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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDo you approve or disapprove of a 20% tax on Mexican imports?
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Approve | |
5 (10%) |
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Disapprove | |
44 (90%) |
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onecaliberal
(32,894 posts)mercuryblues
(14,537 posts)They will just export to another country that doesn't have the tax. Then that country will slap their label on it and export the goods to us.
Mexico will just make trade agreements with other countries.
Does Trump really think Ford, GE and other American companies are going to sit idly by and let him do this? Trump has manufacturing in Mexico, does he owe Mexican banks? If he does, I hope they recall his loan.
onecaliberal
(32,894 posts)C_U_L8R
(45,020 posts)This sounds like US households will pay the burden.
You hear that Republicans? You've been Trumped.
Bengus81
(6,932 posts)On that FHA mortgage insurance hike that Drumph pulled in about hour one of his Presidency. That asshat has cost us and THEM a load of money and this is just week one. HUGE gas price hikes also coming soon enough IMO.
C_U_L8R
(45,020 posts)Poor dumb Republicans. So easy for their overlords to con and fleece.
irisblue
(33,023 posts)Is my next yard sign & t shirt, if I can use it please.
C_U_L8R
(45,020 posts)We're starting a sharing economy to deal with this Trump bullshit.
irisblue
(33,023 posts)live long and prosper.
mainer
(12,029 posts)I'm making it tonight, in fact.
Xolodno
(6,401 posts)The cartels are hurting because more and more states are legalizing weed.....this would give them a new round of goods to smuggle in.
And easier. How do you tell the difference between taxed and un-taxed beer?
alllove
(41 posts)Thrill
(19,178 posts)alllove
(41 posts)etherealtruth
(22,165 posts)Under existing treaties, Trump could impose 15 percent duties for 100 days on Mexican imports, claiming a balance payments emergency, but that would fall short of the punishment hes threatened. Other fines, such as anti-dumping duties, require special and lengthy procedures to enact. For his tariff to stick, Trump would likely have to ask Congress to include it in a broader overhaul of the U.S. tax code.
https://www.bloomberg.com/politics/politics/trackers/2017-01-26/trump-may-fund-border-wall-with-20-percent-tax-on-mexico-imports
alllove
(41 posts)I thought NAFTA covers only certain goods but not all that we export into Mexico .
Others goods still are Taxed
Am I wrong in this?
HoneyBadger
(2,297 posts)The Rules of Origin are identified as:
Goods wholly obtained or produced in a NAFTA country e.g. minerals extracted, livestock, fish and shellfish, and vegetable goods.
Goods made from materials that did not originate from a NAFTA country but have undergone a tariff classification change as specified in Originating Goods (Article 401).
Goods produced entirely in a NAFTA country exclusively from materials originating from that country. For example a wine press made of parts originating in the US but made of metals sourced from countries outside the NAFTA agreement.
Goods that are imported disassembled but are classified as assembled; or goods where the heading and subheading of the HS classification describes both the goods and its parts and providing that the regional value content of the good is not less than 60% of the transaction value. .
jmg257
(11,996 posts)not sure if still in place...
June 2009
Overview
The Mexican government recently imposed import tariffs on $2.4 billion of U.S. goods after the United States suspended a program allowing Mexican trucks to deliver goods across the border. When the U.S. closed the southern border to Mexican trucking in March, Mexico promised to retaliate. Mexico has released a list of 89 U.S. products that will face tariffs of 10 percent to 45 percent.
http://www.nytimes.com/2009/03/17/business/worldbusiness/17fobriefs-TARIFFSPLACE_BRF.html
By BLOOMBERG NEWSMARCH 16, 2009
Mexico placed tariffs on about 90 American products after the United States restricted Mexican trucking, said the countrys economic minister, Gerardo Ruiz Mateos. The measure was taken for the incompliance of the country in its agreements regarding transport under the North American Free Trade Agreement, Mr. Ruiz, left, said. That is what is commonly known as measures of retaliation. Mr. Ruiz said the tariffs would be imposed on items representing $2.4 billion in trade, but did not name the products.
alllove
(41 posts)TheFrenchRazor
(2,116 posts)alllove
(41 posts)but NOT 20% that sounds like a lot.
I'm not a big fan of NAFTA either
Maru Kitteh
(28,342 posts)starting a trade war with the second largest importer of US goods?
alllove
(41 posts)Should be an easy question to answer .
etherealtruth
(22,165 posts)The border tax Trump floated would be a clear violation of Nafta, which allows the duty-free movement of goods between Mexico, the U.S. and Canada, though Trump already has said he will demand a renegotiation of the deal or withdraw.
alllove
(41 posts)etherealtruth
(22,165 posts)here is another: http://money.cnn.com/2016/09/28/news/economy/trump-mexico-vat-tax/
alllove
(41 posts)In a report released Monday, Trump's economic advisers Peter Navarro and Wilbur Ross argue it's not fair that products that American companies are subject to this additional levy from VAT countries. That's because under World Trade Organization rules, foreign companies that manufacture in their own countries and then export goods to the U.S. receive a rebate on the VAT taxes they paid in their homeland.
This makes it more economical for U.S. companies to move their factories abroad and export their products back home, Trump's advisers say. If the U.S. firm is based overseas, it also receives the rebate
etherealtruth
(22,165 posts)Canada has it. Every other major industrialized economy has also adopted it. When it comes to the value-added tax, the U.S. is the only outlier (I don't support a VAT)
alllove
(41 posts)things where we the U.S got the short end of the stick...so to speak
etherealtruth
(22,165 posts)I think your points have fallen pretty flat because you are not making the distinction between VATs and tariffs. They are not interchangeable as they are not the same thing.
alllove
(41 posts)You asked me if I knew the difference
etherealtruth
(22,165 posts)Not sure what point you are trying to make ...? You are comparing apples and oranges and then claiming they represent blueberries.
alllove
(41 posts)but I do love blueberry pie
DanTex
(20,709 posts)No, a VAT doesn't disadvantage US exports or encourage relocation of factories.
If a good is manufactured in Mexico, and exported to the US, yes, they get a VAT rebate. That's a rebate for VAT that has already been paid on the manufacture of those goods. So that producer pays zero VAT in the end.
If a good is manufactured in the US, the producer also pays zero VAT, because the US doesn't have a VAT. So it makes no difference -- no VAT either way.
In terms of US exports to Mexico, they are charged VAT. But if a product is manufactured in Mexico and then sold in Mexico, then it is also charged a VAT. So there's a VAT no matter where the production takes place.
So in either of the cases, whether the good is sold in the US or Mexico, the same amount of VAT is paid no matter where the product is manufactured.
gordianot
(15,243 posts)He has spent too much time with mobsters where the outcome is someone gets stiffed (likely more ways than one), someone is cheated, you go bankrupt and somehow end up in the clear.
etherealtruth
(22,165 posts)Maru Kitteh
(28,342 posts)alllove
(41 posts)that's why I asked you knowing that you would.
I only went as far as the 6th grade .
grantcart
(53,061 posts)I assume that you wouldn't object that Mexico reciprocates with a 40% tax and buys Airbus instead of Boeings, etc. etc.?
alllove
(41 posts)grantcart
(53,061 posts)The fact is that when you count the production sharing value of Mexican imports of parts that are reimported in finished goods to the US we have a trade surplus with Mexico:
http://thehill.com/blogs/pundits-blog/presidential-campaign/247649-no-mr-trump-mexico-is-not-killing-us-on-trade
Trade: In 1993, before NAFTA took effect (which it did in January 1994), Mexico bought $41 billion in goods and services from the U.S. and sold $39 Billion worth to the United States. Total: $80 billion. In the first year of NAFTA, the $80 billion increased to $99 billion, a 25 percent increase.
Ten years after NAFTA started, total trade between the U.S. and Mexico was $145 billion an increase of 55 percent. In 2003, almost twenty years after NAFTA began, total trade with Mexico was $506 billion half a trillion dollars which is 632 percent more than 1994.
In 2014, by contrast, the United States exported $123 billion in goods to China and imported $466 billion from China. That's a minus $343 billion imbalance in trade. In 2014, the U.S. exported $49 billion of goods to Germany and imported $123 billion for an imbalance of minus $73 billion (lots of Mercedes and BMWs).
Here is something that Mr. Trump apparently does not know: U.S.-Mexico trade is unique in the world; there is a "production sharing" program between Mexico and the United States in which, according to the Wilson Center's Mexico Institute, "A full 40 [percent] of the content of U.S. imports from Mexico is actually produced in the United States. ... This means that forty cents of every dollar spent on imports from Mexico comes back to the United States, a quantity ten times greater that the four cents returning for each dollar paid on Chinese imports."
But what folks in the US conveniently overlook is the huge amount of repatriated profits and services that aren't in the trade figures. The US's three largest US dollar revenue sources are entertainment (Hollywood), software (Microsoft), and games (Sony etc which are produced in the US).
Beyond that are the indirect labor that often dwarfs the minimal direct labor of assembling. For example your IPod is assembled in Mexico for $ 25 with about $ 8 for Mexican labor. It is shipped to Vermont at an invoice of $ 200 and retails for $ 400. $ 175 goes back to Apple for overhead, profit and indirect labor. That indirect labor actually exceeds the value of the phone because as you add apps the phone becomes a multi tasking computer and most of that labor is US based. Not only the labor in the apps in the phone but the software that links the phone (Qualcomm).
So not only are the figures with Mexico very good they also hide a lot of trade that is beneficial to the US. So for example if that Ipad is assembled in Mexico and sent to Argentina a significant portion of it will be repatriated back to the US but never show up in any trade with the US.
Worktodo
(288 posts)DemocratSinceBirth
(99,711 posts)TrekLuver
(2,573 posts)aikoaiko
(34,183 posts)Hoyt
(54,770 posts)Lithos
(26,404 posts)A 20% surcharge on Trump brands...
hrmjustin
(71,265 posts)DODI
(2,144 posts)ProfessorGAC
(65,168 posts)Bad idea, prima face.
hollowdweller
(4,229 posts)roamer65
(36,747 posts)We would lose in arbitration.
cynatnite
(31,011 posts)Blue_true
(31,261 posts)I am concerned that the world will permanently go against us and we will lose leadership of the western world to Germany.
Hoyt
(54,770 posts)yardwork
(61,703 posts)It's clear that Putin wants to reestablish the Soviet Union - only bigger this time - and he is prepared to do anything to get it.
Europe will resist. We are headed for WWIII. And this time, the U.S. will be on the wrong side, the side of evil.
doc03
(35,364 posts)are also made there. I don't think the Trumpsters would like paying another $5000 to $10000 for one of their
cars or trucks.
alllove
(41 posts)if they want to stay competitive in the auto industry
doc03
(35,364 posts)to Detroit. Mexico is one of our largest suppliers of oil, you ready to pay more for gas? You think
they will move the auto factory back to Detroit and pay $50 a hour? They will put more robots in
and pay $10.00 an hour to labor.
DemocratSinceBirth
(99,711 posts)Last time we bullied a Latin American neighbor we drove them into the open arms of a hostile military power and ended up with an existential military crisis.
Response to DemocratSinceBirth (Reply #59)
Name removed Message auto-removed
DemocratSinceBirth
(99,711 posts)What if Mexico slaps a fifty percent tariff on all cars made in the United States?
After all it's not as if they can't buy cars from Japan, South Korea, and Germany.