Leslie Cook

Trade Wars

In In My Opinion..., Random Thoughts, Trump Apocalypse on January 27, 2017 at 2:30 pm

ship4It appears that we’re entering a time where the United States of America will be participating in a trade war with the world. The current U.S. President wants to impose a 20% tax on goods entering the country from Mexico. This tax will pay for his border wall so that we don’t have to.

If we assume that Mr. Trump paid attention when he attended the Wharton School of Business, we must conclude that he’s intentionally lying to us about not paying for his pet project. Why? Because anyone with a brain knows that any tax imposed on Mexico or any other countries’ goods will be passed on to the consumer. If this is true, Americans will be paying for his wall. It’s simple economics.

What are the implications of this tax? Since Mexico is our 3rd largest trade partner, here’s a short list of the things that will increase in price if and when the current administration follows through on their plans:

  • Fruits and Vegetables: Mexico is the largest supplier of fruits and vegetables to the U.S. Say bye bye to your favorite guacamole.
  • Alcohol: The price of Tequila and Cerveza will increase. This alone should make Trump voters very, very angry.
  • Cars prices: Want to pay extra for your new General Motors, Ford, Chrysler, Volkswagen, Nissan, Honda, BMW, Toyota, Volvo and Mercedes-Benz vehicle? They all have factories in Mexico. If a tax is imposed, they will pass it along.

Buckle up America! Mexico may be the beginning, but our current administration will surely look toward China in the next few weeks. And since we’ve backed out of the Trans-Pacific Partnership, trade with other Asian countries will also be strained. Yes, America will start buying U.S goods out of necessity. And we will begin to pay more for everything, leaving us with less disposable cash.

Yes, America will start buying U.S goods out of necessity. And we will begin to pay more for everything, leaving us with less disposable cash. Yes more people will be employed. But given the fact that Republicans don’t want to increase the minimum wage, those workers will be making less money working in those new jobs and spending more money for goods and services.

Of course, this is just a prediction. I’m not an economist. But neither is our new President.

 

 

 

 

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