I was wondering this as well. Trump has made a huge deal of efforts to negotiate a “new” trade agreement with Mexico and Canada. Don’t any tariffs basically torpedo those efforts?
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The new NAFTA (USMCA) has to be ratified by Congress in order to take effect so Trump is basically torpedoing any political capital with Democrats he has with this stunt.
I also believe new tariffs violates the existing NAFTA so this is just more bluster without teeth (I need to look this up though).
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[quote=“KathyPadilla, post:16, topic:145131, full:true”]
If he raises the cost of goods coming from Mexico; manufacturers who moved there will start manufacturing in the US.[/quote]
Donald Trump said his tariffs on Chinese goods are causing companies to move production out of China to Vietnam and other countries in Asia.
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It was a joke - not actual economic analysis.
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And all those out-of-work Chinese people are sure to buy more American-made goods to shore up that trade deficit! That’s how trade is DONE, baby!
Now that he’s done trashing our trade relationship with the #3 consumer of American goods he’s moving up to #2. I guess Canada is next.
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A legacy that Putin will be telling his grandchildren about for years and years.
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Wonder how many people he knows or are related to shorted futures today?
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cool! food is about to get 5% more expensive! also cool: we usually don’t have to pay taxes on food.
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though, i guess, with avocados becoming too expensive, millennials will finally start buying houses…
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This can be said an infinite amount of times, Il Douche will not believe it. He has a great brain, don’t you know?
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It’s worth nothing if you don’t.
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Just another tax-and-spend liberal. Sad. Hey, how are those China tariffs working?
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I’m pretty sure the US/Canada trade relationship is a tad… strained.
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Don’t forget increasing the competitiveness of domestic manufacturers who manage to have a cost structure very close to ones in Mexico.
By, purely hypothetically, indulging in…labor market arbitrage…to obtain workers whose cost is close to that of Mexicans, such as Mexicans in the United States.
If the objective was protectionism 5% wouldn’t cut it(especially given the significant uncertainty about how long the plan will actually last) for anything except the stuff that is barely worth offshoring in the first place; and if the objective is immigration policy making cheap labor on the US side of the border somewhat more competitive with cheap labor on the Mexico side is the opposite of what you want to do(and, at 5%, probably less effective than doing things that make the local Chamber of Commerce sad, like penalizing employers who look the other way and whistle innocently when conveniently cheap employees don’t have their papers in order).
Not a surprise; but a dog’s breakfast of a plan.
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This has Stephen Miller’s weaselly hands all over it. :-/
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Why on earth would Trump announce this now, while everyone is in the middle of discussing Mueller’s press conference??
/s
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There’s a question worth exploring. He made a lot of money in the 80s by using the media to pump and dump various stocks (buy some, claim he is going to take over, watch price rise, sell, rinse repeat).
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By some indicators of a market crash, we are worse off than just before the Great Depression.
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Yeah, I’m wondering both what the impact this will have on potential ratification, but also what wiggle room Mexico has to back out at this point.
I’ve also not been clear, ever since Trump has been blatantly violating trade agreements (e.g. pretending there was a “national security” issue with buying metals from allies), what the repercussions are and how they’re actually enforced (if at all).
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