Posted on 05/31/2019 3:08:33 PM PDT by ransomnote
At present the U.S. is involved in a protracted trade war with China that has yielded nothing in concessions from Beijing, cost U.S. companies and consumers billions, obliterated $5 trillion from the stock market, and is threatening to tip the economy into a recession. At the White House, Donald Trump has learned the lessons of this failed strategy and decided to…drag the U.S. into another unwinnable trade war, this time with one of our neighbors and largest trading partner.
Yes, Tariff Man announced Thursday night that starting June 10, he will impose a 5 percent tariff on allMexican imports, a levy that will “gradually increase” all the way to 25 percent until undocumented immigrants stop crossing the border. Tariffs, of course, are usually used to counter trade violations as opposed to being a blunt instrument to deal with border security, but reason and logic have no place in this administration. If they did, someone would have likely been able to get it through Trump’s head that this move will badly damage the U.S. interests, a point that has thus far eluded him.
An across-the-board tariff on all Mexican goods would exact a serious toll on American consumers and corporations, and is likely to generate significant opposition among businesses. Rufus Yerxa, the president of the National Foreign Trade Council, which represents the nation’s largest exporters, called the move “a colossal blunder.”
Mexico is Washington’s largest trading partner, sending across the border items like tomatoes, cars, and rugs. Mexico sent the United States $346.5 billion of goods last year—meaning that a 5 percent tariff on those products would amount to a tax increase of more than $17 billion. Most of the costs would then be passed on to businesses and consumers. Mexico’s deputy foreign minister for North America, Jesús Seade, said at a hastily arranged news conference on Thursday that Mr. Trump’s announced tariffs would be “disastrous” and suggested Mexico could retaliate against American products.
Perhaps you should read the actual announcement...
Statement from the President Regarding Emergency Measures
to Address the Border Crisis
As everyone knows, the United States of America has been
invaded by hundreds of thousands of people coming through
Mexico and entering our country illegally. This sustained
influx of illegal aliens has profound consequences on every
aspect of our national life—overwhelming our schools,
overcrowding our hospitals, draining our welfare system, and
causing untold amounts of crime. Gang members, smugglers,
human traffickers, and illegal drugs and narcotics of all
kinds are pouring across the Southern Border and directly
into our communities. Thousands of innocent lives are taken
every year as a result of this lawless chaos. It must end
NOW!
Mexico’s passive cooperation in allowing this mass incursion
constitutes an emergency and extraordinary threat to the
national security and economy of the United States. Mexico
has very strong immigration laws and could easily halt the
illegal flow of migrants, including by returning them to
their home countries. Additionally, Mexico could quickly
and easily stop illegal aliens from coming through its
southern border with Guatemala.
For decades, the United States has suffered the severe and
dangerous consequences of illegal immigration. Sadly,
Mexico has allowed this situation to go on for many years,
growing only worse with the passage of time. From a safety,
national security, military, economic, and humanitarian
standpoint, we cannot allow this grave disaster to continue.
The current state of affairs is profoundly unfair to the
American taxpayer, who bears the extraordinary financial
cost imposed by large-scale illegal migration. Even worse
is the terrible and preventable loss of human life. Some of
the most deadly and vicious gangs on the planet operate just
across our border and terrorize innocent communities.
Mexico must step up and help solve this problem. We welcome
people who come to the United States legally, but we cannot
allow our laws to be broken and our borders to be violated.
For years, Mexico has not treated us fairly—but we are now
asserting our rights as a sovereign Nation.
To address the emergency at the Southern Border, I am
invoking the authorities granted to me by the International
Emergency Economic Powers Act. Accordingly, starting on
June 10, 2019, the United States will impose a 5 percent
Tariff on all goods imported from Mexico. 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. If the crisis
persists, however, the Tariffs will be raised to 10 percent
on July 1, 2019. Similarly, if Mexico still has not taken
action to dramatically reduce or eliminate the number of
illegal aliens crossing its territory into the United
States, Tariffs will be increased to 15 percent on August 1,
2019, to 20 percent on September 1, 2019, and to 25 percent
on October 1, 2019. Tariffs will permanently remain at the
25 percent level unless and until Mexico substantially stops
the illegal inflow of aliens coming through its territory.
Workers who come to our country through the legal admissions
process, including those working on farms, ranches, and in
other businesses, will be allowed easy passage.
If Mexico fails to act, Tariffs will remain at the high
level, and companies located in Mexico may start moving back
to the United States to make their products and goods.
Companies that relocate to the United States will not pay
the Tariffs or be affected in any way.
Over the years, Mexico has made massive amounts of money in
its dealings with the United States, and this includes the
tremendous number of jobs leaving our country.
Should Mexico choose not to cooperate on reducing unlawful
migration, the sustained imposition of Tariffs will produce
a massive return of jobs back to American cities and towns.
Remember, our great country has been the “piggy bank” from
which everybody wants only to TAKE. The difference is that
now we are firmly and forcefully standing up for America’s
interests.
We have confidence that Mexico can and will act swiftly to
help the United States stop this long-term, dangerous, and
deeply unfair problem. The United States has been very good
to Mexico for many years. We are now asking that Mexico
immediately do its fair share to stop the use of its
territory as a conduit for illegal immigration into our
country.
The cartels and coyotes are having a greater and greater
impact on the Mexican side of our Southern Border. This is
a dire threat that must be decisively eliminated. Billions
of dollars are made, and countless lives are ruined, by
these ruthless and merciless criminal organizations. Mexico
must bring law and order to its side of the border.
Democrats in Congress are fully aware of this horrible
situation and yet refuse to help in any way, shape, or form.
This is a total dereliction of duty. The migrant crisis is
a calamity that must now be solved—and can easily be solved—
in Congress. Our broken asylum laws, court system, catch-
and-release, visa lottery, chain migration, and many other
loopholes can all be promptly corrected. When that happens,
the measures being announced today can be more readily
reduced or removed.
The United States is a great country that can no longer be
exploited due to its foolish and irresponsible immigration
laws. For the sake of our people, and for the sake of our
future, these horrendous laws must be changed now.
At the same time, Mexico cannot allow hundreds of thousands
of people to pour over its land and into our country
—violating the sovereign territory of the United States. If
Mexico does not take decisive measures, it will come at a
significant price.
We therefore look forward to, and appreciate, the swift and
effective actions that we hope Mexico will immediately
install.
As President of the United States, my highest duty is the
defense of the country and its citizens. A nation without
borders is not a nation at all. I will not stand by and
allow our sovereignty to be eroded, our laws to be trampled,
or our borders to be disrespected anymore.
Um...Mexico is already BEGGING to talk to President Trump so the tariffs don’t go into effect next month, LOL!
Lower rates .5% now. Buy American. Read tag line.
“El Presidente” of Mexico wants to double down at the meeting, not back down:
http://www.freerepublic.com/focus/f-news/3753583/posts
ha!
The tariff is not there to raise money, you know. It is one of the few tools, short of military invasion, that may be raised quickly and have devastating effect upon the parties on whom the tariffs may be imposed.
Either they take less, a LOT less, for their product, or the price becomes so high in the country which formerly imported the product, it becomes cheaper and more feasible to go to a different source of supply, or start producing the product in your own country.
explain that in detail for us bumpkins, please
These people really are stupid (intentionally so) to lure the relly stupid into believing in what they write.
understood.
sensible .
but 5% won’t impact much at all.
when that 5% gets up to about 20%, Mexico will be impacted enough, I think, to pay some attention to USA’s requests
yes but a 5% tariff, raising 5% per month until 25% might get their attention before we just shut the damn border down.
If they’re using the stock market as a thermometer to judge the economy’s health...they probably believe in global warming too.
If Mexico would enforce their tough immigration laws, then these people from Central and South America would be rebuffed and sent home.
Don't blame this on Trump. He's got a constitutional responsibility to secure the border and protect the safety and security of the American people. So does Congress but he's the only one holding up his side of the bargain.
Trump has to do this because Congress is not helping to stem the flow. If Congress passed immigration reform and put their shoulders into it, he wouldn't have to act unilaterally.
Remember, the democRATS care more about giving the kitchen sink away to hundreds of thousands illegals before they even think about helping out their American constituents.
One has to put these things into perspective.
Little Bess here was a women and gender studies major who never took an economics class in college...
Stupid Trump has jacked up Dow from 1720 to 24888 during trade today. Yeah it needs to drop 30% from here to bring it down to election day level.
Stupid Trump has jacked up Dow from 1720 to 24888 during trade today. Yeah it needs to drop 30% from here to bring it down to election day level.
Don’t resent a thing, just thank them and buy the dip.
Before long you’ll be asking them to run more of these “the world’s gonna end and it’s all Trump’s fault!”
And note that China is paying for the propaganda.
And note again that fake news outlets that are taking chicom$ are violating the FARA law just the same that Mueller rolled Manafort in.
I wonder if Bess cribbed off AOC during economics class.
Amherst and BC are in the same state, so it’s plausible.
Wake me up when it hits 5%. Those making the most noise about this blimp are the least knowledgeable regarding investing.
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