Mexican Tariffs

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Mexican Tariffs

President Trump is heading for a rare showdown with Republican senators over his planned tariffs against Mexican imports. Ted Cruz: "I will yield to nobody in passion and seriousness and commitment to securing the border, but there's no reason for Texas farmers and ranchers and manufacturers and small businesses to pay the price of massive new taxes." Trump said senators would be "foolish" to try stopping him. Guardian
 
I don't like Ted Cruz but he has a point. The Tariffs are Trump's way of saying I could not get the Wall funding from my GOP when I had full control of the Congress and now with Dem control I definitely will not get it so I will try and go after Mexico.

But what most Presidents never learn (both sides) is tariffs don't stop the imports totally, they just make them more expensive and the U.S. consumer is the one who pays.

Assume I am a U.S. importer avocadoes from Mexico at $1,00 a pound (simple for math purposes). Now there is a 25% import duty. I pay $1.00 to import the avocadoes and pay a $0.25/lb. tax on them. So first things first, the American importer pays the tax. Second as I market them to the distributer I add the $0.25/lb. cost to my resell price to cover the cost and that eventually gets passed on to the consumer. So all Americans are paying the tariffs and while imports of avocadoes might drop a bit from those not able to pay the highier cost down the line, most still do because there is a market for this product.

Bush and Clinton learned this lesson putting import tariffs on Japanese cars. U.S. owned Honda and Toyota dealers were losing sales because the prices jumped dramatically so they lobbied hard to get rid of the tariffs.
 
I am sure most GIs who were drafted to fight in our wars didn't want to sacrifice either, but they did so for what they were told was the good of the country.

We have the spectacle of mexico brazenly engaging in hostile acts toward our country. Imposing a few tariffs seems like a small price to pay to force them to stop.
 
El OchoCinco said:
I don't like Ted Cruz but he has a point. The Tariffs are Trump's way of saying I could not get the Wall funding from my GOP when I had full control of the Congress and now with Dem control I definitely will not get it so I will try and go after Mexico.

But what most Presidents never learn (both sides) is tariffs don't stop the imports totally, they just make them more expensive and the U.S. consumer is the one who pays.

Assume I am a U.S. importer avocadoes from Mexico at $1,00 a pound (simple for math purposes). Now there is a 25% import duty. I pay $1.00 to import the avocadoes and pay a $0.25/lb. tax on them. So first things first, the American importer pays the tax. Second as I market them to the distributer I add the $0.25/lb. cost to my resell price to cover the cost and that eventually gets passed on to the consumer. So all Americans are paying the tariffs and while imports of avocadoes might drop a bit from those not able to pay the highier cost down the line, most still do because there is a market for this product.

Bush and Clinton learned this lesson putting import tariffs on Japanese cars. U.S. owned Honda and Toyota dealers were losing sales because the prices jumped dramatically so they lobbied hard to get rid of the tariffs.
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Can't find the clip but there was a blond chick on a business channel yesterday who was complaining that Chipotle would be adding 5 cents to the price of a burrito. What a dumbo.

Honestly, if that is the biggest problem we are facing with this, I'm not seeing any of it as a problem.

If this is what will finally get Mexico to knock this shit off, then so be it.
 
elderado said:
Can't find the clip but there was a blond chick on a business channel yesterday who was complaining that Chipotle would be adding 5 cents to the price of a burrito. What a dumbo.

Honestly, if that is the biggest problem we are facing with this, I'm not seeing any of it as a problem.

If this is what will finally get Mexico to knock this shit off, then so be it.
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Knock what shit off? What do you expect Mexico to do?
 
elderado said:
Can't find the clip but there was a blond chick on a business channel yesterday who was complaining that Chipotle would be adding 5 cents to the price of a burrito. What a dumbo.

Honestly, if that is the biggest problem we are facing with this, I'm not seeing any of it as a problem.

If this is what will finally get Mexico to knock this shit off, then so be it.
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My point is that it will not change anything but just make U.S. consumers pay more. Chipotle is not best example because per product % of avocadoes is minor. But all those consumers buying avocadoes in the supermarkets will pay more than 5 cents.
 
elderado said:
If this is what will finally get Mexico to knock this shit off, then so be it.
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What shit is Mexico doing? Is the Mexican government throwing Mexicans over the border en masse? U.S. has a shitty border and asylum laws and the GOP could not fix it with 100% control nor the Dems so this is the best answer? Punish U.S. consumers and businesses who pay the tax yet still do nothing. And this has nothing to do with a Wall as the solution because a large % still come in via ports of entry and airports, the bigger system is fucked up.
 
Tsing Tao said:
Knock what shit off? What do you expect Mexico to do?
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Stop facilitating caravan invasions would be a start. Crack down on smugglers. Stop acting like a hostile country. We put crippling sanctions on Russia to validate a bogus theory that they somehow interfered in our election, but we look the other way when Mexico overtly interferes.

Mexico will also have to accept being designated as the first safe country for Latin American asylum claimants. They have already ruled that out because they know the asylum claims are all bogus.

I actually hope they refuse to cooperate and Trump ends up having to shut the border. Mexico is a narco cartel-controlled failed state for practical purposes, and the sooner we accept that, the better.
 
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