When you are the “Piggy Bank” Nation that foreign countries have been robbing and deceiving for years, the word TARIFF is a beautiful word indeed! Others must treat the United States fairly and with respect - We are no longer the “fools” of the past!
Tariff pain is landing hardest on Trump voters.
“Intertwining difficult trade, tariff and immigration issues creates a Molotov cocktail” policy that would have “devastating consequences on manufacturers in America,” warned Jay Timmons, president and chief executive officer of the National Association of Manufacturers.
Trump threatened via tweet Thursday to impose the tariffs not for business reasons but to force Mexico to stop people from entering the U.S. illegally. Tariffs would start at 5% on June 10 and gradually ramp up to 25% in October, he tweeted.
The threat of a “second front” on Trump’s devastating trade war on top of ramped-up tensions with China sent the stock market spiraling downward. Trump raised the Mexico tariff issue even as Republicans were pressing to pass the administration’s negotiated U.S.-Mexico-Canada Agreement, which was supposed to be the “new NAFTA” — the North American Free Trade Agreement. That may be in jeopardy now.
The U.S. Chamber of Commerce is considering a legal challenge to the threatened new tariffs.
Despite mounting concerns, Trump doesn’t seem to be changing his mind. He gushed in a tweet Saturday that “tariff is a beautiful word indeed!”
Trump’s tariffs are falling heaviest on farmers and working class Americans in manufacturing jobs. They’re the same people who helped put him over the top — but just barely — in the presidential election. The federal government is already spending a total of $28 billion in subsidies to help farmers weather a trade war of Trump’s own making. The threatened Mexican tariffs would hit autoworkers hard. Mexico is the largest source of parts for U.S.-made cars.
A trade war with Mexico would also add even more pain to what farmers are already experiencing. Mexico, which would likely exact retaliatory tariffs if Trump goes forward with his plan, is the No. 1 export market for U.S. dairy.
An analysis of tariff pain last month by Trump’s own bank, Deutsche Bank — weeks before the latest threat of new tariffs — found that of the top 10 states most affected by tariffs, all but two of them, Washington and Oregon, voted for Trump in 2016.
“I don’t think people really understand what is at stake,” Alex Camera, CEO of privately held Seattle business Audio Control, told Forbes early last month about the hike in tariffs on Chinese goods.
“Trump says China is paying these tariffs, but they are not. I am. U.S. companies are paying it at the port.”