??? Are tariffs supposed to affect foreign companies instead of imported goods? Do tariffs really work like this? Or is this guy bullshitting and being retarded on purpose?
Are lower sales due to higher taxes supposed to affect foreign companies?
Simply murder and pillage all Canadian trash. We have thousands of nukes. Kill them all and take what we need. They deserve nothing but pain and misery and death.
>>62643819No sure what Canada can offer
>>62643823Sure they do, but moving wouldn't change the equation, would it?The taxes are paid by local consumers anyway.>>62643832What does that have to do with this topic?
>>62643833I’m wondering if there are any good companies in Canada, aside from some petroleum companies.
Tariffs tip the scale in domestic industry's favor by increasing the price of foreign goods, in the form of additional import taxes. These taxes are paid by domestic importers, and the importer generally pass the prices down the supply chain to the consumer. When the market price is higher, and thus more competitive for domestic made goods, they can participate in the market rather than going bankrupt. In the long term, these profits could (should) be invested in making domestic production cheaper, making the industry more competitive not just nationally, but globally.Trump doesn't understand how tariffs work so he tries to use them as a bludgeon. They have to be used to protect a domestic industry that already exists. Without any domestic alternatives, consumers end up paying more for the same goods. Some claim Trump's tariffs are an intentional kickback scheme - he introduces tariffs, a company like Apple or Amazon raises their prices in order to pass on those tariffs costs, consumer pay those prices due to not having an alternative, then the government gives the corporations a refund of the tariff income. Meaning the corporation got to increase prices overnight and keep the full balance as profit.
>>62643819>Do tariffs really work like thisYes. How did you not learn this stuff in high school civics class?
>>62643819If one of these Canadian companies imported raw materials and parts from one of the many other countries that Trump has a blanket tariff on in the course of their business, moving to America would increase their costs. Now they don't just have to worry about the one tariff for Canada affecting their exports (if demand decreases, which it won't because America does not have many or any competing companies in most industries), they have to worry about X other tariffs affecting their own production costs, depending on how many countries they import from in their supply chain.No matter how you look at it, Trump's tariffs don't achieve what he thinks they do.
>>62643833>The taxes are paid by local consumers anyway.They aren't though, except in certain limited cases. If company A in the USA and company C in Canada are both selling comparable products in the USA, then the Canadian company has 4 options:1) Pass on the tariff to their customers and hope to hell their customers remain customers2) Pay the tariff themselves in order to remain price-competitive in the US market3) Exit the US market altogether, ceding their customers to their US competitors4) Move their production operations to the USIt turns out that the only companies that choose option (1) are those producing luxury products where the higher price enhances the exclusivity of their brand.
>>62643839>Tariffs tip the scale in domestic industry's favor by increasing the price of foreign goods, in the form of additional import taxes.Sure, but canadian companies won't move to the US just because shit is more expensive there due to taxes. Raw materials and labor are also more expensive, so unless the risk of moving is actually worth it (it's not, since the retard in charge of the US changes things every other day), they won't..Also: as exporters, those canadian companies benefit from the weakened canadian currency...>>62643861Yeah, that seems obvious to me.Is there any sector that would benefit from moving? I guess that's what >>62643832 was looking for.>>62643846>>62643862Shut up, retard
>>62643861I think it's amusing that you think a company would consider relocating their manufacturing plant to the US in order to avoid import tariffs on their finished product including tariffs on its foreign-sourced components, but completely fail to consider switching to US suppliers to avoid import tariffs on the foreign-sourced components.
>>62643867>canadian companies won't move to the US just because shit is more expensive there due to taxesThey will if they want to stay in business. It's their choice, really. Canada sends over 75% of its exports to the US, and now those exports are extremely overpriced compared to their US competition.
>>62643882>They will if they want to stay in business.They will just sell their stuff elsewhere if they can.
>>62643867Maybe rivian
>>62643862That's not how it works. Let's say Company A can only manage to sell a widget for $50. Company C, due to different economic conditions and costs and production efficiency, etc. can sell a widget for $30. This sale is between themselves and a domestic importer. Could be a manufacturer or wholesaler or retailer. Ultimately, the widget goes to market at $40. The domestic company cannot compete on prices.Now the government intervenes with a tariff. Company A still sells a widget for $50, it's the best they can do. Company C stills sells for $30 to the importer, because that's the best they can do also. But the importer now pays an additional $10 tax on every widget. Their cost is $40. After markup and whatnot, the widget goes to market at $50. Now the domestic company is competitive. This is how tariffs work. If the foreign firm has more room in their margin, you need a bigger tariff.>>62643870If there's no competing domestic industry, then there is no alternative. A tariff wouldn't make a foreign company switch to a domestic supplier regardless. It has no impact on their bottom line. It only makes them less competitive in the domestic market for the product they SELL. Which again, requires the presence of a domestic competitor. And if it's a raw material, this nonsense about switching suppliers doesn't make any sense at all, as there are no suppliers.
canadian boomers are completely out of touch with the actual demographics of the countryThey grew up in a 95%+ white country, which is still 75% white for their age group
>>62643913Canada has become a part of the Chinese market, while the US companies simply cannot compete with them.
>>62643913>That's not how it works.That is how it works, though your example obfuscates this though hilariously unrealistic numbers.Let's say Company A can only manage to sell a widget for $50. Company C, due to different economic conditions and costs and production efficiency, etc. can sell a widget for $30. It sells its product to a domestic importer for $40 thereby selling its product at a modest profit. Ultimately, the widget goes to market at $48.99.Now the government intervenes with a 50% tariff. Company A still sells a widget for $50, it's the best they can do. Company C stills sells for $40 to the importer, because they aren't a charity and have to make a profit. But the importer now pays an additional $20 tax on every widget. Their cost is $60. After markup and whatnot, the widget goes to market at $70. Now the domestic company is competitive and the foreign company is utterly uncompetitive and can either eat as much of the tariff as possible, exit the US market in search of more lucrative ones, or move operations to the US bypassing both the tariff and the importer.>you need a bigger tariffThe current 50% tariff may be large enough. If not, we can always go higher. There really isn't anything Canada can do to effectively retaliate.
>>62643913>If there's no competing domestic industryThe US also makes maple syrup though, and ribbon cane syrup is an excellent alternative were the price of maple syrup were to rise too much. The US isn't as attached to maple syrup as the Canadians are.
So mutts really are just that evil, stupid, and subhuman then. I actually cheer on the jews and elites who steal the future and wealth from them and their kids, these morons deserve their suffering. And the best part is? It's entirely self-inflicted. They'll fall for any manipulation from their masters and put demons in power then ask retarded questions wondering why they're getting fucked beyond comprehension. They'll never get it of course, they'll just suffer as their whole country dies the death it deserves. I doubt you can vote your way out of this one either.
>>62644079absolutely delusional seething boomer/brown spotted>DONT CHANGE THE NAME OF ONTARIO, OUR ~NATIVES~ PICKED THAT NAME AND THEY ARE SACRED
>>62644110That's nice, nobody will have to do a thing though. You're so fucking retarded you will simply destroy yourselves, and I'll be laughing.
>>62644079>So mutts really are just that evil, stupid, and subhuman then.Anon, you should read a history book.Here, have a hint: https://en.wikipedia.org/wiki/Foreign_interventions_by_the_United_States
>>62643819Trump is so retarded lmao
>>62644249He is.
>>62643819It affects both.
>>62643832>>62643834Canada produces 75% of the world's maple syrup.
Trumps unironically right on tariffs, free markets are more efficient yes but the free market only exists domestically, other countries are not free and you have to fight fire with fire if you don’t want sectors offshored
>>62646173only cheap faggots use fake glucose fructose syrup with some nigger on their bottle.
>>62643832It's the 2nd-largest country on Earth and only has 41 million people, so they sell the US $160+ billion in energy every year, because our energy needs are far greater than theirs.
>>62646185tariffs are good. it was a mistake to ever allow production to slip to china. we could still have jobs for all those people that can’t be ai engineers
>>62643839so you get the other stuff but don’t see how this creates opportunities for domestic producers? they might not exist yet but give it time and they will come. all the big mag7 started small too
>>62643819Nobody is moving back to the US.If the US had spent their money investing in their own country instead of sending money abroad to teach kids about being queer and transgender and bombing people in the third world the US wouldn't be circling the drain right now.But the corporations own the politicians and they aren't about to have the government tell them what to do.America becoming the global hegemon was the worst event in human history.
>>62643839>guy who made tons of successful businesses (and less than a dozen failures I know you will womansplain to me), using his degree in economics, from an era where you had to earn it, doesn't know how tariffs work nearly as well as some loser on 4chan, posting from his squalid lower middle class basementShiggy fucking diggyREEEEE at me all you want, that doesn't change the fact you have no clue what you're on about. And that isn't even taking into account the obvious fact that ANY major fed decision (whether you like the current anointed eyes wide shut enjoyer or not) is made with info you and I will never have
>>62646622basically the tariff will give some guy in his garage the opportunity to create the next microsoft in whatever field interests him. all that is needed is tearing down of this globalization nonsense and then keep policy stable and wait
>>62646185>Trumps unironically right on tariffs, free markets are more efficient yes but the free market only exists domestically, other countries are not freeThis is the most retarded thing I've ever read.Go read the wiki at >>62644148 and tell me the US didn't benefit from free markets (by imposing them under the pretense of "democracy" and "freedom")
>>62643839I remember when bots and retards here unironically ran defense for the tariff strategy last year claiming it was secretly 50000iq and you saw people making retarded copypasta claims that he was trying to tank the stock market on purpose "to return power to the people".Now you have him scaling it back and simultaneously pretending tariffs work the way he thinks it does while separately saying mystery beef is going to come into the US "tariff-free" to lower prices, which if it didn't affect consumer pricing why bring it in tariff free?
>>62647350This is the most retarded thing I've ever read. Go read the wiki athttps://en.wikipedia.org/wiki/Triffin_dilemmaand tell me the US hasn't suffered from unfree markets (by allowing the US currency to be debased by other countries ).Trump's tariffs are addressing that problem.>inb4 The dollar will lose its status as global reserve currencyGood. That's one of the stated goals of his tariff scheme.https://www.hudsonbaycapital.com/documents/a-users-guide-to-restructuring-the-global-trading-system(written by Trump's chairman of the Council of Economic Advisors, and later appointed by Trump to the Federal Reserve Board of Governors)
>>62650932>everything I don't like is retardedNo, it's just you. You seem incapable of thinking about secondary effects.
the court will just cancel the tariffs before u can even build a warehouse stateside no one would be stupid enough to do that
>>62651910>>62651910>tell me the US hasn't suffered from unfree marketsdid you even read the first fucking paragraph of the link you posted?>the conflict of economic interests that arises between short-term domestic and long-term international objectives for countries whose currencies serve as global reserve currencies.your country is still the richest one in the whole planet, and still benefits from cheap raw resources imported >Trump's tariffs are addressing that problem.HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA>https://www.hudsonbaycapital.com/documents/a-users-guide-to-restructuring-the-global-trading-systemfunny stuff. I actually read this. if you really believe this is an actual solution and not the crazy idea of some retard that will end up giving all the power to china and destroying the US itself... I have a bridge to sell to you.enjoy poverty, I guess.
>>62643832EnergyGoldThey also have nuclear recycling power plants that we can't build because of regulations.
>>62643819A tariff is basically an excise tax, charged at the point of import rather than the point of manufacture. So consider the standard analysis of an excise tax.
>>62644352Oh is this why he's forcing the navy to go back to steam launches?
