He’s said 45%, 25%...
He’s on tape for the 45%:
“I would tax China coming in — products coming in. I would do a tariff. And they do it to us. We have to be smart. I’m a free trader. I’m a free trader. And some of the people would say, ‘Oh, it’s terrible.’ I’m a free trader. I love free trade. But it’s got to be reasonably fair. I would do a tax, and the tax — let me tell you what the tax should be. The tax should be 45 percent.”
>>>The fact is that some negotiated elements will be applied but these can be done without the worst case effect on the economy.
That’s encouraging, he’ll only do the bad case. :)
>>>>why can’t the US level the playing field with our low labor cost trading partners?
Because it would hurt our economy greatly. Tariffs hurt the country that imposes them. It’s like blockading yourself and devaluating your currency at the same time.
>>>>They might prefer a job to the present situation, even if trade were affected as you indicate.
That is taking from the many to give to the few. Trust politicians to decide who gets taxed how much to protect companies in their districts. And a much bigger role of government in the economy.
The whole basis is government saying citizens are choosing correctly, we’re gonna help them choose right by raising prices: to consumers, to businesses, to exports.. But government’s hand will be perfect and balance all this out, fine tune it, you can trust in government run economies..
>Trump has pointed out that monetary policy being applied by China is part of the problem.
They’re devaluing their currency, keeping two sets of books and have forced to stop trading on their stocks. China’s policy is a problem to China.
>>>Good negotiation does not mean giving the store away.
It sounds like Trump will be negotiating thus: “If you don’t stop hurting your economy with tarriffs, we’ll shoot our own.
Donald is woefully inept in his economics. His policies have a much better chance of tanking the economy than of doing good.
I agree that Trump could have the effect that you and other Free Traders indicate, but why do you think that is his goal? Are you for a continuation of the present policy? What has that done?
There is a trade off here and you know it. The balance between being able to buy cheap stuff at Wal Mart and the ability to buy stuff because you have a job that contributes to the economy need to both be satisfied. I know education is a big factor, I am in the tech field and I have never wanted for work. But if I made Carrier HVAC equipment I would be wondering where to go for help. Trump has worked in the past to have his hotel business buy American products to keep jobs in this country. I would expect that he will bring pressure on companies planning on moving operations overseas to find another way.
Trump can do this because of his position as a not for hire politician. And I am not afraid that Trump does not know the basic economics of international trade. He has been doing it for decades.
Open up a little, there may be a better way to handle the imbalance with our low wage international competitors. It is tied up with tax reform and overseas banking laws, and repatriation of funds. I would bet that Trump will find a way to improve American jobs without “tanking the economy”. And a little hard negotiation may be the ticket.