Posted on 01/15/2017 11:16:31 AM PST by ColdOne
MEXICO CITY (Reuters) - Mexico must be ready to respond immediately with its own tax measures if the incoming administration of President-elect Donald Trump imposes a border tax, the economy minister said on Friday, warning such protectionism may trigger a global recession.
Trump, who takes office on Jan. 20, has promised a "major border tax" on companies that shift jobs outside the United States, and such a measure could hobble Mexico's exports to its top trading partner.
"It is clear we need to be prepared to immediately neutralize the impact of such a measure," Economy Minister Ildefonso Guajardo said in an interview on Mexican television.
(Excerpt) Read more at yahoo.com ...
Mexico has no idea what they have started.
Mexico needs the US a lot more than the reverse.
The only real leverage they have is Oil, which we can do without, once the Keystone pipeline is active; Oil is fungible, and transportation costs astronomical.
Imagine Mexico with zero American tourism; No illegal worker funds going south.
What are they gonna do, arm their drug cartels and ship them north?
I love the Mexican people. In Mexico.
I visited several times a year between 1993 and 2001.
I am fluent in Spanish, but avoided using it the last few years I visited. The conversations I overheard as a dumb gringo, and the reports of (really stupid) permanently missing Americans, finally convinced me my family and I had more chance of surviving vacations closer to home.
Then don’t send them...
Starts to? Dang, it is well on the way there already.
I wondered about that too-just about everybody out here grows some strawberries and melons-there is a small citrus orchard on the family ranch-and every other little ranch-in SW Texas-and most the avocados at the grocery store are shipped from California. Maybe they intend to put a tax on tourists going into Mexico-well, good luck with that...
If we both agree that's a bad idea, then we don't have an issue.
Only because of NAFTA and the EPA.
Now santa will never bring me a ball-in-a-cup
“Then don’t send them...
Are you saying we should not export any goods and services to Mexico?
If so, how do you plan to replace the $267 billion in American jobs that are created by that $267 billion?
They are trained (by example) from birth not to respect their OWN laws. That is a permanent characteristic of ALL of Latin America. Some Countries worse than others.
Been there, got the tee shirts.
“arm their drug cartels and ship them north?”
They already did that-they are all in the Juarez/El Paso, and Laredo areas-I rarely visit family in rural W/SW Texas these days...
Oh, they’ll change their minds...
Besides, those goods could be sold elsewhere...
“Maybe they intend to put a tax on tourists going into Mexico-well, good luck with that...”
It is more likely that they would tax goods and services imported from the United States into Mexico.
We don’t need to go to war with Mexico. But we need to set them straight once and for all and let them know we’re not their sucker sugar daddy anymore.
Not happening. So get ready for some big changes.
They could indeed-but that has the potential for blowback, too. I don’t see any of it as a win for Mexico...
And my only issue with you is ya seem to want to continue this profits regardless of consequences mentality.
That bull shit is what brought us to this point.
“Besides, those goods could be sold elsewhere..”
How do you create markets out of thin air?
If we sell 100 billion widgets to the world and Mexico buys 10 billion widgets, but then stops buying our widgets, we then only sell 90 billion widgets.
However many jobs it takes be produce 10 billion widgets are lost.
From Wharton Business School:
“...On balance, Mexico would be more susceptible than the U.S. to damage from any sustained trade war between the U.S. and Mexico..”
The tariff that Mexico charges our exports to them will reduce the demand, not eliminate it. It’s NOT an embargo. The hyperbole here is strong. Any excess production that would otherwise be exported to Mexico will find a domestic customer. Lowering the domestic price BTW.
Besa mi Culo Mexico.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.