I realize that the “invasion” of Latin Americans is important to this president and “tariffs” are his answer to all our economic problems…..whether you believe these fantasies or not…there is a thing call ’cause and effect’……
That is ….. one process or state, a cause, contributes to the production of another process or state, an effect, where the cause is partly responsible for the effect, and the effect is partly dependent on the cause. In general, a process has many causes, which are also said to be causal factors for it, and all lie in its past.
A little simpler?
For every action there is an opposite but equal reaction. Did that help?
All that out of the way what am I going on about?
The newest utterance from Our Beloved Supreme Leader……
President Trump has vowed to slap new tariffs on all goods from Mexico—and to keep increasing them until the country stops migrants coming to the US. On June 10, the US “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 president tweeted Thursday. “The Tariff will gradually increase until the Illegal Immigration problem is remedied at which time the Tariffs will be removed.” The White House says the tariffs will rise to 10% on July 1, then go up 5% each month after that until they hit 25% on Oct. 1, reports the Washington Post. Earlier Thursday, Trump told reporters he was going to make his biggest statement on the border so far.
Trump said in a statement that after October, the tariffs will remain at 25% “until Mexico substantially stops the illegal inflow of aliens coming through its territory.” The surprise announcement came on the day that Mexican President Andres Manuel Lopez Obrador began to ratify the USCMA trade deal with US and Canada, which could now be in jeopardy, reports Reuters. The tariffs could devastate Mexico’s economy, though experts including trade lawyer Daniel Ujczo suspect Trump will backtrack on the move, as he did with his threat to seal the border in March. “This seems more theater and tactics than a strategy to solve the migration crisis and rebalance North American trade,” Ujczo tells the AP.
Is this just something said to divert the attention of the MSM? Will it remain if the markets tank?
Does he realize that if this is law and the economic activity in Mexico ceases it will create more people in search of economic security? (That is cause and effect)…..
This is a silly trade policy…it is that simple……
But let us look at other economic news……
How about those “tax cuts”?……..(Read and weep!)
Despite lofty promises from President Donald Trump and the Republican Party, the $1.5 trillion in tax cuts that went into effect last year have done little—if anything—to raise workers’ wages, boost economic growth, or spur business investment.
That’s according to a new analysis by the nonpartisan Congressional Research Service (CRS), which appeared to vindicate warnings from progressive critics that the GOP tax cuts were little more than a scam designed to put more money in the pockets of wealthy Americans.
In its 23-page report (pdf), the independent research arm found that while the Republican tax law has not done much for workers or the overall economy, it has sparked a wave of stock buybacks, which primarily benefit rich executives.
Billions are pouring into the US treasury because of the Trump tariffs……..
President Donald Trump likes to talk about the money Washington is making from the spate of tariffs his administration has imposed on global trading partners. The catch? Most of it is probably coming from American pocketbooks.
At a postelection news conference on Wednesday, Trump misleadingly claimed that billions of dollars would “soon be pouring into our Treasury from taxes that China is paying for us.”
He got the first part right. Federal revenue from tariffs in the third quarter increased by more than 33% from the same quarter last year, Treasury Department data shows. And in October — the first full month in which all tariffs announced to date were in effect — the monthly collection appears to have doubled from the 2017 level to about $6 billion, according to estimates from daily receipts.
These Trade Wars are good for the US, right?
President Trump’s trade battles are costing the U.S. stock market $5 trillion and counting, according to Deutsche Bank.
Given the bulk of equity returns come from equity price appreciation, in an escalated trade war with China and now Mexico, the U.S. is losing trillions of dollars in foregone returns as markets sink on the negative headlines, the bank said Friday.
“The costs of the trade war in our view are about its indirect impacts,” said Deutsche Bank chief strategist Binky Chadha in a note to clients. “The trade war has been key in preventing a recovery in global growth and keeping US equities range bound. Foregone US equity returns from price appreciation (12.5% annual rate) for 17 months are worth $5 trillion.”
Someone explain to me where the “good news” is in all this trade war stuff?