Looks like there will a border tax for companies that shift production to foreign countries.
http://mobile.reuters.com/article/idUSKBN14V2LN
http://mobile.reuters.com/article/idUSKBN14V2LN
paperboyNC said:BMW already makes more vehicles in the US than they sell here.
peppy said:paperboyNC said:BMW already makes more vehicles in the US than they sell here.
He was whining about the fact that more Germans don't drive American cars. The German Vice Chancellor basically told him that if wanted a higher presence of American cars, they need to build better cars.
The problem with import tariffs is that they tend to raise the prices of local goods as well (not by as much so as to still be at a more competitive price, but they will get raised nonetheless).
My guess is that not many companies will move production to within the US and just pass the cost of the tariff on to the consumers. The tariff revenue will be used by the government to finance the wall/fence/ditch on the southern border. Car and auto parts from Mexico are close to $80bn annually. 35% is $28bn annually. Let's say that imports are reduced by 75% and that brings in $7bn of yearly revenue. After 2 years the cost of the wall is paid for. A golden star if you can tell me who ended up paying for it ...
If Mexico imposes tit for tat tariffs on imported goods, major agricultural products will see a disruptions. Corn, soybeans, pork, beef would all see their sales shrink. Cheaper ribeye while there is an oversupply and then increase unemployment in areas that are centered around these products as they adjust their output to the new market demands. TPP would have benefited agricultural producers but that's all gone now.
eyephone said:peppy said:paperboyNC said:BMW already makes more vehicles in the US than they sell here.
He was whining about the fact that more Germans don't drive American cars. The German Vice Chancellor basically told him that if wanted a higher presence of American cars, they need to build better cars.
The problem with import tariffs is that they tend to raise the prices of local goods as well (not by as much so as to still be at a more competitive price, but they will get raised nonetheless).
My guess is that not many companies will move production to within the US and just pass the cost of the tariff on to the consumers. The tariff revenue will be used by the government to finance the wall/fence/ditch on the southern border. Car and auto parts from Mexico are close to $80bn annually. 35% is $28bn annually. Let's say that imports are reduced by 75% and that brings in $7bn of yearly revenue. After 2 years the cost of the wall is paid for. A golden star if you can tell me who ended up paying for it ...
If Mexico imposes tit for tat tariffs on imported goods, major agricultural products will see a disruptions. Corn, soybeans, pork, beef would all see their sales shrink. Cheaper ribeye while there is an oversupply and then increase unemployment in areas that are centered around these products as they adjust their output to the new market demands. TPP would have benefited agricultural producers but that's all gone now.
Mexico needs the US not the other way around.
#Remittances
qwerty said:I hope trump takes the next step and deports all illegals. I want the movie, a day without a Mexican, to play out in real life.
qwerty said:I hope trump takes the next step and deports all illegals. I want the movie, a day without a Mexican, to play out in real life.
qwerty said:I hope trump takes the next step and deports all illegals. I want the movie, a day without a Mexican, to play out in real life.
morekaos said:Whew!! Good thing I just bought a new washer and dryer. Don't have to worry about that tariff for another 10 years. Don't kid yourself, this is a warning shot, The Jyneese are taking heed, they are scared. MAGA!!
China Offers Tax Incentives to Persuade
U.S. Companies to Stay
BEIJING ? China said on Thursday that it would temporarily exempt foreign
companies from paying tax on their earnings, a bid to keep American businesses
from taking their profits out of China following Washington?s overhaul of the United
States tax code.
There is, however, a catch: To be eligible, foreign companies must invest those
earnings in sectors encouraged by China?s government ? including railways, mining,
technology and agriculture ? according to a statement from the Finance Ministry.
The measure is retroactive from Jan. 1 this year, the ministry said.
The move would ?promote the growth of foreign investment, improve the
quality of foreign investment and encourage overseas investors to continuously
expand their investment in China,? the ministry said. It did not elaborate.
Despite its appeal as a manufacturing hub, one where companies from around
the world have set up operations to tap into a highly skilled work force and strong
infrastructure, China charges high taxes. On top of a standard corporate rate of 25
percent, companies are required to make social security contributions and other
payments that push their tax burden higher than it is in many other countries
https://www.nytimes.com/2017/12/28/business/tax-bill-china.html
eyephone said:Toyota warning: Tariffs will push up auto prices
On a day when many automakers issued statements saying it's too soon to know how President Donald Trump's proposed steel and aluminum tariffs will impact the prices of cars and trucks, Toyota was blunt: get ready to pay more.
A statement from the Japanese automaker said in part, "...this would substantially raise costs and therefore prices of cars and trucks sold in America."
Toyota doesn't say how much prices will go up, but the message was echoed by the American Automotive Policy Council. Its president, Matt Blunt, reiterated what he said in mid-February about proposed steel and aluminum tariffs.
https://www.google.com/amp/s/www.cn...warning-tariffs-will-push-up-auto-prices.html