Black and white billboards that popped up throughout Michigan have a simple message: "Tariffs are a tax." Paid for by the Canadian government, the billboards have been placed on key highways in 12 states and Washington D.C. in response to an escalating trade war with the United States.
OK, if I may continue ...
What to Know About Trump's Tariff Authority, Its Cost, and What Comes Next
www.cfr.org
... On April 2, U.S. President Donald Trump announced the most sweeping new tariffs on all imports to the United States in decades. He ordered a baseline 10 percent tariff on all countries and even higher rates on dozens of trading partners, including China and Vietnam, and the European Union. The president also declared a national emergency, granting him special powers to enact the tariffs to "strengthen the international economic position of the United States and protect American workers."
The move spurred reactions from both markets and U.S. trading partners. This resource guide from CFR experts assesses the major issues under debate.
Can Trump Do This? Presidential Authority and the Role of Congress
"The Constitution could not be clearer that regulating foreign commerce rests in the hands of Congress; Trump's use of emergency authorities to set punishing tariffs is an egregious violation of the constitutional separation of powers," CFR expert Edward Alden wrote for Foreign Policy.
"If the United States remains a functioning democracy -- an increasingly big if -- then Trump's actions will not stand. The courts may strike some or all of it down, although the weeks and months these court cases could take would wreak economic havoc in much of the world." ...
Who pays for the tariffs?
Simple ...
Those bringing the products into the Country to satisfy their consumers.
The other Countries do not pay the tariffs.
American companies importing the goods pay the tariffs.
So, then the question becomes, do those American importing companies pass on the cost of the tariffs to their customers? Or will they move their production/manufacturing to the US?
That's the huge question.
One view ...
Trump promised a manufacturing boom. Industries aren't so sure.
www.bnnbloomberg.ca
... U.S. President Donald Trump has vowed his historic tariff blitz would revive domestic manufacturing, but industry worries about his approach are raising fresh doubts about whether he can deliver on his promise of an economic boom.
In the Rose Garden on Wednesday, Trump declared "jobs and factories will come roaring back into our country" and predicted new "golden age" in America. Since then, he has stood by his decision to hike U.S. tariffs to their highest levels in more than a century, even as the move sparked a global market meltdown.
Some manufacturing advocates and economists questioned Trump's underlying logic, saying supply chain issues, high costs, workforce needs and the laborious process of moving production to the U.S. stand in the way. Continued uncertainty about Trump's long-term policy could also have a chilling effect, they said.
If the tariffs aren't enough to convince companies to move operations to the U.S., it could mean Americans bear the heavy burden of the economic havoc Trump's announcement unleashed without the promise of future benefits. That could heighten political risks for Trump and his fellow Republicans.
"While we certainly agree we should aggressively pursue any policy that helps us make things in America, the idea that you can move every part of the manufacturing process back to the U.S. does not align with reality," said Kip Eideberg, senior vice president for the Association of Equipment Manufacturers.
Eideberg, whose group represents makers of equipment used in construction, agriculture, mining, utilities and forestry, added that with businesses relying on components and labor from around the world, "you can't just pick all that up and just move it over the U.S." ...
NewJohnny5 - Let Go (1986)
www.youtube.com
Lyrics excerpt ...
Wow, seems to be too obscure for lyrics.
Oh well ...
"That is why pretty much why every country in the world places tariffs on our goods."
So you're just not going to consider the size and the scope of the tariffs, and how they might impact the domestic and global economy.
Didn't think so, but thanks for confirming.
Free Trade Agreements
The United States has comprehensive free trade agreements in force with 20 countries.
Australia
Bahrain
Canada
Chile
Colombia
Costa Rica
Dominican Republic
El Salvador
Guatemala
Honduras
Israel
Jordan
Korea
Mexico
Morocco
Nicaragua
Oman
Panama
Peru
Singapore
To view the main USMCA webpage, click here.
ustr.gov
The administration released a fact sheet outlining some of its reasoning, noting that "studies have repeatedly shown tariffs are an effective tool for achieving economic and strategic objectives." Others argue that tariffs help to bring manufacturing and jobs back to the United States. While experts agree that tariffs are a powerful policy tool, they disagree on their costs and benefits. Most economists contend that companies are likely to pass on the increased cost of imported goods to consumers or stop imports all together, driving up prices. For example, in 2018, Trump imposed tariffs of 20% to 50% on washing machines imported from South Korea. As a result, prices surged by 34%, even though inflation was only 20%. Interestingly, the price of dryers also rose 34% during the same period, even though they were not subject to the tariffs. While the tariffs did lead to the creation of 1,700 to 2,000 new jobs in US washing machine manufacturing, the increased costs borne by consumers meant that the creation of each job cost roughly $815,000. The WTO has also warned that new US tariffs could contract global goods trade volumes by 1%.
www.gmfus.org
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