Understanding Tariffs.

[biku324]

They need us more than we need them, bottom line.
There's absolutely zero that we can't produce, enriching American workers in the end, making us totally self-reliant.
it's just another way to get other countries to fall in line and stop taking advantage of us. Eventually, they will all fall in suit.
Eggs are high due to the bird flue, but I paid around $3.00 a dozen yesterday, so don't take the bait.

So; the last 'self-reliant' major country was 17th century Japan, which had a closed economy (called 'autarky' in economics) - no imports, no exports. How did that turn out?

In the 20th century, Hitler tried it without success.

"Autarky and Hitler
Hitler pursued a policy of autarky. It was his ambition to make Germany self-sufficient. However, this policy of autarky was dependent on his other policy of lebensraum which involved increasing the size of Germany through conquest. In practice, Hitler never achieved autarky and depended on the import of oil, even though Germany did expand to include all occupied territories." Autarky Meaning - Economics Help

 

[Bald1]

Untrue. Since 2015, we've run a trade surplus 5 of 10 years. TD Economics - Setting the Record Straight on Canada-U.S. Trade

Well…. CNN NBC FOX and Politico all say different. It’s amazing to me that so many people want to immediately side with Canada and Mexico. As mentioned earlier the cost of tariff can also be put on exporter. And importer can refuse to accept any increase in cost…….. but besides all that. Why can’t people understand it’s a negotiation tool. No different than an opening low ball offer at the car dealer. Did anyone ck to see if Mexico and Canada are honoring their commitments in the trade agreement. You might be suprised. Do you think our president is doing this to harm our economy and burden consumers with higher cost. C’MON people think about it. If nothing else, forcing Mexico and Canada to tighten up border security is worth an extra .25 cents a gallon on gas to me. Opioids are killing people. By the time I’m done typing this long winded rant. Canada will have probably already folded their cards. Lots of worrying about nothing.

 

[ladder13]

So tariffs affect everyone? Good, put that money towards the $37,000,000,000,000 we all owe (dreamer) so everyone pays their fair share.

 

[llowry61]

IMO making US goods more attractive if they are made onshore and creating incentives for corporations to invest in onshore manufacturing isn't a bad thing.

I think we got a little wakeup call a few years back about the level of dependency we had on other countries for some really important items.

I am not going to argue about if tariffs work or not, but I do support the use of them in an overall economic strategy.

It would be interesting to re-visit this thread a couple of years from now when we know the impact they had good or bad.

 

[ladder13]

Another knee bent

Canada announces US tariffs on hold for 30 days after Justin Trudeau holds 'good phone call with President Trump'

 

[Empe]

Neither Canada nor Mexico are our friends in any way.

Really ??
Canada has served along the the USA during the WWI, WWII including the D Day landings , the Korean War , The Gulf War , Iraq and Afghanistan . They provided planes and manpower to help battle the fires in California ...just to cite a few examples.
I'm sure there are many more but these are the ones that first come to mind...not friends of the USA in any way ?
We will certainly have to agree to disagree .

 

[ladder13]

Well…. CNN NBC FOX and Politico all say different. It’s amazing to me that so many people want to immediately side with Canada and Mexico. As mentioned earlier the cost of tariff can also be put on exporter. And importer can refuse to accept any increase in cost…….. but besides all that. Why can’t people understand it’s a negotiation tool. No different than an opening low ball offer at the car dealer. Did anyone ck to see if Mexico and Canada are honoring their commitments in the trade agreement. You might be suprised. Do you think our president is doing this to harm our economy and burden consumers with higher cost. C’MON people think about it. If nothing else, forcing Mexico and Canada to tighten up border security is worth an extra .25 cents a gallon on gas to me. Opioids are killing people. By the time I’m done typing this long winded rant. Canada will have probably already folded their cards. Lots of worrying about nothing.

Purely TDS.

 

[biku324]

Exporters do NOT pay tariffs - importers do, and they pass it on to consumers.

I am opposed to starting fights with people who have always, always been on our side in war and peace.

 

[steelslaver]

Tariff. The tariff is paid to the government and the cost is passed to the consumer.

The consumer is NOT who decided to import products. That was decided by business so that they could make money of by buying and selling instead of manufacturing and selling

Just how are we going to replace these products. Most of the infrastructure to make a lot of it has been sold off by those same businesses. We already have a shortage of labor especially skilled labor. Even if we do start making these products they will cost more due to the higher cost of American labor. As 78% of the population is now living paycheck to pay check, how will they afford higher priced products??? Plus, how long will it take for the US manufacturing to set up to replace imports. It ain't gonna happen in just a few months.

There are 340 million citizens, 58 million are over 65 and 73 million under 18. That leaves 209 million, 2 million are in prison so that leaves 207 million. 11 million are totally disabled (this includes 1 million Veterans). That leaves 198 million. 3 million of those are non working women so that leaves 195 million. There are 1 million active gang members. Down to 194 million. 160 million of those are employed

Ya, it might get rough for working Americans. It will not be one bit uncomfortable for those running the show though

 

[Bald1]

Exporters do NOT pay tariffs - importers do, and they pass it on to consumers.

I am opposed to starting fights with people who have always, always been on our side in war and peace.

Again you are WRONG!!!!! Importers can put the cost back on exporter by demanding a reduced price on the commodity. It’s all in the deal you make. This is all finance and commerce 101. Here are the numbers. THE ART OF THE DEAL???? Sound familiar

 

[SnidelyWhiplash]

Oh, yes it can. Chronic unemployment under 4% is nearly unobtainable. That's what we've had the past few years.

The actual unemployment rate is probably double that or nearly so. When Obama was President he simply stopped counting those unemployed that had stopped looking for work. That way he could claim his economic plan was working. The government has continued that subterfuge ever since.

When I took Econ over fifty years ago we were told that 4% was considered full employment…anything below that was a drag on the economy. It seems the government is being dishonest with us…again!

 

[biku324]

Again you are WRONG!!!!! Importers can put the cost back on exporter by demanding a reduced price on the commodity. It’s all in the deal you make. This is all finance and commerce 101. Here are the numbers. THE ART OF THE DEAL???? Sound familiar

Sorry to be argumentative, but it is the importer who must pay tariffs in imported goods; it is their legal responsibility. What the importer and exporter decide on price is between them, but at the end of the day, it is the person who purchases the imported product who pays the higher price. Magical thinking doesn't reduce product costs.

 

[Beemerguy53]

Recession and inflation incoming

And when it happens, the people responsible for it will deny they had anything to do with it, and will blame others...

 

[biku324]

Hahaha! Canada avoided tariffs by doing what they announced last December they were going to do on their own.

https://www.canada.ca/en/public-saf...rder-security-and-our-immigration-system.html


News release
December 17, 2024 – Ottawa, Canada

The Government of Canada will increase support to law enforcement agencies in detecting, intercepting and addressing fentanyl and precursor chemicals by adding artificial intelligence and imaging tools that will further help detect illegal drugs before they enter Canada.

As well, the Canada Border Services Agency (CBSA) will train and deploy new canine teams to intercept illegal drugs. The agency currently has over 80 detector dog teams located at various ports of entry across Canada. CBSA will also deploy new chemical detection tools at high-risk ports of entry.

Health Canada will create a new Canadian Drug Profiling Centre to support 2,000 investigations a year, and expand capacity at regional labs.

By launching a new Chemical Precursor Risk Management Unit, Health Canada will be able to provide better insight into precursor chemicals and distribution channels, enhance monitoring and surveillance and enable timely law enforcement action.

In addition, Health Canada will accelerate the regulatory process for banning precursors so that border and law enforcement can take swift action to prevent their illegal importation and use.

Introducing significant new tools for law enforcement

The Royal Canadian Mounted Police (RCMP) will deploy a new Aerial Intelligence Task Force comprised of helicopters, drones, and mobile surveillance towers. Counter-drone technology will support RCMP officers and provide 24/7 surveillance between ports of entry.

 

[Beemerguy53]

1% of illegal immigration comes through Canada. 44 total pounds of fentanyl have been caught coming into the US from Canada in the past year.

You keep citing those pesky facts, Biku, and you're gonna take all the fun out of this thread...

 

[ladder13]

We win, new Boss.

“In a post on X, Trudeau said Canada will implement a $1.3 billion border plan and will appoint a fentanyl czar.

In addition, Canada will reinforce its border with new helicopters, technology, personnel and enhanced coordination with American authorities. He added that nearly 10,000 personnel are and will be working on border protection.”

 

[ladder13]

Inflation? Yall talk like it’s a new thing.

How much was a ham sandwich 40 years ago?

It’s happened for decades, who do we blame?

This is too easy.

 

[UncleEd]

Inflation? Yall talk like it’s a new thing.

How much was a ham sandwich 40 years ago?

It’s happened for decades, who do we blame?

This is too easy.

Pigs joined a union .

 

[biku324]

Apparently, chickens have one, too, judging from egg prices.

 

[zeke]

Untrue. Since 2015, we've run a trade surplus with Canada 5 of 10 years. TD Economics - Setting the Record Straight on Canada-U.S. Trade

direct quote from the report in your link

"Based on Statistics Canada data, Canada’s merchandise trade surplus with the U.S. last year was on track to reach C$100 billion. That equates to 3.2% of Canadian GDP.
The U.S., however, enjoys an edge in services trade, mainly related to Canadians flowing over the American border. This impact shrinks the trade surplus to C$85 billion, or 2.8% of Canadian GDP (Chart 3)."

So there is indeed a trade surplus with canada favoring canada, and trying to get around that FACT by using an average is more than misleading.