patrick.net

Trump has repeatedly talked about it. And that has been talked about here on PatNet.

DOGEWontAmountToShit says

Trump has repeatedly talked about it. And that has been talked about here on PatNet.

Us talking about is one thing. But I never heard Trump mentioning abolishing FIT simultaneoulsy with installing steep across-the-board tariffs.

UPD. I guess I wasn't paying enough attention: https://www.cnbc.com/2024/06/13/trump-all-tariff-policy-to-replace-income-tax.html

Uncoupling FIT means uncoupling the Vatican Caboose (or is it the engine car?).

Trying to remove the foreign Three Cities mercantile corporate occupation of foreign city state of Washington DC to get back to the Republic appears to be a Gordian Knot. Getting rid of FIT altogether and removing the Vatican as the paymaster of DC and the military may be the way to cut the Gordian Knot, along with ejecting the Fed.

The Fed and the IRS are both incorporated in Puerto Rico, the teeth of the vampire not even in USA.

No problem with FIT being abolished for overseas sales & operations.

Problem with FIT being abolished if they play games and try to book FIT exemption on goods made in CHYna and shipped for sale to the US.

In the end, I bet Trump will use the tariffs against the special globalist interests in Congress for replacing the FIT with a FVAT instead.

The VAT has the nice characteristic of being applied to imports, unlike the FIT. So it is a tariff as well. A 'legal' one under WTO rules.

DOGEWontAmountToShit says

A 'legal' one under WTO rules.

Yeah, if the EU likes a solution, it's legal.

Man if we imposed a VAT how the EU would howl, too!

Trump’s company-funded tariffs will also promote investment in manufacturing facilities in the US, but the motivation is different. Companies would want to dodge the tariffs that are a tax on their profit margins, and they can dodge them by producing in the US, which would also allow them to dodge transportation costs, loss of IP, and other risks.

Companies cannot automatically pass on the tariffs; they’re already charging the maximum price they can without losing sales. Price increases will hurt those sales. Buyers can just buy something else or not buy anything. For example, imported vehicles would fall by the wayside as buyers shift to US-produced vehicles. All major foreign automakers are already producing vehicles in the US.

Price increases will further push down unit sales, a lesson that automakers have been relearning in 2023 and 2024. Consumers have other options and hate, hate, hate price increases. So the way to dodge Trump’s tariffs on imported motor vehicles and components is to produce in the US.

https://wolfstreet.com/2024/12/02/factory-construction-spending-boom-soars-to-new-record-16-yoy-242-since-2019-result-of-a-corporate-strategic-rethink/

Trump's hand:

What was kind of funny was the new president of Mexico (Claudia) saying she would retaliate by imposing tariffs on USA goods coming into Mexico.

What a fucking dimwit; she's willing to make all Mexicans pay higher prices for everything (e.g. even gasoline is imported) to not intefere with the cartels and narco gangsters who essentially run several states in Mexico.

Actually, she's got to be bluffing.

When I go to the supermarket I see tons of products from the USA, Salinas and the Central Valley.

clambo says

Actually, she's got to be bluffing.

Yup. And Justin is prolly pissed at Trump's team leaking out about this, too:

DOGEWontAmountToShit says

Trump knew what he was doing. He knows the psychological hang-ups Canadians have vs a vs America and how to push buttons.

Now when Justin faces the music about this with what's left of independent media in Canada, he'll be pressed about 'selling out to America!'.

More likely, it come in the form of an attack ad in the upcoming elections.

The reality is: Mexico and Canada are owned lock, stock & barrel by us...at (short) arm's length. Canada more so because they tend compete more than complement American firms at the higher value supply chain. Whereas Mexico complements our companies very well. Mexican workers are now more skilled/productive than Chinese and at least 1/2 cheaper.

That will change as Mexico keeps climbing the national wealth ladder and their birthrates collapse as bad as Canada's has. But that will take another generation AND we will benefit enormously by exporting to their young high consumption market in the meantime before 'the end'.

Mexico, in fact, will need it's 'own Mexico' as they and it's workers trade up the value chain production ladder. Columbia is a good candidate as is right now. Cuba would be excellent but needs a lot of initial investment.

Don't try explaining any of this to a Canadian. They don't like hearing any of it.