Tractors and (upcoming) tariffs?

[Hay Dude]

It is interesting to read the discussion from the US side of the border. The announcement of 25% tariffs is big news in Canada. We export upwards of $600Billion to the US every year. This will have a large effect in Canada and ripple effects on prices in the US.

Lots of data is being reported in the last few days. Here is some of it that may be of interest

Top U.S. imports from Canada in 2023
Value in U.S. dollars.

Oil and gas $103.22B
Transportation equipment $73.44B
Primary metals for manufacturing $35.53B
Chemicals $30.68B
Food products $29.72B
Machinery $22B
Petroleum and coal products $15.82B
Wood products $11.28B
Plastics and rubber products $10.38B
Paper $9.29B
Source: U.S. Census Bureau

According to U.S. Customs and Border Protection (CBP), the agency has seized 43 lbs of fentanyl at the Canada-U.S. border in the last year, excluding October, compared to 21,148 lbs at its southern border with Mexico in the same time period. (The total from Canada is less than one day's worth.)

According to CBP (Canada Border Patrol), in the last year, but excluding October, there were 23,721 encounters at the Canada-U.S. border. At the U.S. southern border with Mexico, there were more than 1.5 million. (People do come to Canada, on a student visa for example, with the plan to cross the border into the US. I personally believe the interest in doing this will sharply decrease in the coming months.)

There are border issues for sure, but they are far different in Canada vs Mexico. Canada is working on the issues. The Canada/US border is 5,525 miles long. Canada's population is only 40M people so we are spread pretty thin across the country! .

We believe that we are pretty good allies and the free trade agreement means that goods and services cross the border easily and this works to the benefit of both countries. These proposed tariffs go against the rules of the free trade agreement.

Tractor attachments from Canada will be affected. HLA, Woodland Mills, etc.

Signed, your neighbor.

I'm a big fan of HLA attachments.
Good solid farm grade.
Think I have like 4 HLA attachments

 

[Muhammad]

Hmmm.. but i cant help but wonder if what ever was said fit your narrative , would you quietly let it slide? Like what if some one said ****** is causing genocide in *********. Would that be "ok" because 90% of mainstream media says so. Or if some one claims a man can become a women or vice versa.would these be held to the same standard?

Go ahead and post a thread about politics that you think fits my "narrative" and see what happens. Then you won't have to wonder anymore.

Edit:

 

[hayden]

Supply and demand have absolutely no bearing on inflation.

If there is huge demand and no supply, how is there inflation?
If there is huge supply, and no demand, how is there inflation?

Conversely...

If there is huge supply and no demand, how is there inflation?
If there is huge demand and no supply, how is there inflation?

Prices and inflation are mutually exclusive...

OK, we are talking about different things, but using the same word. I can't say which is correct based on economic text books. I'm not an economist, but I have run $100m revenue companies. I think people on the streets and in shopping lines are talking about and care about price increases. You are talking about the overall size of the economy.

 

[Muhammad]

I sure hope the leaders from other countries, who place tariffs on goods from the US, are reading many of these posts and realizing their tariffs are not good for their citizens as well. You'd never know other countries place tariffs on US goods from reading these posts; I don't see any negative comments directed toward those countries, just toward the US. If another country places tariffs on US goods, I see no reason not to reciprocate.

Many world leaders start their day on TBN...... allegedly.

 

[Chris Gurciullo]

Funny how when one side proposes anything "pro worker" or "anti business" - those costs are paid for by "evil" company profits. BUT when the OTHER side proposes a tariff - those costs are paid by the customer.
Doesn't work that way. All costs are ultimately paid by the consumer.

As far as tariffs go - people are getting too worked up. Most likely it's a negotiation tactic to get something from foreign governments. Those governments have to believe it's a real threat. Keep in mind while higher prices aren't good for us, they would devastate a country like Mexico or China.

 

[jyoutz]

And the number one trading partner is Canada, so I’m trying to figure out what the effects of a 25% Tariff on everything will be, because, on December 1 I have to make a decision on investing all of my 40 years of retirement savings. Will the markets be going crazy up and down And do we have to wait until January 20 to find out what will really be going on?

A lot of talk, speculation, and all the news networks in the last day or so.

I know that I’m going to move out of stocks into Treasuries by early January just to be safe until we see what happens.

 

[jyoutz]

It is interesting to read the discussion from the US side of the border. The announcement of 25% tariffs is big news in Canada. We export upwards of $600Billion to the US every year. This will have a large effect in Canada and ripple effects on prices in the US.

Lots of data is being reported in the last few days. Here is some of it that may be of interest

Top U.S. imports from Canada in 2023
Value in U.S. dollars.

Oil and gas $103.22B
Transportation equipment $73.44B
Primary metals for manufacturing $35.53B
Chemicals $30.68B
Food products $29.72B
Machinery $22B
Petroleum and coal products $15.82B
Wood products $11.28B
Plastics and rubber products $10.38B
Paper $9.29B
Source: U.S. Census Bureau

According to U.S. Customs and Border Protection (CBP), the agency has seized 43 lbs of fentanyl at the Canada-U.S. border in the last year, excluding October, compared to 21,148 lbs at its southern border with Mexico in the same time period. (The total from Canada is less than one day's worth.)

According to CBP (Canada Border Patrol), in the last year, but excluding October, there were 23,721 encounters at the Canada-U.S. border. At the U.S. southern border with Mexico, there were more than 1.5 million. (People do come to Canada, on a student visa for example, with the plan to cross the border into the US. I personally believe the interest in doing this will sharply decrease in the coming months.)

There are border issues for sure, but they are far different in Canada vs Mexico. Canada is working on the issues. The Canada/US border is 5,525 miles long. Canada's population is only 40M people so we are spread pretty thin across the country! .

We believe that we are pretty good allies and the free trade agreement means that goods and services cross the border easily and this works to the benefit of both countries. These proposed tariffs go against the rules of the free trade agreement.

Tractor attachments from Canada will be affected. HLA, Woodland Mills, etc.

Signed, your neighbor.

I agree with your information on the magnitude of border crossing and drug smuggling. But I’ve been to and across both borders. It’s my impression that there is far less border patrol and surveillance of the U.S./Canada border than the US southern border. It makes me wonder if the reported data reflects that there is simply less reporting?

 

[sunandsand]

Tariffs are a tool, and like any other tool, can be used correctly or misused. Other countries do have tariffs on US made goods, and that is their decision.

Tariffs are most properly used as a scalpel, not as a sledgehammer.

Canada and Mexico are our largest trading partners as well as our neighbors. I don't understand how imposing a blanket 25% tariff will "protect" us from our neighbors to the north, or how "revenge" and "retribution" (the favorite buzz words of the incoming administration) apply to them.

Mexico has their hands full - more than full - with the drug cartels. The media viewpoint is that they are on the verge of becoming a failed state, or worse, a narco-state. (Unfortunately, we have no other ways to tell what is really going on than the media). They are also a land bridge for people from central America, some of whom are desperately seeking a safe place to live, and, unfortunately, some of whom who have other, rather less noble motives.

Mexico needs help, not punishment. If your neighbor's house is on fire, you call the fire department, you don't call the EPA to complain about the smoke.

We and they need to approach this difficult situation differently. What the US and Mexico have been doing so far obviously isn't working. and slamming them with arbitrary tariffs as "punishment" isn't going to help them or us.

Best Regards,
Mike/Florida

 

[sunandsand]

Many world leaders start their day on TBN...... allegedly.

Well they would IF they were smart . . . ;-)

 

[2manyrocks]

Portable Winch co may be another great small business impacted by tariffs. I don’t think Canada should be subjected to tariffs in the US because they aren’t undercutting normal US wages to my knowledge.

 

[2manyrocks]

Well they would IF they were smart . . . ;-)

TBN brain trust….

 

[chim]

I'm not going to get too upset right now. The outcome - and even the assumed tariffs - are yet to be determined. As with any government exercise there are likely many important details on Page# 3024

 

[Denali94]

1st amendment.

The First Amendment does not apply to private ventures such as this forum. It applies only to the government restricting your speech.

 

[rScotty]

Jobs, wages, and the inflatiion have gotten out of balance before. The impression I have from people who lived in previous economic hard times is people economized by building, fixing, and entertaining themselves because they had no other choice.

Self-reliance reduced demand for new goods, and an improved economy resulted.

Being more self-sufficient seems to have worked before. Will that happen again?
It's a solution that doesn't depend on governments. Increased self-reliance is free to anyone.

It seems almost too simple, but what other solution is so available to so many?

rScotty

 

[homey53]

Have you considered that your taxes may be lower which could offset those increased costs? Part of the reason for collecting tarriffs in the first place is to lower taxes to individuals and corporations.

Key word is MAY. Let us know when your's go down.

 

[caleb90]

Go ahead and post a thread about politics that you think fits my "narrative" and see what happens. Then you won't have to wonder anymore.

I best look out

 

[bvanek]

Reciprocal trade with our trading partners...This is just common sense.

Global marketing has grown to the point that it has left domestic fiscal responsibility mortgaged. (kind where we are at now). Tariffs can be used as a bargaining chip that puts our domestic market in a more competitive environment that supports local investment. This is a good thing for American citizens. We are the worlds largest consumer market and all these countries are quite aware of how much money they can be made off of USA consumption. Yes, we are quite gluttonous for cheap goods but not too frugal when longevity and fiscal responsibility is calculated.

Deficit spending puts a country on welfare and without GDP growth simply mortgages the future. Most successful economies have built in inflation but need to be controlled through less spending and GDP growth. (without printing money and flooding the market with inflationary dollars) This just makes it worse.

This was started as a tractor discussion concern on tariffs?.......Smart businessmen seem to indicate that a more competitive domestic market is a good thing and they will invest accordingly. Some unreasonable regulations will be lifted as part of the package. Pretty sure they see the value of a new direction and how local competition will help keep pricing in line with imported products......if you make a product here, produce the parts, and provide the service locally, all of us that own tractors will be a lot better off. Many of us tend to be as self-sufficient as possible so that helps.

add;...We are in a deep funk right now, so concerns are real. What caused the funk? battle it out folks but political policies played a huge role...

Pretty easy to assume this won't happen over night, so get your machines in tune, do routine maintenance, and realize that most tariffs will likely not happen. Chinese tariffs are still in place. The bulk of these tariffs were in place before 2020, yet inflation only began accelerating in March 2021. Clearly, inflation was driven by many sources besides tariffs..... and no one is interested in removing them so maybe they have already proven to have some merit?

 

[jyoutz]

Reciprocal trade with our trading partners...This is just common sense.

Global marketing has grown to the point that it has left domestic fiscal responsibility mortgaged. (kind where we are at now). Tariffs can be used as a bargaining chip that puts our domestic market in a more competitive environment that supports local investment. This is a good thing for American citizens. We are the worlds largest consumer market and all these countries are quite aware of how much money they can be made off of USA consumption. Yes, we are quite gluttonous for cheap goods but not too frugal when longevity and fiscal responsibility is calculated.

Deficit spending puts a country on welfare and without GDP growth simply mortgages the future. Most successful economies have built in inflation but need to be controlled through less spending and GDP growth. (without printing money and flooding the market with inflationary dollars) This just makes it worse.

This was started as a tractor discussion concern on tariffs?.......Smart businessmen seem to indicate that a more competitive domestic market is a good thing and they will invest accordingly. Some unreasonable regulations will be lifted as part of the package. Pretty sure they see the value of a new direction and how local competition will help keep pricing in line with imported products......if you make a product here, produce the parts, and provide the service locally, all of us that own tractors will be a lot better off. Many of us tend to be as self-sufficient as possible so that helps.

add;...We are in a deep funk right now, so concerns are real. What caused the funk? battle it out folks but political policies played a huge role...

Pretty easy to assume this won't happen over night, so get your machines in tune, do routine maintenance, and realize that most tariffs will likely not happen. Chinese tariffs are still in place. The bulk of these tariffs were in place before 2020, yet inflation only began accelerating in March 2021. Clearly, inflation was driven by many sources besides tariffs..... and no one is interested in removing them so maybe they have already proven to have some merit?

North American manufacturing has become intertwined between U.S., Canada and Mexico. Products and components may come from all three countries and assembly in either of the countries. Manufacturing is now “North American”, not fully in one country (for many products) and Canada/Mexico collectively are the U.S. largest trade partners. Tariffs for Asian countries are a different story. It make no sense to tariff trade within North America and there will be considerable unforeseen economic consequences if this occurs. Not a great time to be heavily invested in stocks.

 

[POGuy]

That is precisely why the steel tariffs failed to increase U.S. production. The intent was that tariffs would allow U.S. companies to increase production and market share. Instead they raised prices because they could, and didn’t gain additional market share. The tariffs only accomplished price increases overall.

Tariffs are usually, in comparison, very short lived so trying to bring production back to the U.S. is pretty dicey as the cost to re-build, re-tool would be super expensive when that market could be pulled out from under you at anytime when then the politics are resolved. I just don't ever see a situation where those jobs and products come back home.

 

[bvanek]

It make no sense to tariff trade within North America and there will be considerable unforeseen economic consequences if this occurs.

If through Chinese or other foreign proxies, it makes perfect sense. If it's done as a deterrent for illegal immigration and helps to secure our border with both *** trafficking, terrorists, and drug transportation it also makes sense....

remain in Mexico worked and was only accomplished through a threat of tariffs.