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Old 01-28-2017, 11:11 AM  
woj
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Join Date: Jul 2002
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Quote:
Originally Posted by Bladewire View Post
His supporters ignore that.

They also ignore that Trump wanted to slap a 20% tariff on Mexico, which would raise prices we pay by 20%

His supporters ignore that Trump & Nieto spoke privately and Nieto forced Trump to agree not to talk publicly about diplomacy and policy.

Trump supporters ignore a lot of really important things.
if anything it's up to 20%, a lot of that 20% would get absorbed by Mexico, some by US companies... only fraction of that would reach the consumer...

and that's assuming nothing would change, and that simply 20% tariff would be paid... but the whole point of it is that things would change...

for example lets say it costs $1.00/lb to grow tomatoes in Mexico, and $1.02/lb in the US... ignoring transportation costs and other details, obviously it makes more sense to buy from Mexico...

20% tariff gets imposed, Mexican tomatoes now cost $1.20... what will happen? we will just grow tomatoes ourselves for $1.02... impact of that is obviously complicated, it will be combination of positive (more employment, more investment in the US, etc) and negative (higher prices) factors... but overall impact is difficult to predict...

[this logic is obviously simplified a lot, but it's not quite "prices will go up by 20%" like many are saying]
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