Trump Tarrifs

[Hobby]

If Trump wins the election Trump has said he will imposed tariffs claiming it will lower the cost of goods we buy.  If tariffs are imposed on imports... will it drastically cut competition allowing US manfactures to raise their price? I think it will cause prices at the store to go up.  Am I wrong? 

[bats]

Trump either doesn't understand tariffs or counts on his supporters not to. Either way, the general effect would be increased import prices and decreased export activity. Bad for the economy, but good for economic chaos and isolating America.

[Danno]

Trump thinks he can do away with taxes and run the country on tariffs collected

[dogwalker]

Someone has to pay for tariffs.  There are 2 choices.  IF a company is profitable they can reduce their prices but that would reduce their profit margin which few companies are willing to do especially if they are a public company and even more so if they pay a dividend.  The alternate which happens MUCH more often is pass along the cost to the buyers.
 
Part of the argument for it is to get foreign companies to produce in the US.  However labor costs more here.  So to me it does not matter whether a US company manufactures a product or a foreign one sets up manufacturing here.  The cost will likely be higher for many items than for a similar item produced overseas.  Foreign governments often retaliate against tariffs and if they do that it can hurt sales of any American-made item that is exported.  Quid pro quo.

I believe the average American would pay more. I consider tariffs to ultimately be taxes and increased prices could result in inflation. Yes more jobs may be made or saved but the above is the cost of that.  Since I do not manufacture or import or export anything and since I hate taxes and inflation I'd be against tariffs.

[Zep]

Sadly, besides threatening to beat up and kick out minorities, The tariff concept is tRump's only policy for making everything perfect in America.

As long as minorities get beat up and kicked out, Trump backers are OK with tariffs.

[Romanticlover]

Since I'm a history nerd I thought I would share this:

https://en.wikipedia.org/wiki/History_of_tariffs_in_the_United_States#:~:text=From%201790%20to%201860%2C%20average,that%20level%20for%20several%20decades.

'Tariffs were the greatest (approaching 95% at times) source of federal revenue until the federal income tax began after 1913. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports. At the end of the American Civil War in 1865 about 63% of Federal income was generated by the excise taxes, which exceeded the 25.4% generated by tariffs. In 1915 during World War I, tariffs generated 30.1% of revenues. Since 1935, tariff income has continued to be a declining percentage of Federal tax income.'

I would rather have higher tariff's than higher income taxes, foriegn countries want to sell their goods in the US so they can bitch all they want. Higher tariffs are a win for US labor because they will want to setup factories in the US(like many carmakers have).

[dogwalker]

this is 2024

[Danno]

The only tax cut Tromp has proposed is eliminate the FICA taxes, which are taxes for Social Security and Medicare. And no tax on SS. But without a FICA tax there will be no SS to tax.

[Blkfyre]

Since I'm a history nerd I thought I would share this:

https://en.wikipedia.org/wiki/History_of_tariffs_in_the_United_States#:~:text=From%201790%20to%201860%2C%20average,that%20level%20for%20several%20decades.

'Tariffs were the greatest (approaching 95% at times) source of federal revenue until the federal income tax began after 1913. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports. At the end of the American Civil War in 1865 about 63% of Federal income was generated by the excise taxes, which exceeded the 25.4% generated by tariffs. In 1915 during World War I, tariffs generated 30.1% of revenues. Since 1935, tariff income has continued to be a declining percentage of Federal tax income.'

I would rather have higher tariff's than higher income taxes, foriegn countries want to sell their goods in the US so they can bitch all they want. Higher tariffs are a win for US labor because they will want to setup factories in the US(like many carmakers have).

Why do you think that they have been a declining source of revenue? It can't be because the nasty libs fought against it as since 1935 there have been 8 Democratic Presidents, 7 Republican ones. Surely the Republican presidents would have been hard charging those tariffs.

Between 1934 and 1945, the executive branch negotiated over 32 bilateral trade liberalization agreements with other countries. The belief that low tariffs led to a more prosperous country are now the predominant belief with some exceptions. Multilateralism is embodied in the seven tariff reduction rounds that occurred between 1948 and 1994. In each of these "rounds", all General Agreement on Tariffs and Trade (GATT) members came together to negotiate mutually agreeable trade liberalization packages and reciprocal tariff rates. In the Uruguay round in 1994, the World Trade Organization (WTO) was established to help establish uniform tariff rates.

Currently only about 30% of all import goods are subject to tariffs in the United States, the rest are on the free list. The "average" tariffs now charged by the United States are at a historic low.

[Romanticlover]

Between 1934 and 1945, the executive branch negotiated over 32 bilateral trade liberalization agreements with other countries.

Another example of FDR's(Democrat) failed policies during the great depression, none of his foreign policies helped prevent WWII but they reduced America's dominance and prestige on the world stage.

[Blkfyre]

Another example of FDR's(Democrat) failed policies during the great depression, none of his foreign policies helped prevent WWII but they reduced America's dominance on the world stage.

And yet, economically, it was best for the country.

After the war the U.S. promoted the General Agreement on Tariffs and Trade (GATT) established in 1947 (2 years AFTER FDR), to minimize tariffs and other restrictions, and to liberalize trade among all capitalist countries. American industry and labor prospered after World War II.

In 1995 GATT became the World Trade Organization (WTO); with the collapse of Communism its open markets/low tariff ideology became dominant worldwide in the 1990s.

[Romanticlover]

The problem with free-trade is the loss of US manufacturing jobs, we saw that with NAFTA(signed by Clinton) moving many factories to Mexico*. The only way free-trade is fair and equitable is if every country has a similar standard of living and wages, until that time we need tariffs.

*in 1994 the US minimum wage was $4.25/hr(the average wage was $8/hr), Mexico didn't have a minimum wage.

[Blkfyre]

The problem with free-trade is the loss of US manufacturing jobs, we saw that with NAFTA(signed by Clinton) moving many factories to Mexico*. The only way free-trade is fair and equitable is if every country has a similar standard of living and wages, until that time we need tariffs.

*in 1994 the US minimum wage was $4.25/hr(the average wage was $8/hr), Mexico didn't have a minimum wage.

The problem with free-trade is the loss of US manufacturing jobs because the people with the money decided cheaper costs elsewhere trumped keeping US jobs.

Period. There is no blaming anyone other than those companies, including Trump and his daughter.

[Romanticlover]

They moved the jobs overseas because retarded politicians signed these free-trade agreements and they keep raising the minimum wage here in the US, back in 1992 Ross Perot said there would be a giant sucking sound of jobs leaving the US and he was right.

[Blkfyre]

They moved the jobs overseas because retarded politicians signed these free-trade agreements and they keep raising the minimum wage here in the US, back in 1992 Ross Perot said there would be a giant sucking sound of jobs leaving the US and he was right.

So which is it? Is it more important to keep jobs in the US, or it's more important for companies and their profits? Because if it's the former, then they can make less but keep the jobs, right?

But that's never going to be the answer. Lower costs, higher profits will beat keeping jobs in the US anytime!