Will products made by American companies in Mexico, be tariffed at same rate as any other products coming from Mexico?

For instance, a Johnson and Johnson product made in Mexico then brought here to sterilize and distribute?

If you wanted a MIM strat or tele, yesterday was the time to buy.

Slicer97 said:

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If you wanted a MIM strat or tele, yesterday was the time to buy.

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LOL. Nice.

Quito said:

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Will products made by American companies in Mexico, be tariffed at same rate as any other products coming from Mexico?

For instance, a Johnson and Johnson product made in Mexico then brought here to sterilize and distribute?

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Yes. If it's made in Mexico and comes to the US, the importer pays the tariff on it.

Quito said:

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Will products made by American companies in Mexico, be tariffed at same rate as any other products coming from Mexico?

For instance, a Johnson and Johnson product made in Mexico then brought here to sterilize and distribute?

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That's why he's imposing them. Geez...he wants those same companies to make their stuff here, you know, to hire and pay AMERICAN workers. Also, for Mexico to do something about wages. That's why American companies produce overseas, cheap labor.

That's the idea...

Agree, but how would this do anything for Mexican wages?

I'm all for American made and American quality. However, how much will moving production back to the states increase prices?

If the theory is more money in the economy and more American buying power to make prices lower, I don't see that happening. Have to have major competition to lower prices and right now these big companies rule and only real competition are other big companies also producing outside the US.

American workers will not put up with the pay and treatment that workers overseas and in Mexico are willing to deal with. If we start making products in the US, the prices will increase due to the increased labor costs. This is basic high school economics.

70% of Wal-Mart goods comes from China:
https://www.cornellpress.cornell.edu/book/9780801462689/walmart-in-china/#:~:text=Walmart%20in%20China%20is%20licensed,of%20its%20merchandise%20from%20China.

If the US requires certain regulatory compliances, like green energy, employee health insurance, etc... applying a tariff on countries that don't require the same... is reasonable.

That makes sense as well.

So are we doing this for the American worker and bringing jobs back…knowing it will raise prices, or doing this to offset the green initiatives of the left that create benefits to produce away from those initiatives on other countries?

TheRealJacob said:

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American workers will not put up with the pay and treatment that workers overseas and in Mexico are willing to deal with. If we start making products in the US, the prices will increase due to the increased labor costs. This is basic high school economics.

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Lucky for us, in the event Americans won't accept the pay & treatment they'll receive once the US companies return to America, those corporations can hire an illegal alien from the 8 or 9 Million that Biden allowed into the country!!

I guess Biden was not only a genius who understood basic high school economics (because that's obviously the level of economic theory involved here), but he also foresaw this problem & provided the solution beforehand!!!

Seems to me if we get rude of the lifetime of government assist programs, folks will have no choice but to work.

Win - win - win

TheRealJacob said:

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American workers will not put up with the pay and treatment that workers overseas and in Mexico are willing to deal with. If we start making products in the US, the prices will increase due to the increased labor costs. This is basic high school economics.

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I know this. 20-30 years ago, most major appliances were made here and weren't that expensive for the time period. Prices won't necessarily go up as much as you think. There are other contributing factors you aren't thinking about, which was also taught in high school.

Like what?

- shipping
- distribution
- competition.


What else?

Good Job. You get a gold star for figuring out that immigration is a solution to bringing willing, cheap, skilled labor who work for long hours and low wages. No wonder that's why Immigrants have been working in US factories, building American homes, etc for years.

Quito said:

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Agree, but how would this do anything for Mexican wages?

I'm all for American made and American quality. However, how much will moving production back to the states increase prices?

If the theory is more money in the economy and more American buying power to make prices lower, I don't see that happening. Have to have major competition to lower prices and right now these big companies rule and only real competition are other big companies also producing outside the US.

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You'll always have outside competition. But the US has lost a lot of major manufacturing jobs to overseas countries. Products may increase but so do wages of those working so the difference isn't as big as you think.

True, profit margins have also increased for companies in the past 20-30 years as well, and that is hard to bring back down.

Quito said:

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Like what?

- shipping
- distribution
- competition.


What else?

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Yes, but there are others. Come on, think.

TheRealJacob said:

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True, profit margins have also increased for companies in the past 20-30 years as well, and that is hard to bring back down.

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Remember, not only do we produce and buy, but we also export as well. I'd rather spend a bit more for something made here that in China where it is cheap and has a short shelf life. That's just me. You mentioned the housing market. Those guys actually make decent money, especially framers. They do the work because a lot of Americans are lazy and won't do that kind of work. Hate to say that, but it's true.

nu awlins ag said:

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Quito said:

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Will products made by American companies in Mexico, be tariffed at same rate as any other products coming from Mexico?

For instance, a Johnson and Johnson product made in Mexico then brought here to sterilize and distribute?

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That's why he's imposing them. Geez...he wants those same companies to make their stuff here, you know, to hire and pay AMERICAN workers. Also, for Mexico to do something about wages. That's why American companies produce overseas, cheap labor.

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That's not the only reason they produce overseas. Take Caterpillar for example. They're an American company with lots of production here in the states. However, they also sell in a global market and as such, it makes sense for them to build some products in other countries. Labor and Exchange rates are among but nowhere near the only factors that influence this. At some point, it doesn't make sense for them to replicate the same manufacturing facilities in multiple countries more than it makes sense to ship product from existing factories even if those are overseas.

It seems an exemption could potential exist for those companies that are not merely outsourcing for cheap labor, but are actually global in nature and have ample facilities and job offerings here in the US in addition to being US based companies. Surely we can understand the need for them to have some facilities in other countries and not replicate them and their jobs here.

I say all this as a supporter of Trump and the tariffs, I just think we have to be smarter about exempting some.

Whatever the COO is on the item and packing list is what dictates the tariff.

So yes, in the OP's scenario at 25% tariff would apply.

Agree.

The only way you can convince American laborers to labor is to take away government benefits that are keeping them alive. And not only alive, but very comfortable. People don't mind working long and hard hours if they need food on the table and a roof over their head. When Ashley can support her four kids through snap, section 8 housing, social security and child tax credit, why wouldn't she have more kids with Johnny who's on disability?

Ag in Tiger Country said:

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TheRealJacob said:

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American workers will not put up with the pay and treatment that workers overseas and in Mexico are willing to deal with. If we start making products in the US, the prices will increase due to the increased labor costs. This is basic high school economics.

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Lucky for us, in the event Americans won't accept the pay & treatment they'll receive once the US companies return to America, those corporations can hire an illegal alien from the 8 or 9 Million that Biden allowed into the country!!

I guess Biden was not only a genius who understood basic high school economics (because that's obviously the level of economic theory involved here), but he also foresaw this problem & provided the solution beforehand!!!

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I like that you are thinking 8 or 10 million will have been deported by then, since we both know Biden let in about twice the number you mentioned above.

Anybody remember the days when you took your appliance to a repair shop when it broke?

Pfizer's CEO says he's got a plan to deal with Trump's tariffs move overseas drug manufacturing to the US

Story by ktan@businessinsider.com


Source included for the whiner. This is what Trump wanted to do.

Slicer97 said:

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Anybody remember the days when you took your appliance to a repair shop when it broke?

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I'm 48 and don't remember. My Dad repaired sewing machines for extra money, but I don't think I've ever taken anything without an engine in to be repaired.

He is just angling for an exemption

Quito said:

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Slicer97 said:

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Anybody remember the days when you took your appliance to a repair shop when it broke?

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I'm 48 and don't remember. My Dad repaired sewing machines for extra money, but I don't think I've ever taken anything without an engine in to be repaired.

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It was pretty normal in the 80s and even into the early 90s. Then we started importing cheap chinese crap that was so cheap, it was cheaper to replace something that broke with a new one rather than repair the broken one. The warehouse looking building on Holleman behind Post Oak Mall was a Sears Service and Repair center up until the late 80s/early 90s.

Doesn't make much sense to spend $50 - 60 to fix a $35 toaster oven.

Interesting

I faintly remember a tv repair shop in my hometown (DeSoto) in the 80's. Not sure when it closed.

Quito said:

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Will products made by American companies in Mexico, be tariffed at same rate as any other products coming from Mexico?

For instance, a Johnson and Johnson product made in Mexico then brought here to sterilize and distribute?

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The products don't have much value until they're sterilized so I would assume the manufacturer will give their sister company a steep discount to keep intra-corporation tariffs low.

Actually, I just asked and J&J products are manufactured and sterilized in Juarez.

There are many other factories including Puerto Rico, Georgia, Texas (San Marcos), and Germany.

But a large chunk in Mexico

nu awlins ag said:

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Quito said:

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Will products made by American companies in Mexico, be tariffed at same rate as any other products coming from Mexico?

For instance, a Johnson and Johnson product made in Mexico then brought here to sterilize and distribute?

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That's why he's imposing them. Geez...he wants those same companies to make their stuff here, you know, to hire and pay AMERICAN workers. Also, for Mexico to do something about wages. That's why American companies produce overseas, cheap labor.

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Kind of crazy the OP even had to ask

That's why I'm saying they will try to keep the book value of their imports low so they don't have to pay tariffs on the retail value of their products every time the Mexico subsidiary ships something to their Arizona subsidiary.