Since he's the only American here, I'm curios to see what @SethBullock thinks about Trumps tariffs and what he thinks it will do for Americans?
Tariffs
- Thread starter johnsmith
- Start date
All the tariffs will serve to do is make Americans suffer. No company is going to close down their plants and spend hundreds of millions building new plants to move to the usa, not when it's most likely that by the time the building is finished, the next president will most likely remove the tariffs anyway, regardless of party. This is just going to cause Americans to pay more for their products and more then likely cause a global recession.
John, I think I'm like a lot of Americans. I'm in a wait and see mode.
In the 1990's and 2000's the US saw an exodus of manufacturers. The administration would like to try to induce at least some of them to return to America.
We have an overall trade deficit of $918 billion, with deficits of $295 billion and $235 billion to China and Europe respectively. So another goal is to get more of a balance of trade with other countries.
We also are running terrible annual deficits in our own federal spending. Many Americans either don't agree or they are just putting their head in the sand, but I think the federal debt has reached a point of crisis, and must be reversed. In my opinion, the US must reduce spending and increase revenue, or else we are rapidly going to go under water and drown in our debt and interest on the debt. The Treasury Secretary says that the new tariffs could bring in between $300 and $600 billion to the treasury, but I know that that is not enough to balance the federal budget.
I don't know if these tariffs will result in more manufacturing in the US. I don't know if we will end up with a better balance of trade. I'm pretty sure that tariffs will not fix the government's revenue/spending problem.
The tax cuts Congress passed during the first Trump administration are set to expire, and Trump wants Congress to extend them. I disagree with Trump on this. The government needs to cut needless spending where it can, and raise more revenue before we fall off a financial cliff and crash and burn.
@SethBullock
I'll tell you how I see it.
All these tariffs will do is put America through a whole lot of pain for the next 3 years, with little reward. Manufacturing won't move to America, not on the scale required. Ford etc are not going to spend hundreds of millions closing down overseas plants and building new ones in America, just to see the next administration end the tariffs. Because that is what will happen. Even if the republicans win the next election, they aren't going to keep the tariffs. Every major economist in the world is telling you that tariffs are a race to the bottom. Trumps problem is that no matter the topic, he actually believes he's smarter then everyone else. In the meantime, you'll alienate your allies, inflation will skyrocket, and the American (and global) economy will suffer for decades trying to recover from this.
I'll tell you how I see it.
All these tariffs will do is put America through a whole lot of pain for the next 3 years, with little reward. Manufacturing won't move to America, not on the scale required. Ford etc are not going to spend hundreds of millions closing down overseas plants and building new ones in America, just to see the next administration end the tariffs. Because that is what will happen. Even if the republicans win the next election, they aren't going to keep the tariffs. Every major economist in the world is telling you that tariffs are a race to the bottom. Trumps problem is that no matter the topic, he actually believes he's smarter then everyone else. In the meantime, you'll alienate your allies, inflation will skyrocket, and the American (and global) economy will suffer for decades trying to recover from this.
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You could be right.
greggerypeccary
Active member
Unfortunately, I think he's spot on.
The average American - MAGA cult members included - are going to suffer quite badly for the next 4 to 5 years.
Squire
Active member
The real problem with USA trade is that the US$ is overpriced because of huge capital inflows of foreign investors buying US shares.
The way to fix this is to tax unproductive capital that is not investing in improving the USA's GDP by productive investment in industries that contribute to GDP growth.
If the US$ falls imports will become more expensive and exports will become more competitive. That will produce a more positive affect on trade without causing global conflict.
The way to fix this is to tax unproductive capital that is not investing in improving the USA's GDP by productive investment in industries that contribute to GDP growth.
If the US$ falls imports will become more expensive and exports will become more competitive. That will produce a more positive affect on trade without causing global conflict.