Gm.
Canada exports $400B+ in stuff to the U.S. per year.
Mexico does another $400B, and China does $500B.
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Gm ☕️ 😊
I don’t care. I’m sorry.
GM ☕🧡
GM 🌻 Rise 'n shine 🧡
Lyn, what does this mean? I am not versed in tariffs like you.
Struggling to see how tariffs benefit America
$1.3T in stuff multiplied by $1 tariff on every $1 of stuff doesn’t even cover the budget deficit
Yeah, it’s going to get spicy. China is now making trade overtures. Guess we’ll have to trade there. As the photo indicates of the ingredients, if you purchased the US equivalent, it would be laced with additives not even legal in Canada.
My apologies, Lyn. I should have led with…GM.
I'm just a stupid guy but wouldn’t tariffs just make goods more expensive for the MAGA flock?
The question is: can the US replace the imports or the prices are just going to shoot up?
Nothing says "make America great" like $15 jars of spaghetti sauce, right? 🤔🤣
They may, and history shows this, value the opportunity to compete in the US market more than passing along a 10% and 25% tariff in their prices. Their governments may subsidize the tariff like China in ‘19.
Are the tariffs high enough to offset the wage/cost of production in the US... One thing is sure though, the US needs to do something about the hollowing out of its industrial base 
Lyn, how do you look at the idea of killing income taxes and increasing tariffs on trade partners?
Tariffs are always paid by the consumer in some way. Either reduced quality or higher prices.
GM - everyone around here is worried about the fishery - going to be an interesting Saturday.
@Lyn Alden can you please explain as if I’m a small goblin?
If the USD wasn’t a reserve currency, that would go a long way to reindustrialising the US.
I agree. Under normal circumstances it would help rebalance.
I’ll be making my own chicken soup
The other “flock” was better?
I thought about this last night..
Are these tariffs just a ways for the US to strongarm other countries to turn their money printers on first?
Like, if the MX and CA have to pay 25% more to export the same items, wouldn’t it be safe to say that either country will have no choice but to turn on their local money printers and devalue their money first?
Also GM!
That’s a great start! Make Chicken Soup Great Again!
No, no one is better per se. I’m just talking about the special “I support you regardless of what you do” type that seems to be very popular within the MAGA guys. 
when people stop buying Rao’s and grab the non tarrif’ed Prego, that isn’t hurting the customer financially.
it limits their selection sure, but the bottom line is it hurts Rao’s.
it’s simply false to say the customer loses quality or pays a higher price. Rao’s is a higher price and the customer still have a choice.
Not all sauce is getting tarrif’d
ur talking about tilting at windmills.
leave the strawmen alone
ur talking about tilting at windmills.
leave the strawmen alone
sorry, replied to wrong msg
Bitcoin and stocks will come crashing down right?
Loading up on astronomical gear now
GM. The top export country for 33 (give or take) of the 50 US states is … Canada.
Gm
Mexico and Canada don't have to pay anything. People living in the US have to pay the extra 25%. Which means lots of stuff will be more expensive so people probably won't buy as much, which will mean Mexico and Canada can't sell as much. So Trump puts pressure on other countries by hurting US citizens.
Prices will just shoot up. To be honest I don't think Trump really understands tariffs.
That’s the simple view. But the US has hollowed out its industrial and manufacturing base by sending it overseas. At what point do taxes and money printing go so high to account for lost industry that we can’t buy anything anymore because no one has a job?
30% of the economy is financial, which means money printing and money gaming. This is nonproductive.
So we are in a situation where the printing press now has to account for $2 trillion a year in deficit spending.
Historically, the system where living in has collapsed 100% of the time and the people that suffer are the ones that got cheap goods for a few decades.
Exactly. Tariffs mainly hurt the foreign importers/producers, because their product now loses competitive edge against other products that are not tariffed/produced domestically. Also this increases political pressure in the country of origin because their producers may demand subsidies from their governments with the pretend they may end up in bankruptcy. The governments often caves in for subsidies and increased deficits because they fear recession and increased unemployment more than anything (it’s not good for the ratings).
What did you think of the bank of Canada discussion of their reaction function to tariffs? I found the very end of the press conference illuminating to the extent that they clearly have a 3 body problem to the extent that they haven’t internalized that the inflation of 21-22 can largely be explained by money supply growth. I’d love your take.
The money printer is what did all that damage to the US and the UK (where I am). Tariffs won't fix that. As long as money (the yard stick by which all is measured) is broken everything else will be broken. Tariffs are at best a sticking plaster.
Buenos días
It's a little different when one of those countries primarily exports raw materials for american producers. Majority of trade is with the US.
Here is a breakdown.
Mineral fuels including oil: US$143.4 billion (25.2% of total exports)
Vehicles: $63.7 billion (11.2%)
Machinery including computers: $42.5 billion (7.5%)
Gems, precious metals: $28.4 billion (5%)
Wood: $13.4 billion (2.4%)
Plastics, plastic articles: $15.5 billion (2.7%)
Electrical machinery, equipment: $16 billion (2.8%)
Aluminum: $12.6 billion (2.2%)
Fertilizers: $9.5 billion (1.7%)
Ores, slag, ash: $11.4 billion (2%)
Maybe there will be exemptions some of these commodities?
Basically that chart his of american food and residential real estate price increases.
Totally understand that, however This seems more like the symptom than the cause.
In reality before people from the United States can purchase the imported good it must be paid for by the country importing it.
Sure, the trickle down effect will be to raise the price of the item in the US economy. But the very first payment to import the goods must initially be paid by the company from the country that is importing it. if the price is too high for them to import it, either the import will not occur, making the price increase impossible because the imported good is not able to come into the states, or the argument I pose, is that CA & MX governments will just subsidize the duty.
Just food for thought
Yes, you're completely right. I think it's near term pain that Trump can use for bargaining.
If the tariffs are kept for long I guess: 1. The consumer has to pay more for a lot of products and can’t spend money for other products. Industry will earn less. Jobs will be created in the USA if US companies become competitive. FED will be more likely to set rates higher for longer. Trump needs to reduce real value of debt which starves the economy or dilutes the dollar. 2. foreign countries suffer in any case even when the tariffs vanish quickly.
Could compensate by opening up trade with russia and ukraine.
Thank you!
I can’t zap you because your wallet isn’t active.
calculating tax for zaps would be a nightmare. I prefer to not get zaps for now
Can’t we make chicken noodle soup in the US?
Nope. If the good is not imported, the prices will rise anyway for two reasons:
1) It's not just ready to sell to consumer goods that are imported, it's materials to make goods too. The civilized world is interdependent, each country specializing on selling products, parts of prodicts, and labor that it's either best at or least wordt at (it's how proper economics do). So even the consumer goods that are manufactured domestically will skyrocket because they'll contain parts that are imported with tareifs. And
2) It will eliminate or extremely reduce competition coming from other countries. What does eliminating or reducing competition do to prices? Raise them. Protectionism is always substituted by the consumers of the country that is doing protectionism.
Think about what you as a person are good at. Let's say you're an engineer. Would you rather spend 90% of your working time doing engineering and let others do tasks that they are best at and you suck at, or would you rather split your time between all the tasks it takes to survive: sheering wool, making thread, weaving that thread into fabric, sewing your own clothes, farming your own fruits, vegetables, and meat, making bricks, cutting wood, building your own house, producing your own electricity, etc etc? How much time are you gonna have left for engineering? What would be the average quality of the stuff you do/produce? See how stupid it would be to go back to the middle ages or prior? Now take it to the country level. It's the same thing. Prices rise, quality decreases.
Communist countries tend to isolate themselves like that, trying to do everything on their own amd isolating themselves. This some commie shit disguised as capitalist shit.
Also: retaliatory tariffs exist. You won't be importing cheap OR exporting expensive (or at all). Dumbass idea overall.
100% agree that this action from the administration is stupidly irresponsible.
I was just trying to think about it from first principles. Thank you for your input!! I did not consider a lot of what you discussed
I think it's done for internal publicity reasons to pander to xenophobes and anti-globalists. "You hate China? Look, I'm doing things 'aganinst' China and other countries you don't like? Aren't I the bestest? Vote for meeee!"
Can you explain what you mean by MX and CA having to pay 25% more? A tariff is an import tax paid by the company doing the importing. So American companies that were importing those goods will now have to pay a 25% fee on top of what it previously cost to import them, which means that they will in turn raise the prices of their products to account for this new loss that they unexpectedly started incurring. The end result of that is that by raising their prices, us normal American citizens will have to pay more for those goods.
Foreign countries don't pay tariff costs. We have no way to enforce that, nor does it make sense for them to do so.
What I meant by that was the companies in those countries would have to pay the duty to import their own goods into the US.
I did not consider American companies also having to pay this import tax, because the current administration did not communicate that. I assumed that the tariff was only on companies in those jurisdictions, and that countries would have to subsidize that expense
It did not appear clear to me that companies in the United States doing any importing would be subject to the same expense.
It'll make goods more expensive for everyone unless people decide to start buying the more competitively-priced American-made versions of what they were used to (assuming those cheaper versions even exist in the first place). If we import some version of the good from another country that isn't tariffed, that would also theoretically become more appealing. I guess it's all relative based on the import costs of each type of good.
GM 🫂💜🤙
Yeah, unfortunately we pay the cost, it's a tax America is imposing on itself. I believe the new administration is doing a massive disservice to American citizens by allowing Trump to make it sound like foreign countries will be paying these tariff costs. Most people (myself included) never really had a need to learn what tariffs were, but if you look into it a better name for it is just "import tax".
A tariff definitely can be an economic tool to foster growth and competition of American companies against foreign producers, but the way Trump is wielding them so heavyhandedly across the board is not the right way to do it. They should be applied strategically in certain industries where it makes sense, but he's using them like a threat/bargaining tool to try to force other countries to do something. I hope Lyn will make some comments on this because I'm just a random person who studies this stuff for my own curiosity, but I think using them that way is the wrong way to go. All that does is further intensify trade wars which are really not good for anyone in such an interconnected global economy.
I’m enjoy the conversation!
I could be completely wrong with all of this, I actually have no idea what I’m talking about and I’m just adding my food for thought that popped into my brain this morning while I was having my first coffee. ☕️ GM
25%
GM! ☕ ☀️ 🫂
GOOD MORNING 💜🌄
Soup might not as be critical as other stuff :
https://www.cbc.ca/news/canada/british-columbia/bc-premier-david-eby-1.7431444
there are factories along the border of Mexico where regulatory and price arbitrage and labor arbitrage come into play in a complex dance where complex products are made utilizing the best of both sides of the border
there is a business that is at risk there or great efficiencies might be lost
The gov takes our wealth every year under threat of force and imprisonment.
Freedom isn’t free. It costs a hefty fuckin fee.
So assuming buying pattern don’t change, which they will, the best the US will get is $250B from the 25% and 10% tariffs. Not abolishing the income tax with this. I’m just looking at more taxes.
Sales tax, 25% on top of the tarrif. Fait to expect prices rise up another 30% or so?
Slap 20% on US products, problem solved.
Tarrifs = autarky.
Look it up.
Exactly. To be competitive - producers will cut even more cornered to curb the retail price. How? Replace everything organic with banned and cheap stuff.
Thank you for this!
That’s lots of helpful info and debate out there about who is actually going to pay this tax, but the truth is somewhere in the middle of USA citizens picking up the tab versus the countries attempting to export the tariffed goods. USA has other options including other countries without tarriffs or switching to producing the goods ourselves from our vast natural resources— while these tarriffed countries goods are suddenly going to be difficult to sell in the biggest market in the world: the USA.
There’s so much more to say, but just pointing out it’s not as simple as a tax on America and can serve as a lever to other ends— for instance serving our administration’s immigration goals.
trump really cucking us without coupling tariffs with reductions to income tax
Great. More stuff to slap tariffs on. Winning! (for the government, anyway).
Step #1: create a problem
Step #2: solve the problem you just created
Step #3: get credit for solving the problem you just created
Gm.
Canada exports $400B+ in stuff to the U.S. per year.
Mexico does another $400B, and China does $500B.
View quoted note →
no soup for you
Comes in a Teflon-lined Campbell's can.
To the US: good luck balancing that massive spreadsheet. Balancing it with gold—or gold on steroids, aka Bitcoin—would be easier.
How is Rao’s made in Canada is the bigger question