How will Harman respond to Trump?

[Ed Zeppeli]

I realize that this is possibly a contentious issue and also some sentiment around here of alienation with JBL but it will be interesting to observe how American companies who have moved manufacturing to Mexico will respond. Is 20 % enough to take away the benefit of moving there in the first place?

Speaking to reporters, White House press secretary Sean Spicer said that as part of its plans to make Mexico "pay for the wall", the Trump administration is considering a 20% border tax on Mexican imports.Spicer said the proposed border tax would be part of a broader tax reform proposal meant to pay for the wall along the US-Mexico border.
The highly sensitive subject of payment for the "wall" is the reason why president Pena Nieto cancelled a trip to the US on January 31 to discusses the renegotiation of NAFTA.
While Nieto has said Mexico will not pay for the wall, Trump has repeatedly said that Mexico will end up paying, even if the US makes the initial payment; as reproted earlier, Republicans have estimated the wall will cost between $12 billion to $15 billion.
Since roughly 80% of Mexican exports go to the US, Mexico finds itself in a very difficult negotiating position, in which Trump has all the leverage.


http://www.zerohedge.com/news/2017-0...-will-pay-wall

[JeffW]

Isn't Harman a Korean company now? My guess is they'll tell him where to put his tariff.

[Ed Zeppeli]

Yeah, good point. They're still manufacturing in Mexico though. They either move manufacturing or raise prices.

[DavidF]

I realize that this is possibly a contentious issue and also some sentiment around here of alienation with JBL but it will be interesting to observe how American companies who have moved manufacturing to Mexico will respond. Is 20 % enough to take away the benefit of moving there in the first place?

Speaking to reporters, White House press secretary Sean Spicer said that as part of its plans to make Mexico "pay for the wall", the Trump administration is considering a 20% border tax on Mexican imports.Spicer said the proposed border tax would be part of a broader tax reform proposal meant to pay for the wall along the US-Mexico border.
The highly sensitive subject of payment for the "wall" is the reason why president Pena Nieto cancelled a trip to the US on January 31 to discusses the renegotiation of NAFTA.
While Nieto has said Mexico will not pay for the wall, Trump has repeatedly said that Mexico will end up paying, even if the US makes the initial payment; as reproted earlier, Republicans have estimated the wall will cost between $12 billion to $15 billion.
Since roughly 80% of Mexican exports go to the US, Mexico finds itself in a very difficult negotiating position, in which Trump has all the leverage.


http://www.zerohedge.com/news/2017-0...-will-pay-wall

I think the short answer is mixed, but mostly 'yes'. The significant reason for many manufacturers to build in Mexico is not to take advantage of cheaper labor prices and ship back to the US. Rather, Mexico has more favorable export trade relationships in many countries than does the US. So it is still an advantage to build in Mexico and ship overseas rather export directly from the US.

[BMWCCA]

A tariff simply means you and I pay the 20% if we choose to buy the product. Doesn't necessarily mean the producer will bear the cost unless the market forces them to lower their selling price to offset the tariff. A 20% tariff on Mexican-made products isn't Mexico paying for the wall. You and I will pay for any wall that gets built under this plan by paying higher prices.

Yelling "you lie" at the President would now be appropriate!

[gibber]

I realize that this is possibly a contentious issue and also some sentiment around here of alienation with JBL but it will be interesting to observe how American companies who have moved manufacturing to Mexico will respond. Is 20 % enough to take away the benefit of moving there in the first place?

This is all quite unexpected stuff to us over here in "old Europe" (term © an earlier Donald).
Thing is if the new Donald continues it's serious this time, he's the boss, not one of the cowboys.
Debutantes already move again on 2008's shelved project to apply for the vacant position of head honcho @pacific rim treaty.
Other lone hawks who grew up comrades love to watch the circus, too.
Maybe the national cavalry will move in to halt ultimate damage, who knows if stories they did this in times before this forum hold water or not
Not sure about the last line, the fall of the american empire is watched not responded to (hey, that indeed was a film title once upon a time in the north)
Amusing forthcoming years for those who are into that most superfluous of services, Twitter. They might even survive this pres, who would have guessed.
My € 0.02
Ralph

[hjames]

Putie has his hooks in Donald - he knows Donald has a fragile ego and knows JUST how to troll him.
Putie is lining up to bust the US the same way Reagan busted the Soviet Union -
get us over-extended on a number of fronts at once,
and the first one is that idiotic Great Wall of Trump ...
and we are supposed to pay for it -
but Trump assures us he'll get Mexico to pay us back later.

[hsosdrum]

Nobody loves discussing politics more than I do, but I think this thread has crossed the line imposed by the moderators. As serious as these issues are (and they are deadly serious), I for one would hate to see this forum devolve into the inevitable political squabbling that will occupy the media over the next few years.

[Ed Zeppeli]

I think the short answer is mixed, but mostly 'yes'. The significant reason for many manufacturers to build in Mexico is not to take advantage of cheaper labor prices and ship back to the US. Rather, Mexico has more favorable export trade relationships in many countries than does the US. So it is still an advantage to build in Mexico and ship overseas rather export directly from the US.

This is interesting. Thanks

A tariff simply means you and I pay the 20% if we choose to buy the product. Doesn't necessarily mean the producer will bear the cost unless the market forces them to lower their selling price to offset the tariff. A 20% tariff on Mexican-made products isn't Mexico paying for the wall. You and I will pay for any wall that gets built under this plan by paying higher prices.

Yelling "you lie" at the President would now be appropriate!

Exactly. It will be a combination of price increases, cuts to profit and lost market share.

Nobody loves discussing politics more than I do, but I think this thread has crossed the line imposed by the moderators. As serious as these issues are (and they are deadly serious), I for one would hate to see this forum devolve into the inevitable political squabbling that will occupy the media over the next few years.

I...

...probably shouldn't have put his name in the title; unwittingly making it political. I'd like the topic to continue though. Perhaps a mod could just change the title to avoid the unnecessary contentiousness. I certainly didn't want to stir things up.

Still interested in viewpoints on how this might impact our Made In Mexico products.

Regards,


Warren

[DS-21]

Speaking to reporters, White House press secretary Sean Spicer said that as part of its plans to make Mexico "pay for the wall", the Trump administration is considering a 20% border tax on Mexican imports.Spicer said the proposed border tax would be part of a broader tax reform proposal meant to pay for the wall along the US-Mexico border.
The highly sensitive subject of payment for the "wall" is the reason why president Pena Nieto cancelled a trip to the US on January 31 to discusses the renegotiation of NAFTA.
While Nieto has said Mexico will not pay for the wall, Trump has repeatedly said that Mexico will end up paying, even if the US makes the initial payment; as reproted earlier, Republicans have estimated the wall will cost between $12 billion to $15 billion.
Since roughly 80% of Mexican exports go to the US, Mexico finds itself in a very difficult negotiating position, in which Trump has all the leverage.

You're making the assumption that a president elected against the will of the majority of his Nation's population will be able to get such an unpopular thing as a massive price hike on goods we collectively want to buy through a Congress captured by multinational corporations, and/or succeed after years of litigation as to the meanings of words such as "war" or "emergency" in the case of tariffs not enacted with Congress's approval.

Your assumption could be valid, as the deplorables are all about slicing off their noses to spite their faces. But I hope it is wrong.

[NWCgrad]

The popular vote isn't what elects the President in the US, never has been and never will be. Seems to me it's not a topic for discussion on an audio website.

[Ed Zeppeli]

Ok mods! Delete away.

[Mr. Widget]

Nobody loves discussing politics more than I do, but I think this thread has crossed the line imposed by the moderators. As serious as these issues are (and they are deadly serious), I for one would hate to see this forum devolve into the inevitable political squabbling that will occupy the media over the next few years.

+1

I have to say I have been surprised that during this contentious election campaign and into this year we have not seen a lot of this here on the Forum.

Yes, there are numerous VERY important issues here. But this is not a political forum and unfortunately if we allow this discourse to continue we will undoubtedly alienate a sizable group regardless of the points of view chosen. I'm locking the thread now.

Let's remain civil and hope for the best.


Widget