01-31-2017, 08:45 AM
(01-31-2017, 08:08 AM)cookie2 link Wrote:Which analyst is that then?
Not the same bloke but a similar analysis:
Quote:Experts say a tariff would raise a mountain of concerns about U.S. jobs, the prices of products, and who actually pays for the wall.
"The notion that a 20% tariff is a way of forcing Mexico to pay for the wall, it's just a falsehood. It's a way of forcing American consumers to pay for the wall," says Edward Alden a trade expert at the Council on Foreign Relations.
Here's why.
First, about 6 million U.S. jobs depend on trade with Mexico, according to the U.S. Chamber of Commerce. Experts say those jobs would be jeopardized if Trump restricts trade with Mexico.
Americans will very likely face higher prices for many things -- from cars and computers to avocados and Corona. A litany of products imported from Mexico would be more expensive.
Companies from Ford (F) and GM (GM) to retailers like Walmart (WMT) and Best Buy (BBY) will likely be hit hard.
Taxing Mexican imports affects many U.S. companies that send parts south of the border to be assembled. About 40% of the parts in a typical Mexican import originate in the United States. For example, before a car arrives at a local dealership, its parts criss-cross the U.S, Mexican and Canadian borders. It's how supply chains are used today.
There are other less obvious ways a blunt tariff could come back to bite Americans. Higher prices on some products mean that Americans would have less money to spend on others.
That would end up costing jobs. That's what happened in 2009 after President Obama used tariffs on Chinese tires. It cost more jobs than it saved because prices for tires went up, one study found.
And a Trump tariff would apply to many more products, so the ripple effects would be a lot broader.
That brings us to who pays for the wall. When the U.S. government applies a tariff on Mexican goods shipped into the U.S., Mexican companies don't pay the tariff -- American companies pay it. Companies usually pass the increased cost of goods down to consumers, hence the higher price tag.
So yes, a 20% tariff would pay for the wall. But Mexico would not be paying for it. American consumers would ultimately pay the price. Literally.
The last point is interesting; US consumers would actually pay for the wall
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“Why don’t you knock it off with them negative waves? Why don’t you dig how beautiful it is out here? Why don’t you say something righteous and hopeful for a change?” Oddball

