Replies (11)
Satosha
The tarrif genius ..
10 % flat on China and 25 % on Mexico and Canada .. what is the rationale ?
#askNostr
Here is my 4 ..
- China was deliberately building capacity in Mexico ( and possibly in Canada) to route goods to US .. all that effort is now wasted .
- Sending goods directly to US at 10 % tarrif is actually cheaper than rounting through Mexico .. so inflation is taken care ..
- Chiese manufacturer has incentive to set up manufacturing in US rather than setting up shops in Mexico and or Canada
- The drug and trafficking money was used to build facilities in Mexico .. all incentives now gone .. and government is now forced to tackle the cartels .. particularly because cartels are put on terror list
View quoted note →
Satosha
The tarrif genius ..
10 % flat on China and 25 % on Mexico and Canada .. what is the rationale ?
#askNostr
Here is my 4 ..
- China was deliberately building capacity in Mexico ( and possibly in Canada) to route goods to US .. all that effort is now wasted .
- Sending goods directly to US at 10 % tarrif is actually cheaper than rounting through Mexico .. so inflation is taken care ..
- Chiese manufacturer has incentive to set up manufacturing in US rather than setting up shops in Mexico and or Canada
- The drug and trafficking money was used to build facilities in Mexico .. all incentives now gone .. and government is now forced to tackle the cartels .. particularly because cartels are put on terror list
View quoted note →
The effort is not wasted. It was a classic chess move - you make your opponent choose between two losses. Either China made money, or the US isolated itself from the two most important states for national defense, in which case we have an ongoing higher cost if defense.
I'm not anti-China, BTW. I lived there for years, which I wouldn't do if I viewed them as enemies. I'm just observing, and China appears to be the more skilled player.
From the tarrif standpoint, it seems Trump too ain't anti China ..
As far as defence is concerned - yes the move seems counteproductive but the fact is the perceived security was already marginalized.. cuz Fentanyl was is killing more Americans than any war todate .. and illegal immigration was literally out of control.. to put it mildly:-)
A more sensible approach to immigration would be to allow all immigration but stipulate that they become proficient in English within a timeframe *and* their original country have the same policy for Americans going there.
Fentanyl is our own government's doing. Nothing is getting through ports and freight checks without inspection. The only way it crosses the border is if the government is complicit.
How about Mexico and Canada run English classes .. and also inspect the stuff that crosses their border to USA ? Not much to ask from a good neighbour...
We are here because financial incentives were not aligned .. now fentanyl will evaporate in thin air ..
Because they don't speak English? Did you shortcircuit or what?
Why would anyone care to inspect things leaving? Its the job of the inspectors on the receiving side to inspect what comes in. I'll repeat : the ONLY way fentanyl can get across our borders in bulk is if our government is complicit.
Bro... You short circuited when I said something you haven't heard before. Like a typical suburban Republican or Democrat. Do you need me to put on a tie and stick a CNN logo next to me in a video for you to accept it?
What's the point of having good neighbours if they are going to dump anything in my backyard ! .. sorry frontyard :-)
Yep. You really did short circuit...
Tarrif's make us all poorer and global production of goods/services less efficient. End consumers pay them, not "companies" or "countries". The more tariffs, the most expensive everything will get and the worse domestic product quality will be because they have no need to compete with out-of-country products/services. It's anti-liberty, you should be able to buy what you want from where you want without government distorting the market. Consumers should decide winners and losers, not governments.
Yes .. that is a great prescription if everyone agrees to it - means all nations .. and there is one money #bitcoin ..
This has been the American mantra for over two decades now but ... Unfortunately the world is still not there .. and in getting it to that point , American manufacturing is completely destroyed ..
