The truth about tariffs

[Diogenes]

Whether or not tariffs drive up costs, ecompanies are likely to use them as an excuse to raise prices.

"It's something we saw in this inflationary period," says Lindsay Owens, the executive director of the Groundwork Collaborative, a progressive think tank.

"It does contribute to this kind of vicious circle in terms of prices for Americans and a virtuous circle in terms of profits for companies."

In 2018, when President Trump imposed tariffs on washing machines, they got more expensive. So did dryers, even though they weren't subject to tariffs — companies figured customers would assume that two related products were subject to the same forces.

If the cost of imports goes up, even companies whose products are American-made are likely to get in on the price hiking.

"It's like a Christmas gift," says Ernie Tedeschi, the director of economics at the Yale Budget Lab, who previously worked for the Biden administration. "They have this windfall given to them in their lap. They're like: 'Wait, you're telling me that my competitors are now forced to raise their prices 20%? Well, I'm going to raise my prices 19% and I've still got the competitive edge. But now I have 19% of pure profit I can just add on top.' I think that's where it's really going to sting."

So if Trump winds up imposing tariffs, can consumers expect to see price hikes?

MSN

 

[Tbird19482]

There are some that have said as soon as they know for sure Trump will put his tariffs on they will raise their prices, Heck as I posted in another thread I was at Walmart about 7 pm to night and saw a friend that works in the office there she said their store is getting ready to raise prices at least 10% on almost everything by the first of the year.
And the CEO of Auto Zone said as soon as he knew for sure how much Trumps tariffs are going to be he will be raising the cost of most everything in their stores right away.
So yes there are outlets that plan on taking advantages of this and padding their profits big time.
Just like they did and blamed Biden and inflation, a lot of large corps like Exxon have been making record profits year over year for the last couple of years gouging the American consumer.
And Not a work from the right that it wasn't inflation but corporate greed. They put all the blame on Biden .

 

[Hawkeye10]

That is called price gouging, and is in the realm of the morally inferior.

 

[Tbird19482]

That is called price gouging, and is in the realm of the morally inferior.

And big corps have been doing it and blaming Biden inflation , like I said there are corps that have increased their profits well over 100% over the last couple of years bringing in record profits year over year.

 

[Diogenes]

And big corps have been doing it and blaming Biden inflation , like I said there are corps that have increased their profits well over 100% over the last couple of years bringing in record profits year over year.

Maybe you should call the cops.

 

[Diogenes]

1964: DEMOCRAT President Lyndon Johnson implemented a 25% tariff on imported “small cargo vehicles.”

It effectively eroded the importation of small trucks.

Toyota wanted to sell small trucks in the U.S., so they exploited loopholes that allowed their vehicles to avoid being classified as “light cargo vehicles” subject to the tariff.

In 1991, all remaining loopholes were closed.

In response, Toyota began developing a truck specifically for the U.S. market (the Tacoma), and in 1995, Toyota started manufacturing trucks in America.

Toyota now manufactures Tacomas and Tundras in Texas, California, and Mexico.

Did LBJ's tariff crash our economy?

 

[Tbird19482]

1964: DEMOCRAT President Lyndon Johnson implemented a 25% tariff on imported “small cargo vehicles.”

It effectively eroded the importation of small trucks.

Toyota wanted to sell small trucks in the U.S., so they exploited loopholes that allowed their vehicles to avoid being classified as “light cargo vehicles” subject to the tariff.

In 1991, all remaining loopholes were closed.

In response, Toyota began developing a truck specifically for the U.S. market (the Tacoma), and in 1995, Toyota started manufacturing trucks in America.

Toyota now manufactures Tacomas and Tundras in Texas, California, and Mexico.

Did LBJ's tariff crash our economy?

I have to ask in 1964 what Japaneses companies were selling “small cargo vehicles.” ( " small trucks" ) or even A small car that was a big seller or even beginning to be a big seller in the USA?
I can say most their imports didn't become a real big thing till about 67 / 68 , or even 69.
At least east of the Mississippi.
Tacomas and Tundras are not really " small " trucks ., like the original Ford Ranger was.
I made the rocker panels for the F series Trucks for over 17 years and they have been the best selling Truck for something like 47 years now.
And I don't remember LBJ's Tariffs being 20 / 30/ 40 % OR more like Trump says he wants to put on a LOT of imports.

 

[Diogenes]

I have to ask in 1964 what Japaneses companies were selling “small cargo vehicles.” ( " small trucks" ) or even A small car that was a big seller or even beginning to be a big seller in the USA?

Who told you "Japanese companies were selling small cargo vehicles” in 1964?

 

[Tbird19482]

Who told you "Japanese companies were selling small cargo vehicles” in 1964?

So you have no idea what you posted?

 

[Diogenes]

So you have no idea what you posted?

Seems to be your problem, not mine.

Did I say "Japanese companies were selling small cargo vehicles” in 1964?

No, I did not.

 

[Diogenes]

Now, as I was about to add before I was so ignorantly interrupted;


The Chicken Tax is a 25 percent tariff on light trucks (and originally on potato starch, dextrin, and brandy) imposed in 1964 by the United States under President Lyndon B. Johnson in response to tariffs placed by France and West Germany on importation of U.S. chicken.

Audio tapes from the Johnson White House, revealed a quid pro quo unrelated to chicken.

In January 1964, President Johnson attempted to convince United Auto Workers' president Walter Reuther not to initiate a strike just before the 1964 election. Reuther, in turn, wanted Johnson to respond to Volkswagen's increased shipments to the United States.

U.S. sales of Volkswagen Type 2 vans in pickup and commercial configurations were curtailed by the Chicken Tax.

Eventually, the tariffs on potato starch, dextrin, and brandy were lifted, but since 1964 this form of protectionism has remained in place to give US domestic automakers an advantage over imported competitors.

Chicken tax - Wikipedia

en.wikipedia.org

 

[Walt]

​

So if Trump winds up imposing tariffs, can consumers expect to see price hikes?

The serious people around trump, when they are being honest, talk of 5 to 10 years of severe suffering, followed by a golden age. I would like to see another country having this golden age, before I risk our economy on it, but the 5 to 10 years of severe suffering seems very real.

Yes, there will be extreme inflation. trump supporters think that will lead to building up production in the USA over many years, and that might reduce the inflation a decade from now.

 

[Tbird19482]

The serious people around trump, when they are being honest, talk of 5 to 10 years of severe suffering, followed by a golden age. I would like to see another country having this golden age, before I risk our economy on it, but the 5 to 10 years of severe suffering seems very real.

Yes, there will be extreme inflation. trump supporters think that will lead to building up production in the USA over many years, and that might reduce the inflation a decade from now.

That is the point we do not have the infrastructure in place to produce a lot of the things we buy and it will take years for us to finally get it in
place and that is IF we don't go into a deep recession / depression like the economist say we might with these deep tariffs.

 

[Diogenes]

That is the point we do not have the infrastructure in place to produce a lot of the things we buy and it will take years for us to finally get it in
place and that is IF we don't go into a deep recession / depression like the economist say we might with these deep tariffs.

Think so?

 

[Tbird19482]

Think so?

YES I do.
It is a FACT that we do not have the infrastructure in place right now to produce a lot of the things we buy.
We do not have a micro chip plant up and running yet so until that is completed and put on line we have to buy our chips from other countries.
Putting tariffs on will just raise the price to the American consumer driving up inflation and slowing our economy and if it slows enough it will send us into a recession and if bad enough a depression.
Then companies will be cutting back on their production and laying off people slowing the economy even more.
This will slow the building of the infrastructure we need to build the products we import now ,the ones Trump wants to put tariffs on.
Then you have to take into consideration that the countries we are putting these tariffs on more then likely will turn around and put tariffs on our products slowing our economy even more.
Trump may be starting a trade war we may not be able to win.

 

[Walt]

That is the point we do not have the infrastructure in place to produce a lot of the things we buy and it will take years for us to finally get it in
place and that is IF we don't go into a deep recession / depression like the economist say we might with these deep tariffs.

That is all correct. It literally takes a decade or two to get the basic infrastructure in place. And then there is the loss of economies of scale and comparative advantage. Most importantly, there is the loss of competition. We would end up like Brazil or India with high cost poorly made domestic consumer goods.

 

[Tbird19482]

That is all correct. It literally takes a decade or two to get the basic infrastructure in place. And then there is the loss of economies of scale and comparative advantage. Most importantly, there is the loss of competition. We would end up like Brazil or India with high cost poorly made domestic consumer goods.

Like you said it takes a lot of time to build factories we need to produce products that we buy from other countries , as of right now they are building a factory to make micro chips in NYS but it is still several years from being complete, then you need to hire people and train them to do the jobs and that takes time too.
So your talking 2 or 3 more years before it is up and running , then hopefully they put out a good product and that product has to be superior to what we import now and has to be at a competitive price, or nobody is going to buy them.
Right now all Trump is going to end up doing is start a trade war and it could put us into a recession/ depression like a lot of economists are saying it could.

 

[Walt]

Like you said it takes a lot of time to build factories we need to produce products that we buy from other countries , as of right now they are building a factory to make micro chips in NYS but it is still several years from being complete, then you need to hire people and train them to do the jobs and that takes time too.
So your talking 2 or 3 more years before it is up and running , then hopefully they put out a good product and that product has to be superior to what we import now and has to be at a competitive price, or nobody is going to buy them.
Right now all Trump is going to end up doing is start a trade war and it could put us into a recession/ depression like a lot of economists are saying it could.

The alt right posters assume they can become experts in 15 minutes, and get all this done in a long weekend.

It is odd, because they do not seem to be experts in anything.

 

[Diogenes]

YES I do.

Your opinion is already in the record.

Please let me know if you can substantiate it.

 

[Tbird19482]

Your opinion is already in the record.

Please let me know if you can substantiate it.

It already has .
I guess you need a third grader to help you read it post # 15.
again we do not have the infrastructure right now to make a lot of products we buy and it would take several years to build it IF Trump doesn't put us into a recession /depression like a lot of economists say he might.
With his tariffs the price of just about everything we buy is going to go up and up.
And when it happens you will only have yourselves ( the MAGAS ) to blame for it.