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Trump says US will impose 5% tariff on all Mexican imports from June 10

JORMBO

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The U.S. will impose a 5% tariff on all Mexican imports from June 10 — and more duties will be added in the coming months if Mexico does not take action “to dramatically reduce or eliminate the number of illegal aliens” crossing into the U.S., the White House said Thursday.

It comes as U.S. Trade Representative Robert Lighthizer on Thursday sent a letter to congressional leaders, kick starting the process of approving updates to the North American Free Trade Agreement.

Full WH Statement:
To address the emergency at the Southern Border, I am invoking the authorities granted to me by the International Emergency Economic Powers Act. Accordingly, starting on June 10, 2019, the United States will impose a 5 percent Tariff on all goods imported from Mexico. If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019. Similarly, if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019. Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory. Workers who come to our country through the legal admissions process, including those working on farms, ranches, and in other businesses, will be allowed easy passage.
 
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bucyou

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“Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019,” it added. “Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.”
 
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JORMBO

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I'd rather our moronic leaders get together to fix our broken immigration system, but that's never going to happen. Maybe this will slow the amount of people down a bit.
 
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ssolitare

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We the US consumers are getting taxed, now gradually higher and higher.

Tariffs aren't meant for these short-term situations.

I think he does this because it can't easily be opposed.
 

ilsayed

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This is a very smart move. It’s amazing how much Trump gets right and equally amazing that the shit Presidents before him never thought of it. Mexico will be forced to solve a problem within months that’s never been solved in world history. Awesome.
 
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JORMBO

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Because much like the Chinese tariffs, this will raise the price of goods and the American consumer will be paying for it.
We the US consumers are getting taxed, now gradually higher and higher.

Tariffs aren't meant for these short-term situations.

I think he does this because it can't easily be opposed.
Because it is the American people that pay. Is he going to bail out everyone?
What do you guys think the outcome from this will end up being? Mexico can avoid the tariffs if they stop the flow of people traveling up through their country. Do you think they will do what Trump is requesting to avoid the tariffs or just accept the tariffs?
 
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EviLore

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We the US consumers are getting taxed, now gradually higher and higher.

Tariffs aren't meant for these short-term situations.

I think he does this because it can't easily be opposed.
It creates an incentive for action on all sides. Congress can mitigate the issue by funding the wall, and the Mexican government can mitigate it by curbing the flow of migrants on their side of the border. Corporate lobbyists will also take action as the financial pressure mounts.

It's one of the strongest plays he can make.
 

ssolitare

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What do you guys think the outcome from this will end up being? Mexico can avoid the tariffs if they stop the flow of people traveling up through their country. Do you think they will do what Trump is requesting to avoid the tariffs or just accept the tariffs?
They'll come to an agreement on something and not much will change.
 

merlinevo

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Very telling that the usual suspects who constantly preach about how good it is to raise taxes now all of a sudden care about tax increases..

Everyday Americans will not notice much of difference in their consumer good prices. Multinational companies will not pass the tariff cost to American consumers, that's bad business. American consumers are fickle and bargain shoppers, and they will gladly buy from a different source if it means they can get it cheaper. The smart thing for these multinational companies to do is instead pass the cost to the mexicans.
 
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DeepEnigma

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You know what is a larger tax burden on the American people than your fears for consumerism goods?

Illegals.

Social programs getting cut, homeless veterans being left in the dust, yet money is finding its way for this rapidly bleeding issue, because funding can’t be cut there. It gets cut in other areas and programs for American citizens.

It’s a massive burden on the working class people and will only get worse while politicians stonewall and sit on their ass. This is being done because it is all he can do to try something, anything to slow this problem. It is also a very powerful leverage business wise.
 
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oagboghi2

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Very telling that the usual suspects who constantly preach about how good it is to raise taxes now all of a sudden care about tax increases..

Everyday Americans will not notice much of difference in their consumer good prices. Multinational companies will not pass the tariff cost to American consumers, that's bad business. American consumers are fickle and bargain shoppers, and they will gladly buy from a different source if it means they can get it cheaper. The smart thing for these multinational companies to do is instead pass the cost to the mexicans.
Seriously😂

Now, all of a sudden people can't stomach a "tax increase", oh but please vote for these democratic candidates who all propose to raise taxes substantially more
 

Madonis

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This isn't going to work. It won't have the effect Trump expects.

Also, there's a huge difference between raising taxes on everyone who purchases certain products, which is this, versus only raising taxes on the rich and gigantic multinational corporations. It makes sense to tax the richest of the rich, not putting a tax on imports that a much larger number of people will buy. That's regressive economics.

If you can't tell the difference, then you don't know what you're talking about.
 
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Bolivar687

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I'm an unapologetic mercantilist and I graciously applaud President Trump for bucking the old political consensus that failed it's own citizens for so many decades.
 
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ssolitare

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It creates an incentive for action on all sides. Congress can mitigate the issue by funding the wall, and the Mexican government can mitigate it by curbing the flow of migrants on their side of the border. Corporate lobbyists will also take action as the financial pressure mounts.

It's one of the strongest plays he can make.
Nothing good will come from this other than an agreement.

Very telling that the usual suspects who constantly preach about how good it is to raise taxes now all of a sudden care about tax increases..

Everyday Americans will not notice much of difference in their consumer good prices. Multinational companies will not pass the tariff cost to American consumers, that's bad business. American consumers are fickle and bargain shoppers, and they will gladly buy from a different source if it means they can get it cheaper. The smart thing for these multinational companies to do is instead pass the cost to the mexicans.
Low margin goods like nuts and fruit food imports will go up very quickly. You'll be paying for that pronto. Parts, electronics, vehicles will see a gradual rise in price.
 
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oagboghi2

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This isn't going to work. It won't have the effect Trump expects.

Also, there's a huge difference between raising taxes on everyone who purchases certain products, which is this, versus only raising taxes on the rich and gigantic multinational corporations. It makes sense to tax the richest of the rich, not putting a tax on imports that a much larger number of people will buy. That's regressive economics.

If you can't tell the difference, then you don't know what you're talking about.
"Taxes on the rich" don't affect just the rich McFly.

And by the way, the democrats candidates tax policy increase taxes for everyone across the board. So you know....you can stop now
 
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Jun 29, 2016
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It creates an incentive for action on all sides. Congress can mitigate the issue by funding the wall, and the Mexican government can mitigate it by curbing the flow of migrants on their side of the border. Corporate lobbyists will also take action as the financial pressure mounts.

It's one of the strongest plays he can make.
More like one of the dumbest moves he can make.

#1: The wall isn't even going to work. There's a Koch-funded study on why a wall won't work published by a conservative think tank. Feel free to read it sometime.


Besides, the House will never pass funding for the wall, because that wall is a giant-ass waste of money, a symbol to racism and ignorance. Berlin already tried this once, it didn't go well.

#2: Mexico doesn't have the will or the manpower to stop immigrants from coming to the border. Most of these immigrants are families w/ children coming from Central America or from failed countries like Venezuela, passing through Mexico and into the U.S.


Mexico is treating this like a humanitarian crisis, as they should. They should know all about that, considering the harsh treatment their people have gotten from the US many times over.

#3: Corporate lobbyists won't do shit. You know what the companies will do? Pass the costs onto their consumers, who will have no choice but to accept it.


Good job Tariff man. Tax cuts for the rich and price increases for the poor.
 
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diablos991

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Perfect. Only thing I would ask for in addition would be a 5 percent increase every 6 months until Mexico takes this immigration and crime problem seriously.

The pocketbook pain will get them to do something.
 
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Sub_Level

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The United States imported $346.5 billion of goods from Mexico in 2018, an increase of 10.3% over the year prior, according to the USTR. The 2018 total accounted for 13.6% of overall U.S. imports that year.
Nice :messenger_horns:
 

MB1

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Does this mean Chipotle will be charging an extra 50 cents for guac?

All those basic white girls and the avotoast on suicide watch, and “can’t even”?
Faster we can convert them to socialism the better.
 

JordanN

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Besides, the House will never pass funding for the wall, because that wall is a giant-ass waste of money, a symbol to racism and ignorance. Berlin already tried this once, it didn't go well.
Why are so many people trying to get into a "racist" country then?

Shouldn't a wall help these people to "avoid racism" by not breaking into the country in the first place?

Unintelligible said:
#2: Mexico doesn't have the will or the manpower to stop immigrants from coming to the border. Most of these immigrants are families w/ children coming from Central America or from failed countries like Venezuela, passing through Mexico and into the U.S.
Whose fault is that?

America is not a free lunch. Mexico doesn't get to dictate what Americans do with their own lives. If they don't stop them, then America obviously will.
 
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ssolitare

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pramod

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This is brilliant. Why didnt he do this earlier? Im guessing things must have gotten so bad at the border he had no other choice.
 
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KINGMOKU

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Well you have the usual suspects declaring this move moronic and anyone who doesnt agree is automatically a moron as well(how tiresome for everyone involved)and some declaring this brilliant.

How about we wait, and see what happens? On its face its something different (unless somebody has heard of this tactic used before by a different president?)so at least he is trying something new, to stem the flow.

How much of an impact this will have on a myriad of things remains to be seen. One thing that's for sure, as someone else mentioned, companies with products affected by these tarriffs will be quite reluctant to raise prices to compensate as American shoppers are insanely price sensitive and will go elsewhere for a better deal.

This is something new, so I believe, as a rational person, let's see how it plays out before we condemn, or praise the move.

It's a different tactic, so how it will unfold is near impossible to forecast.
 
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autoduelist

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It's a strong move.

I'm not a big fan of tariffs but I think this has a lot of positives. Our biggest imports from Mexico are car parts and machinery.



That simply applies even more positive pressure on car manufacturers to return more work to the US, which is win win. If car manufacturers do pass some of the cost back to consumers, it'll be minor and on luxury items that already have price flexibility and variance.

It's a huge drop before we get to agriculture, and there's no required staples we couldnt source from elsewhere.

So ultimately, I think this hurts Mexico quite a bit more than it hurts anyone here, and could arguably be fantastic if longterm it meant manufacturing plants had more reason to come back. Which is also a secondary result Mexico must take into consideration because they can not afford the loss of industry.

That said, it's unlikely going to get that far. This is solid, strong arm negotiation from a position of strength, and will put pressure on both Dems and Mexico to fall in line. Mexico should be the ones solving the majority of the border crises.

It also has the hilarious side effect of paying for the wall. I don't find the claims that we'll be the ones paying for the tariffs credible, especially given they come from people okay with 70%+ income taxes.

People aren't used to seeing people, especially presidents, negotiate. Tariffs is an interesting tactic, and given the state of the House and California judges, it makes sense to make a move where he can.
 
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Why are so many people trying to get into a "racist" country then?

Shouldn't a wall help these people to "avoid racism" by not breaking into the country in the first place?


Whose fault is that?

America is not a free lunch. Mexico doesn't get to dictate what Americans do with their own lives. If they don't stop them, then America obviously will.
You're missing the point entirely.

#1: The wall won't work to reduce immigration for obvious reasons. See the Cato institute study I posted above. Therefore it's a waste of time and money to even consider.

#2: Mexico does not pay tariffs, American companies do. They respond by passing costs onto their customers. Drumpf is literally taking from the poor and giving to the reach.

#3: Mexico is treating this as a humanitarian issue. I'm sure most of the people who are raging against immigrants are from the midwest where they've never seen an immigrant in their lives. Don't fall for FOX and Drumpf talking points.

Stop cherry picking and regurgitating Tariff Man talking points.
 
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JordanN

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You're missing the point entirely.

#1: The wall won't work to reduce immigration for obvious reasons. See the Cato institute study I posted above. Therefore it's a waste of time and money to even consider.

#2: Mexico does not pay tariffs, American companies do. They respond by passing costs onto their customers. Drumpf is literally taking from the poor and giving to the reach.

#3: Mexico is treating this as a humanitarian issue. I'm sure most of the people who are raging against immigrants are from the midwest where they've never seen an immigrant in their lives. Don't fall for FOX and Drumpf talking points.

Stop cherry picking and regurgitating Tariff Man talking points.
Oh nice, you use "Drumpf". Now I know I can take you extra seriously on this. Maybe next time include Drumpf eats babies and Drumpf is fat just to really remind us how evil the president is.
 

matt404au

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You're missing the point entirely.

#1: The wall won't work to reduce immigration for obvious reasons. See the Cato institute study I posted above. Therefore it's a waste of time and money to even consider.

#2: Mexico does not pay tariffs, American companies do. They respond by passing costs onto their customers. Drumpf is literally taking from the poor and giving to the reach.

#3: Mexico is treating this as a humanitarian issue. I'm sure most of the people who are raging against immigrants are from the midwest where they've never seen an immigrant in their lives. Don't fall for FOX and Drumpf talking points.

Stop cherry picking and regurgitating Tariff Man talking points.
Stop calling them immigrants. An immigrant is someone who follows the process by applying for a visa and waiting to be approved. You are referring to illegal aliens. I don’t care if that term makes you feel bad; it’s the legally correct term. What you are doing is conflating immigrants with illegal aliens as though there’s no difference. It’s incredibly transparent doublespeak and you would have to have very little respect for others’ intelligence to assume no one would notice.
 

sahlberg

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You're missing the point entirely.

#1: The wall won't work to reduce immigration for obvious reasons. See the Cato institute study I posted above. Therefore it's a waste of time and money to even consider.

#2: Mexico does not pay tariffs, American companies do. They respond by passing costs onto their customers. Drumpf is literally taking from the poor and giving to the reach.

#3: Mexico is treating this as a humanitarian issue. I'm sure most of the people who are raging against immigrants are from the midwest where they've never seen an immigrant in their lives. Don't fall for FOX and Drumpf talking points.

Stop cherry picking and regurgitating Tariff Man talking points.
#1 One cherry picked study out of a thousands makes your point while you ignore the other 999 studies.
Walls absolutely work. They do not stop people from climbing them or passing them but they slow people down enough to make other responses effective.

Why the fuck do you think San Quentin have walls? They are not 100% escape proof so they should be removed?
No, they are a method to slow interlopers down enough that other countermeasures can be brought into the theater.


#2 Mexico will eventually pay. The way they pay is when the 25% tariffs hit and it shifts manufacturing from mexico back to the US.
There is a lot of manufacturing that is borderline more cost effective to do in mexico right now that will be more cost effective to do in the us once the tariffs hit and if the tariffs will remain.
That will shift manufacturing and shift jobs from mexico to the us.

Orange man bad, makes brown mexicans unemployed.

#3 Mexico will soon start to treat this as a job protection and economical issue. Once they do this you will tell all latinx from mexico they are racists?
 
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Riven326

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This is a very smart move. It’s amazing how much Trump gets right and equally amazing that the shit Presidents before him never thought of it. Mexico will be forced to solve a problem within months that’s never been solved in world history. Awesome.
Do you think they never thought of it or just chose not to do it? Trump seems very... active, for a president. Maybe I'm just not used to it, but it seems like every week he's making moves.

Don't get me wrong, I approve of Trump's more proactive approach to governing. It's refreshing to have a president so hell bent on delivering on a campaign promise. Note that Obama, Bush, and Clinton, talked about securing the border. But it was all just talk. Dems would prefer we develop amnesia and forget these inconvenient facts, I suppose.
 
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Trey

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Slapping tariffs on goods in order to force Mexico into some arbitrary condition of unilaterally solving the US immigration situation seems to misunderstand the problem. My bet is he'll put up this front, nothing materially changes at the border for a few weeks to a month, and the Trump administration will broadly declare victory again and ease the tariffs, similar to how the steel tariffs went.
 

Riven326

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Slapping tariffs on goods in order to force Mexico into some arbitrary condition of unilaterally solving the US immigration situation seems to misunderstand the problem. My bet is he'll put up this front, nothing materially changes at the border for a few weeks to a month, and the Trump administration will broadly declare victory again and ease the tariffs, similar to how the steel tariffs went.
I agree. I don't think he thinks this will solve the problem. But it does give him the ability to say he's trying to solve it but the dems refuse to play ball. It's a sound strategy, in my opinion.
 

Arkage

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They expect a government that can’t get a grip on its own domestic crime and gangs to get a grip on illegal immigration? That’s a knee slapper.

Good to see this heavy handed international economic manipulation by the President for highly partisan political points is still getting apologetics ITT. Republicans in the Senate don’t want this, Democrats don’t want this. A fringe of a fringe once again turning into national policy.

Never mind that this will blow up any attempt at NAFTA renegotiations again, which American agriculture is largely dependent upon. Trump is truly a master deal maker.
 
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Honest question. What are Mexico's major exports to the US that will be tarrifed? I don't recall using too many Mexican products in my daily life.
 

Alebrije

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I think Trump´s reaction is not for illegal migrants but because Mexico refuse to stop investment from China when U.S. asked for it.


Trump knows knows his best weapon is the TAX machine. it could work in some cases but I am afraid on this one will hurt more U.S. consumers even in the long run.