New 5% Tariff on all goods from Mexico

Discussion in 'Politics, Religion, Social Issues' started by stylinexpat, May 30, 2019.

  1. stylinexpat, May 30, 2019
    Last edited: May 30, 2019

    stylinexpat macrumors 65816

    stylinexpat

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    #1
    This sent US Futures on DOW plunging -200 points. Probably reverse later on before heading back down again next week I reckon after Trump returns from UK. Starts at 5% and increased up to 25%

    This means food cost will rise 5%. Add 5% for this year of extra food cost when buying Avocados,veggies or fruits which comes out of Mexico. One of many extra expenses that Trump is making Americans pay this year due to his disputes with other countries he punishes his own people in America by making them foot the bill.

    https://www.marketwatch.com/story/s...fs-against-all-imports-from-mexico-2019-05-30

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  2. Rogifan, May 30, 2019
    Last edited: May 30, 2019

    Rogifan macrumors Core

    Rogifan

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    #2
  3. hulugu macrumors 68000

    hulugu

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    #3
    A few points: this is the third time, I believe, that the president has threatened a tariff against Mexico, and he's backed off twice because when it comes down to it, the man's deeply afraid of criticism from his own party.

    This comes just as the Tomato Suspension Agreement, a 1996 agreement between the U.S. and Mexico regarding the import of tomatoes fell apart. Florida-based tomato growers lobbied to end the agreement, arguing that Mexico was "dumping" tomatoes into the U.S. market.

    This adds a 17.5 percent tariff on tomatoes. Now, tomato prices haven't grown much yet, but they will soon, and this means that the price of tomatoes will rise another 5 percent, making things like pasta sauce, salsa, and other U.S.-made goods more expensive.

    Like all tariffs, this is a tax on consumers, but it comes just as the Trump administration fails to make a workable agreement with another country.
     
  4. stylinexpat thread starter macrumors 65816

    stylinexpat

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  5. BoxerGT2.5 macrumors 68000

    BoxerGT2.5

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    #5
    Can we just find TWO middle of the road adults to run for President FFS. The people who threaten to stay home on election day because their candidate isn't a socialist and the others who won't go because theirs doesn't have horns is ACTUALLY a good thing.
     
  6. Solver macrumors 6502a

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    #6
    I hear politicians saying, “This only hurts Mexico” while other politicians say, “This only hurts Americans.” Neither is true.
     
  7. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #7
    Oil prices tanking now. Support broke earlier this week. As tariffs climb and trace disputes climb I expect to see another red monthly candle next month for the DOW.

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  8. hulugu macrumors 68000

    hulugu

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    It's a circular firing squad, everyone's getting hurt. However, U.S. consumers will be hurt first, because they'll endure the increases in prices. As demand slips, Mexico will be hurt. And, eventually, U.S. manufacturers might leave Mexico, while U.S. growers and producers increase their supply, and Mexico will be really hurt.

    However, this ignores how Mexico is shifting toward other trading partners like China and Argentina, and I would argue that such a tariff will only convince Mexico to accelerate its turn away from the U.S., which will have long-term consequences for the U.S. that won't be clearly understood for a decade.
     
  9. yaxomoxay macrumors 68040

    yaxomoxay

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    #9
    Not really worried about DJIA for now as the economy in general is quite strong, but I vehemently oppose this move.
     
  10. Altis macrumors 68030

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    #10
    The priority of the U.S. government should be the well-being of the American people, not Mexico's economy (which already does unfairly well thanks to the U.S. economy).

    Also, I don't really understand why the same people that support government-imposed wage increases that increase the price of goods are suddenly concerned with an import tariff's effect on increasing the price of goods.

    Having said that, I do think it's a pretty stupid reason hes using for it.
     
  11. hulugu macrumors 68000

    hulugu

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    #11
    When Mexico shifts away from the U.S. who do you think is hurt? The American people, and my first sentence was " ...however, U.S. consumers will be hurt first, because they'll endure the increases in prices."

    Also, a tariff is an artificial price added to goods, which goes to the U.S. treasury. An increase in minimum wage raises the price of goods, which then goes to other U.S. consumers, and keeps the money in the economy often increasing demand.

    Not all price increases are equal.
     
  12. stylinexpat thread starter macrumors 65816

    stylinexpat

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    Will have to see how strong the economy is when inventory numbers start climbing at car dealerships. We are in June of 2019 and quite a few dealerships seem to still have 2018 models for sale :eek:

    I think economy was strong and in some sectors it probably still is but I reckon things are changing now.

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  13. Altis macrumors 68030

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    #13
    I'm forever told that tax increases are good because it allows for the redistribution of wealth to people who need it. How would that not be true for a tariff?

    And the U.S. has a large trade deficit with Mexico as it is (some $80B). And that's not even speaking of the ~$25B lost in pure cash sent across in remittance.

    It's interesting that most other countries look out for their own interest without criticism (and as a result are generally developing rapidly and growing in prosperity), while a completely different standard is applied to the U.S.
     
  14. Raid macrumors 68020

    Raid

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    #14
    Dude, it's called a Mexican stand-off! :D
     
  15. hulugu macrumors 68000

    hulugu

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    #15
    Because "redistribution" puts money into the economy, while a tariff removes money from the economy. And, moreover, to flip your argument, if "redistribution" is bad, why would a tariff be good?

    I have a trade deficit of $1,000 or so to my local bar, but that just means that my bar has a good I want—whiskey and beer—and I have cash.

    As for remittances, screwing up Mexico's economy is not going to solve that problem. It's going to accelerate the issue.

    I have no problem with the U.S. looking out for its interests—and really, the U.S. has voraciously protected its interests in Latin America since Monroe—and a tariff designed to punish Mexico on immigration is not in our interests.

    There are solutions to immigration, but this foundering administration has ignored them, preferring cruel strategies and election year theatrics. And, this tariff is just yet another bing-bong idea from a deeply incompetent administration.

    Hah!
     
  16. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #16
    I have to be fair. Trump increased tariffs by 5% and currency tanked 2.5% so in reality tariffs went up by 2.5% but on the other hand oil dropped 10% this week and I want to see if gas prices drop 10% at the pumps because they have not dropped 5% yet. Oil prices are down over 6% today alone

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  17. hulugu macrumors 68000

    hulugu

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    #17
    Good point. I've been nervous about the U.S. economy for a while, and I continue to see bad signs on the horizon, including signs that China's manufacturing sector is slowing, and that China might set a quota on rare earth elements, stifling production on minerals needed for electronics.

    Now, we're going to increase the prices on food and manufactured goods coming into the U.S. from Mexico? Even if this doesn't go into effect and I think it's a 2-1 chance here, the constant instability can't be good long-term.
     
  18. danny_w macrumors 601

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    #18
    Didn't you get the word? It's the OTHER countries that pay the tariffs (according to Trump at least). So tariffs must be good since they get other countries to pay us. Where does this moron get this stuff?
     
  19. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #19
    Another way to tell is to wait until the end of next month and look at housing inventory numbers for July for Orange County and Los Angeles County. Could add Others as well and see if inventory rises or drops. Then compare some prices as well. Here are two for June. Will post one at end of July to compare.

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    --- Post Merged, May 31, 2019 ---
    If the people got paid it would be us but the government getting paid is not us:rolleyes:o_O
     
  20. hulugu macrumors 68000

    hulugu

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    Might be worth comparing housing inventory numbers in other places, too. If OC decreases, that could be a regional effect, but if you're seeing the same numbers in Cleveland, or Atlanta, you'll know we're in trouble.

    (The Midwest is going to be totally screwed up because of massive flooding in the region, so housing prices will be strange.)
     
  21. Bug-Creator macrumors 6502a

    Bug-Creator

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    #21
    See just cut a little bit and it all makes sense.

    As long as people believe the BS of trade between the US and ????? being unfair they will never have a chance to understand what a real solution would look like.
     
  22. Altis macrumors 68030

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    #22
    Wow, what deep and compelling insight. You should consider writing a book with your fountain of knowledge -- your arguments are sure to change minds!

    Or you can just try to insult people on a tech forum and tell everyone they're wrong and that you know "what a real solution would look like." :p
    --- Post Merged, May 31, 2019 ---
    I never said it was (either proposition). I would simply expect those to be in favor of one to be in favor of the other for the same reasons and purpose.
     
  23. blackfox macrumors 65816

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    #23
  24. stylinexpat thread starter macrumors 65816

    stylinexpat

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    #24
    Here is proof that it is BS.. The China one is BS too

    https://www.investing.com/news/stoc...s-mexico-tariffs-up-toxic-trade-fears-1884707

    In a tweet, Trump said the U.S. will impose, starting June 10, a 5% tariff on all imported goods from Mexico that would "gradually increase until the illegal immigration problem is remedied."
     
  25. dogslobber macrumors 68040

    dogslobber

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    #25
    This whole episode now proves that the economic miracle we've had since Obama left office has zero to do with Trump. Trump doesn't understand anything about economics or anything in general. He is an idiot's idiot.
     

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34 May 30, 2019