Tariff Man at it Again
US futures are down substantially in response to Trump’s latest Tweet. Trump will set a tariff of 5% effective June 10, rising to 25% by October.
The Wall Street Journal reports Trump Threatens Tariffs on Mexican Imports in Response to Migrant Surge
The trade action comes as the Trump administration is seeking congressional ratification of a trade pact among the U.S., Mexico and Canada, to replace the North American Free Trade Agreement. The three countries’ leaders signed the deal, known as the USMCA, last year.
In a statement released by the White House, Mr. Trump said he would invoke the authorities of the International Emergency Economic Powers Act to impose a 5% tariff on all goods imported from Mexico starting June 10, and increase the tariff gradually, hitting 25% on Oct. 1.
Mexico is the U.S.’s third-largest trading partner, with goods imports of $346.5 billion in 2018, according to the Office of the U.S. Trade Representative.
“If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed,” Mr. Trump said. He also said that Mexican companies could avoid the tariffs by relocating to the U.S.
Instant Recession
If this dispute is not resolved immediately, recession starts today.
Imagine what would happen to the US if Mexico said screw you and halted all traffic to the US. Mexico is the US’s third largest trading partner. Repercussions would be enormous.
I do not know how Mexico will respond, nor does anybody else, but this is madness.
This is not how one treats allies and major trading partners.
Trump wants Mexico to spend money to stop illegal immigration to the US.
Questions Abound
What is Trump doing to help?
Does Mexico have the money?
Excuse me for pointing out that Trump had an offer, last year, from the Senate Minority leader for over $20 billion to build a wall. Why did Trump turn that offer down?
Also, excuse me for asking: Why doesn’t Trump mandate hiring checks in the US?
Finally, excuse me for pointing out that Republicans were in complete control of the Executive and Legislative branches and wasted two full years over Obamacare instead of dealing with immigration.
Mirror Mirror On the Wall
Good Lord President Trump, please look in the mirror.
This economy is headed over the cliff. It’s not all Trump’s fault. Indeed, place most of the blame on the Fed.
However, Trump just gave recession a great big push.
Mike “Mish” Shedlock
Schumer made his offer with the condition that border enforcement be neutered for f the first five months of 2018. It was impossible to accept and Chuck knew. Get it straight.
The assertion that Mexico amnesty means recession is simplistic nonsense. You lose credibility when you blithely spout such silliness.
The $25 billion had strings including amnesty for future illegals that made it unacceptable to Republicans whether Trump accepted the deal or not. It was drafted to be rejected.
What good does e verify do when the border crises is almost 100 percent related to South Americans claiming amnesty. Anyone claiming amnesty gets almost immediate authorization to work legally.
If I were running Mexico, I would do what Trump wants. Far easier than a trade war.
Arbitrary aggregates, like “Mexico” don’t “do” anything. Only people do.
If the Mexican national government could control Mexicans, half the country wouldn’t be stuck in a standoff battle between a corrupt government, a corrupt police force, a corrupt army and a bunch of drug runners and coyotes. With the only sympathetic “faction” being the Zapatistas, still holding out way at the country’s southern end.
All they need to do is stop the caravans. Not solve every domestic problem.
If the stop the “caravans,” the people who currently make up the “caravans” will move north by other means. All you do is stop the flow of a rainfed river. It may look like you’re doing something useful for a short while, but then the water finds other ways to flow downwards.
The US has spent several infinite fresh print amounts on stopping drugs from flowing through Mexico into the US. With exactly nothing to show for it, aside from a Mexico full of well funded drug gangs, and massively criminalized US.
I would offer to become a territory of the United States. It would solve the border problem almost instantaneously. Trump would probably take it and declare victory.
“What is Trump doing to help?”
What is congress doing to harm? Democrats want open borders- inviting a surge of illegal immigration.
Just can’t win anymore. Had Hillary got elected she would’ve done other things that piss me off. Im at the screw them all point.
…screw it all! Remember that for all future elections.
Trump’s theme song is Handlebars by Flobots.
An ally that let’s hundreds and hundreds of thousands simple and free access to reach our boarder.
Pace picante it is.
AWC, Schumer offered over $20 billion to build the wall. He wanted reasonable Dreamer concessions. Trump would take that deal in one second flat today.
Trump blew it. I was surprised when Schumer offered it. I was further surprised when Trump turned it down.
Now here we are. Trump likely just killed USMCA.
Mexico, China, and the EU are all better off in the long run if the US has a recession and Trump is outed so they can negotiate with someone more stable.
This has to be on their minds. China is capable of thinking long-term even if no one else is willing.
I agree. All of our adversaries are better off with Trump gone. That way things can go back to the normal state where the connected make $ and the middle class is further decimated.
The middle class is for losers. They arent responsible for anything and want more than their share of stuff. Voting should be proportional to how much tax is paid.
There is no such thing as a reasonable dreamer concession.
BS. Schumer’s offer had a poison pill and it wasn’t serious.
The whole US government system is broken: how can an idiotic president takes hostage the whole world, one after another?
Because the government is big enough to take the world hostage. Remember, outside of children’s fairy tales, and similarly simpleminded propaganda, there is no “good” vs “bad” government. There is only small vs too big.
The US government is functioning precisely as designed by the wise framers of the Constitution. Their intent was to divide government powers so that government factions would fight each other and have little time to oppress The People.
The intent was a government of “enumerated powers.” One where “the army” was assembled, as needed, by calling up citizen militias. One without a Fed. Where only specie was money. One without income taxes, sales taxes, three letter federal agencies nor much else. Jefferson’s budget was somewhere around $7 million, after all. Restrict Trump to that, and he’d no doubt be an excellent President as well. As would Kim, Stalin Chavez and other progressive heroes.
Tariffs were in the cards, though. So Trump is on more solid ground on that one. But the tariffs were for raising revenue. BECAUSE there was no other mechanism for doing so. Get rid of all the other means the Federal government funds themselves by and, even with Trump’s tariffs, America would be a lot better off than it is currently. But that’s not what The Orange Caudillo is doing, now is it?
Trump is trading the avocado toast voters for manufacturing voters. It’ll be a cold day in Mobile when stock investors vote Dimocratic Socialist welfare state.
They wont have to. There will be alternate Republican choice come 2020. They will come to realize how unwise they were to hitch their wagon to a New York Democrat turned Republican..
That’s a joke. There will no serious contender to Trump for the nomination. And he will be re-elected.
Yeah, those “stock investors” just did horrible during the 8 years of Obama, just terrible. And, lets see, what has the market done in the past 16 months? After Trumps new policies and direction got into place? Flat as a mexican tortilla
He keeps getting worse by the day. Nobody is that stupid so now I am thinking his buddy Netanyahu put him up to it. israel 1st.
President Trump is keeping his promise. Mexico is paying for the wall.
Just keep clinging to those fantasies – facts are clearly not your strong suit.
… Mexico won’t be paying the tax, we will.
We could produce the Mexican products here and avoid the tax. I guess that might cause middle class wages to rise and truly upset the lives of our betters!
So nothing should be done to stop the invasion from the third world? Just throw our hands up and say welcome?
Wall and barriers work in Israel.
“Btw I’m sticking with my prediction of a trump resignation or impeachment and a crashed economy by or before April of 2020.”
Impeachment has about a 0% chance. 2% is extremely generous.
If the economy tanks he wont make it to November 2020, maybe of his own volition.
Impeachment has a greater than 2% chance, but the chances of conviction are about 0%.
“Look more closely. Many mainstream and premium products used in the US are also made in Mexico.”
Bingo
Ford and GM car parts for example
Also, many healthcare products used in hospitals.
Not many people realize the latter.
It is a serious, serious issue.
….Not to mention boxing gloves, beer, corn, trucks and Norteno music….
They do, by now, export an awful lot junk, as of the “junkie” variety, to the US, though….. And that. despite effective tariffs almost infinitely higher than 5%…
Ford and GM are niche markets, not mainstream. Ford stopped manufacturing cars.
Arcane and irrational FDA regulations are a serious health issue. Otherwise medicines would be manufactured in USA.
That is why I will never buy a Ford again. The damn thing fell apart before my eyes. they make a better product in the US and Canada.
VW same thing. Their Mexican exports are garbage.
Btw I’m sticking with my prediction of a trump resignation or impeachment and a crashed economy by or before April of 2020.
I’ll take the other side of that bet. The House might impeach, but there’s no way the Senate boots him, and he’s too stubborn to resign.
The show hasnt even started yet.
He’s not going to stop until the stock market punches him in the face. Even then, he’ll blame it on Powell.
And all his minions will eat it up like dog food. It’s pretty disgusting to watch.
So nothing should be done about illegal immigration? A short term down trend in the stock market should just make us have open borders?
Here comes stagflation.
Ford should move manufacturing to Alabama or another hard working right to work state. Apple has the same choice. Don’t even think about moving to Viet Nam.
We basically had the world laboring for us making cheap goods, but that’s not good enough for the financial whiz in the white house…
Look more closely. Many mainstream and premium products used in the US are also made in Mexico.
MEXICO CITY (Reuters) – Mexican government officials vow a strong and comprehensive response to President Donald Trump’s announcement to impose a blanket 5% tariff on all goods from Mexico from June 10. “We will respond with a 10% import tariff across the board on all imports from the United States” one official said. The Mexican official also hinted that US suppliers would be replaced with Chinese suppliers wherever feasible.
Mexico make cheap junk like China,Home Depot,Lowes shoddy crap,bought one of those Chinese/Mexican mowers,used it ……..once…….once damn thing quit,can’t get the piece of junk to start again,like those cheap Acer junk laptops,overpriced garbage!
More than likely it’s our cheap “gasoline” (ethanol is 10 – 15% alcohol) plugging up your carburetor. I never have those problems but my neighbors did until I told them. Try this or find an nearby airport or marina: pure-gas.org
How can it be that you can afford only junks?
Because ever more of his income, has been redistributed; as bonuses for banksters, “brokers” and other middle men; and as “asset price” gains for some idle leech. Who is sitting idly on his rear, while the Fed robs others; to keep his childish illusion that the mold in his house’s walls, somehow create wealth; alive.
You would be digging dirt with your fingernails for ten cents per hour unless some saver leach provided the capital to buy you a shovel thus increasing the value of your labor.
Without the Fed robbing me, in order to redistribute the loot to it’s favorite leeches, I’d just buy the shovel myself. And, for a song at that; once the Fed no longer furnished useless deadweights with the purchasing power to drive up the cost of shovels; in exchange for them producing nothing whatsoever of any value at all.
To be fair, most stuff made in the US is pretty awful. GM and Ford motor vehicles are among the worst in the world. Whirlpool white goods are horrendous. Only aircraft (Boeing) are any good. Oh wait …
Every country makes some junk and some quality products, Depends far more on the company that makes it than where it’s made.
Why keep buying junk if you insist they are junks? You are not making any sense