Market is bleeding again after another tariff war show off by Trump as he imposed 25% import tax on vehicles coming to the US from around the world.
Market is bleeding again after another tariff war show off by Trump as he imposed 25% import tax on vehicles coming to the US from around the world.
Trump is saving America!
from what?
From cheaper cars, duh.
Even though financial markets loathe tariffs, tariffs themselves aren't a problem for them. It's the uncertainty surrounding their implementation (or not) which drives financial markets crazy because they don't know how to plan for that.
The government will issue letters to IRS and Customs like they did for Canada and Mexico last month. I hope there is no stoppage of implementation and collection. It is just Trump is doing so quite rhetorically to impress republicans.
When it comes to tariffs, most Republicans in Congress are afraid of them thanks 2 lack of education. After all, from 1789 to 1913 tariffs funded D government, not income taxes. Some were better than others, but overall tariffs worked well.
If Trump were replacing the income tax with tariffs, that might not be so bad. But instead, he is adding them on top of income taxes so he is effectively increasing taxes indirectly. Tariffs may not be paid directly by consumers but they certainly put upward pressure on prices.
It's true that as of now the tariffs he's discussing are alongside various income taxes people in the US "pay"-- payroll deductions take place each pay period-- each April 15th. In a press Q&A he was riffing on doing away w/ the income tax.
It would be great if the income tax went away but I believe that would take Congress, not just the President. And to get rid of it permanently, you would really need a Constitutional amendment.
The federal income tax came into being by an amendment to the US Constitution. It will take a Constitutional amendment to repeal the federal income tax. Congress by itself won't be enough, and it's beyond the scope of the president.
The governments need taxes fine, but the this government is imposing taxes is way too much. Here, we have similar situation and even a white-collar person can't afford a vehicle.
Just glad I have no plans to buy a car in the near future.
A good plan, in my country we pay double the tax of car price.
In the U.S., the cheapest new cars will set you back nearly $30k after taxes and everything. If you are lucky, you might be able to get a deal for $25k. Tariffs (which is effectively just another tax) will only make that worse.