Trump Tariffs
Let me get this straight.
If Trump is imposing 50% tariffs on imported steal and 25% tariffs on imported car parts, which will significantly raise the prices of cars made in America, while raising finished EU products imported into the United States by 15%, wouldn't be to the advantage of car makers to make their products in Europe?
Meanwhile lawsuits are winding their way through the American International Tarriff Court challenging Trump's claim to emergency powers to impose tariffs. Originally the lower courts had tried to stay Trump's tariff orders but SCOTUS, I think, allowed him to continue to collect the tariffs on the promise he would reimburse them if the courts finally rules against him
Now that would be interesting.
If Trump is imposing 50% tariffs on imported steal and 25% tariffs on imported car parts, which will significantly raise the prices of cars made in America, while raising finished EU products imported into the United States by 15%, wouldn't be to the advantage of car makers to make their products in Europe?
Meanwhile lawsuits are winding their way through the American International Tarriff Court challenging Trump's claim to emergency powers to impose tariffs. Originally the lower courts had tried to stay Trump's tariff orders but SCOTUS, I think, allowed him to continue to collect the tariffs on the promise he would reimburse them if the courts finally rules against him
Now that would be interesting.
Comments
With Trumps attitude towards the law they could be waiting a long time for the money if they did.
Just to point out he has not and would never tariff imported theft. In fact, he loves it and encourages it at every opportunity.
Trump does not understand tariffs. He makes this clear again and again. He still seems to think that the countries he imposes them on pay the tariffs, not - as everyone points out - the US consumer.
If challenged, of course, he says that people should just buy from the US. Ignoring the fact that, in most cases, the US no longer has the capability, to set it up would take decades and cost a fortune, the products would be more expensive therefore and probably of poorer quality, without the experience that other places have of producing them, and so would have only a US market, which is not big enough.
Of course, being so stupid he would be outsmarted by a squashed grape, he doesn't understand this even a little.
And anyone who points this out he accuses of being "un-American".
He thinks he is America. So anyone who disagrees with him is, of course, un-American in his eyes.
It might not make a difference as far as Trump is concerned. He appears to view court judgments as advisory, except when they affect people he doesn’t like.
Of course, even if the appeals court rules against Trump. he will go to SCOTUS--and if they rule against him, that will be a lot of sh-- hitting the fan.
How likely is that. From over here he seems to have a lot of friends in SCOTUS
Yup. Six, to be exact.
Shoot the messenger if you don’t like the message?
Plus the underlying retaliatory message from Trump to all those in government providing data is clear. Loyalty to him is more important than accuracy.
I quote Frank Herbert again, from “Dune Messiah”.
“If you put away from you those who tell you the truth, those who remain will know what you want to hear. I can think of nothing more poisonous than to rot in the stink of your own reflections”.
"The markets" will probably be fine, after some adjustments. Consumers, not so much. Here's a snippet from the New York Times [ paywall ] on reactions to the latest round of tariffs.
Wow! Who knew that putting a massive new tax on imported consumer goods would increase the price of consumer goods? At any rate, while most large corporations are fairly pro-Trump (they love the lower taxes and dismantling any enforcement of labor or environmental regulations), they're definitely not willing to lower their profit margins just so Trump's policies look more successful and less idiotic.
Also in Canada. The cash register price is always higher than the displayed price for taxable products, whether its a button or a car.
While people are saying the average American family will pay on average an extra $2400 on goods and services per year as a result of the tariffs, you can damn well bet it will be the lower classes than the higher income brackets that will experience more of the burden.
Wife and I have a moderate income for a retired couple. However, we don't have an extra $2,400 to cover the average estimated tax. Something will have to give. We usually make a once a year trip somewhere. We had hoped for Hawaii. Probably not going to happen.
If other families have to make similar decisions, it will mean our economy will shrink PDQ. That will have an impact on the markets. That is why they dropped so deep when T first announced his plans in April.
On top of that, the firing of the head of the statistics chairperson in the Bureau of Labor and Statistics will have a chilling effect on the future markets because businesses need accurate numbers to plan out their business strategies. No one likes flying blind into a cloud bank. It could be too late to head off negative consequences.
The displayed price doesn't include sales tax because there's no law requiring it and there's no incentive for stores to do this. But I don't think omitting sales tax on the displayed price entices people to buy because we all know there's going to be sales tax and we know what it is. It's not like airfare, because there are no other extra fees when you buy clothing or shampoo or whatever. The one thing I buy regularly where there are extra taxes is gasoline, and all gas stations display the total price per gallon with all taxes included because it would indeed be a shock to find out you're paying an extra 60 cents or so per gallon in California excise tax.
Also sales taxes vary a lot. Here in Long Beach it's 10.5%. In nearby cities, all places where I've recently purchased goods or services, it's variously 9.75%, 10.25%, 7.75%, and 9.25%. Stores don't want me to think they're charging people in Huntington Beach significantly less for shampoo than they're charging me a few miles away. That variation is a governmental decision, not a marketing one, because around here a sales tax is actually several taxes rolled together -- state, county and city. Long Beach people buying big-ticket items, such as appliances or cars, will sometimes go down to Orange County to make their purchases to save on sales tax.