There is no doubt that Trump’s 10% tariff on ALL imported goods will be inflationary

For example;

Reference to Biden’s 18.75% royalty rate….

https://www.ft.com/content/5b8b59ef-7b7e-411d-9eb4-5c6c941c853a

…..here were MAGA’s responses/rationalities;

Biden’s 18.75% royalty rate WILL;

1. Scared away investors.

2. Slow drilling activities on federal land.

3. Increase the price at the pumps.


NOTE; Several times on this site, I’ve easily debunked MAGA’s rationally # 1 and 2, and with indisputable facts, however, let’s assume that Biden’s 18.75% oil royalty rate, previously 12.5%, has in fact increased the price at the pumps.

QUESTION; Considering the following indisputable facts;

1. Why the U.S. is importing oil?

BECAUSE most of our refineries were built/reconfigured to refine several grades of oil that aren’t abundantly available domestically, such as Canada’s heavy crude.

2. What we’re paying at the pump;

a. Crude oil price
b. Cost of refining
c. Cost of transportation
d. Taxes
e. Retail markup

Will a 10% tariff on imported oil, such as Canada’s heavy crude, increase the price at the pumps?

 

We don't need to import oil. drill baby drill!!!!

 

Trump Is Likely to Exempt Canadian Energy From Tariffs, Wilbur Ross Says
https://www.bloomberg.com/news/arti...canadian-energy-from-tariffs-wilbur-ross-says

 

I certainly hope so, and thank you for your response.

 

We import heavy crude and refine it. We export light crude and petroleum products. We're a next exporter of a little less than 2 million barrels per day.

 

It's possible, since Canada is our #1 oil importer, and the tax would be charged on the American consumer.

But he will impose 25% tax on Mexican oil. Price of gas will go up no matter what.

 

Yes, in fact we do have to import oil because we have the wrong type of oil in the US.

https://www.nasdaq.com/articles/ame...l-to-meet-its-needs-so-why-do-we-import-crude

The U.S. does produce enough oil to meet its own needs, but it is the wrong type of oil.

Crude is graded according to two main metrics, weight and sweetness. The weight of oil defines how easy it is to refine, or break down into its usable component parts, such as gasoline, jet fuel and diesel. Light crude is the easiest to handle, heavy is the most difficult, with intermediate obviously somewhere in between. The sweetness refers to the sulfur content of unrefined oil. The sweeter it is, the less sulfur it contains.

Most of the oil produced in the U.S. fields in Texas, Oklahoma, and elsewhere is light and sweet, compared to what comes from the Middle East and Russia. The problem is that for many years, imported oil met most of the U.S.’s energy needs, so a large percentage of the refining capacity here is geared towards dealing with oil that is heavier and less sweet than the kind produced here.

A coordinated, forward-looking energy policy over the last few decades would have targeted that issue through subsidies and incentives. That money has been paid out anyway: it wouldn’t have been hard to use it to make America truly energy independent. However, politicians, it seems, would rather keep a situation where periodic energy crises give them a cudgel with which to beat an incumbent. Lest you think I am making a partisan point here, current criticism is of a Democrat by Republicans, but the last time crude was at these levels it was Democrats criticizing George W. Bush, a Republican, for policies and actions that they said forced oil higher back then.

So, we are left in a place where the U.S., despite producing more crude than it needs, is dependent on imports. When the country feels it must ban imports from Russia because of an unprovoked attack on an ally, it is forced to go cap in hand to countries such as Saudi Arabia, Venezuela, and Iran to make up the difference. That is not the fault of Joe Biden, Donald Trump, Barack Obama, George W. Bush, or any other individual politician. It is the fault of all of them and of every Congressperson and oil executive who prioritized a partisan lever over reducing America’s dependence on imported oil over the last thirty or forty years.

 

Here’s how we could considerably reduce oil
Imports;

Fact; Near 70% of California’s oil production is HEAVY, steam injection oil wells.

Thus, Trump should politely ask Governor Gavin Newsom to increase his heavy crude production by 6 million barrels per day.

 

I don't think a shoutage of oil is a problem. Perhaps we need a new slogan: "refine baby refine"

 

California peaked at 1.1 million barrels per day back at the end of '85. It's down to 0.285 now. What makes you think that 6 million is feasible?

Also, proven reserves in CA would last less than a year at that rate. No company is going to invest big capital in a scheme lasting a year. Payback has to be much longer in the oil industry.

 

The other thing which will drive prices up is worker shortage. Just today we heard Team Trump so announce workplace raids. Construction, food industry and other immigrant rich sectors of the economy will be hit the hardest

 

I don't like having illegals here but we need to face the facts that if these types of raids do happen you are correct about a worker shortage. If people think prices are high now....we're in for a world of hurt.

 

Even if Trump places import taxes on goods, then manufacturing might be profitable here in the USA. And if we end up paying higher prices to become a manufacturing giant is that not good? "Ask not what your country can do for you -- ask what you can do for your country".

 

Why didn't Trump's tariffs and Biden's tariff result in the US becoming a manufacturing giant?

 

The problem with government raids is that you lose your workforce in a blink of an eye.

No, that level government involvement is never good. Free market capitalism has always worked better then government ran one.

 

And that comes from the folks who don't even want to pay taxes. And then they pretend to be patriots.

BTW: When Biden was in office and prices went up, MAGA screamed about Bidenflation. If Trump policies drive up prices, it will be "for the greater good". We can tell the excuses already.

 

When wages fail to keep up with inflation, then inflation is a problem. Bidinflation = Trickle up poverty

 

I was thinking and laughing at the same thing. His hyper-partisanship knows no bounds.

 

Whatever Trump does on Tarrifs, I bet you it won't be transparent, and will prioritize profits for corporations.

 

But at the expense of we the people buying the products.

 

In his case wages increased 22% vs inflation 20%.

It remains to be see what the numbers look like when Trumpflation hits us