AND your can of beer Repubs will be up in armsBut this won't raise the cost of my next Lexus will it?Good, lord. So rather than putting a tariff on value-added products, finished goods, he taxes raw materials, thus ensuring that the economic impacts of the tariff flows through the entire supply chain. That's brilliant. NOT!!! It's flat-out stupid.President Trump announces new tariffs: 25% for steel, 10% for aluminum
When a large importing country implements a tariff it will cause an increase in the price of the good on the domestic market and a decrease in the price in the rest of the world. But since Trump wants to impose the tariff on raw materials, it'll raise not only the price of steel and aluminum in the U.S., but also the price of everything made from that steel and aluminum.
As for who will bear the incidence of the tax/tariff, well, that depends on the elasticity of demand and the elasticity of supply for each given product class, and in some instances, each differentiable product.