January 26, 2017

"President Trump plans to make Mexico pay for his border wall by imposing a 20 percent tax on all imports into the United States from Mexico...."

"The proposal, which Sean Spicer, the White House press secretary, said the president discussed privately with congressional Republicans before giving remarks at a party retreat" in Philadelphia....

According to Spicer, the tax would raise $10 billion a year and the total cost of the wall is between $8 billion and $20 billion.

117 comments:

Ryan said...

Does that mean we all have to pay 20% more for a bottle of Corona, etc? Because that's just a tax imposed on Americans.

Anonymous said...

Insane. So Americans will pay for the wall afterall.

Kurt Bermuda said...

Oh no! The cost of a crappy $4.00 T-shirt at Walmart just went up 0.80 cents! We're all going to feel the economic pain on this one.

damikesc said...

I'd have used a tax on remissions from the US to Mexico, personally.

rehajm said...

Examined alone this might seem dangerous but within the context of full scale tax reform including a dramatically lower corporate and passthrough rate, it's net net pro growth, deficit friendly and incentivizes domestic job creation and retention.

Brando said...

So Americans are going to pay for the wall. What a surprise.

Nonapod said...

Not sure how accurate this site is
https://www.productfrom.com/products/MX/0/0/1/

but it's interesting. DeWalt power tools, lots of different cars, appliances, it'll be interesting to see how much this will effect the retail prices of such things

Drago said...

Ryan: "Does that mean we all have to pay 20% more for a bottle of Corona, etc? Because that's just a tax imposed on Americans."

This would allow some face-saving for Nieto and the Mexican govt. It would be interesting to know how much that consideration factored in.

It might also cause some productive activities to be shifted back to the US from Mexico. It would be interesting to know how much that consideration factored in.

Ken B said...

So by Mexico he means Americans.

Scott said...

This is stupid. The reason we have NAFTA is that raising the standard of living of Mexicans is in the interest of the United States. A happy middle-class Mexican family in a country where jobs are available doesn't have an incentive to cross the Rio Grande.

If we drive Mexicans into deeper poverty, no wall will ever keep them out.

Anonymous said...

Trump's business genius hasn't been impressive so far.

WisRich said...

damikesc said...
I'd have used a tax on remissions from the US to Mexico, personally.

1/26/17, 3:00 PM
---


I'm with you. Tax cash going down, not goods coming up.

Freeman Hunt said...

That's just taxing us.

Freeman Hunt said...

I thought the idea was to tax remittances.

Drago said...

Scott: "This is stupid. The reason we have NAFTA is that raising the standard of living of Mexicans is in the interest of the United States"

That is a terrific observation...In a vacuum. The entire US Midwest has been hollowed out because of NAFTA and other agreements that, along with increased US corporate taxes and astonishing increase in US corporate regulations, resulted in so many companies heading out.

We can no longer pretend that there hasn't been a zero sum destruction of a significant portion of American manufacturing.

Further, these trade "partners" have absolutely been manipulating their currencies and pulling other financial shenanigans to gain bi-lateral advantages. And we've let them.

I am afraid that your pristine and idealic position is no longer operative in the real economic world in which we find ourselves.

At least for now.

Who knows, perhaps we can work our way back to enforced fair trade deals.

But first things first.

Jay Vogt said...



Free trader here and not a fan of tariffs, but if you're Corona, just try to move you're price point up from 9.99 a twelver to 10.39.

Not gonna happen in the crowded (more than ever) beer aisle.

WisRich said...

I'm only comforted by the notion that this the opening bid for The Donald on his was to the Art of the Deal.

sunsong said...

Can't get much more stupid than that!

Jay Vogt said...

"your"

FullMoon said...

Well, heck,
I expected to be paying more for Chinese stuff.
Not sure how me paying extra for Mexican stuff is Mexico biting the bullet and capitulating.
Even Cavuto is not able to spin it, yet.

Drago said...

HRM William: "Trump's business genius hasn't been impressive so far."

Trump has apparently failed the rigorous "HRM William 6 Day Presidential Test".

Abandon all hope ye who enter here.

Alas.

Anonymous said...

http://www.worldsrichestcountries.com/top_us_imports.html

Top 10 US Imports from Mexico

Mexico's exports to the US amounted to
$297.5 billion or 12.9% of its overall imports.

1. Vehicles: $74.9 billion
2. Electronic equipment: $62.9 billion
3. Machinery: $49 billion
4. Oil: $14 billion
5. Medical, technical equipment: $12.2 billion
6. Furniture, lighting, signs: $10.8 billion
7. Vegetables: $5.5 billion
8. Fruits, nuts: $5.4 billion
9. Gems, precious metals: $5.1 billion
10. Plastics: $4.8 billion

Kurt Bermuda said...

Mexico first!

Comanche Voter said...

Don't get your knickers in a twist; this will probably be the opening round in the "art of the deal". Mexico sees its exports to the US will go down;it's got an incentive to rethink its position. We'll also see what the final Trump position is.

Now in the Mexican government response to Trump is along the lines of chingado this and chingado that, the tax may actually be applied. And I for one don't care whether my next small Ford automobile is assembled outside Monterrey Mexico or Memphis Tennessee.

Now trade and tariff wars are generally stupid, but it looks like Trump is willing to play the game.

rehajm said...

Does that mean we all have to pay 20% more for a bottle of Corona, etc? Because that's just a tax imposed on Americans.

As part of full scale tax and regulatory reform your local distributor would also see it's income tax rate drop from 35% to 15% or 20%, and also lower costs for regulatory compliance, legal, labor and insurance compensation.

It also creates an environment that encourages moving brewing operations to the United States, for both domestic consumption and export.

wwww said...



The avocado tax

Kurt Bermuda said...

HRM William said...

http://www.worldsrichestcountries.com/top_us_imports.html

Top 10 US Imports from Mexico

Mexico's exports to the US amounted to
$297.5 billion or 12.9% of its overall imports.

1. Vehicles: $74.9 billion
2. Electronic equipment: $62.9 billion
3. Machinery: $49 billion
4. Oil: $14 billion
5. Medical, technical equipment: $12.2 billion
6. Furniture, lighting, signs: $10.8 billion
7. Vegetables: $5.5 billion
8. Fruits, nuts: $5.4 billion
9. Gems, precious metals: $5.1 billion
10. Plastics: $4.8 billion

.

That list is wrong. It left out McDonald's employees.

Drago said...

sunsong: "Can't get much more stupid than that!"

LOL

The "Reset" and "Red Line" crew chimes in on stupidity! The dems couldn't even translate a single word from English to Russian.

Tell us more of this "stupidity"!

Anonymous said...

Expect your fruits and vegetables to become more expensive. How is this going to help the workers? Thanks Trump and the dummies who voted for you.

rehajm said...

Expect your fruits and vegetables to become more expensive.

...unless you purchase fruits and vegetables grown domestically.

Seeing Red said...

How much of that medical equipment tax was because of Obamacare?

Anonymous said...

"Expect your fruits and vegetables to become more expensive.

"...unless you purchase fruits and vegetables grown domestically."

And expect to pay more for them.

Seeing Red said...

No more Coke with sugar!

Mexicans here will also be paying the tax.

Oil?


Hmmmmm.

Michael K said...

Blogger HRM William said...
Trump's business genius hasn't been impressive so far.


So says business genius HRM.

Hilarious lefty trolls. When did the DMC workshop get out today ?

rehajm said...

HRM William said...
"Expect your fruits and vegetables to become more expensive.

"...unless you purchase fruits and vegetables grown domestically."

And expect to pay more for them.



..for mythical reasons HRM William cannot explain.

Seeing Red said...

Interesting he doesn't want to surcharge remittances.

Seeing Red said...

Besides, think of the reduction in global warming.

steve uhr said...

Trump never seems to be interested in protecting American consumers, esp the ones that cannot afford $1000 hotel rooms.

Seeing Red said...

Eat local.


Bwaaaa giving the Left what it wants.

Anonymous said...

Rehajm
Supply and demand. Pretty basic stuff. I see you weren't paying attention in your Econ class.

rehajm said...

Trump proposes 15% corporate tax rate

Expect your fruits and vegetables to become less expensive.

Congress begins process of offering market based solutions to prohibitive healthcare costs

Expect your fruits and vegetables to become less expensive.

Trump begins rollback of expensive, pointless regulation

Expect your fruits and vegetables to become less expensive.

Seeing Red said...

No, Ryan, "we all" don't have to pay an extra 20% for Corona.

I don't drink beer.

Anonymous said...

LOL, rehajm a true believer.

JackWayne said...

All you OH NOES! know that Mexico currently charges a 20% import fee on American goods entering Mexico, right?

When are you all gonna wake up and realize you're being played? The final deal won't look anything like what's being rumored. Plus, Trump gets to be the alpha dog. Who really thinks that a Mexican President won't come here? You think Trump has to go to Mexico? Good Lord! Get a grip.

steve uhr said...

Of couse if Mexican avacadoes increase in price, price of domestic ones will follow suit. Pretty simple economics. why do you think domestic sugar producers lobby for import tariffs? Just a coincidence that USA sugar prices so high compared to rest of the world?

rehajm said...

HRM William said...
Rehajm
Supply and demand. Pretty basic stuff. I see you weren't paying attention in your Econ class.


Headline: Trump wins too much: leftie vegans so physically ill they can't eat

You might have a point here...

rehajm said...

HRM William said...
Rehajm
Supply and demand. Pretty basic stuff. I see you weren't paying attention in your Econ class.


Instead of keeping us in suspense why don't you explain it for us, Professor Mankiw?

Unknown said...

Build the wall, build the wall, build the wall! Who's gonna pay for it?! We will!! And you people voted for this doofus.

steve uhr said...

Sugar tariffs cost US consumers almost $4 billion annually.

Seeing Red said...

My insurance went up so some independent secure hear me roar women can get free tampons and birth control.

So I change my diet for a short period of time, so what?

I had to change my spending for free stuff.

Seeing Red said...

Lifesavers left because of sugar tariffs.

At least we've loosened up the regs finally a little.

Bad Lieutenant said...

FullMoon said...
Well, heck,
I expected to be paying more for Chinese stuff.
Not sure how me paying extra for Mexican stuff is Mexico biting the bullet and capitulating.
Even Cavuto is not able to spin it, yet.
1/26/17, 3:18 PM

lessee...you pay 20% more for Mexican stuff...maybe Mexican sales drop off 20%

they won't like that <--hint hint negotiation tactic

maybe US sales go up by that 20% because Make It Here

we will like that

or if you have to have t-shirts made by slaves, maybe they can be Filipino slaves or Thai slaves or slaves from some other country we want to stroke

NAFTA is taking $10 from each US workingman in wages, giving $5 to Mexico, and giving $1 in savings to 5 US consumers (4 consumers? 6?)

the deep pain is concentrated and the shallow pleasure is spread around

the difference between theory and practice is that in theory, there is no difference between theory and practice but in practice, there is




oh and


Blogger Jack Wayne said...
All you OH NOES! know that Mexico currently charges a 20% import fee on American goods entering Mexico, right?

No I did not know that. Fuck'em. Burn it down.

...that said, why not remittances, even, why not remittances too...



oh and

Expect your fruits and vegetables to become less expensive.

this is also because as US avocado production goes up, prices go down




oh and

less E.coli from campesinos pooping in the avocado fields at harvest time



BTW that reminds me

what criminal barred labeling beef as USA or MEX or CAN? Die die die in a fire

rhhardin said...

Mexicans probably suffer the price of the wall, but it doesn't go to the US.

Bad Lieutenant said...

oh and

Karina said...
Build the wall, build the wall, build the wall! Who's gonna pay for it?! We will!! And you people voted for this doofus.

1/26/17, 3:57 PM


Do you get that what we really want is the wall, and Mexico paying for it is just the cherry on the sundae? I'm fine with plain vanilla wall.

Anonymous said...

I don't care who pays for the wall. I just think the border needs to be closed to illegal immigration. So call me a doofus, I'll wear that label.

Bad Lieutenant said...

kurt bermuda said...
Mexico first!

1/26/17, 3:19 PM



Please tell me how Mexico gains from this. Please.

rhhardin said...

Anchovies and Tin.

That's what would be effected by a tax on Peru exports, if I remember social studies class correctly.

Seeing Red said...

There is another way to skin e cat. We did it against the Japanese.

Slow down. Inspect everything.

Seeing Red said...

We also slowed the border down to get the body of Kiki Camerena back.

Bad Lieutenant said...

rhhardin said...
Mexicans probably suffer the price of the wall, but it doesn't go to the US.

1/26/17, 4:06 PM





OK OK...no wall? I'll make you a DEAL

No wall

Mexico stations troops, real ones, every ten feet along the border on their side; we provide intel

No pasaran

Any illegal Mex or OTM caught by the Border Patrol - returned to their home, or to the south end of Mexico

For every illegal caught Mexico pays us $25,000 cash



Deal?

Anonymous said...

Scott: This is stupid. The reason we have NAFTA is that raising the standard of living of Mexicans is in the interest of the United States. A happy middle-class Mexican family in a country where jobs are available doesn't have an incentive to cross the Rio Grande.

That was the theory, yes.

Been paying attention to reality since the passage of NAFTA?

rehajm: Examined alone this might seem dangerous but within the context of full scale tax reform including a dramatically lower corporate and passthrough rate, it's net net pro growth, deficit friendly and incentivizes domestic job creation and retention.

Sorry, we can only handle one-variable economic propositions around here, rehajm.

Drago said...

HRM William: "Expect your fruits and vegetables to become more expensive. How is this going to help the workers? Thanks Trump and the dummies who voted for you"

Lol

Yes, the left which has attacked whole industries wants to lecture on more expensive vegetables?

Does snail darter or Delta smelt ring a bell there Mr Rocket Scientist?

Have you taken a good hard look at California's Central valley?

Seeing Red said...

They just might sell their nuts to another country and relabel.

Everything is fungible.

Seeing Red said...

I think I can survive without guac for a couple of years.

Chipotle not so much.

Drago said...

steve uhr: "Trump never seems to be interested in protecting American consumers, esp the ones that cannot afford $1000 hotel rooms."

Walmart hater says what?

rehajm said...

Sorry, we can only handle one-variable economic propositions around here, rehajm.

I see that now. Sigh.

Bad Lieutenant said...

oh AND

Peso goes through the floor

Stuff costs less

Jon Ericson said...

Hilarious lefty trolls. When did the DMC workshop get out today ?

Karen yesterday, today Karina aka "sugartits" aka UNK#51.

HRM William today, WL yesterday aka "BigBrain" aka Ol' '55.

Do you have a good reason to do this?

JackWayne said...

Forgot to mention - drumroll - the 20% import fee is - wait for it - part of the NAFTA treaty! Rimshot!

steve uhr said...

I love Walmart. I do all my grocery shopping there. So there!

BJM said...

less E.coli from campesinos pooping in the avocado fields at harvest time

Dude. Avocados grow on trees.

Dust Bunny Queen said...

Guys....guys....don't get your panties in a wad. Remember the art of the deal and negotiation. This is an opening salvo in the beginnings of making a final deal. The final deal may or may not have a 20% import tax. The final deal may or may not also include taxes on remissions (my personal favorite)

Seriously. Y'all need to learn to read between the lines and think like a trader or negotiator.

Bad Lieutenant said...

Jack,

Oh my. Yeah, fix that.

BTW:


I'm with you. Tax cash going down, not goods coming up.
1/26/17, 3:14 PM

Thing is, this will not affect the Mexican government. It will affect poor Mexican people. If the Mex gov cared about poor people they would rule better. That would tax the poorest Mexicans, who can't get a factory job and have to come here to send remittances.

Tariff taxes the richest Mexicans - the hegemons, and also the "upper class" who can get jobs at Silao cranking out Yukons.

You lefties want to hurt the rich, not the poor, right?

No, President Trump, I'm not tired of the winning yet. Moar pleez.

Bad Lieutenant said...

BJM said...
less E.coli from campesinos pooping in the avocado fields at harvest time

Dude. Avocados grow on trees.

Yeah yeah. yeah. Spinach. Whatever.

eric said...

I'm all for free trade so this is a dumb idea.

It's a dumb idea for a couple of reasons. But one big reason is, everyone knows taxes come but they never go. If this will raise 20 billion in 2 years, what will we do with all the money after year 2?

Ahhhh, but then it may be a good negotiation tactic. See, 20 billion now is better than 10 billion a year. Right? If you could pay $20 dollars once, or $10 over and over and over again, well, you choose the $20.00.

So, is this the opening round in the negotiation?

I hope so. Because in that light, it's brilliant. But in practical application, it's stupid.

Unknown said...

Have faith in Trump! Don't despair! It's just a negotiating tactic, lol.

Bad Lieutenant said...

Hey Karina,


Trump is being nice to give Nieto a chance to make some other offer. For me he can do this without further delay.

BJM said...

Have you taken a good hard look at California's Central valley?

Exactly. Ever wonder what happened to those big luscious Blenheim apricots we used to see in the markets in June or the Lady Finger table grapes CA exported as prime fresh fruit to Japan?

The geniuses in DC and Sacto turned off the water. Thousands of dead fruit trees piled up growers can't even sell it for firewood there's so much of it, 100,000+ unemployed, grower coops bankrupt, small towns and service industries depleted and the most ridiculous part? They aren't even sure that they've saved the damn fish.

The only thing that has saved the almond industry, a 6 billion dollar annual crop, from a similar fate is that most of the orchards are on the eastern side of the valley which has ample water catchment storage and groundwater.

I live in a rural red county and we have plenty of inexpensive locally grown food, it's voters in blue counties and cities who will pay the price. Poetic justice that.


Paul said...

Cool, and maybe Trump can keep that tax up for a few years and add more detention areas for illegals caught in the US.

Carol said...

Mexico will just do the same to us. My company sells a lot of stuff in Mexico so we'll be hurt by a trade war.

Oh well.

eric said...

Now I have the sads.

It appears this is fake news.

Ah well.

eric said...

There is going to end up being a Trump rule at some point during this administration.

The Trump rule will be something like this:

Anything the media reports about Trump is possibly fake news. Rumor. Gossip. Etc. Allow all things reported by the media about Trump to marinate for 24 hours before assuming there is any truth to it.

Seeing Red said...

As we are watching the right hand...


The left hand extradited another cartel member.


Raise your hand if you think the extraditions will stop because of this kerfluffle?



GTMO has space.

Let them rot.

Drago said...

Carol: "Mexico will just do the same to us."

In many cases they already do: http://web.ita.doc.gov/tacgi/overseasnew.nsf/alldata/Mexico

Drago said...

Take a look at the link and see how many products from the US to Mexico hit the 20% tariff target.

And that's before other taxes.

If you were wondering why the Trump admin came up with 20%.

Curious George said...

"Ryan said...
Does that mean we all have to pay 20% more for a bottle of Corona, etc? Because that's just a tax imposed on Americans."

Only those that like drinking Mexican piss beer. As far as the rest, Nieto just shit a brick. And the rest of the world did too.

Seeing Red said...

They should put that on the WH website.

Now we see how the sausage was made.

rcocean said...

Do any of you morons understand the difference between the RETAIL price and the wholesale price? Or that many of these goods go into other goods before they are sold to the public?

Raising the wholesale price of an item 20% because of a tariff may or may not equate to an 20% retail price. It depends on the industry and the desire of companies to maintain a certain profit margin. It also depends on whether a company can buy it cheaper from someone other than Mexico.

rcocean said...

If they raise the price of Mexican beer by 20%, I guess you'll just have to buy another brand of beer. And enough of you do, the retailer will probably lower the price.

Its called supply and demand.

rcocean said...

"I'm all for free trade so this is a dumb idea."

I don't even think you know what "Free trade" is. In any case, being in favor of something, NO MATTER WHAT, almost defines stupidity.

HT said...

How humiliating.

Drago said...

Curious George: "Only those that like drinking Mexican piss beer. As far as the rest, Nieto just shit a brick. And the rest of the world did too."

It's quite possible that Trump is just looking to make an example of one nation for all future negotiations (which will be bilateral) and Mexico is the right choice for multiple reasons.

Drago said...

HT: "How humiliating"

You are clearly no stranger to humiliation.

You have our sympathies.

Drago said...

BTW, if you want "humiliating", take a look at how Iran is laughing at us.

But that's okay to the lefties. After all, Iran is just one of the largest state sponsors of terror, so you know, a "fav" of the left.

steve uhr said...

rconcean -- I assume that is a typo in your recent post and you meant to say "The retailer will probably raise the price?" Obviously, increased demand results in higher prices, not lower prices.

Hammond X. Gritzkofe said...

So The Wall will be paid for by every US consumer who buys a product imported from Mexico. The Wall is a bad idea for so many reasons; an insult to humanity. That proposal for funding it is an insult to US consumers. Goes double for those of us who live on the border near The Wall.

rcocean said...

"rconcean -- I assume that is a typo in your recent post and you meant to say "The retailer will probably raise the price?" Obviously, increased demand results in higher prices, not lower prices."

Thanks, i will restate it. If a tariff causes wholesale prices of Mexican Beer to rise, AND retailers decide to pass that cost on to the consumer then people will buy less Beer. If enough of them stop buying, the retailers will lower the price.

It simply goes back to the point that its the retailers set the price based on supply and demand NOT on how much a tariff is. If company X outsources its production to China and that lowers production costs by 10% it MAY cut the price or it MAY keep the 10% as profit. Lower costs to a company don't always get passed on, and neither do higher costs.

Does Hollywood pass on low production costs to the consumer? Of course not. If Movie X costs $50 million and Movie Y costs $100 million do they lower or raise the ticket price?

steve uhr said...

They should raise or lower ticket price based on demand, not production cost. Would you pay more to see the Packers or the Browns?

Regardless, it can't be reasonably disputed that a tariff on imports from Mexico will harm American consumers of the imported products, whether they buy from Mexican or American suppliers. And of course Mexico will fight fire with fire, injuring American companies that export to Mexico.

I thought Mexico was just going to write us a check for 15 billion?

David said...

How do you raise $10 billion with a 20% tax on imports that makes the imports too expensive to sell in our country? Raise the cost of nearly any product by 20% and it's not salable, especially in competition with products that are not subject to the tax. A 2% tax would probably raise more revenue, and create less unemployed Mexicans.

Bad Lieutenant said...

BJM,

The geniuses in DC and Sacto turned off the water. Thousands of dead fruit trees piled up growers can't even sell it for firewood there's so much of it

Shameful and vile, makes me want to spit blood too. However, fruitwood is in demand for cooking, e.g. barbecue, smoked meats, which offers much higher margins than mere firewood. Just a thought.


Hammond,

If you live on the border, why are Mexicans getting through? Are you out of ammunition? I hope not because apparently bad things sometimes happen to people who live on the border when immigrants come through.

A US wall is merely the best we can do. True genius would be in having Mexico either build a wall themselves, on their land so our views aren't spoiled, or with enforcement or otherwise, keep their people home.

Uhr, it can be reasonably disputed, I have been doing so. Just think of your sweet sweet minimum wage increases and how e.g. Clinton blew off the concerns about increased costs to the consumer.

Incidentally, you're obviously not a sports guy. When was the last time the Giants lowered the ticket price when they had a bad season?

Also, as noted, Mexico is already taxing us in a way that we do not tax them. This is what President Trump means when he says our negotiators are losers. 20% is just getting even, Steven.


There's another alternative of course. We could arrange a coup or revolution in Mexico, and put the country under better management which would improve the lives of its citizens so that they did not have to flee here. Incidentally this is not as irrelevant as it sounds. 20 billion dollars of tariffs may raise the price of a bottle of Mexican beer a nickel until the American Consumer learns to buy elsewhere. On the other hand, it may impoverish the Mexican government to the point where a revolution is a possibility.

Bad Lieutenant said...

David 1/26/17, 7:32 PM


That's why it's in their interests to simply write us a check.

Bad Lieutenant said...

Eric, whaddya mean, fake?

rehajm said...

How do you raise $10 billion with a 20% tax on imports that makes the imports too expensive to sell in our country?

Martin Feldstein's Answer

Hagar said...

It isn't about trade and tariffs or whatever.
It is about the Mexican government seeing the light and start cooperating about the illegal aliens - not just theirs, but also the hordes of nationals from other countries passing through Mexico on their way here.

Njall said...

I see quite a few new lefties have been assigned Althouse blog duty

walter said...

Jay Vogt said
Free trader here and not a fan of tariffs, but if you're Corona, just try to move you're price point up from 9.99 a twelver to 10.39.
Not gonna happen in the crowded (more than ever) beer aisle.
--
That's an issue that I think at least deserves a place in the equation.
I find it hard to believe response to tariffs are strictly linear retribution in terms of pricing beyond market forces...as seemingly so often argued.

walter said...

(..for instance, Mark Levin's ranting I'm hearing now)

walter said...

Levin, who seems to assume starting point of a fair playing field.
At least address it..

n.n said...
This comment has been removed by the author.
n.n said...

Hagar:

That's right. It is about emigration reform, but also about structural differentials (e.g. environmental, labor, social) that are antithetical to a functional free market system. That create, among other things, an incentive for exporting and importing people in mass. And a cause and need to subsidize our own population. Something the Democrats have historically managed better, if only as a recurring bubble, but not without bipartisan help.

rcocean said...

"Regardless, it can't be reasonably disputed that a tariff on imports from Mexico will harm American consumers of the imported products, whether they buy from Mexican or American suppliers."

Yeah, regardless of facts, you keep asserting that. I know its part of "Free trade" dogma, but you don't know the impact of any potential Mexican tariff.

And if we're going to set economic policy based purely on what lowers prices for the consumer, then I suggest the US Government declare the TV/Cable companies "Monopolies" and cap their prices. Further, in tight rental markets, we should have rent control to protect consumers from landlords. I could probably think of a lot more policies that we could implement, since the primary goal is now Low prices for consumers.

Rusty said...

The idea is to get the American public to quit buying goods made in Mexico.


Scott: "This is stupid. The reason we have NAFTA is that raising the standard of living of Mexicans is in the interest of the United States"

Yeah. That's why so many of them are here.

Lauderdale Vet said...

For the Mexican makers, those who simply raise their prices to pass the cost along will see their sales plummet. For those that lower their prices to absorb the tariff, the Mexican makers are paying for it out of their profits.

The Mexican economy suffers, which pressures the Mexican government to act.

The Mexican makers suffer, which pressures the Mexican government to act.

Yes, some Mexican Makers will not completely lower their prices to compete, and some Americans who don't want to buy alternative (presumably American) goods will pay out of pocket.

Meanwhile, alternative American makers have an opportunity to take their own shot in this price war by dropping their prices to levels Mexican makers cannot.

Bad Lieutenant said...

Rusty said...
The idea is to get the American public to quit buying goods made in Mexico.


Scott: "This is stupid. The reason we have NAFTA is that raising the standard of living of Mexicans is in the interest of the United States"

Yeah. That's why so many of them are here.
1/27/17, 5:58 AM


That's the thing. We tried the experiment. The reaction failed. With NAFTA in full effect for decades, the flow of illegal immigration has not dwindled, if anything it has increased. Game over.

The Bear said...

What they need to do - a thing that will help a whole lot with the problem of the invasion of the United States being conducted by Mexico and others (which is an act of war), is to institute a fee on remittances like Western Union moneygrams going to the countries involved of at least 15%. These invaders come here and collect vast sums in public benefits that we the taxpayers are forced to pay for. Their ability to use these services and get these moneys frees them up to send tens of billions of dollars back to their home countries every year - easily enough money to rapidly fund the building of a real security barrier on our borders.

damikesc said...

I am glad to see that Leftists are noticing that a tax will make the price of goods increase. They seem oblivious to other basic rules of economics, such as increasing the price of labor generates fewer jibs and that companies do not pay taxes, their customers do.

Chuck said...

I think that they ran this up the flagpole, and nobody saluted.