Trump tweets 'We will BUILD THE WALL!'

[Captain N]

And the consumer sees the higher prices and just buys less of whatever product the producer is selling. That still happens regardless if it's cheaper to produce in Mexico or the USA.

Except a person will still continue to purchase the cheaper option in most cases -- So you're not really hurting the Producer in Mexico at all. As long as their product is still cheaper even with the tariff than the same item made in the US the cost is shifted right onto the consumer.

You would have to create the same products in the US or import from another country cheaper than what is done in Mexico for this to damage the producer in any meaningful way for it to have the effect you're talking about.

[Draco-Onis]

And the consumer sees the higher prices and just buys less of whatever product the producer is selling. That still happens regardless if it's cheaper to produce in Mexico or the USA.

except it's really not that simple especially when you are talking about trade goods, when Trump first got elected and the shadow of tariffs were around the dollars strengthened and the pesos took a pounding. If tariffs were to be instituted the same scenario would result in basically a massive discount for Mexico making their goods cheaper at the same time giving them a reason to increase price. Mexico does produce goods that we cannot grow here another variable to weight in. That's why there is no support for the tariff idea it is a blunt instrument that often has unforeseen consequences.

[Mittens]

except it's really not that simple especially when you are talking about trade goods, when Trump first got elected and the shadow of tariffs were around the dollars strengthened and the pesos took a pounding. If tariffs were to be instituted the same scenario would result in basically a massive discount for Mexico making their goods cheaper at the same time giving them a reason to increase price. Mexico does produce goods that we cannot grow here another variable to weight in. That's why there is no support for the tariff idea it is a blunt instrument that often has unforeseen consequences.

There is no support for the tariff idea as a measure of protectionism, not as a method of raising revenue. The former is related to what you wrote, the latter not so much.

[Mayhem]

And the consumer sees the higher prices and just buys less of whatever product the producer is selling. That still happens regardless if it's cheaper to produce in Mexico or the USA.

If selling to the US will decrease their profits, they simply can stop selling to the US as it would actually damage them. Your "the consumer doesn't need to buy it" also means "the producer doesn't have to sell it".

In no reasonable scenario will the producer eat the tariffs.

[Draco-Onis]

There is no support for the tariff idea as a measure of protectionism, not as a method of raising revenue. The former is related to what you wrote, the latter not so much.

Both actually there have been intense lobbying from both inside and outside the white house for the reasons I listed not to mention no one wants a trade war.

[Mittens]

If selling to the US will decrease their profits, they simply can stop selling to the US as it would actually damage them. Your "the consumer doesn't need to buy it" also means "the producer doesn't have to sell it".

In no reasonable scenario will the producer eat the tariffs.

Who are producers gonna sell it to?

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Both actually there have been intense lobbying from both inside and outside the white house for the reasons I listed not to mention no one wants a trade war.

How does it challenge the idea of tariffs as a method of raising revenue? As for trade war, make some reason to put tariffs , Mexico will put tariffs on another thing and will challenge US tariffs. It will take 3-5 years until the case is resolved, by that point the revenue of the tariff would've paid the wall.

[Draco-Onis]

How does it challenge the idea of tariffs as a method of raising revenue? As for trade war, make some reason to put tariffs , Mexico will put tariffs on another thing and will challenge US tariffs. It will take 3-5 years until the case is resolved, by that point the revenue of the tariff would've paid the wall.

You are right I misunderstood tariffs as a binary metric do raise revenues but the problem is unintended consequences and the fact that it makes the American people pay for the wall not Mexico.

[GennGreymane]

And Americans will pay for it.

Damn right we will.

[Mayhem]

Who are producers gonna sell it to?

No one, they will reduce output.

[Mittens]

No one, they will reduce output.

So they accept they are selling less. I'm not sure where we are disagreeing.

[Mayhem]

So they accept they are selling less. I'm not sure where we are disagreeing.

On them paying the tariffs.