Posted on 01/17/2017 4:38:38 AM PST by expat_panama
Donald Trump won the Rust Belt and White House with help from his threats to slap tariffs on Chinese imports and goods shipped across the border from Mexico.
Whether he’d make good on those threats became almost an after thought as his promised tax cuts, infrastructure spending and deregulation drove stocks higher after the election.
But with the president-elect taking to the bully pulpit—like his Twitter posts threatening a “border tax” onToyota andGeneral Motors—the questions are bubbling to the surface, especially as his Jan. 20inauguration nears.
What kind of protectionist measures can he get away with, for good or bad?...
...six cards in Trump’s handthathe could play.
1. Reopen Nafta
Trump has threatened to walk away...
...Trump will open up Nafta for talks. Actually scrapping the free-trade deal would be a muchbigger deal.
2. Enforce Existing Trade Rules ...
...Bush and Obama used anti-dumping duties and similar actions, especially vs. China. Trump will likely use this tool even more...
3. Hit China On Currency ...
...Trump likely won’t declare China a currency manipulator, if only because he can impose specific or sweeping protectionist steps without it.
4. Target A Country ...
...A big, broad tariff or tax on Chinese or Mexican goods could be highly disruptive to American business and raise prices in an obvious way for consumers. So it’s probably unlikely.
5. Target Mexican-Made Cars ...
...Trump may be tempted to impose tariffs on some or all Mexican autos, but because he can’t single out specific companies, such an action would be highly disruptive and unlikely to score easy political wins.
6. Impose A Broad-Based Tax...
...GOP lawmakers are likely to adopt this tax reform, and Trump could back it. But with narrow majorities in Congress and stiff opposition from retailers, it’s unclear if the measure would pass.
(Excerpt) Read more at investors.com ...
The problem with tariffs has always been retaliation. You don’t need to call it a trade war to suffer under it. The problem is that when they retaliate you cannot sell them your products. The globalist Rino’s simply took the possibility of American retaliation off the table.
The idiot Dimwitcrats regulated and taxed until we cannot do business here. The Rethuglicans made it EASY to move business elsewhere. Now we wonder why there are no jobs!
I always felt that the worst problem w/ taxes was having to pay them and that the threat of foreigners being forced to also pay taxes was lower down on my list.
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