One way or another. Donald J. TrumpVerified account@realDonaldTrump 15h15 hours ago On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,.. 4:30 PM - 30 May 2019
Should have done this sooner. Perhaps even start higher than 5%.... build a bit of a fire under their asses!
Isn't the tariff actually paid by the people who purchase the products over which the tariff was imposed(americans, in this case, since the products are coming into the U.S.)? Maybe it will hurt Mexico and actually curb illegal immigration (I doubt it VERY MUCH THOUGH), but still, the ones who will actually pay the 5% are the american consumers who will be forced to buy more expensive mexican products...
Also need to put an escalating tax on remittances from mexicans in the U.S back home to mexico. Not to forget that those remittances are Mexico's largest source of foreign revenue. It's good to give all Mexicans skin in the game so that they will have something to think about rather than treating it all as a spectator sport where they see how many of their buddies and relatives are making it across these days. Also. Need to look at the quota for legal mexican immigrants, and net down the number of illegals from that. Hint: That will be a negative number on steroids. That's all for now. Have a nice day.
OK. But still, as I said, who will pay for this 5% tax will be the americans who will be forced to buy more expensive mexican products or not buy it at all(which for people who would've bought is also a cost). So to say that "mexico is paying for the wall after all" is a mistake. Americans will pay it. Whether it will curb illegal immigration or not(which I think is something that must be done because of the idiotic welfare state), that's another story. All I'm saying is that all tariffs on imports are, BY DEFINITION, PAID BY THE CONSUMERS OF THE COUNTRY THAT IMPOSES THE TARIFF. So... Mexicans are still not paying for the wall.
I see this argument a lot. I believe there are two fallacies with it. First, the tariffs are only on mexican goods. Consumers can avoid the tariffs by buying non-Mexican products. Second, it's not so easy just to raise prices. If mexican exporters could have been getting 5 or 10% more, they would have already raised the prices to those levels, tariffs or no tariffs. They have to compete with products made in the US and elsewhere though, so they have limited ability to jack up the prices. For something like cars, the manufacturers will be eating the tariffs themselves.
Still, if they buy non-mexican alternatives, they will still be spending more(which is the same as paying the tax, even if it is less then 5%, otherwise they would not be buying the mexican options primarily to begin with. "They have to compete with products made in the US and elsewhere though, so they have limited ability to jack up the prices." Exactly. This means that your assumption that they have so much of a profit margin is very probably not accurate. Which means that the most likely end result will be that the prices will indeed raise. And, as I said up here, even it this makes another non-mexican alternative cheaper, this alternative will still be more expensive than the original mexican option, otherwise the americans who were buying it, would not have been buying it in the first place.
You are so dumb. This is trading forum after all, the end result is that we all will pay more for goods.
I don't think it will do one thing to illegal immigration. Zero, nada, zilch. Illegal immigration isn't something Mexico can fix in the short term. It is doubtful they can fix it in the long term. They can't even stop drug cartels and corruption. They're probably making more money from the flow of narcotics than they are from the flow of legitimate goods. The whole "Mexico will pay for the wall" comment has always been misrepresented and overblown. There isn't a bill that can be presented, an account debited. The concept of Mexico paying for the wall has always been in overall GDP impact - both here and there. It is exceptionally difficult, if not impossible, to judge who would actually foot the bill in any real world implementation of such policy. It is easy to determine who will pay for any wall directly - we will. In the form of more issued debt. As I have mentioned before in regards to China, tariffs are flawed because of the simple fact that only one man in political power is behind them - Trump. Therefore, China and Mexico and whatever companies affected need only wait for this one man to be out of the picture before business can return to normal. More and more this looks to be sooner rather than later as an embattled Trump continues to marginalize and isolate himself with these dramatic moves. Additionally, all interested parties now have an interest to get rid of Trump rather than support him or remain on the sidelines. And there are some pretty powerful players in there. If we were united, Congress and the White House, in imposing tariffs that would be different. The message would be "this isn't going away and you need to change something or we're all going to be at this for a long, long time." But the Democrats and many Republicans are set against Trump no matter what he does - even if what he does is right and needs to be done. This is the whole problem with our politics: Team before Principle.