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We all agree that tariffs are best approached using sound economic principles and directed at specific services/industries. Trump’s rather haphazard approach lacked detail but certainly got everyone’s attention. The initial onslaught was the stick, and the subsequent scaling back the carrot. While somewhat reckless, Trump’s strategy is not without merit. It’s a gamble, but that’s been his approach his entire life.
The more narrow the targeting the better, all the way down to the individual company, but at that point we should just nut-up and ban the company. Tariffs are for when you want Americans to pay you for looking tough without really being tough. Tariffs are like a t-shirt with abs printed on it.
Any word on when this goes before scotus?
it's as comical as doge's claims
shit aint happening. who would invest in the US right now lol.
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gamble is a really nice way to put it
Are you kidding? If you wanted very narrow tariffs, you'd need an army of people just to stay on top of it. Companies changing their name, the name of the product, the category. Let's say you want to tariff a can opener. I'd add a narrow flat area and say it's now a screw driver. To easy to circumvent.
Like what DOGE claims?
Oral arguments scheduled for first week of November.
You don't seem to be the type that would argue our government is efficient?
But by arguing that tariffs will be paid back via lower taxes, isn't that what you're saying? If not, then tariffs will always cost more than what the company will get back in these supposed tax rebates, directly related to the (in)efficiency of the government, right?
Are you tired of winning yet? SCOTUS hands Trump another one. While these all still have to go through the court system, It's more likely than not that they would intervene if the Administration did not have a good chance of winning in the end. But that's not stopping the activist judges on the lower federal level and the appeals level.
"Supreme Court Chief Justice John Roberts has handed a temporary victory to President Donald Trump by keeping in place the Trump administration’s freeze on foreign aid for the time being. The decision puts nearly $5 billion in funding on hold."
They have to come up with the $3 billion for noem’s arts and crafts project at the border somehow.
But it will make the border fence very hot. The most hottest thing you've ever seen. Biggest hot.
Still not tired of winning?
The US Supreme Court on Tuesday agreed to fast-track President Trump’s tariff case.
The high court will hear arguments the first week of November.
Everything has positives and negatives and you're absolutely right, the effort required to do anything legal at the individual level...is gnarly. Of course the downside is that if you make tariffs more broad, then it's just a federal sales tax to feed the government slush fund. And the reason why people buy things overseas, is because they're too expensive here, so adding a tax to make things even more expensive, only tightens the noose on the middle class. You can't win.
Soggy wrote
"so I guess we just won’t engage in conversation any longer. "
I was so happy when I read this. You know what they say, when something seems too good to be true... I knew it couldn't last.
I predict a long budget shutdown coming up.
That will help the US government deficit by reducing government expenditure.
I don't see this as our government being efficient or inefficient. Trump has repeatedly said he wants lower tax rates for companies that manufacture in the US. While he can't do that on his own, it's highly unlikely he gets his way with congress if the national debt keeps going up with rocket fuel. But if he's bringing in a decent chunk of change with tariff money, he will have a better chance of success with his wishes. Operating at a lower tax rate, you can make the same after tax profit selling at a lower price point, yes or no?
Pit Row
Holy free lunch Batman!
Where is this “tariff money” coming from?
So the tariffs will either be cancelled or they won’t be. Any other comments?
To answer your question directly, no. And that's true for most companies.
First, you’re making the assumption that these tax breaks will actually happen. Tariffs are happening, so we have to wait and hope while we pay out money in the meantime…
Second, if they do, the tariff income has to cycle through the government inefficiency loop before it comes back. Therefore it must be less money coming back than what comes out. You can view this as punishment for those who import more as it will harm them more, but what about things that have to be imported as they’re simply not made or available here? And what about things that simply cost more now? USA made aluminum has gone up ~20% this year, mostly tariff related.
And third, tariffs are taxes paid by EVERYONE. Tax breaks only apply to those making a profit. Most new businesses, especially small businesses, are not profitable as they get up and running. So they’re taxed via tariffs, but don’t see any benefit to tax breaks. Further, tax breaks only really have a significant benefit as profits soar. Companies with small profits (MANY of them) will not see much benefit to tax breaks. Big companies with high profits will see a benefit. So, once again, this is a plan to benefit large companies at the expense of everyone else.
While this is an excellent breakdown of what this really is, don't even waste your time Billy. He thinks it's a good thing every day American's are paying a shadow tax to subsidize mega corporations with nice tax breaks.
You realize China has invested untold amounts of money in film production studios and these tariffs are designed to protect your job too. It's not just an issue of you getting to keep your job because you are the best at it. If the industry shifts to China, you better start learning Chinese if you want to keep doing what you're doing.
TM
I'm not in disagreement with most of what you're saying, however, I am in disagreement with whether the tariffs are good as a whole to the country. While the cost of the Aluminum has gone up for you, how much does it cost when a Chinese company knocks off your product and sells it on ebay for 1/2 the price and you lose orders? There's good and bad here, we just don't agree on the marker of whether it's good overall or bad overall. But we are so used to buying cheap goods from overseas, that's what gets focused on.
What prohibits a Chinese knockoff at half price plus 25% wholesale (tariff cost)?
Tariffs can be good for the country, in part by the points you raise here. But in my opinion, blanket, country-based, tariffs are not the solution (and will have an extremely negative effect on the economy). We’ve discussed costs to the company earlier, but in many cases, these costs are passed on to the consumer. And in the event of tax breaks to the company, those savings are not likely to be passed on as well. So tariffs cost general US citizens in the end, especially because A LOT of our everyday purchases are imported goods.
Chinese knock offs are a non-issue for us. Sure, there are some Chinese triple clamps on eBay for super cheap, but they look it! Anyone in the market for those wasn't in the market for our stuff anyways. Of course this isn't true for all industries, and it's a big problem for some in particular. I would generally make the argument that if another company can make a product better and/or for less cost, then they should be able to sell it (assuming no patent infringement issues). This gets muddy if the Chinese government is subsidizing costs to make their businesses more competitive, which certainly happens in some industries. A couple solutions for all that:
Targeted tariffs - yes this costs money to manage, but it solves the problem without costing everyone money. Apply tariffs to specific industries and specific countries only as needed.
Ease the process for enforcing patent protection at customs. If an American company holds a patent that is being infringed upon by a foreign competitor, then these products should be stopped at the border and it should be easier for the patent holder to report it and have it stopped. Again, this costs money, but it cost us overall far less than a blanket tariff on various countries.
This is all a very complex problem. And complex problems rarely call for simple solutions like blanket tariffs.
Pulled this from a website. 1 do you believe this is accurate? 2 if so, is this what you expected from Tariffs?
The Department of Commerce released the latest edition of the personal consumption expenditure price index on Friday. It showed that inflation remains stubbornly above the Fed’s two percent target but not because of tariffs. For the second month in a row, the prices of durable goods—those most likely to be influenced by tariffs—fell.
Importantly, this decline is not coming from a lack of demand for durable goods. Things are not falling in price because people aren’t buying them. Real consumer spending—that is, after adjusting for inflation—on durable goods rose by 0.9 percent. People are buying more durable goods at cheaper prices.
This is absolutely devastating to the idea that tariffs are a tax on consumers. Even more devastating to that claim, however, is the evidence from a tariff tracker of prices. The tariff tracker, which is run out of the Pricing Lab at Harvard Business School, shows that since Liberation Day when tariffs were announced, the prices of imported goods in tariff-affected categories are up by less (just 1.13 percent) than domestically produced goods in unaffected categories (up by 1.25 percent). In other words, the stuff directly subject to tariffs has risen by less than the prices of stuff not even indirectly subject to tariffs. If we annualize the gains, tariffed imports are up 2.41 percent and non-tariff affected domestic goods are up 2.76 percent.
But wait. There’s more. Or less, really. The prices of domestically produced goods in categories affected by tariffs—that is, U.S. made goods competing with imports—are down 0.67 percent since Liberation Day. That works out to an annualized decline of 1.42 percent.
If this sort of thing keeps happening, we would not be surprised to see Harvard just shut down the tracker. It’s too embarrassing for the tariff-hating establishment.
Anyways…
How’s the economy doing?
Economic growth?
Inflation?
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