either switch to a different producer entirely, which would cost Mexico everything as they are no longer selling, or the goods on the Mexican produced items are still bought at 5% higher and are marked up as such while competitors' goods are kept at their same price causing less Mexican goods to be bought and more of the competitors goods to be bought.

While often fariffs causes an increase in prices on the consumer that is not always true and the increase can often times be less then what the tariff is set at.

Ultimately the tariffs will do damage to the Mexican economy and pretending they wont is either showing a lack of understanding of how economics work or being extremely blinded by hate.

That’s bull. Here is the truth. Corporations don’t pay taxes they make quarterly profits for their shareholders. Any increase in their overhead is transferred down to the consumer. Any tax that raises the operating cost of a big company is paid for by the people buying the product therefore any tariff is a tax on you and me. Mexico is our 2nd largest trading partner so believe me, in October when tariffs are at 25% you will be paying that much more and corporate America won’t notice the difference. Crank your grocery bill up 25% because.....illegal aliens?????? That’s what is being argued here. Lost your job to an illegal alien? Yeah, me neither. This is stupidity at the highest level.

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Agent0range
14 minutes ago, DarkHunter said:

Then what are some of these many goods we only get from Mexico and cant possibly shop around to get from anywhere, should be rather easy for you to name a few specific goods then.  

Most companies cant just cut 5% off of a product and still be profitable, a simple thought experiment would show you how what you suggest just isnt realistic or always possible.  Just consider some random American good that cost $1.02 to produce and is sold for $1.04, for a lot of goods the profit margins are rather small so it's not that unrealistic.  Now imagine a Mexican good that cost $1 to produce and sells for $1.02.  A 5% tariff would increase the selling price of the Mexican good to $1.07 making the American good significantly cheaper.  Now if the the American product tried to knock 5% off they wouldnt be profitable anymore regardless of how much they sold.

You just refuse to accept that this will effect Mexico largely cause you are so blinded by your hatred of Trump.

What I'm saying is, that if 5% would cause a huge difference in the amount of sales, that a 5% price cut would yield more profit.  If you sell 200,000 product at x amount of dollars and making a 10% profit, but cutting your price by 5% will cause you to undercut the competition and sell 800,000 product at 7% profit, you are still making more money.  5% is nothing.  If 5% made a difference, American companies would adjust.  And really, what you are saying is that this is going to help American corporations.  You know damn well this is going to do nothing but cause the consumer to spend more money.  

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OverSword
Posted (edited)
2 hours ago, Desertrat56 said:

I don't know where you live but I bet the local grocery store you use (if you are in the U.S.) gets the produce it sells you from Mexico.

Yes, at the very least 33% of produce, how many American car companies get parts and assemble in Mexico? Electronics are also a big import. Mexico is our second largest trading partner, which is HUGE, anyone who thinks this is a good thing or even a good threat is clueless.

Edited by OverSword
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