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.
I would make sure Mexico understands the slower they come around to making a deal the slower the rolling back of the tariffs will be.
Vanity Fair, like we get our news from a lady’s magazine.
or set yourself on fire :O
According to the news Mexico has already asked for an emergency meeting with our government over this. It’s already working.
Buying opportunity
What the hell has changed? Nothing! The market a$$holes will tank the market when someone farts wrong.
I support President TRUMP 1000% in tariffs and forcing Mexico to get real about illegals entering their country on the way to the USA.
This author has a short, brainless, history of hating Trump.
The problem is not the tariff, but the tax on people who export here in the form of income tax.
Export/income taxes will kill this country, not tariffs on import
Indeed, a typical example of lack of import taxes and tariffs is Grece and Itly, who have borrowed billions of dollars from Germany to buy German cars!
Lack of tariffs is suicidal and the reason we depend on the Chinese buying our debt in the first place!
Indeed, a typical example of lack of import taxes and tariffs is Grece and Itly, who have borrowed billions of dollars from Germany to buy German cars!
Lack of tariffs is suicidal and the reason we depend on the Chinese buying our debt in the first place!
It’s Friday. The market is usually down on Friday as traders take profits.
[despite not having taken a single economics class at Amherst]
LOL Awesome - typical liberal writer
She will die alone, unloved, in a crappy Section-8 apartment, many miserable years from now, and her cat collection will try to feed on her corpse, but it will prove too bitter, and they, too, will die.
“put simply, there’s almost nothing coming in from Mexico that will be seriously hurt by a 5% tariff”
Not so, a nice chunk of the imports are oil...and the tariff directly hits at the Mexican Federal Government income. Even at 5% it hurts them significantly, at the higher levels coming in subsequent months, it will literally bring them to their knees. That is why they are reacting so wildly, acting like Democrats, over this action.
“EconFeelz 090”
They might last a couple of days on the eyes, though.
Maybe she hooked up with AOC a couple of times, and was able to acquire that Intense Economic Knowledge by osmosis...
Here’s a good place to start but it doesn’t tell the whole story:
https://www.fidelity.com/learning-center/investment-products/fixed-income-bonds/bond-yield-curve
If you look at the animated chart I linked in my first post, it should be obvious that there is manipulation on the left end of the curve.
The elites at the Federal Reserve are doing that. They’ve been doing that for decades and causing recessions every time.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.