BY C STONE | STONE NEWS NETWORK
President-elect Donald Trump plans to create a new tax revenue collection division within the United States of America: The External Revenue Service.
The federal agency will be used to collect tariffs, duties, and foreign revenue. This will hollow out the responsibilities of the Commerce Department, U.S. Trade Representative, and U.S. Customs and Border Protections.
President-elect Trump has said he would apply 25% tariffs on all goods coming from Mexico and Canada, and a 10% across-the-board tariff on all foreign imports. He also promised 60% or higher tariffs on Chinese goods.
With about 100 executive orders in his briefcase, Trump plans to place all of them on day 1 of his administration. At least, we think he will.
And despite the goodwill gesture visits of Trudeau, and the Premier of Alberta, it doesn't seem possible to stop this man's ambitions.
The Biden administration has added a 100% tariff on all Chinese-made electric vehicles - similar to the 100% tax Canada placed on them as well.
In the end, everything will get more expensive for Canadian and American consumers until the tariff war cools down.
And although President-elect Trump did say "I think the word tariff is more beautiful than love' - which is a ridiculous statement. True love cannot be compared to money. It is invaluable and you cannot put a price on it.
However, President-elect Trump's love of taxation will likely hit consumers in the guts very soundly. Don't expect cheap goods from countries like Japan, Europe, or even Canada anymore.
If you buy something worth 100$ with a $50 tariff on it, it will cost you $150.00. $50 goes to the government, and $100 to the foreign seller.
It is the consumer who pays these tariffs. In effect, the President-elect will force Americans to buy American. Is that wrong? Yes, it is - if you discount your closest allies and neighbors as financial adversaries.
Time will tell what will prevail in these times of madness.
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