TFG claiming he will impose a 25% tariff on all Canadian and Mexican goods, until they stop all the people trying to cross their borders into the US.
Steve…drives a hecho en Mexico VW
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( I know you’re not a smartphone user )
I am overdue for a new smartphone, think I’ll be sliding into Costco tomorrow and getting one. I got 6 years out of current, very cheap phone, but it is acting up, and figure might as well do it now before the potential tariffs hit.
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I gave $30 for the one I got from TracFone last summer. Actually had use for it twice.
Haunting thrift stores and dumpsters, as I do, I have 2 spare computers, 3 spare monitors, 1 spare printer, 3 spare TVs, 8 spare DVD players, 1 spare stereo receiver.
The fridge, washer, and dryer, are getting up there, 15+ years. But my Whirlpool stock is doing nicely, in the imminent protectionist environment, so I could take the mind set that Mr Market will pay for new appliances when needed.
Only thing I am conflicted about is my car, which will be 11 in January. I should be able to get another 5 years out of it easily, but, once in place, the tariffs will probably not go away, ever, if my suspicion is correct, that the tariff revenue is used to phase out the income tax.
Of course, I could take a bug-eyed gamble on some Ford or GM, on the off chance that I am right about them jacking prices on their ICE vehicles so much that they more than recover what they write off in EV investment. Ford closed at $11.40 today. Of course, the other variable is what happens to the Ford and GM operations in China? They are dying anyway, so maybe the trade war will just put them out of their misery?
Steve
“Only thing I am conflicted about is my car, which will be 11 in January.”
I’ve had thoughts of getting a new truck, but don’t like the offerings. Usually do 10 years on a vehicle, so that would put next purchase in 2026, but if tariffs are in place, they’ll probably cost $60K+ for what I like. Not a car/truck aficionado, just want fairly rugged, and very reliable.
Smart phones, the $500 phone cost about $10 to make. We are going to have deflation in 2025.
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A 25% increase in produce from Mexico and lumber from Canada will be a good way to insure loss of House and Senate majority in 2026. Out of the 33 Senate seats up for re-election, 20 are currently held by the Republican party. All 435 seats in the House are up in 2026. United States Congress elections, 2026 - Ballotpedia
We are torn on accelerating large purchases pre-tariff. Perhaps better to wait for the significant recession that will kick in? Don’t need loans to buy and competition should be decreased. Will be suggesting that Youngest pull the trigger on a new to him car now, since his car has less life in it than ours. Our 2013 has another 5 years of life left, baring an accident. We are leaning towards holding on to our current home with it’s 2% mortgage, which is in a better housing market than places we are considering, currently anyway. Has a strong defense industry and even Federal Government component to the economy, which could change.
My crystal ball is pretty cloudy, so inaction tends to be the default.
IP
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"Smart phones, the $500 phone cost about $10 to make. "
getting it from Costco. $650 phone, they must be trying to get rid of that model, for $72. And Costco gives me a $100 check. Still do have to pay sales tax on full price of phone. Just keep on using the existing phone plan, so no upselling or anything like that.
My current phone is pretty bad, so this will feel like a huge upgrade, current phone getting real sluggish.
New phone has to be shipped to me, but they said it’ll probably arrive tomorrow.
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Just be aware that Verizon did something like this for us, but their “free” phone, for which we paid tax in full, basically locked us into their service for the next 3 years. They charge us and simultaneously rebate us the monthly charge that would have been for the phone. If the phone dies, we are on the line for that whole charge, minus the reimbursement.
Sadly, I also hate the phone, which is less dependable and more complicated than my Moto. I will never do this gimmick again.
IP
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"locked us into their service for the next 3 years. "
absolutely the same thing for me, and I have AT&T. I retired from there, and have had the same plan for years, so locked in for 3 years is not a big deal to me.
Hope it works out that way for you. Our “locked in” plan all of the sudden became changeable and less desirable, now more expensive. We too have been customers for a long time, but won’t be in 2 more years.
IP
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Seems to me that I saw somewhere that this would take like zillion percent tariff … the volume is just not there.
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The income tax is a lot bigger than when it was first passed, in exchange for a lowering of tariffs, in 1913. A combination of spending cuts, and tariff increases, could cover some “targeted” tax cuts: like the previously mentioned tax exemption for tip and Social Security income. There is probably an increased exemption/reduced rate for cap gains and divi income too.
Steve
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Yeppers try Consumer Cellular for a phone and phone plan. The service is best and the phones are less expensive.
The local “news” tonight was all over the story, and, being Detroit, they went right to car dealers for reactions. Pretty blatant “buy now before the price goes up” tout, meaning the dealers have already raised the price they will accept.
Steve…thinking of heading to Penny’s tomorrow as their sale prices on clothing were published before the announcement.
“SOLD OUT” !!!
Groceries. They tell us many come from Mexico. Will we make do without?
" Do you have all the Mexican stuff you want?"
Yes, I started growing my own. 
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Close. Of the style shirt I like, in a color and pattern I like, there were exactly two left in 16. Plenty of 15, 17, 18, but only two 16s. Both made in Bangladesh. grab Of the jeans on the BOGO sale, there were three of the right size. I grabbed two. One made in Pakistan, one made in Mexico.
As with consumer electronics, there isn’t much of a USian textile industry supply chain left. It would take years, and massive investment, to recreate what was here 50 years ago.
We need to invent a new term “Friedmaned”: the intentional hollowing out of a country’s industrial base, to temporarily get stuff a little bit cheaper. File this with “Welched”: the intentional hollowing out of a company, in both it’s financial strength, and ability to compete, to temporarily juice the stock price.
Steve
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Don’t Bogart that …
avocado, my friend.
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“Yes, I started growing my own.”
I only put smoke im my lungs maybe once a year, on a Summer kayak float with a big group of old friends. But a few of these old friends grow their own, and they tell me it is 10 times better than the stuff from our late teens/early twenty years. Apparently Mexico is no longer needed in that field, lol, they do it legally on their back deck. We’ve talked about the tariffs coming, they’ve promised to apply their green thumb to tomatoes, cucumbers, and peppers, and set me up,lol, it’ll just cost me some ice cold Labatts brews on a hot Summer day on a northern Mi river.
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