business

Trump plan for tax on Mexico exports raises eyebrows in Asia

29 Comments
By ELAINE KURTENBACH

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29 Comments
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Talk of a possible 20% tax on U.S. imports from Mexico has raised eyebrows in Asia, where exports to the U.S. drive growth in many economies.

It should be raising more than just eyebrows in the U.S., where consumers would be the ones who pay this tax, initially at least if not permanently.

Trump will be grabbing defeat from the jaws of victory if he proceeds with this stupid policy.

5 ( +6 / -1 )

actually no, tey will buy other similarly priced models instead from countries that follow the rules

And prices will go up. One way or another, Americans will be paying more money.

5 ( +6 / -1 )

Dango bongJAN. 30, 2017 - 09:15AM JST @don-in-japan I do not agree. Any nation elects its leaders to put its own citizens first. Why can't America?

You really think that's the case, "Americans first"? If so, then the list of countries who are/are not immigration-banned on Trump's agenda are somewhat eyebrow-raising... unless viewed through the lens of who-does-Trump-have-business-dealings-with. Then it becomes to be a bit clearer.

4 ( +4 / -0 )

Any nation elects its leaders to put its own citizens first. Why can't America?

They can. Fair trade is fair trade and America has in past dealings been anything but. Trump doesn't seem to realize that other nations have that right also. His policies are not going to help America in the long term.

4 ( +5 / -1 )

Nobody complains about Japan's muslim screening.

You must not read JT.

4 ( +5 / -1 )

No they won't, American makers will sell more at the current prices

If they are paying more for their supply routes, and sell at the same prices, they will have less profits. Do you really think that profit-driven companies are going to take it on the chin for Trump's idealism? I think not.

Prices will go up. It's the law of economics.

4 ( +5 / -1 )

The proposed 20% tax is meeting reality.

The Texas economy will suffer because of higher costs of imported goods and the reduced exports. There are other states that rely on Mexico exports..

The consumer will ultimately pay the 20% tax on any imports. The cost of domestic products will rise.

Maybe the only potential good result is domestic workers will benefit from higher prices of domestic produced goods, but history shows that these domestic profits typically go to the shareholders and not to workers. However, there will also be inflation reducing the buying power of domestic consumers and workers.

Even now, Ford is taking a beating in Mexico for Trump's isolationist agenda and tweets. Ford manufacturing there will not be able to sell to the U.S. and will not be able to see in Mexico. So, it will only be a viable export location. Maybe this is what Trump (and Ford) wants, but that idea gives too much credit to Trump for a long term plan.

Mexico is just the pilot program. China products will be next.

I am all for parity in trade policies, but I am not for isolationist trade policies.

3 ( +3 / -0 )

actually no, tey will buy other similarly priced models instead from countries that follow the rules

Such countries as?

And even if there were such countries, they aren't going to instantaneously ramp up production with aims on taking Mexico's share.

U.S. consumers ought to buy their big ticket foreign imports as fast as possible. This is going to be a disaster for U.S. consumers who are U.S. workers. Trump doesn't realise this?

3 ( +4 / -1 )

No they won't, American makers will sell more at the current prices

They'll end up selling less, as consumers that used to be able to buy foreign products of their choice no longer can - as a result American businesses will suffer as well, and as a result the American worker will suffer. The American worker suffering is the same thing as the American consumer suffering.

America is not supposed to be a centrally planned, communist economy.

I very much like Trump's noises on rolling back onerous regulations that do not justify their cost, moves to cut taxes and moves to cut out of control government spending. But taxing imports is just a plain stupid idea that won't achieve restoring America's greatness.

3 ( +4 / -1 )

@Haaa Nemui countries are supposed to negotiate for deals that benefit them and protect their own rights. It seems other nations expect America to protect their rights for them. Please world try to be independent

At what point has Trump ever looked willing to negotiate? Negotiation requires both give and take but Trump appears to be take take take or shut the doors.

2 ( +2 / -0 )

American automakers build their cars in china.

Japan has been appreciating ''people who come to work in Japan. Japan couldn't care less if they are Christian, Moslem, news, Catholic or atheists.

2 ( +3 / -1 )

The 20% tax will never come to fruition. Trump should not have thrown this out there in public and should have brought this up in person with Mexico's leader. Renegotiating NAFTA is a good idea. The 20% tax is not and I do not think it is going to happen.

2 ( +3 / -1 )

Dango bongJAN. 30, 2017 - 08:58AM JST The welfare is over, time to be fair.

The inanity of attributing the term "fair" to anything Trump's done thus far is simply boggling.

1 ( +7 / -6 )

The US President Donald Trump is indeed enthusiastic in rushing with his deep desire to implement his election campaign promises but one wonders whether or not the jet speed is somewhat abnormal, especially in his trade related initiatives. A tax on imports from Mexico will eventually hit the American people who depend heavily on imported consumer goods from there and other parts of the world. That apart, the BUY AMERICA policy initiative of Donald Trump has some inevitable inherent problems especially for the industry and trade to find the right skilled people and to pay them the mandatory US minimum wage which could add up to the cost and final retail price of such products.

1 ( +1 / -0 )

America imports 22% of Japan's exports, do you think Japan imports 22% of America's? That is called unfair

Hmm. How did you figure that out? By looking at population figures, production figures, market demand figures?

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Hey presto... I was just about to add basically that exact statement. I mean... if we went on population alone... the percentage of America's exports that Japan should be taking would be a third of that 22% right? Add in market demand... if America could produce a car that Japanese want to drive... well... Enough said about that.

1 ( +1 / -0 )

@Swami......regardless of whether or not one agrees with Trump and what he is doing you made a very good point about the speed he is going about all of this. I believe this very well may be his undoing. Running a country is quite different than running a business. The pace at which he is doing all this is reckless and if he is not more careful with this (and the use of Twitter) it is possible he will lose the support of his own party if he is not careful.

0 ( +1 / -1 )

actually no, tey will buy other similarly priced models instead from countries that follow the rules

Such countries as?

Such as products produced in the U.S. U.S. manufacturers will increase prices to the level of the imported products and consumers will pay for the tax and the increased price.

Your next argument will be that the tax only brings imported goods up to domestic prices, but I would argue that a 20% tax would create a gap between imported prices and domestic prices. 20% is too easy of a number to say it fixes any gap between domestic and import costs. The actual gap will vary dramatically between industry and even products.

All of this assumes that the 20% tax will be legal under the World Trade Organization.

The pace at which he is doing all this is reckless and if he is not more careful with this (and the use of Twitter) it is possible he will lose the support of his own party if he is not careful.

Apparently, he is moving so fast, his executive orders even cite the wrong statutes. The executive office has not even communicated how to implement the orders, so there is mass confusion.

In terms of the executive branch, key staff are leaving their jobs because the transition plan inadequately planned to have this people remain. So, major parts of the executive branch will function even worse that it is functioning now.

President Vincent Fox was right. Trump is only a populist who will say whatever his base wants him to say, and now Bannon is even key part of the administration decision makers when he should only be a political adviser. America just joined a notorious club, fascist countries with a dictatorship.

Apparently, gamblers are taking bets on how long Trump will last. The current bets are six months and one year.

0 ( +1 / -1 )

Of course it would raise "eyebrows" in Asia, most western goods are taxed on entry while not all Asian goods are taxed if so not at the same high rates - it was only a matter of time before the wheel started turning the full circle.

0 ( +2 / -2 )

U.S. manufacturers will increase prices to the level of the imported products and consumers will pay for the tax and the increased price.

If prices go up, that will result in consumers buying less of the products. Some consumers will opt to go without.

Your next argument will be that the tax only brings imported goods up to domestic prices,

Well no, my next argument is that because consumers will be buying less of the products, which are now more expensive because of the tax, American businesses as well as foreign businesses will suffer as a result. And what's bad for businesses is bad for business owners and those employed by those businesses, who are consumers.

0 ( +1 / -1 )

America's manufacturing peak was in 1979. We waited 36 years to address it. Our manufacturing is third-rate but our natural resources sectors are still strong.

0 ( +0 / -0 )

one like trump has to becareful, why is he attacking weak mexico, try taxing the good,s he import from russia.If u like bullying, pls pick someone yr own size.

0 ( +0 / -0 )

America is not supposed to be a centrally planned, communist economy.

America imports 22% of Japan's exports, do you think Japan imports 22% of America's? That is called unfair

-2 ( +2 / -4 )

@don-in-japan I do not agree. Any nation elects its leaders to put its own citizens first. Why can't America?

-3 ( +5 / -8 )

Yes of course it raises eyebrows here, because these countries are used to sending goods to America for free while slapping tariffs on US goods.

The welfare is over, time to be fair.

-4 ( +5 / -9 )

@don-in-japan we are talking about immigration of foreigners, we owe them nothing. If they want in they play by the rules we set.

Nobody complains about Japan's muslim screening.

-4 ( +3 / -7 )

@Haaa Nemui countries are supposed to negotiate for deals that benefit them and protect their own rights. It seems other nations expect America to protect their rights for them. Please world try to be independent

-5 ( +0 / -5 )

And prices will go up. One way or another, Americans will be paying more money.

No they won't, American makers will sell more at the current prices

-6 ( +0 / -6 )

consumers would be the ones who pay this tax

actually no, tey will buy other similarly priced models instead from countries that follow the rules

-7 ( +0 / -7 )

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