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re: Exports to the U.S. make up about 30% of Mexican economy

Posted on 1/26/17 at 9:30 pm to
Posted by cahoots
Member since Jan 2009
9134 posts
Posted on 1/26/17 at 9:30 pm to
The question is whether a 20% (or possibly less) tariff will be enough to completely discourage trade or just increase prices for the US? Also, will Mexico impose a tariff too? Too many variables at this point.
Posted by scrooster
Resident Ethicist
Member since Jul 2012
38933 posts
Posted on 1/26/17 at 9:35 pm to
quote:

The question is whether a 20% (or possibly less) tariff will be enough to completely discourage trade or just increase prices for the US? Also, will Mexico impose a tariff too? Too many variables at this point.


frick it.

Let's just do it and find out.

frick Mexico.

I guarantee you that 60% or more of their GDP is U.S. funded one way or the other ... exports, drugs, illegals' money sent back via Western Union, tourist dollars, etc.
Posted by CajunZ81
Mexico City
Member since Jun 2010
1743 posts
Posted on 1/26/17 at 10:25 pm to

quote:

The question is whether a 20% (or possibly less) tariff will be enough to completely discourage trade or just increase prices for the US?


When we got rid of tariffs we undercut the wages of all American workers because companies could produce products in countries with lower labor standard and wages, ship them here and sell them at a profit. This is known as the arbitrage of labor and it was done on purpose to drive down wages for all workers in the US. We need to bring back tariffs because it will encourage to buy American made goods and will ultimately help the American worker.
Posted by Loserman
Member since Sep 2007
22407 posts
Posted on 1/26/17 at 10:32 pm to
quote:

The question is whether a 20% (or possibly less) tariff will be enough to completely discourage trade or just increase prices for the US? Also, will Mexico impose a tariff too? Too many variables at this point.



They already do. Their VAT tax is essentially a tariff as far as our goods to them are concerned.

NAFTA has only been free trade from Mexico to the US and from Canada to the US.

Both Mexico and Canada have a VAT. (Canada calls their something else but it is still a tax)
Posted by noonan
Nassau Bay, TX
Member since Aug 2005
36913 posts
Posted on 1/26/17 at 11:54 pm to
quote:

The question is whether a 20% (or possibly less) tariff will be enough to completely discourage trade or just increase prices for the US?


They won't raise prices enough for it to really affect anyone in the US. We don't use Mexican products because of their quality. We use them because of their prices. Their prices aren't significantly less than their competitors. Mexican products prices might go up, but they still have to compete.
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