Omega Bruh Moment
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It was the same in 2016, after Trump spent a whole election cycle talking about 'CHYNA' he slapped tarrifs on close-by nations. I think the high rates of the current tarrifs won't destroy the right-wing in the US, but it will damage the unipolarity of the US. That has been going on in the EU since Trump wanted to buy Greenland without Denmark's agreement. I'm not familiar with LATAM, but I'm guessing they have similar issues about Trump unilaterally wanting to get the Panama Canal also.Sorry, call me a pessimist, but starting a trade war with 2 close trade partners
It's funny watching them twist like pretzels trying to explain how a country run by cartels who skin people alive for fun are going to win a trade war with the biggest country in the world.Progressives on twitter and reddit actually think Mexico a failed state with a GDP lower than Alabama is going to defeat the U.S in a trade war.
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While I understand the concern I don’t really see the pessimism. Companies will come back to the US if it means they can sell a competitive/affordable product, and if the only way to do that is to hire Americans they will.With this choice, Trump has effectively destroyed the right for decades.
Sorry, call me a pessimist, but starting a trade war with 2 close trade partners after running on a campaign of "we'll make things cheap", over very vague demands about primarily social problems, is probably the single worst decision a president has made in my lifetime. You know the one universal thing everyone gives a fuck about? Money, and this is exactly what's going to make people freak out.
Not to mention, long term, this is just going to send countries running to China, Russia, or other nations that don't flip out and threaten tariffs when they don't immediately get their way.
This is the biggest risk. If there isn't enough domestic competition in a sector, there's an incentive to raise prices to a level less than the tariffed goods but more than they cost prior to the tariffs. After all, the only competition is selling its products at a higher price by law so there's no incentive not to do so if your goal is to maximize your profits.if it means they can sell a competitive/affordable product
Agreed. It's not that the US won't take damage, it's that Canada and Mexico will have taken battleship shells to critical points to their economy. Trump can red line the US harder than either Canada or Mexico can without blowing up. In the end, they will fold.As I said on the USPG thread: The United States and Trump can stay retarded way longer than Canada and Mexico can stay afloat. By the time the tariffs actually start hurting Americans Mexico and Canada will have taken hundreds of billions worth of loss and and be on the edge of complete economic collapse, if not already into full economic implosion.
This is the biggest risk. If there isn't enough domestic competition in a sector, there's an incentive to raise prices to a level less than the tariffed goods but more than they cost prior to the tariffs. After all, the only competition is selling its products at a higher price by law so there's no incentive not to do so if your goal is to maximize your profits.
If barriers to entry are too high, you end up with oligopolies or even monopolies. For example, right now there is no competitor to Boeing in the manufacture of wide-body civilian aircraft in the United States. Not even one.
This is way too rash and unplanned.
That's the worst part, the revolving door between industry and government means these corporations write their own rules. They're intentionally designed to get them off the hook while preventing competitors from entry.That’s the result of crony capitalism. Regulation is the only reason why Boeing is the only one, if it didn’t cost 6 figures just to get started this wouldn’t be an issue.
We should have tackled these issues first before attempting anything with tariffs or protectionism. Getting the illegal immigration situation under control should also be a higher priority - secure the border, deport illegals, provide training and education for targeted sectors to create a pool of skilled workers for domestic manufacturing.It’s gonna get a little ugly, and we only do it to ourselves.
Isn't the reason he's putting the tariffs in understood to be because of border issues? At least for Mexico, because they're letting people across their border to Mexico into US and being bitchy about accepting the deported Mexicans back.Getting the illegal immigration situation under control should also be a higher priority
Yes. It's a little bit of economic coercion. Get your shit together or I nuke you economy to hell and back. That's for the border, drugs, gangs, literally everything both countries are doingIsn't the reason he's putting the tariffs in understood to be because of border issues? At least for Mexico, because they're letting people across their border to Mexico into US and being bitchy about accepting the deported Mexicans back.
That's definitely not the impression I've gotten from his statements around this. They're very vague in terms of justification and extremely broad, with no actionable goals as if used as a threat (similar to what happened with Colombia).Isn't the reason he's putting the tariffs in understood to be because of border issues? At least for Mexico, because they're letting people across their border to Mexico into US and being bitchy about accepting the deported Mexicans back.
Unfortunately it’s all too easy to let someone go from a company, only for them to go into politics coincidently to represent the interests of their previous employment. Only too easy for a donor to get you elected with unspoken, or should I say unrecorded, expectations.That's the worst part, the revolving door between industry and government means these corporations write their own rules. They're intentionally designed to get them off the hook while preventing competitors from entry.
While I agree, we won’t given the short amount of time we have to have effective change. A perfect plan executed too late isn’t optimal. I hate being rash and bullish but I don’t think there’s any other way to get there.We should have tackled these issues first before attempting anything with tariffs or protectionism. Getting the illegal immigration situation under control should also be a higher priority - secure the border, deport illegals, provide training and education for targeted sectors to create a pool of skilled workers for domestic manufacturing.