Author Topic: White House press secretary says border wall will be funded by 20% import tax on Mexican goods  (Read 13371 times)

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Offline SirLinksALot

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SOURCE: WASHINGTON POST

URL: https://www.washingtonpost.com/world/the_americas/mexican-president-cancels-visit-to-washington-as-tensions-with-trump-administration-intensify/2017/01/26/ececc3da-e3d9-11e6-a419-eefe8eff0835_story.html?pushid=breaking-news_1485463353&tid=notifi_push_brea

Joshua Partlow



MEXICO CITY--President Enrique Peña Nieto on Thursday called off a trip to Washington, after President Trump launched his plan to construct a border wall and insisted he would stick Mexico with the bill. The incident opened one of the most serious rifts in memory between the United States and its southern neighbor.

Trump spokesman Sean Spicer added a stunning new detail about the proposed wall project later Thursday, saying that Trump intended to pay for it by imposing a 20-percent tax on all imports from Mexico.

Peña Nieto had been scheduled to meet with Trump on Tuesday to discuss immigration, trade and drug-war cooperation. He called off the visit after Trump tweeted that it would be “better to cancel the upcoming meeting” if Mexico was unwilling to pay for the wall.

Trump’s moves have rekindled old resentments in Mexico, a country that during its history has often felt bullied and threatened by its wealthier, more powerful neighbor. The legacy of heavy-handed U.S. behavior — which includes invasions and the seizure of significant Mexican lands -- has mostly been played down by a generation of Mexican leaders who have pursued pragmatic policies and mutual economic interests with both Republican and Democratic U.S. administrations. .

Both Peña Nieto and Spicer said that their countries were interested in maintaining positive relations. “We will keep the lines of communication open,” Spicer told reporters in Washington on Thursday morning, adding that the White House would “look for a date to schedule something in the future.” The Mexican president tweeted that his government was willing to work with the United Statse “to reach agreements that benefit both nations.”

But Mexicans expressed shock and dismay as Trump moved to turn his campaign promises into reality.

Mexicans view a wall across the 2,000-mile border as a symbolic affront, part of a package of Trump policies that could cause the country serious economic pain. They include a crackdown on illegal immigrants, who send billions of dollars home, and renegotiation of the North American Free Trade Agreement, or NAFTA. The treaty has allowed trade between the neighbors to mushroom. Every day, $1.4 billion in goods ccross the U.S.-Mexico border, and millions of jobs are linked to trade on both sides. Mexico is the second largest customer for American-made products in the world, and 80 percent of Mexican exports — automobiles, flat screen TVs, avocados — are sold to the United States.

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Online Maj. Bill Martin

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Terrible idea if actually enacted.  Perhaps not a bad thing to threaten, though....

Offline Weird Tolkienish Figure

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Makes us look like bullies IMO.


Good or bad you decide. Trump will need cooperation from other countries at a certain point.

HonestJohn

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The most noticeable and immediate impact will be at the grocery store, with our fruits and vegetables.  Quite a lot is imported from Mexico.


Offline Mesaclone

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First, its very unlikely it would need to put into effect...the threat is sufficient.
Second, if it is enacted there are many ways to mitigate the impact on the public.
Third, I'm happy to pay 10 cents extra for bananas and plantains if it means the border is secure.

This is how negotiations are done. You start with harsh terms, and walk it back...though admittedly, there are times you have to set an example. But remember who holds nearly ALL of the leverage here...and it ain't Mexico.
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Offline ABX

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Don't be fooled. You, I, and every other consumer will be the ones footing that bill. Not Mexico.

HonestJohn

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First, its very unlikely it would need to put into effect...the threat is sufficient.
Second, if it is enacted there are many ways to mitigate the impact on the public.
Third, I'm happy to pay 10 cents extra for bananas and plantains if it means the border is secure.

This is how negotiations are done. You start with harsh terms, and walk it back...though admittedly, there are times you have to set an example. But remember who holds nearly ALL of the leverage here...and it ain't Mexico.

I guess you are saying that Mexico should start imposing a 2000% import tariff on US goods?

Offline Cripplecreek

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Don't be fooled. You, I, and every other consumer will be the ones footing that bill. Not Mexico.

And it won't be just a small handful of products. There are a good many products that enter Mexican ports then go on trains and Trucks to be shipped north. Will we be taxing that stuff too?

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Don't be fooled. You, I, and every other consumer will be the ones footing that bill. Not Mexico.

Absolutely true! NO doubt about it!
"I wish it need not have happened in my time," said Frodo.

"So do I," said Gandalf, "and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us."
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Offline Suppressed

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Trump's war on ordinary American consumers begins.
+++++++++
“In the outside world, I'm a simple geologist. But in here .... I am Falcor, Defender of the Alliance” --Randy Marsh

“The most effectual means of being secure against pain is to retire within ourselves, and to suffice for our own happiness.” -- Thomas Jefferson

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Offline ABX

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First, its very unlikely it would need to put into effect...the threat is sufficient.
Second, if it is enacted there are many ways to mitigate the impact on the public.
Third, I'm happy to pay 10 cents extra for bananas and plantains if it means the border is secure.

This is how negotiations are done. You start with harsh terms, and walk it back...though admittedly, there are times you have to set an example. But remember who holds nearly ALL of the leverage here...and it ain't Mexico.

You'll have a shock if you think it is just going to be ten cents on a pound of bananas. But, let's use the importation of bananas as an example jsut to make this simple.

In addition to the tax directly on the imported bananas, you have to account for the transportation. Many of the parts in the trucks that bring the bananas are made in Mexico. A large percentage of our gas is also refined in Mexico. You just have shot up your transportation expenses for said bananas as well. Then you have the truck drivers. They will be getting hit with all the extra expenses, so manpower costs will go up. (he buys goods just like you and if his paycheck has less purchasing power, he'll demand more..) Then, you have the machinery used in the factories to clean and sort the bananas, their expenses now go up. Your grocery store refrigators, more expenses going up... and so on and so on and so on...

When you have artificial manipulation in the markets, such as sudden import taxes like this, it effects far more than just the one product you think of. It makes waves through many other related products and goods.

It is the same reason the ACA is killing the healthcare market place and making things more expensive.

Offline ABX

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And it won't be just a small handful of products. There are a good many products that enter Mexican ports then go on trains and Trucks to be shipped north. Will we be taxing that stuff too?

And, as I mentioned above, the parts and gas for the trains and trucks, the people that work on them who now have higher expenses (ie, you and I), and so on and so on....

Government interference with the market always hurts in the long run, no matter if it is a D or R behind the name.

Offline Norm Lenhart

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I guess you are saying that Mexico should start imposing a 2000% import tariff on US goods?

That's a self-solving problem. Things have needed to come to a head for a long time. If Mex does that, their economy instantly collapses because every country doing biz there will run. Then the people can have their own revolution and have a chance of emerging better for it.

People here are gonna feel some pain no matter what Trump does with tarrifs. We are at the cusp of a complete global restructuring whether good or bad, regardless of who wants what. The entire mess is unsustainable as is and most people realize it. What happens from that realization may be very ugly, but not avoidable.

HonestJohn

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That's a self-solving problem. Things have needed to come to a head for a long time. If Mex does that, their economy instantly collapses because every country doing biz there will run. Then the people can have their own revolution and have a chance of emerging better for it.

People here are gonna feel some pain no matter what Trump does with tarrifs. We are at the cusp of a complete global restructuring whether good or bad, regardless of who wants what. The entire mess is unsustainable as is and most people realize it. What happens from that realization may be very ugly, but not avoidable.

That applies to any country that imposes tariffs (depending on the severity).

Which means that it'll apply to us as well.

That's what I'm trying to point out to the guy I responded to.
« Last Edit: January 26, 2017, 10:00:29 pm by HonestJohn »

Offline Jazzhead

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Trump's war on ordinary American consumers begins.

Indeed.  And on investors, too.   Lots of U.S. manufacturers engage in extensive cross-border trade;  their supply lines depend on it.  Expect stock in such companies to plunge.   And expect American workers for such companies to be laid off.

Trump's a fool.   There is absolutely no reason to be picking this fight.  Mexico has signaled its willingness to be cooperative,  but Trump has too much ego to walk back his stupidest campaign promise. 

Oh well, it was fun while it lasted. 
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Offline Norm Lenhart

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That applies to any country that imposes tariffs (depending on the severity).

Which means that it'll apply to us as well.

That's what I'm trying to point out to the guy I responded to.

Exactly. Thus my comment about 'coming to a head' and 'global restructuring'. We too will have to  make choices as a people. Because the Obama left style of economics is not working. We can't have our cake and eat it too.

America forgot it doesn't NEED the world to survive. We should work with the world where possible, but not to our detriment. We CAN survive if we want to. But I very much doubt the world wants an isolated America. And so we have leverage.

If we want to use it. IF.

Online kevindavis007

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No... Also, I hope Congress says no as well.
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Offline ABX

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No... Also, I hope Congress says no as well.

Is he going to congress with this request or just pulling the "I have a pen and a phone"?

Online kevindavis007

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Is he going to congress with this request or just pulling the "I have a pen and a phone"?


Last time I checked, Congress passes taxes.. Of course if Trump does it it will be OK. I guess.
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Offline NavyCanDo

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20% passed on to the American consumer. Including American businesses who buy parts from Mexico.
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Offline Jazzhead

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20% passed on to the American consumer. Including American businesses who buy parts from Mexico.

Absolute insanity. 
It's crackers to slip a rozzer the dropsy in snide

Offline Cripplecreek

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20% passed on to the American consumer. Including American businesses who buy parts from Mexico.

Yep. There is no such animal as a 100% American made car.

Offline ABX

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Remember when Tax and Spend were dirty words to Republicans?

Online kevindavis007

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Yep. There is no such animal as a 100% American made car.


There may have been 60 years ago, but not now.
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Online kevindavis007

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Remember when Tax and Spend were dirty words to Republicans?


Those where the days..
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