The US has always had some tariffs, right? The question, obviously, is how much and on what. Not on whether to have no tariffs at all. Though, actually, there's probably someone out there proposing that, too.
As I mentioned before, tariffs can be an effective tool when used strategically and selectively. However, their benefits tend to be short-term and often come with drawbacks. For example, targeted tariffs on specific products might help U.S. industries re-tool or recover from foreign competition. At the same time, they typically lead to higher prices for consumers and the risk of retaliation from trade partners. The key is to use tariffs sparingly, with clear goals and an understanding of the potential trade-offs As of right now, we have the strongest economy in the world and have inflation under control. Why we would risk a large scale trade war and increased prices without an articulated goal is insanity.
Smoot-Hawley Tariff Act of 1930 “a law that implemented protectionist trade policies in the United States. , it was signed by President Herbert Hoover on June 17, 1930. The act raised US tariffs on over 20,000 imported goods. The Act prompted retaliatory tariffs by many other countries.The Act and tariffs imposed by America's trading partners in retaliation were major factors of the reduction of American exports and imports by 67% during the Great Depression Economists and economic historians have a consensus view that the passage of the Smoot–Hawley Tariff worsened the effects of the Great Depression.”
Per the Peterson Institute for International Economics, Trump's tariffs will cost the average American household $2600 per years. The greatest impact will be on electronics, clothes and toys. Trump's proposed tariffs would raise prices for these products, experts say
Because then it will be too late Why don't we just fire the gun to determine if it has blanks in it. You can stand in front as tester
As automation increases and labor becomes a less important component of prices. One of the major controllable pricing input becomes transportation.
"Still another possible way to offset the hit to business profits and consumer wallets is through currency adjustment. If Chinese goods cost American importers less because of a stronger dollar, the cost of Trump's China tariffs wouldn't bite. Yet the yuan, after initially depreciating about 10% as China's economy slowed under the weight of tariffs, has since recovered the bulk of that decline. On May 10, 2019, Trump proceeded to hike 10% tariffs to 25% on that $200 billion tranche of imports that included bicycles. Consumers Didn't Pay China Tariff Costs An October 2019 paper from researchers at Harvard, the Boston Fed and the University of Chicago's Booth School of Business found that major retailers imposed just a 0.7% price increase on products subject to a 20% tariff. Bottom line: If end consumer prices and import prices were little changed, that means American importers have borne almost all of the cost of the tariffs. However, those importers may have sought to shift some imports to other countries that weren't subject to tariffs." https://www.investors.com/news/economy/what-is-a-tariff/
Seems like mixed data for first round of tariffs. Altough worth noting Biden mostly kept them intact. https://www.nber.org/system/files/working_papers/w26610/w26610.pdf “The latest studies suggest the combination of new tariffs and increased trade policy uncertainty create a substantial drag on the economy as a whole: net losses projected for 2020 are between about $500 and $1700 per household. Costs imposed by tariffs go beyond direct dollar-price increases on targeted goods. Evolving estimates range in value depending on what they take into account.” What Trump's tariffs have cost the U.S. economy
Well Bill, here they are - at least the beginning. He announced tariffs of 25% on imports from Mexico and Canada will occur on day 1. How Much Does the U.S. Import From Mexico? We imported more than $863B from Mexico last year. Those products will now cost American people and businesses more than $1.86T. Could that be inflationary https://www.reuters.com/world/us/trump-promises-25-tariff-products-mexico-canada-2024-11-25/ U.S. President-elect Donald Trump said on Monday that on his first day in office he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, citing concerns over illegal immigration and the trade of illicit drugs. United States Imports from Canada - 2024 Data 2025 Forecast 1991-2023 Historical We imported $429B worth of products from Canada last year. Those products will now cost American consumers and businesses over $536B. Reckon that might be inflationary?
But he made the greatest deal ever with USMCA? Why would tear that up? Agreement between the United States of America, the United Mexican States, and Canada 7/1/20 Text
So in essence, he’s going to punish the American consumer via tariffs because of their demand for drugs..
So this is a good thing? I didn’t know that. Why only a couple of months ago Bidenflation was ruining the economy.
MAGAs don't think 25% tariffs will cause inflation. They think only Mexico and Canada will pay the tax. It's free money.
That resolve is going to cost us all money. Especially for people like me, who live in Arizona, where about 1/3 of our fresh produce is imported from Mexico. And better hope your car doesn't break down, even if you drive a Ford or Chevy. Mexico produces a ton of car parts for domestic vehicles.
