We Need To Talk About The Tariffs

The world is going wild and crazy, once again…

As we all know, President Trump just levied tariffs against Canada, Mexico, and China. The reason, illegal immigration and illicit drugs, specifically, fentanyl are flowing from those nations into our own. At least, that’s the claim being made. We certainly know it’s true of Mexico, but Canada?

I have my doubts, at least on a large scale…

By now, I’ve read at least a dozen articles about the tariffs. I also bounced into the comments section on those articles, and I’ve found that most people are confused by the concept of tariffs. People don’t really know what they are and who pays for them, so I figured, my audience probably has similar questions and concerns.

Now, President Trump has said numerous times that the country who has been tariffed pays the duties. He has said, that Canada, Mexico, and China will pay the United States billions of dollars in tariffs.

However, this is not true at all.

In reality, the importing nation — the United States — pays the tariff.

Yes, in this case, we, me, and you, pay the tariff.

A tariff is a tax on imported goods.

Let me give you an example…

Canada exports a lot of lumber to the United States. Once that lumber hits our border, the importing company, say the Home Depot must pay the 25% tariff in order to receive the imported lumber.

Now, little ol you happen to be working on an addition to your home. So you wander into the orange store to purchased some 2x4s, only to discover that they now cost about 25% more!

Come on, you didn’t think Home Depot was going to eat the cost, did you?

Of course not.

You’re going to eat the cost, not Home Depot, and not their shareholders.

So tariffs are typically a tax on the consumers of the nation who implemented the tariff. In this case, the United States. So we’re going to see inflation kick up a bit more. You’re going to pay more. Fuel will cost more, lots of things will cost more.

Yes, tariffs are inflationary.

Now, if there are options for local goods. Then, going with our example, Home Depot can purchase and resell local lumber. That is, if it’s available. Obviously, products are imported for various reasons. Either we don’t manufacture enough ourselves or the foreign product is cheaper.

Yet, if there’s not local competition, then you’re paying the tariff or you’ll forego that home addition, and so will everyone else, and the economy will contract, which can bring on the dreaded “R” word, recession.

If you’re an investor, if you have a retirement account, and if you’re a boomer, this should alarm you greatly. If the stock market makes a u-turn, will you have enough time to recover? I don’t know, and I don’t mean to make it sound dire, but we need to be prepared for all prospects.

I just see tariffs being sold as a positive thing for the American people, and they’re not necessarily. They do place pressure on foreign nations, and they do provide an economic advantage for local suppliers, but we’re going to pay more.

Moreover, I also hear that the President wants to impose tariffs on the European Union. My guess, he will say we have unfair trade practices with them, which is probably true. So I’m beginning to wonder what the agenda actually is here…

For Canada, Mexico, and China, it’s illegals and drugs. For the E.U. its trade disadvantages. I just wonder how much economic damage is going to be wrought in the meantime…

Here’s my thoughts…

With respect to Canada and Mexico, we can simply close our border, and problem solved. However, by saying we have to levy a tariff against our neighbors, under the guise that they allow illegals and drugs into our nation. It effectively means, that we have no borders that we can or wish to enforce.

Why are we blaming them for our problems?

That’s the issue I have here, and that’s why I think there is more going on here than meets the eye. Sure, Canada and Mexico can help close the border on their side, but we have an obligation to do the same. Mexico has certainly allowed in hordes, but is there another way besides sudden and abrupt economic damage?

Tariffs Go Both Ways

Unfortunately, the situation is quickly spiraling out of control…

Canada immediately imposed a 25% tariff on American goods, and Mexico implemented “Plan B,” which is some form of tariff or one that’s in the works. It’s not quite clear just yet. So the only one who will make out is the government of these nations, not the citizens who will pay the tariff.

The Plot Thickens…

Back in 2018, Trump signed a trade agreement with Canada and Mexico, one that replaced NAFTA with the USMCA. At the time, he said,

…the USMCA would be “the most modern, up-to-date, and balanced trade agreement in the history of our country, with the most advanced protections for workers ever developed.”

Yet, it’s not anymore?

Or we’re just concerned about the illegals and drugs?

Which of course, can be corrected by closing our own border.

Deportations

I also question the concern about illegals. Prior to the election, we heard that mass deportations would take place, right away.

They didn’t, and yes, it’s still early…

However, I knew mass deportations were never going to happen. Under the President’s first term, he made it clear that we needed immigrants, so he’s not going to send them all back, despite campaign promises. Instead, we’re seeing criminal illegals being shipped back, but not anyone else.

Here’s one for you, Obama deported more illegals than Trump.

When we get right down to it, I highly doubt most people understand the immigration process. Yet, time and time again, it’s used to condition the American people to the agenda of the hour. We’re always told, American’s won’t do the work illegals do. It’s a great talking point to distract from the root problem.

• In 2025 American’s say, if illegals don’t pick our fruit, we won’t have any.
• In 1855 American’s said, if slaves don’t pick our cotton, we won’t have any.

It’s always something.

Yet, someway, somehow, we always find a way.

If we are honest with ourselves, we need immigrants as our population is declining. Without extra hands to provide economic growth, our nation would see immediate economic decline.

The Devil’s In The Details

As I mentioned at the top of this article, I have my doubts about the intent of the tariffs. With respect to Canada, I believe the tariffs are not about illegal immigration and drugs.

I believe it’s a push to absorb Canada into the United States…

Let me show you what I’m talking about:

In his own words, President Trump is attempting to place an economic burden on Canada that is so great, it would cause them to buckle as a nation. In turn, the U.S. would absorb Canada, and place next to Trump’s name in the history books, the President who expanded the empire of the United States.

Will any of this benefit you?