necessary but painful....tariffs

4,338 Views | 57 Replies | Last: 11 mo ago by Ryan the Temp
richardag
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Heineken-Ashi said:

GarlandAg2012 said:

Tex100 said:

The goal is to get more stuff made in the US, is it not?
How does this happen without government action? Companies will either need cheap financing (ie low rates) or special loans/handouts from the government (more deficit). We don't have either of those.

Some companies have been hoarding cash, like in the tech space, but I don't know that industrial manufacturers have been, especially since things are still not 100% normal after COVID. Raw material costs have been high. I don't think Apple is going to spin up a steel mill or engine manufacturing plant...where is the CAPEX for all this growth going to come from?
Trump has repeatedly harped on GUTTING regulations and incentivizing companies to invest and build in America. Bessent is deeply focused on getting rates down. It's all tied together strategically.
Just like his first term.
President Trump accomplishments
quote from the article
  • Massive Deregulation
    Ended the regulatory assault on American Businesses and Workers.
    • Instead of 2-for-1, we eliminated 8 old regulations for every 1 new regulation adopted.
    • Reduced the direct cost of regulatory compliance by $50 billion, and will reduce costs by an additional $50 billion in FY 2020 alone.
    • Removed nearly 25,000 pages from the Federal Register more than any other president. The previous administration added over 16,000 pages.
    • Established the Governors' Initiative on Regulatory Innovation to reduce outdated regulations at the state, local, and tribal levels.
    • Signed an executive order to make it easier for businesses to offer retirement plans.
And now President Trump's Administration is also eliminating as much useless bureaucracy as he can which will also reduce dumbass regulations.
Among the latter, under pretence of governing they have divided their nations into two classes, wolves and sheep.”
Thomas Jefferson, Letter to Edward Carrington, January 16, 1787
Pepe SiIvia
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CanyonAg77 said:

Ryan the Temp said:

Several music shops I know have stopped selling imported musical instruments entirely.
Sounds like a protest, as opposed to a business decision.
Sounds like a dip**** assumption.
CanyonAg77
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Pepe SiIvia said:

CanyonAg77 said:

Ryan the Temp said:

Several music shops I know have stopped selling imported musical instruments entirely.
Sounds like a protest, as opposed to a business decision.
Sounds like a dip**** assumption.

So, can you not afford a Premium subscription anymore?

Sorry your girl lost.
Pepe SiIvia
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CanyonAg77 said:

Pepe SiIvia said:

CanyonAg77 said:

Ryan the Temp said:

Several music shops I know have stopped selling imported musical instruments entirely.
Sounds like a protest, as opposed to a business decision.
Sounds like a dip**** assumption.

So, can you not afford a Premium subscription anymore?

Sorry your girl lost.
Nope, I don't pay for info that's free in 3 minutes + Aggie sports aren't worth paying for extra info in the first place.
Ghost of Andrew Eaton
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The OP sounds like a Democrat.
If you say you hate the state of politics in this nation and you don't get involved in it, you obviously don't hate the state of politics in this nation.
richardag
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93MarineHorn said:

Tariffs are the only part of Trump's agenda that I'm squishy on. The stated reason of compelling Canada & Mexico to crack down on Phentanyl seems like a reach. And frankly, it's our problem not theirs, as we have millions of druggies that drive the demand that all the trafficking caters to. Harming the economy, angering our trading partners and causing inflation on behalf of junkies who are aware of the risks but continue their lifestyle anyway seems unwise.
If I am not mistaken a certain % of Phentanyl abuse is by people that were prescribed medication. When they no longer need these prescribed medications for pain they slipped into dependency on illegal drugs including Phentanyl.
I am not sure of the %'s.
A secondary benefit of stopping Phentanyl from entering puts a major dent in the cartels ability's to gain revenue, similar to stopping their sex trade business.
edit for clarity
Among the latter, under pretence of governing they have divided their nations into two classes, wolves and sheep.”
Thomas Jefferson, Letter to Edward Carrington, January 16, 1787
Gigem314
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BigFred said:

It's expensive to own the Libs.
Not nearly as expensive as it was the previous 4 years to own the Republicans and Trump.

Funny how some are all of a sudden concerned about rising prices now...
Logos Stick
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Ryan the Temp said:

CanyonAg77 said:

Ryan the Temp said:

Several music shops I know have stopped selling imported musical instruments entirely.
Sounds like a protest, as opposed to a business decision.
They want predictability in instrument pricing because margins can be narrow and manufacturers often restrict pricing for all retailers. Many of the major instrument makers will stop selling to any retailer who does not abide by their pricing structure.

ETA: It is not uncommon for the turnaround on instrument orders to be in excess of six months.

Sorry but this makes zero sense. Even with a 25% tariff, instruments from Mexico are much cheaper than those made in the US! For example, the entry level strat from Mexico, MiM, is about $800 plus or minus. The cheapest MiA stratocaster starts at $1300!
Gigem314
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You know what's driving up the costs of vehicles? Needless environmental/green regulations forcing auto makers to match rising MPG requirements. Biden was pushing it further and you can bet Harris would have continued making it more costly for consumers.

I would rather see tariffs in place with the easing of regulations than more and further regulations that end up costing the consumer more in the long run.
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DarkBrandon01
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CDUB98 said:



I would love to see the economic model on this particular item that says it is cheaper to ship the material between three different countries for making a product rather than just keeping it all within the US, or even bringing some items in house vertically.


Capitalism doesn't care about borders. The only thing that matters here is transport costs. It's cheaper to transport products across the country than to build redundant factories. There is no reason why the entire supply chain should exist in one country.
Noctilucent
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Funky Winkerbean said:

With progress comes pain. If you didn't know this could happen you weren't paying attention.


Thanks for posting. Good stuff!
Zobel
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Quote:

Demand for building materials has been slowing for months already. The consumer will not pay higher prices. Exporting country will end up eating the tariff.
and all of the downstream businesses who will deal with a reduction in sales, and all of their employees, and their vendors, and their employees, etc etc etc
Ag with kids
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Cannew said:

The EPA shut down a bunch of foundries in the states or made cost soo high they were untenable. So we went to Canada to get our casting made. Now we are getting hosed on those...game set and match government always Fs you no matter what...

So this screws us as a manufacturer...
Bunch of hosers, eh!

Funky Winkerbean
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Gigem314 said:

You know what's driving up the costs of vehicles? Needless environmental/green regulations forcing auto makers to match rising MPG requirements. Biden was pushing it further and you can bet Harris would have continued making it more costly for consumers.

I would rather see tariffs in place with the easing of regulations than more and further regulations that end up costing the consumer more in the long run.


This. The California requirements are becoming standard issue for the rest of the country. Bring back naturally aspirated engines..
nortex97
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Trudeau close to tears…of course has to bring up Putin.

Quote:

Trudeau, at times close to tears during an emotional press conference in Ottawa, was quoting a previous verdict on Trump's tariff policy delivered by the Wall Street Journal.
U.S. Imports from Canada will now be taxed at 25 percent as Trump's tariffs went into effect on Tuesday.
Trudeau said: 'Today the United States launched a trade war against Canada, their closest partner and ally, and their closest friend. At the same time they're talking about working positively with Russia, appeasing Vladimir Putin a lying murderous dictator. Make that make sense.'
Reminder, Trudeau leaves office this week.

All you really have to do to fight reciprocal tariffs is…lower your tariffs, snow Mexicans.
BusterAg
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Any tariffs at all hurt consumer welfare. They increase inflation to consumers.

The red pen blue pen theory is that the net importing country is still better off, because our workers will just change careers into other jobs, like trades, or accounting, etc, and net welfare will rise because the country becomes richer and the rising tide floats all boats.

But that absolutely does not work when you import massive number of foreign workers. If you are a major importer of both goods and labor, the net result is that you have a major diversion of economic welfare and a concentration of wealth into the hands of a few.

Each of these issues taken separately are not a huge problem, but, stacked on top of each other, and you have an economic catastrophe.

Finally, add into the mix all the graft from the federal government funneling tax dollars and newly printed money into the hands of the elite, and you have the triple whammy we have now.

Something has to give. Trump is attacking all three fronts, and I love it.
infinity ag
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nortex97 said:

Trudeau close to tears…of course has to bring up Putin.

Quote:

Trudeau, at times close to tears during an emotional press conference in Ottawa, was quoting a previous verdict on Trump's tariff policy delivered by the Wall Street Journal.
U.S. Imports from Canada will now be taxed at 25 percent as Trump's tariffs went into effect on Tuesday.
Trudeau said: 'Today the United States launched a trade war against Canada, their closest partner and ally, and their closest friend. At the same time they're talking about working positively with Russia, appeasing Vladimir Putin a lying murderous dictator. Make that make sense.'
Reminder, Trudeau leaves office this week.

All you really have to do to fight reciprocal tariffs is…lower your tariffs, snow Mexicans.

This clown thinks these threats will scare us.
Sure, many older Americans will fall for it because they care only about their portfolio and not about their country.

Watch this fellow or his successor come to Maralago to begin Trump to roll back just like Z is trying to do.
nu awlins ag
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Ryan the Temp said:

Building materials prices at Lowe's went up overnight.

Several music shops I know have stopped selling imported musical instruments entirely.


How does that affect current inventory? Over reaction.
CanyonAg77
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nu awlins ag said:

Ryan the Temp said:

Building materials prices at Lowe's went up overnight.

Several music shops I know have stopped selling imported musical instruments entirely.
How does that affect current inventory? Over reaction.
I'll tell you the argument.

Lowes may have only paid (say) $2.00 for a 2x4. But when they sell that, the next one will cost them $2.50.

Therefore, they have to raise prices on current inventory, to be able to buy new inventory.

Funny thing, were the price of a 2x4 to drop by 25%, Lowes would not drop price of current inventory, since new inventory would be cheaper.
nu awlins ag
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CanyonAg77 said:

nu awlins ag said:

Ryan the Temp said:

Building materials prices at Lowe's went up overnight.

Several music shops I know have stopped selling imported musical instruments entirely.
How does that affect current inventory? Over reaction.
I'll tell you the argument.

Lowes may have only paid (say) $2.00 for a 2x4. But when they sell that, the next one will cost them $2.50.

Therefore, they have to raise prices on current inventory, to be able to buy new inventory.

Funny thing, were the price of a 2x4 to drop by 25%, Lowes would not drop price of current inventory, since new inventory would be cheaper.


I get that, but this was stuff from overseas. Lumber prices will go up if that lumber is imported. Lumber prices have never recovered from Covid, which **** down the mills here in the states. Production is back, but the price never dropped like it went up.
Bondag
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CDUB98 said:



I would love to see the economic model on this particular item that says it is cheaper to ship the material between three different countries for making a product rather than just keeping it all within the US, or even bringing some items in house vertically.
Not very green of them either. I get that labor in Mexico is cheap, but I imagine the efficiency of doing all that in the same factory would have to outweigh some of the shipping costs.
Ryan the Temp
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nu awlins ag said:

Ryan the Temp said:

Building materials prices at Lowe's went up overnight.

Several music shops I know have stopped selling imported musical instruments entirely.


How does that affect current inventory? Over reaction.
They will certainly still sell inventory, but a lot of instruments are custom made for players and these shops do what we call a "fitting" to determine the specs of what will be built for the player. These shops will stop doing fittings for instruments they won't sell in the future. The predictability issue is driving that because shops have to commit to a price when the instrument order is placed. A lot can change in the time it takes to build the instrument and shops don't want to eat a price increase if it happens after the order is placed.

Think of it like a car dealership having only one of each model vehicle on the lot. You can test them out to figure out which one works best for your needs, but you can't buy one off the lot. You can only order one to be built specifically for you and they won't start building it until you've paid for it.
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