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Will Trump's tariff on goods imported from Mexico affect the price of LEGO in the USA?

HuwHuw Brickset Towers, Hampshire, UKAdministrator Posts: 6,424
edited May 31 in Everything else LEGO
Discuss...

Comments

  • Toc13Toc13 Member Posts: 1,042
    Well, if they're not coming from China & they're not coming from Mexico, it does restrict the options & increase the shipping costs
  • The_RancorThe_Rancor Dorset, UKMember Posts: 728
    Might be a flash in the pan - Trump says he'll keep increasing tariffs seemingly ad Infinitum until Mexico controls their immigration 'problem' (apparently). But he's probably just trying to flex his policitical muscles before his term is over next year.

    Will we have a similar thread on "Will Brexit Party's no deal WTO tariff on goods imported from the EU affect the price of Lego in the UK"?
    Polyphemus
  • HuwHuw Brickset Towers, Hampshire, UKAdministrator Posts: 6,424
    ^ Not needed because the answer is almost certainly yes...
    The_RancorSprinkleOtterandywilson
  • daewoodaewoo TexasMember Posts: 318
    I'm all for the tariffs since Mexico is letting thousands of people through their country to get to ours - most of whom will be illegals who will then leach off our system.  If that means I pay a little more for Lego, then so be it.
    FollowsCloselyoldtodd33starwars4everM_Bossdavetheoxygenmanteal93mr2TXLegoguy
  • dmcc0dmcc0 Nae far fae AberdeenMember Posts: 716
    The cynic in me says retailers will put prices up regardless and then blame tariffs/brexit/exchange rates/fuel costs/global warming/whatever then fall mysteriously silent when circumstances would allow a price cut. 
    BOBJACK_JACKBOB560HeliportGibbo1959Cymbeline
  • CCCCCC UKMember Posts: 17,701
    Are they from Mexico, or a little piece of Denmark that happens to be located in Mexico. If they brand the factory like an embassy, diplomatic immunity for the bricks! 
    dmcc0asrfarinhapharmjodSirBenFowlerBricksPitfall69
  • thenosthenos Twin Cities, MNMember Posts: 386
    Yeah, this isn't going to get political at all. Ugh. 
    SumoLegomadforLEGOAstrobricksBaby_YodaSprinkleOtter
  • SumoLegoSumoLego New YorkMember Posts: 11,850
    I must have missed something, as a trade agreement was recently signed between Mexico, Canada and the US.

    And probably by the time I do the research, it'll have changed three more times...
    madforLEGOSprinkleOtter
  • piratemania7piratemania7 New EnglandMember Posts: 2,059
    On paper yes but I so doubt that anything will come to fruition here.
  • SumoLegoSumoLego New YorkMember Posts: 11,850
    SumoLego said:
    I must have missed something, as a trade agreement was recently signed between Mexico, Canada and the US.

    And probably by the time I do the research, it'll have changed three more times...
    Short answer - yes.  Depending on the goods, each manufacturer has discretion to absorb some or all of the tariff cost.  Most manufacturers/exporters do not - it gets passed right along to the end consumer.  And then the higher prices may decrease demand.  Domestic products then get the benefit.

    (By comparison - China's tariffs on US-grown exports have decreased the demand.  We now have too much product on our side.  Which is why there are subsides to 'make up' the short-term loss.)

    At the end of the day, blanket tariffs effect industries differently - but if they lower the overall trade deficit with a particular Country or region, that can have a long-term benefit.

    For instance - Toyota Tacomas are made in Tijuana, Mexico.  If a 25% tariff ends up in place, it would (long term) incentivize Toyota to build a new factory or produce Tacomas in the US for the US market.  But because nobody can build and staff-up a factory overnight, the price for a new Tacoma will spike.  (Demand will likely drop, and a US produced competing product will get the benefit.)

    You guacamole and LEGO will be more expensive.  And I'd avoid tequila as well.
    SprinkleOtter
  • klintonklinton CanadaMember Posts: 509
    SumoLego said:
    I must have missed something, as a trade agreement was recently signed between Mexico, Canada and the US.

    And probably by the time I do the research, it'll have changed three more times...
    Oh, it's still very much a work in progress. I kinda get what the clown prince is going for with his obscene demands, but he's quite busy throwing wrenches in industry on both sides of the border. An autonomous America is a good goal, but his erratic methodology is irrational without any foresight. This whole thing with Mexico threatens to destroy the entire accord.

    But, yes, given the ever growing dependence by Lego on Mexican and Chinese factories, increasing tarifs on goods from those countries will obviously have an impact on pricing. I just hope that it doesn't lead to backhanded increases here in Canada, as it appears that Canadian pricing is simply established using a pat "American price + 30 to 40%" calculation, without deviation. 
    SumoLegoLittleLoribluedragondmcc0
  • SumoLegoSumoLego New YorkMember Posts: 11,850
    ^ Yes - that CAD pricing is a predictable formula, as the distribution for North America for non-CMF product emanates from Mexico.

    I'd be more interested to see if (and IF) tariffs go into place, if 'luxury' items get whacked first, or if they use the same graduated tariff increases uniformly across the board.

    I'm not a big tariff guy, but I also don't like trade deficits based on foreign labor being exploited to artificially depress actual production costs.  (Aa I compose this post on a $1000.00 phone manufactured in a sweat shop in China.)
    SprinkleOtterbluedragon
  • SprinkleOtterSprinkleOtter Member Posts: 2,731
    SumoLego said:

    And I'd avoid tequila as well.
    That's just good life advise there...
    bluedragonSumoLegoBaby_YodaFollowsClosely
  • bluedragonbluedragon United StatesMember Posts: 485
    ^And is aligned with the current policy of favoring Russian vodka consumption.
    SumoLego
  • CyberdragonCyberdragon Maryland, U.S.AMember Posts: 372
    It's probably becuase of the avacado trade being overrun by drug cartels. Wouldn't suprise me if they murder people to sell overpriced Lego too.
  • Pitfall69Pitfall69 0 miles to Legoboy's houseMember Posts: 11,374
    SumoLego said:

    And I'd avoid tequila as well.
    That's just good life advise there...
    Bite your tongues ;)
  • AstrobricksAstrobricks Minnesota, USMember Posts: 2,425
    If you erect any kind of trade barrier, someone will smuggle to get around it.
  • jmeninnojmeninno The Batcave (MA)Member Posts: 704
    Ha, erect.
    Bludchylde1SumoLegoBaby_Yoda
  • MeganLMeganL California, USAMember Posts: 72
    edited June 2
    Likely, but instead of contributing to a political discussion, I think I’ll use this as a reason to buy as much LEGO as possible in the immediate future. After all, I’ll be saving money.
    SumoLegoBumblepants560Heliport
  • SumoLegoSumoLego New YorkMember Posts: 11,850
    jmeninno said:
    Ha, erect.
    With stiff tariffs, for sure.
    jmeninnoPitfall69
  • madforLEGOmadforLEGO Chicagoland USMember Posts: 9,328
    edited June 2
    First, you do not cut off your nose to spite your face... There is a particular political party in the US that loves to do this, and it almost always costs the country more in the future.
    Regardless of the spin or why, IMO tariffs are not going to help the typical American consumer in the short or long run. Nor will it 'punish' Mexico, force jobs back to the US (in numbers that manner anyway), or stem the tide of immigrants who want a better life for their children. (Ultimately only stabilization of the countries these people currently live in will do that, and every major country turns a blind eye to this).
    As for LEGO, the cost of LEGO will go up. Either it will occur directly due to the tariffs, or the company will blame the tariffs (even if it does not affect them) and raise their prices anyway. This will occur across the board (cars, trucks, electronics, food, etc) because companies love an excuse to raise prices. That and no one ever holds companies accountable for doing price fixing, and if they do it is only a token effort to make it look like they are trying to stop things like price fixing and monopolies from occurring.
    SumoLegoBumblepantsthenos
  • SumoLegoSumoLego New YorkMember Posts: 11,850
    Ironically, a wall would actually be far more effective than tariffs.

    Nonetheless - 'hurting' the Mexican economy would really only serve to exacerbate illegal immigration.  Both supply and demand. (Which - if you have a porous border - would kinda defeat the purpose.)

    So, despite the possible long-term 'positive' effects, this entire endeavour appears to be bluster.

    I also like that the first round are supposed to go into effect June 15th, and then the second increase on July 1st.  How exactly is anybody going measure if Mexico does do something in response to the tariffs?  
    thenosBaby_Yoda560Heliport
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