Why Trump's tariffs will work.

[Woodznutz]

Many importers have production/manufacturing partnerships in foreign countries. They aren't simply "importers" who buy and distribute foreign made goods (like Pier One Imports). Tariffs will make them rethink their business plans and return some or all manufacturing back here. Those who chose to continue regardless of tariffs might strike deals with their foreign partners for lower prices to offset the cost of tariffs, or simply pay the tariffs and either pass some or all of the costs on or bear the costs themselves.

The upside of tariffs is that they can be used to reduce government debt, and regardless of higher prices the money remains in the domestic economy.

 

[Donald H]

Canada is waiting before diversifying trade away from America and to China and other countries that are willing to engage in free trade practices.
It's seldom that Trump actually follows through on his threats.
Hopefully he does soon so Canada can move to increasing free trade relations with China and other countries that are anxious to take America's place and play fair.

Regrettably, it won't take very long for Trump to realize that he's shitting in his own nest.

 

[toobfreak]

Many importers have production/manufacturing partnerships in foreign countries. They aren't simply "importers" who buy and distribute foreign made goods (like Pier One Imports). Tariffs will make them rethink their business plans and return some or all manufacturing back here. Those who chose to continue regardless of tariffs might strike deals with their foreign partners for lower prices to offset the cost of tariffs, or simply pay the tariffs and either pass some or all of the costs on or bear the costs themselves.

The upside of tariffs is that they can be used to reduce government debt, and regardless of higher prices the money remains in the domestic economy.

I forget which president used tariffs before but they worked to great effect.
And that is the Left's greatest fear--- that Trump's efforts will WORK, making them look like boobs at best, or at worst, exposing them as conspirators.

 

[JohnDB]

Here's the link that will tell us if it is going to really work out or not....

https://www.usdebtclock.org/

Watch to see how much Debt to GDP we have. Currently it's at 122%.
Each citizen is in debt $122,000.

We need the debt ratio number to be under 30%. A fifth of what it is now.

Gonna wait and see.

 

[toobfreak]

Currently it's at 122%.
We need the debt ratio number to be under 30%. A fifth of what it is now.

Kind of expecting a lot from one guy in a mere four years!
I mean, he can't walk on water.
A lot will depend on the kind of cooperation he gets from both houses, including some democrats.

 

[alang1216]

I forget which president used tariffs before but they worked to great effect.
And that is the Left's greatest fear--- that Trump's efforts will WORK, making them look like boobs at best, or at worst, exposing them as conspirators.

I'll be happy to be wrong but the majority of economists believe general tariffs are a bad idea. Temporary, targeted tariffs to allow time for domestic companies to adjust to foreign competition. Many things work in the short run but fail if kept around too long.

 

[toobfreak]

I'll be happy to be wrong but the majority of economists believe general tariffs are a bad idea. Temporary, targeted tariffs to allow time for domestic companies to adjust to foreign competition. Many things work in the short run but fail if kept around too long.

Both McKinley and Roosevelt used them to very good effect. In fact, Teddy believed that America's economic growth was due to protective tariffs, which helped her industrialize. He acknowledged this in his State of the Union address from 1902:

The country has acquiesced in the wisdom of the protective-tariff principle. It is exceedingly undesirable that this system should be destroyed or that there should be violent and radical changes therein. Our past experience shows that great prosperity in this country has always come under a protective tariff

 

[JohnDB]

Kind of expecting a lot from one guy in a mere four years!
I mean, he can't walk on water.
A lot will depend on the kind of cooperation he gets from both houses, including some democrats.

Of course...
I'm not expecting a miracle. But I do expect progress. That's not too much to ask.

Trump has ALL 3 branches of government including Senate and House on his side. It's going to last about 18 months for him to push through the majority of his agenda....after that congress goes home to get re-elected etc.....and likely he will get stalled out afterwards.

Tax cuts, limiting spending, tariffs, and funding of various projects are all functions of congress.

Even border control really is not his to control. He has a big big bully pulpit with Elon making it even louder....

so.....I wanna see.

Dirty truth is that small businesses pay the majority of Federal Government tax receipts. Not big businesses. They also provide a quality standard and price constraints to the big businesses as well.

And that's why I am waiting to see what comes.

 

[Donald H]

I'll be happy to be wrong but the majority of economists believe general tariffs are a bad idea. Temporary, targeted tariffs to allow time for domestic companies to adjust to foreign competition. Many things work in the short run but fail if kept around too long.

You at least partially understand! Domestic companies that were being undercut by China and other countries that are able to engage in free trade will diversify away from America, as America sends the message to them that it's no longer interested in trade relations.

Domestic companies will then strive to become more competitive by lowering wages and benefits in efforts to compete in the market as demand is left unfulfilled due to China and others walking away from America's unfair trade practices.

Geo Washington proved that tariffs can work when America is the only supplier that has widgets. Not so well when China and others have widgets too that they offer at half price!

Man, this tariff idea is fucking stupid!

 

[initforme]

You at least partially understand! Domestic companies that were being undercut by China and other countries that are able to engage in free trade will diversify away from America, as America sends the message to them that it's no longer interested in trade relations.

Domestic companies will then strive to become more competitive by lowering wages and benefits in efforts to compete in the market as demand is left unfulfilled due to China and others walking away from America's unfair trade practices.

Geo Washington proved that tariffs can work when America is the only supplier that has widgets. Not so well when China and others have widgets too that they offer at half price!

Man, this tariff idea is fucking stupid!

Don't forget if manufacturing is brought back wages for the samevproduct must rise bigly. If it's done overseas for $8 it will be $20 per hour here. As it must be.

 

[alang1216]

Both McKinley and Roosevelt used them to very good effect. In fact, Teddy believed that America's economic growth was due to protective tariffs, which helped her industrialize. He acknowledged this in his State of the Union address from 1902:


View attachment 1068747

America today is not the same as it was under Teddy. America was still industrializing while England and Germany were the powerhouses. We are as much industrialized as every other country, including China. We need to protect our workers but we also need free trade to ensure we are a player in the global economy.

 

[alang1216]

Domestic companies will then strive to become more competitive by lowering wages and benefits in efforts to compete in the market as demand is left unfulfilled due to China and others walking away from America's unfair trade practices.

Why would our domestic companies bother to become competitive. Once protected from competition they are free to raise their prices and stop that pesky innovation. They can also pay their workers more and not have to worry about labor problems. That was kinda the model for US auto and steel companies.

 

[krichton]

Many importers have production/manufacturing partnerships in foreign countries. They aren't simply "importers" who buy and distribute foreign made goods (like Pier One Imports). Tariffs will make them rethink their business plans and return some or all manufacturing back here. Those who chose to continue regardless of tariffs might strike deals with their foreign partners for lower prices to offset the cost of tariffs, or simply pay the tariffs and either pass some or all of the costs on or bear the costs themselves.

The upside of tariffs is that they can be used to reduce government debt, and regardless of higher prices the money remains in the domestic economy.

Let's just say we believe that fantasy. First of all, we don't have the infrastructure to make the things we import from China or elsewhere. Second, even if we magically built that infrastructure in a day, wouldn't the cost of goods go up dramatically? That's usually how it works doesn't it? The end result of that would be inflation. Consumer spending would crash. Businesses would be ruined .

 

[initforme]

Let's just say we believe that fantasy. First of all, we don't have the infrastructure to make the things we import from China or elsewhere. Second, even if we magically built that infrastructure in a day, wouldn't the cost of goods go up dramatically? That's usually how it works doesn't it? The end result of that would be inflation. Consumer spending would crash. Businesses would be ruined .

Owners would be forced to pay wages to attract workers. $15 per hour will not do it. Unionization would increase as wrll.

 

[krichton]

Owners would be forced to pay wages to attract workers. $15 per hour will not do it. Unionization would increase as wrll.

All resulting in skyrocketing prices.

 

[Woodznutz]

All resulting in skyrocketing prices.

People would be forced to only buy what they can afford.

 

[Woodznutz]

Let's just say we believe that fantasy. First of all, we don't have the infrastructure to make the things we import from China or elsewhere. Second, even if we magically built that infrastructure in a day, wouldn't the cost of goods go up dramatically? That's usually how it works doesn't it? The end result of that would be inflation. Consumer spending would crash. Businesses would be ruined .

No one said it would be easy, or fast. Baby steps.

 

[hadit]

Canada is waiting before diversifying trade away from America and to China and other countries that are willing to engage in free trade practices.
It's seldom that Trump actually follows through on his threats.
Hopefully he does soon so Canada can move to increasing free trade relations with China and other countries that are anxious to take America's place and play fair.

Regrettably, it won't take very long for Trump to realize that he's shitting in his own nest.

"Free trade" with China? Are you not aware that China is applying more tariffs on Canadian goods this year? Canada already has tariffs on Chinese goods as well.

 

[Woodznutz]

We will need Canadian lumber for the coming building boom that will fuel the restoration of the American Dream, home ownership.

 

[Donald H]

"Free trade" with China? Are you not aware that China is applying more tariffs on Canadian goods this year? Canada already has tariffs on Chinese goods as well.

You're correctly pointing out that China/Canada is responding to unfair trade practices by China/Canada.

Let me explain one thing to you. Tariffs can be applied and can be successful when the particular commodity is needed by the victim and the victim country has no other source from which to obtain it. America no longer has that power to apply tariffs.

For example, if America applies a tariff on widgets to Canada, then Canada just goes to another country to buy widgets at the fair market price.
Tariffs are destructive to fair trade. Actually destructive to any trade!

Trump thinks that America still has the power to dictate to all other countries. That's why he has his head up his own ass.
Failed sanctions on Russia should have told him something!