Tariffs

Post Reply
dan_s
Posts: 36847
Joined: Fri Apr 23, 2010 8:22 am

Tariffs

Post by dan_s »

The tariffs are not a tax against a country.
They are tariffs against the companies selling their products into the U.S., which have an unfair advantage since their countries have high trade barriers on the products that U.S. companies would like to export into the countries where they are.

Based on what I heard last night each company can avoid the tariffs by:

1. Quit exporting products to the U.S. (we can live without their stuff). < Difficult since most companies that sell a lot of stuff into the U.S. cannot survive without access to the U.S. market since Americans buy a lot of "stuff".
or 
2. Convince their leaders to drop all tariffs and trade barriers against the U.S. products.
or 
3. Negotiate a deal with Trump, like building their manufacturing facilities in the U.S., which is the best idea. < This is what Trump really wants because it will stimulate the U.S. economy, buy creating more jobs and higher income tax revenues for the U.S. Just the building of new factories in the U.S. will create lots of jobs, lots of local taxes for the states and lots of income that revenues for the Feds.
-----------------
From the book "The Seven Habits of Highly Effective People" > "Seek first to understand, then to be understood."
Trump is trying to keep the U.S. out of bankruptcy. The U.S. has a massive trade deficit and a massive level of debt, both of which are unsustainable. At the current rate, the U.S. debt increases by $1 Trillion every 100 days.
Dan Steffens
Energy Prospectus Group
Post Reply