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DerekWills April 10th, 2016 8:50pm

Trump has suggested a ~35% tariff on products produced in China and other foreign countries with which we have a trade deficit. That means that the cost of goods produced in those countries will go up by 35%. How will this help our economy?

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04/12/16 10:23 am

Opens up the possibility for domestic competition and creates jobs for Americans.

drself Gated Community
04/11/16 6:42 pm

The same way it help with Japanese cars. They started making them here.

evoecon nearest binary system
04/11/16 5:42 pm

Stupid! Stupid! Stupid!

China does not make deals with its people. Socialism can leverage its labor to cheap rates.

04/11/16 3:43 pm

American businesses that produce the same goods at arguably higher qualities, only more expensive because China uses labor that costs ~$2 an hour and America has standards. Duh.

04/11/16 11:56 am

We should match foreign tariffs with equal domestic tariffs. They don't charge them, we don't charge them unless dumping is detected.

swervin Maryland
04/11/16 2:47 am

Because companies will start to create jobs in the US where there won't as high of a tax.

DerekWills Lone Star Gun Rights
04/11/16 5:13 am

So they can pay the highest corporate tax rate in the world? Seems pretty lose lose to me. Oh, and in the meantime, we will all pay astronomically higher for products we use daily.

swervin Maryland
04/11/16 5:23 am

Like any company in the US actually pays what it is supposed to. What have you been smoking?

EmeraldShift Liberty, Justice For All
04/11/16 5:53 am

So tax evasion is an excuse for businesses to enter the country? Sounds good to me!

swervin Maryland
04/11/16 6:24 am

Pretty sure I didn't say that...but yeah, circle jerk around the anti-trump guy! Yay! Everyone hate on Trump!

kscott516 Masks fail
04/11/16 6:52 am

Those companies will just move to another free trade country. Why do you think the TPP was passed? All they're doing is moving from one region to another to use their cheap labor and get to their resources.

demandside New Keynesian
04/10/16 11:07 pm

The WTO won't allow tariffs to be that high. And the WTO isn't the UN, going against the WTO has serious economic implications.

catpillow Florida West Coast
04/10/16 9:35 pm

I believe the intention is to return to the system we had in the past when we had tariffs. Then, unlike now, it was in the best interest of corporations to have their factories here and to use American labor. Our economy was much better then. . Of course, that presents two problems. We would have to pay more for products made in other countries and we would be in violation of treaties we signed.

DerekWills Lone Star Gun Rights
04/11/16 5:02 am

You do realize that we already have 12,000 tariffs on products already right?

AmericanWolf For the Benefit of All
04/10/16 8:49 pm

One of many reasons he would be an awful leader.

steelcity Pittsburgh
04/10/16 6:17 pm

Long term it would encourage companies to produce products here. Short term it could be painful.

DerekWills Lone Star Gun Rights
04/10/16 6:24 pm

And by "painful," you mean "could lead to a total economic collapse as consumers can no longer afford to make purchases and producers can no longer afford to produce goods as costs have risen by 35% overnight?"

4boot LaTrineodeur, MN
04/10/16 4:57 pm

Trump put this forward as a potential opening bargaining position with China...

4boot LaTrineodeur, MN
04/10/16 5:02 pm

Trump has said that. He's a wheeler dealer who starts with an extreme position and moves to a deal...

geoag02 Dallas, TX
04/10/16 5:17 pm

I know. I heard him say it.

...Let's just say I have trust issues.

mark1950 Columbia, South Carolina
04/10/16 5:38 pm

There's nothing wrong with an "obnoxious" opening offer. You can always go down but you can never go back up.

ronderman North Carolina
04/10/16 6:04 pm

In his book The Art of the Deal, he explained that in a business deal you always make an unreasonable first offer.

NEWSFLASH: He doesn't expect Mexico to pay for a wall either.

IMO atoms, space, opinion
04/10/16 9:59 pm

I believe he does and his plan may actually work. Tens of billions of dollars get wired to Mexico each year from the US. He wants to make those transactions legal only for US citizens, unless they pay a mere $5-10B to build a wall.

nekmor Round Rock TX
04/10/16 4:39 pm

The issue is that, unlike the United States, the Chinese play the long game for decades and eons. They are willing to wait to achieve their ultimate goal.

They understand that by government subsidizing manufacturing and manipulating the currency ultimately they will take The majority of manufacturing from American companies. Once we can no longer produce goods we will be totally at the mercy of the countries that do.

04/10/16 4:37 pm

It's a stupid idea that only appeals to people who stand to profit off of it.

Bobnpt The Ocean State
04/10/16 3:19 pm

It would have devastating effects on certain industries, for example construction and home building.

political Georgia
04/10/16 1:57 pm

This is an issue where Trump has a point in principle. Our businesses are having trouble competing with China because China manipulates its currency. We shouldn't automatically raise our tariffs to that point, but it shouldn't be off the table.

goldz oh this world
04/10/16 2:17 pm

And cause inflation? No thank you.

political Georgia
04/10/16 2:19 pm

That's why it's not desirable for either country, but it's also not good for companies to continue to leave America. You have to play the game smart. A wrong move could easily backfire.

goldz oh this world
04/10/16 2:27 pm

It doesn't matter if they leave. It makes goods cheaper which means more disposable income to spend on jobs Americans actually want to do.

political Georgia
04/10/16 2:34 pm

You are one of the few people who doesn't care about things being made in America again. Personally, I believe dependency is a problem that could lead to conflicts.

goldz oh this world
04/10/16 2:37 pm

Dependency isn't such a problem because there's dozens of third world countries who would love our factories.

And why should I care if they're made in America if our economy is fine?

political Georgia
04/10/16 2:39 pm

Because our economy isn't fine. We are losing in trade.

goldz oh this world
04/10/16 2:43 pm

Trade isn't the problem. Importing doesn't harm our economy because there's a reason businesses go there. They go there because it's cheaper. That means more disposable income for consumers and businesses (who need to do a certain amount of work in the US)

political Georgia
04/10/16 2:46 pm

Of course trade is important. The trade deficit is costing taxpayers' money. In addition, if this trend continues, we will not have jobs for our citizens.

goldz oh this world
04/10/16 2:54 pm

Why should the trade deficit cause any harm? There are only two places US dollars can go. Either right back to us in exchange for goods, or to the US government in exchange for bonds. If it is in exchange for goods, more jobs are created in total with aforementioned dollar. If in exchange for bonds, the government spends it, creating jobs.

political Georgia
04/10/16 3:12 pm

The problem is that China devalues their currency because they want unbalanced trade. We are too scared to do anything about it. We are getting cheated.

goldz oh this world
04/10/16 3:16 pm

They're the one getting cheated. We're the ones getting cheap goods.

political Georgia
04/10/16 3:22 pm

We will have cheap goods with no jobs if this continues too long.

goldz oh this world
04/10/16 3:53 pm

No we won't. There are some goods that must be produced in the US and many service jobs. Cheap goods will mean disposable income hat will be spent on those jobs.

If the price of my books or coffee table or shirt goes down, I'll be glad to spend the money on a manicure or Starbucks coffee.

political Georgia
04/10/16 3:56 pm

I'm sure the government will love to lose revenue from businesses moving out of the country.

goldz oh this world
04/10/16 3:58 pm

But that money will come right back to them in the form of income taxes created with newly disposable income.

political Georgia
04/10/16 4:02 pm

If the economy is healthy, but it's hard to make the argument that we have a healthy business climate when businesses are leaving.

goldz oh this world
04/10/16 4:04 pm

I don't understand your argument. We pay more than other countries so businesses produce goods there. If we would produce goods here, prices would go up, disposable income would go down, spending would go down, jobs would go down. We would gain nothing.

Simple math.

04/10/16 5:26 pm

If we produce goods here, the costs of those goods goes up, true. But, there are more jobs here, and thus higher overall income. The specifics determine which is a stronger factor, increased prices or increased employment.

political Georgia
04/10/16 6:11 pm

We can bring manufacturing jobs to America. It's just a matter of will. The beauty of the United States is that we produce a large amount of consumers. Businesses really don't want to leave America to start with. A business wants to be as close to consumers ideally.

goldz oh this world
04/10/16 6:17 pm

Businesses can stay in the US and hire Chinese factories. Forget about if we can, I don't see why we should bring them back. Leaving them there only means a service based economy instead of factory based, which I think we'd all like.

04/10/16 7:35 pm

If the service industries paid a living wage, the lack of manufacturing jobs would be much less of an issue.

demandside New Keynesian
04/10/16 11:10 pm

"We can bring manufacturing jobs to America. It's just a matter of will. The beauty of the United States is that we produce a large amount of consumers. Businesses really don't want to leave America to start with. A business wants to be as close to consumers ideally."

No we can't, actually China is losing jobs to Vietnam as Chinese wages appreciate. And if manufacturing jobs are brought back, inflation would sky rocket as the cost of labor is much higher in the US. And a business would like to be near consumers, but if it's more cost efficient to outsource, they'll outsource. And China has a strong consumer base too

Luftwaffe South of Heaven
04/10/16 1:53 pm

The long term goals are more important than the short time goals.

Diogenes FreeMeBe
04/10/16 2:26 pm

The aim is to employ Americans.