Trump Team Begin Constructing Import Tariff Proposal – Globalists and UniParty Members Freak Out…

As you review this CNN article it is CRITICAL to remember there are two divergent U.S. economies: a Wall Street economy, and a Main Street economy.  The DC UniParty Politicians, the Globalists and the MSM will instantaneously conflate the two.   Stay sharp.

The direct target of the tariff approach is the enhancement of the Main Street economy.  Due to the global nature of Wall Street this immediately puts their financial relationship, their economic risk, in the same place as the risk for foreign countries which would be subjected to the economic leveling of the trade equation.

Again, stay intellectually sharp – this is where we are going to have to fight “the big club“. Understanding how their “trillions of dollars at stake” are placed within the equation is a critical aspect to understanding how the UniParty will attack.

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Washington (CNN) – The Trump transition team is floating the possibility of an early executive action to impose tariffs on foreign imports, according to multiple sources.

Such a move would deliver on President-elect Donald Trump’s “America First” campaign theme. But it’s causing alarm among business interests and the pro-trade Republican establishment.

The Trump transition team didn’t immediately respond to a request for comment on the prospect of new tariffs. But a transition official said the team has discussed implementing a border adjustment tax measure under consideration by House Ways and Means Committee Chairman Kevin Brady, which would tax imports to spur US manufacturing.

Curbing free trade was a central element of Trump’s campaign. He promised to rip up the North American Free Trade Agreement with Mexico and Canada. He also vowed to take a tougher line against other international trading partners, almost always speaking harshly of China but often including traditional US allies such as Japan in his complaint that American workers get the short end of the stick under current trade practices.

It is an area where there is a huge gulf between Trump’s stated positions and traditional GOP orthodoxy. Business groups and GOP establishment figures — including House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell — have been hoping the transition from the campaign to governing would bring a different approach. (read more)

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  • Wall Street, Main Street and Trump Economics – HERE

  • The economic awakening – HERE

  • Repatriating Corporate Earnings – HERE

  • The History of the Two Economies – HERE

  • The Space Between The Two Economies – HERE

  • The Opposition To Trump Economics – HERE

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This entry was posted in Donald Trump, Donald Trump Transition, Economy, Election 2016, Legislation, media bias, Mexico, Mitch McConnell, Paul Ryan, Uncategorized. Bookmark the permalink.

247 Responses to Trump Team Begin Constructing Import Tariff Proposal – Globalists and UniParty Members Freak Out…

  1. leebelieu says:

    He’s with us!

    Liked by 8 people

    • bob says:

      Is it me or does McConnell look like a pansy ass standing next to Trump!! Trump needs to wipe out every single thing Ostupid has done, everything…

      Liked by 5 people

    • supertalk says:

      I’m a small business owner that’s been forced to manufacture many of our parts in China in order to be competitive.
      I wonder where we fit in to all of this?
      As many of you know I’ve been a Trump supporter since day 1, is my business at risk now?

      Like

      • sundance says:

        define “forced”.

        Like

        • supertalk says:

          Sundance, I seriously love your blog and always have. But I hope you are not suggesting that for small businesses like mine, we’ll, we just have to break a few eggs to make an omelet.

          With less than 5 employees, We are building small electronics devices that cost $80k to tool in the US or $7k to tool in China. That’s what I mean by “forced”. Si we build electronic devices In Asia in order to compete with huge multinational corporate comptetitors that sell cheap inferior products. Trust me they can afford to make the transition a lot smoother than we can. This brings our entire business model into doubt.
          Keep in mind, at present, a simple PCB costs 4x as much to manufacture in the US, if I can even find a factory to take on the job.

          Understand, I want to make my products here but I don’t own a factory myself and can’t afford one at this time. The issues we are faced with regarding the banks and lending etc could take years to unwind.

          Again, where does that leave us?

          We manufacture awesome and unique products, not knock offs or me too products, that are conceived, parts manufactured in Asia, then assembled right here at home in the USA.

          If we hadn’t gone to Taiwan and China to build parts, we would have been priced out of the marketplace here in the States long ago.

          Liked by 1 person

          • sundance says:

            That’s a lot of words to answer the question. My brief inquiry was to discover if you were indeed “forced”, or whether it was actually a “decision” made of your own free will.

            Nothing more.

            Like

            • supertalk says:

              I’m saying to build small electronics, yes, I am forced in order to compete.
              If you’re saying I’m not forced to build things for a living.. I guess you’re right. I could have stayed in Construction in California…oh wait.
              Or I guess I could have taken a job at Starbucks etc..

              I want the production transition to occur gradually so that I don’t have to shut my doors and fire my employees. Is that too much to ask?

              I’m a US nationalist that has been playing by decades old rules that I certainly had no hand in creating. And there are thousands of small businesses like mine in the exact same situation.
              What about us?

              Liked by 2 people

        • Jedi9 says:

          What the hell? Why are my comments being deleted? I know I contributed to this post and can find any of them now/. What gives?

          Like

      • No, your business is not at risk for the following reasons:
        1. Boom in US based manufacturing means you will have local choices to compete for your manufacturing business that you currently send overseas. More competition for your business combined with a desire to get your business will provide you with more options for your business.
        2. Tax penalties will most likely only effect the big boys at first giving you plenty of time to operate business as usual until new choices open up here in the US.
        3. Major tax incentives coming your way to buy and manufacture in the USA. These will have to be a huge and immediate boost to your business so you can afford any transition cost to a US based manufacturing model.

        There are many more benefits but I don’t know your business so can’t get more specific without you disclosing the type of business you are in.

        Like

        • supertalk says:

          Football Guru, thanks for taking a moment to answer thoughtfully.
          I certainly hope you are correct in your analysis.
          I’m all in on making our current products and any new ones here in the US. But there has to be a sensible way to transition to this new system over time so that small businesses like ours, that employ real Americans, are not caught in a trade war cross fire.

          I was born and raised in California, I just moved to Colorado a few months ago to ease the tax burden and raise my family’s quality of life.

          To Sundance, I’m simply suggesting this 35% tariff issue must be used with scalpel precision or if it is a larger policy, it should be phased in gradually over time, so that many of our countrymen’s small companies are not destroyed in the process.

          All due respect to CTH, this is my definitive news site. But I think we should analyze this subject a bit deeper with intellectual curiosity towards the Builders here in the US. We are not the enemy, and we voted and support Trump 100%

          Liked by 2 people

          • JAS says:

            I think that what Trump is aiming at is to accelerate the inevitable. That is, to even the manufacturing costs, such that it wont matter where its made in terms of real costs. And we Americans don’t steal and copy, we innovate, so that innovative products will still be competitive. There is plenty of history to go around on how developing countries with lower wages and government subsidies have been able to produce cheaper goods until such time when their economies expand and their costs inevitably go up. Japan is the prime example – think 40-50 years ago.

            Like

          • Supertalk, thanks for being a job creator! This country is built on people like you willing to take a risk to start your own business and then expand that responsibility by hiring people who you then feel the duty to take of. I can understand your concern with the tariffs, but believe me when I say this, it is a total fabrication to think that the electronics you wish to make/purchase thru manufacturing oversea’s can’t be bought at the same or better VALUE for your needs in the US in short time. Yes there will be a transition time to get these factories in place AND small businesses like yours need some net neutral cost planning by the Trump administration. No offense, but your scenario from what I read above is not a hard problem to fix due to the small scale of your business. I would expect you to see upside in both cost reduction and increased revenues during the entire transition. The real concern is with the $$ players like Wall Street and Corporate Manufactures. They will have to change their entire supply chains, capital structures and employee base all the while trying to keep their power. Trump is doing you, your business and ALL Americans a favor by pushing the policies he spoke about during the campaign. Keep pushing forward and thanks for employing 5 fellow Americans, Merry Christmas!

            Like

            • Remington says:

              I can understand your concern. I rode out the PWB manufacturing cycle as it transitioned to China. In fact. I had friends who set up very large plants for them in China. Since money was no object, they bought the best equipment. He wrote all the procedures for them, the QC manual, and trained the workers….and they just could never get it right….The quality, and communications, was pure garbage. Cheap – yes, but after you get agita from your dealings with them, and have to buy the same product 47 times, the price doesn’t look all that attractive – one of those total cost equations. ‘To say nothing to having your product reverse engineered (ask Cisco). Remember, your competitors will be in the same boat, so it kinda of levels the playing field. I’d love to see the PWB industry back in the good old U.S. of A. Hell, I might come out of retirement for that one.

              Like

      • Perhaps the risk is in continuing to do things the way they’ve worked in the past. If you were to mention this problem over on the Transition Site, the Transition Team might appreciate having some good information about this kind of problem. This will be happening with a lot of small manufacturers. However, there are some big manufacturers who are planning on coming back to the US, and they can only do that if their suppliers are close by. You could benefit by that.

        Another option might be to talk to some of the trade journals, and see if they will do an article about your business and needs. That could spark some investment money to start a business to supply businesses like yours. The worst thing to do, at this point, is to do nothing. Sometimes it is hard to tell the difference between a setback, and an opportunity.

        Liked by 2 people

  2. The links you have posted are simply amazing, Sundance. I am not an American but was watching and praying for Trump to win the election, mainly because of the American Supreme Court appointees and his support for prolife.

    Now I am being educated on finance and economics at the Sundance University!😊

    Liked by 12 people

    • I do not know how to say this without being pointed, but if the CNN story is to be believed and “The Trump transition team is floating the possibility of an early executive action to impose tariffs on foreign imports, according to multiple sources.”, then we do have a constitutional issue.

      There is no authority in the Constitution for the President to issue an “executive action” unilaterally on the subject of “tariffs”. Article I, Section 8 clearly gives that authority to Congress and only to Congress. The President can approve or veto, but that’s all he can do within his constitutional authority.

      That being said, our PE sure has leverage and that’s us….and if anyone knows how to use leverage, Trump does!

      Like

      • tonyE says:

        The CNN article clearly states that the Presidentm under current law, has the right to pass such trade executive actions under certain national interest conditions.

        No one (except the Uniparty) would disagree that China is kiling us with unfair trade practices.

        Liked by 2 people

        • Tony, please understand that my comments only reflect a constitutional position and that rarely agrees with reality unfortunately. I understand that.

          The fact remains that no “current law” can AMEND the Constitution, only an amendment can do that. And if the authority it not there, then it’s simply not there.

          Kindly look at Article II in which the States gave authority for the President to act and see if it granted him that authority. You can start at Section 2 if you want to save some time. Article I granted powers to Congress and not one clause gave Congress the power to unilaterally amend the Constitution to bestow powers not granted by the Constitution.

          Like

      • flawesttexas says:

        Congress surrendered Trade Promotion Authority to the Executive during Obama Admin….which is still valid in the new Trump Admin.

        This is why GOPe is panicking. If they go to court and try to overturn….they risk forever giving power of trade negotiation to Executive Branch. They also need 2/3 votes to overturn anything Trump wants done

        Like

    • Snow White says:

      ha, I like how Sundance University sounds. I am enrolled in it too.

      Like

  3. CharterOakie says:

    This is the crux of the matter. Certainly in the sphere of economics and trade policy.

    Sundance — one quibble: “traditional GOP orthodoxy” is not quite right. Traditional only post-WWII. From Lincoln until Eisenhower all leading Republicans were opposed to “free trade” doctrine. They were in fact…{gasp}…PROTECTIONISTS! That is to say, firm believers in tariffs in order to nurture domestic manufacturing, build American wealth, and safeguard the sovereignty of the republic. And thus they linked back through Jackson and Clay to Washington and Hamilton, among others.

    Liked by 1 person

  4. Bob says:

    I have been buying Chinese goods to sell both online, and in a retail situation. I do not like dealing with them because they send a lot of defective merchandise that is too expensive to return, due to the high shipping costs. The tarriffs may hurt me in the short term, but eventually American businesses will be manufacturing the same thing. The quality will be A+ and shipping costs will decrease. I cannot wait to buy American again!

    Liked by 7 people

    • I have a client who buys computer parts from the Chinese for his retail business. As his accountant, I’ve noticed he gets great pricing from them. When asked, he said he gets good prices because he speaks Chinese.

      Like

    • yy4u says:

      AMEN, Bob! From dog food that poisoned our pets to toxic drywall to last week’s scotch tape that wouldn’t work, to bubble lights that won’t bubble, I’m totally fed up with Chinese products that are more expensive than American products because you buy them and they don’t work and are too expensive to return!

      Liked by 1 person

      • CDuran says:

        Chinese stuff looks good and cost much less for a while. But in the long run they break and or are defective.
        I love shoes. I have bought Chinese shoes “designed in Italy” within weeks they fall apart. When I find real Italian shoes or boots, I can wear them for years, repair them and they still look great.

        Liked by 2 people

        • Your Tour Guide says:

          C Duran:
          ( And this goes to everybody)
          Start referring to such junk as “cheap Chinese knock-offs”. The light will start
          to begin to come on to many people who have to continually replace stuff that used
          to last years. Unfortunately, we’re working against decades of people that think
          vacuum cleaners, TVs, hard wired home phones and refrigerators last 5 years, tops.

           The one item that I tell people about that wows younger co workers is this. My parents
          received a toaster as a wedding gift in 1951, and replaced it finally around 2000.
          

          Liked by 1 person

          • yy4u says:

            I got my crockpot in 1967 as a wedding gift — it still works. The hand mixer I bought that same year was used yesterday to make a pound cake. I have a TV in the exercise room that moved here with us in 1991. I don’t know how many years I had it before we moved to this house. It doesn’t look as good as the flat screen but it still plays sports reports when my husband and I exercise.

            Liked by 1 person

          • I had a refrigerator from the 1950’s that I was still using as my home refrigerator in the year 2000, when I sold my home, with the refrigerator. Very cheap to operate also because it was not self-defrost.

            Liked by 1 person

      • marierogers says:

        YY..you left out floor laminate that had to be replaced by a major co here!
        btw i watch shark tank and all millionares on show make their products in CHINA, and always advise contestants to do so!
        dont they give a damn that workers in China are paid starving wages? this SH*T has got to stop!

        Liked by 1 person

    • Mike says:

      I’ve bought Chinese pharma out of necessity for original pure component (none produced in USA). Extremely painful dealing with them, crooks are common.

      Liked by 1 person

  5. fleporeblog says:

    The last paragraph says it all about the GOPe, Chamber of Commerce and the rest of the UNIPARTY:

    But the sources aligned with those interests told CNN the conversation within the Trump transition includes using executive authority allowed under existing trade laws. Different trade laws enacted over the course of the past century allow the president to impose tariffs if he issues a determination the United States is being subjected to unfair trade practices or faces an economic or national security threat because of trade practices.

    They have absolutely and I mean absolutely no say in what Trump does regarding trade. He has 8 years to pull it back as other countries realize we are no longer going to be racked over the coals. Trump position pertaining to the military and our economy is “Strength Through Power”!

    Like

    • yy4u says:

      Got an email from a friend who believes in “free trade”. He wrote that all responsible (underlined) economists say tariffs don’t work. I wrote back, I should hope they’d say that, they made A LOT of money ripping off the rest of us. Haven’t heard back.

      Liked by 2 people

  6. Concerned says:

    Has anyone seen Tom Donahue lately? I resent that his private business is named “US Chamber of Commerce” making it appear as though it’s some kind of government entity. I think there should be a law preventing private businesses from being named “US xxx of xxx”.

    Like

  7. Martin says:

    Liked by 3 people

  8. flawesttexas says:

    Remember that GOPe agrees with, and supports, Obama, Hillary, on Free Trade

    Every day the Trump Admin needs to remind GOP Congress that their views are Obama views when it comes to trade.

    Like

  9. John says:

    The largest exporter of American jobs is Walmart. From first hand experience, I know their merchandise buyers attend Trade Shows to scout for new, innovative American products to purchase a few with promises to purchase larger quantities. Then they ship these innovative new products to THEIR sources in China to “knock-off” these products, then ship them back to the states at cheaper prices. This was the late Sam Walton’s philosophy and continues to this day.

    Liked by 1 person

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