Was just explaining this to my kids this morning. Many US manufactured goods have supply chains that cross the Canadian and Mexican borders multiple times. This is, bizarrely, a massively disruptive tax on the US domestic industrial base. - ThreadSky

prchovanec.bsky.social • 21 days ago

Was just explaining this to my kids this morning. Many US manufactured goods have supply chains that cross the Canadian and Mexican borders multiple times. This is, bizarrely, a massively disruptive tax on the US domestic industrial base.

Reposted from Scott Lincicome

"Why are tariffs on Canada and Mexico different than (some) other tariffs? Consider this graph courtesy of Bloomberg via Torsten Slok" (but actually from me & @AlfredCObregon) https://buff.ly/42xOkvp

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blogndog.bsky.social•21 days ago

Auto industry examples are the most commonly used but most people are unaware how value chains for all kinds of things cross borders multiple times — shrimp caught in Mexico and flash-frozen; shipped to Alabama to be cooked with sauce produced in Thailand then sent to Canada to be vacuum sealed, …

blogndog.bsky.social•21 days ago

…packaged, frozen and exported to the UK.

oldtoast.bsky.social•21 days ago

At least they can't blame Biden. It's all on Trump.

tatertot1381.bsky.social•21 days ago

MAGA would look at this, half understand it, and say "well this is the problem in the first place, everything should just be done in America and Trump is fixing that with his tariffs."

jumulojimbus.bsky.social•21 days ago

The fact that in nearly 10 years no one has been able to explain this to him reflects poorly on his team.

ianford.bsky.social•21 days ago

Canadian economists are talking about going scorched earth in response. National pride is kicking in.
https://bsky.app/profile/kevinmilligan.bsky.social/post/3lh52fep3fs2k

ianford.bsky.social•21 days ago

👇
https://bsky.app/profile/kevinmilligan.bsky.social/post/3lh52aqoi4k2k

susano911.bsky.social•21 days ago

It’s helpful to think of every part, down to the smallest component, that goes into making something as having its own supply chain. Supply chains inside of supply chains across borders and back. Like a Russian nesting doll if you need an image.

kelmaur7.bsky.social•21 days ago

Patrick I was in the Toronto region in late Fall.
On my return trip across the border into NY, we counted 36 trucks filled with Canadian goods heading into US. Looked like lumber, processed boards, and lots of fuel trucks.

rooster-mi.bsky.social•21 days ago

Wait until MAGA sees what this will do to the auto industry, farm equipment, etc.... just as an example.

a-701.bsky.social•21 days ago

Fox/OANN/Elon/Joe Rogan, etc will tell them it's because of immigrants, minorities, women, wokeness, PBS, Obama, and Biden.

rooster-mi.bsky.social•21 days ago

Yes, that will happen.

The question is whether there are enough good people in the USA to resist.

If not, then it has been fun and don't forget to turn out the lights.

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