I Thought Trump Campaigned on Lowering Prices!?!?

Let the negations begin. Every country exporting to the US needs us just as much as we need them. You think they'll all just walk away and not negotiate? Just wondering, everyone wants to complain about what MIGHT happen in the future, did you forget that the last admin did nothing to lower prices? Inflation continued to go up the last 4 years while we were told the economy is doing great based on the over inflated jobs reporting. Now everyone wants to complain prices MIGHT go up? 

It's ironic that you call Trump the dictator when the democrats overrode democracy and pushed Biden out. Who's the real dictator?

@BigGame90

 I call this tactic as one a dictator uses, I do not consider strong arm tariff throw downs as negotiation. Canada is not an enemy, Mexico isnt either as a general population or government. I consider what Trump is doing to follow suit of his zero intelligence attention seeking persona.

You know who pays the tariff right? Canada ships sour down to the gulf and Valero processes the sour and Canada ships finished products all over the world, that tariff will be absorbed at the pump and in products the consumer uses, there is no gain from a tariff given that we are a capitalist economy and our companies pass through costs to the consumer. I wish we did not allow sour to be piped to the gulf, stop the whole sham versus this tariff nonsense. Canada is the last country we should tariff and corps using Mexico to save on labor will find a way around this scheme and if not the costs will be passed on via inflation to the US consumer.

Under Biden administration, inflation rate declined from over 9% to under 3%.  After pandemic, best indicators confirm that US has the best economic recovery in the world with low unemployment, inflation and strong economic growth.  Unlike Biden, Trump was lucky to inherit a strong economy with low inflation from Obama.  He did nothing to lower prices.  Peterson institute estimates Trump higher tariffs on Canada, Mexico and China would cost typical US household $1200 a year.

@BigGame90

 Every country exporting to the US needs us just as much as we need them.

This is true.  However, you can argue they need the USA a bit more with the trade.

Whether you agree or not, on a political front or an economic front, there is some reasonableness behind it.

1. Longer term unguaranteed benefits to change consumer behavior to buy more USA-made products.
2. Incentivize more international companies to manufacture in the USA

In theory, that makes for a stronger, more stable economy in the USA.  It should create more jobs and provide less dependence on foreign countries.

   3.  Another reason would be to pressure some of the countries to do what he wants:  renegotiating trade deals, stopping fentanyl, slowing down illegals, etc.

The countries realize that the reciprocal increase in tariffs may not be to their benefit.  

That is why you have seen them sort of back away and try to get a postponement of sorts.

The main reason is that Trump is a far better negotiator when he has leverage.  He realizes that he has that right now.

For example:  

2023  Canada sent 76% of all their exports to the USA.  That is around 19% of their entire GDP.

2024 Mexico sent 78% of all of their exports to the USA.  That is about 37% of their entire GDP.

However, for the USA, their entire exports to Mexico and Canada combined make up only 2.7% of their entire GDP.

So, essentially they realize they need the USA more than the other way around.  They see that getting into a tariff war with the USA  would hit them much harder.  Trump knows this.

That is why you see some give from these countries now.  Trump is seemingly doing a better diplomatic job now, with extending the deadline and taking their calls and with his ‘couching’ of his words to the press after the calls.

Just like the first term we will be seeing there administration go through the cycle of: It’s not happening ..It’s happening, but it’s not that bad ..It’s happening, but it’s not happening to people who matter ..It’s happening and it’s good…I’m going to help it happen.It never happened!….The world can see and recognize that Trump is a flim-flam- man but 49.8 % of Americans can’t!

@joe pockets

 Do you think it gets put in the reconciliation bill or no?

You do not think the Democrats would support that?

All of a sudden Dems care about PRICES.....CLASSIC

DADDY'S HOME BIATCHES!!

Of course he lied!   That's what he's best known for!  He started & perpetuated the BIGGEST LIE in American history and careers were ruined and people died because of it. But to avoid a sure prison sentence on FEDERAL crimes he had to come up with enough new BIG LIES to sway undecided swing voters so he could beat the rap. Since the economy (inflationary prices on gas, housing and groceries) was foremost on the minds of middle and lower classes - HE LIED TO GET THEIR VOTES and those lies paid off!  He said in a taped interview that "groceries" was what got him elected. HIS WORDS and MEANING!!!

Now he gets to stay out of prison for crimes against America...

It's been less than 2 weeks. Gas has come down since Trump has been elected, at least in my area. I can feel you pulling your hair out as you type and believe this non sense.

@Raiders22

 Well written Raiders. Trump is setting the stage for negotiations which is part of a free market capitalist society. I would imagine you are correct in that, other countries need us more. This is where Trump sees the leverage that others can not. There's nothing wrong with paying a little more to buy American.

@wallstreetcappers

 Trump put tariffs on notice early on. Hopefully our importers are good negotiators . Costs are not fixed. How do you consider this strong arm tactics? Trump is not wasting his time. Putting a tariff on our allies is not a threat, it's business. I thought democrats love more taxes and the govt getting more revenue, now they're pissed over a tax? Or will they just be pissed at orange man because Trump always bad? We went through massive inflation (cough taxation cough) because we shut the world down over a virus, what's a few more % because of extra taxes? Shouldn't this slow the economy down and help make it more efficient so we can stop global warming?

@BigGame90

Exactly right.  All of these conversations are fruitless cause neither side can agree to a baseline for measuring and when proven wrong they'll pivot to the next thing.

"Strong Arm" tactics.  Yeah, and?  He's got them on notice and like always is in the drivers seat.  

@Raiders22

No I don’t think so with the program projected to run dry in 2033-34 the elimination of taxes on Social Security benefits would cause the program’s retirement trust fund to become insolvent one year earlier! So I doubt anyone on either side look forward to find a remedy for that hot potato which will in all probability push it to the back of the political refrigerator !…. It will become another of thousands of bipartisan campaign promise or though that will never see parchment or ink!

And No Democrats don’t have any better idea that wouldn’t run up more debt….You can only rob Peter to pay Paul so long !His pockets are empty 

@joe pockets

 Plenty of places to offset, or even recoup those taxes.  In the overall scheme it is not that much.  

That would help a lot of the folks that have it as their sole source of income.  These are folks that could use a break.  

Why would you not support that?  It has nothing to do with the solvency of the program itself.  

@Raiders22

 All said and done do you realize that these cuts are going to be on the backs of the poor and middle class? If Republicans are successful in putting through these cuts, they will then be looking at more tax cuts for the wealthy....

@joe pockets

 Anytime someone thinks money is going to run out, they need to watch this... fed reserve But when this becomes reckless (over spending, mis-management, corruption etc) that is when the economy gets in trouble and inflation picks up. We witnessed this during covid. 

@unplucked_gem  Exactly. It's all a blame game. It's nice when people can start to peel back the onion and instead of casting blame, try to walk back to see where it originated from and the paths taken since. At the end of the day, everyone is in the same boat and it's not one persons fault, no matter how much one side of the party wants to blame the other. But, it's always the democrats fault. Kidding. Calm down people, it's a joke. 

@joe pockets

 All said and done do you realize that these cuts are going to be on the backs of the poor and middle class?

No, I do not realize that -- because they are not.

The SS tax cuts would be a huge benefit for the poor and middle class.

Exactly why are you not for that?

Medicare Advantage plans are private health insurance plans that contract with Medicare and are used by roughly 34 million Americans. The program mostly enrolls adults older than the age of 65, but also offers benefits to people of all ages with disabilities. Biden Amin previously had made cuts to Medicare Advantage rates, including in April 2024, when experts said enrollees would face an additional $33 a month for out-of-pocket costs, or $396 a year, due to the cuts. Critics at the time said the cuts would be especially devastating to seniors living on fixed incomes who are already coping with ongoing inflation issues. 

Dems make cuts too!

When Michigan's Whitmer took office in 2020 one of her promises was revoking the state tax on pensions. It took until 2024 to get it started. This year retirees pay 50%, next year 25%, and then the next it's gone. It is taking eight years!

Trump takes office two weeks ago and all you here is "what about tax on social security", what about no tax on tips" HA-HA!!!

Don't you realize how stupid that looks? Really. 

@joe pockets

 If Republicans are successful in putting through these cuts, they will then be looking at more tax cuts for the wealthy....

What do you base this on?  Just opinion?  If it is true -- then do not support those cuts that you think will do that.

Seems I remember you saying all that Canadian sour crude goes to China? Maybe with tariffs less will be shipped to US. 

As expected the media won't do articles on current Canadian tariffs on US products. 270% on American dairy products, wow!

@UNIMAN

 World markets...

China is Brent but WT trades off Brent and vice versa. As I have stated numerous times the only way to avoid world markets is to nationalize production and consumption.

No way tariffs can replace revenue loss from income tax cuts for corporations and the super rich.  Tariffs account for under 5% of total revenue.  Excess tariffs risk trade wars threatening jobs and economic growth.  If income tax cuts are extended, US federal deficits can only worsen.

The Joint Committee on Taxation said that the TCJA would add almost $448 billion to the deficit over the next 10 years.

In comparison Biden Admin spent $175 billion on student loan forgivness and $175 billion to the preventable war in Ukraine in just four years. 

Politico; The four laws’ spending and tax breaks for Biden’s priorities totaled at least $1.6 trillion, exceeding the inflation-adjusted cost of FDR’s assault on the Great Depression.

"Countries around world that are either allies of the US or export into United States may not like way Trump talks or way he does business.

But know what both groups do like?

The USD revenue their countries receive in return. And Trump probably understands that better than most."

Its all in the game yo... 

According to Washington post, countries are learning the way to manipulate Trump is to let him declare victory on television. He routinely manufactures a crisis to stroke chaos and panic to extract some cosmetic benefit so that he can brag about being a hero to his cult.  But in a real crisis, Trump mishandled covid pandemic.

Meanwhile American civil liberty union sues Trump administration over shutdown of asylum access at south border.  Under the law, immigrants have the right to due process.  Previously, courts have ruled that high immigration is not invasion and not a national emergency.