Saturday, January 14, 2017

What Mexico Does Not Understand....

Me, "What Mexico does not understand is that the tariffs would be aimed at U.S. companies or companies that sell the bulk of their goods in the U.S., but pick Mexico to make them in, then shipping them into the U.S.
U.S. citizens have no problem with Mexico, except that U.S. companies are closing up factories and moving their jobs to Mexico. These companies can make the same products there that they made here, and pay workers less than they would in the U.S.
 I am sure if the reverse were true, it would be Mexico claiming it would institute tariffs. What really is needed, is a renegotiated NAFTA, that penalizes U.S. companies, from moving factory operations into Mexico.
Is it fair that a U.S. autoworker gets paid, 20? 30? or 40? dollars and hour to put together a car, but in Mexico it is half or even less than that? Is it fair that a U.S. company, Mexican made car, is then shipped back into the U.S. to be sold? No, it is not right and Mexico knows this. They know that if they renegotiate NAFTA, they could lose jobs and hurt the Mexican worker, which is probably why they are making a big deal over this. Hence the original problem, NAFTA was a poorly constructed trade agreement that hurts the present day U.S. worker and the future Mexican worker. Something needs to be done, to encourage both Mexico, and the U.S., to trade fairly and not game the system.

The other border tax being mentioned by Trump is a tax to build a border wall. I am sure most countries understand that it is necessary to know where one country ends and another begins and their needs to be a proper way of bringing in potential citizens in a legal way. Illegal immigration, while having some benefits, is really a problem because it makes a mockery of the legal immigration system.  A lot of people are waiting to enter the U.S. and illegal immigration sidesteps these lawful people. If Mexico does not want to pay this border tax, they should negotiate with future President Trump, a better legal immigration system between the two countries. Otherwise, it makes sense to charge some kind of tax on Mexican goods to enforce border fences and operations. If Mexico does not negotiate a better immigration policy, and also does not want to pay a border tax, it is Mexico that is the problem, not the U.S."

From article, "Mexico warns Trump on tariffs: We'll respond 'immediately'"

(Mexico's economy minister sent Donald Trump a fighting message: We will retaliate right away if you hit us with a "major border tax."

In tweets, Trump has singled out GM and Toyota as potential targets, though he indicated in a December tweet the tax would apply to all businesses, not just automakers.

And during his first press conference Wednesday since winning the election, Trump doubled down on his threat.
"There will be a major border tax on these companies that are leaving and getting away with murder," Trump said Wednesday.
Mexico heavily depends on trade with the United States to drive its economy and create jobs. And the U.S. Chamber of Commerce estimates six million U.S. jobs depend on trade with Mexico.
Trade experts on both sides of the border warn that stiff tariffs would risk jobs in both countries.)
Guajardo didn't say exactly how Mexico would hit back.
"There are ways -- it's very clear how -- to take a fiscal action that clearly neutralizes it," Guajardo said.

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