Marener
Diamond Member
- Jul 26, 2022
- 60,881
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Sorry, but the line from the Trump administration was that other countries would be paying the tariffs.Yes, indeed foreign manufacturers do absorb some of the tariffs. They didn't tell you that on MSNBC?
The effects became especially visible during the 2018 tariff war. At the product level, prior studies using aggregate data (such as the average price or worth of a unit, known as a unit value, across all imports) concluded that the costs of the tariff passed through to the importers—and their end consumers—by the exporters was nearly complete: tariffs raised import prices one-for-one. But when the authors zoomed in on repeated relationships between specific U.S. importers and foreign exporters, they found something different. Pass-through was only about 65–70 percent.
That gap matters. It means that rather than simply being passed along to U.S. consumers, a substantial portion of tariff costs were absorbed by foreign firms. But crucially, not all U.S. firms experienced this equally. Large buyers with significant bargaining power paid less. Smaller importers faced higher prices.
Market Power Shifts Tariff Costs to Suppliers - ProMarket
Other countries may pay a narrow fraction of the tariff, but that’s not the claim Trump was making.
This is the kind of gaslighting that doesn’t work on people who aren’t ignorant and idealistic.

