Tariffs, how they actually work

[Flopper]

Tariffs are a fee put on foreign products imported into the US for sale to Americans. Their purpose is to help american producers compete with cheap foreign goods. they do not increase the price of american goods sold in america. If you insist on buying Chinese goods you will pay a tariff. The way to avoid that is to buy american made products.

For example: Italy puts a 100% tariff on Harleys sold in Italy. Why? so Italians will buy Italian motorcycles. its simple and it works. It amazes me how the left is unable to understand this simple concept. Foreign countries have been putting tariffs on american goods for years. Trump is merely doing the same thing to them.

If you hate tariffs, the fix is simple: Buy American.

You are correct in that tariffs are not paid by the consumer. They increase the cost of goods to the seller and seller increases his price to maintain his profit margin. Businesses do not reduce their profit margin unless they are forced to by completion.

If Mr. Trump had put tariff's only on Chinese exports, then businesses could look for other suppliers. So unless there is a US source with a lower price, the consumer will pay more. What Trump doesn't seem to take into account is that there are very few US sources to replace imports because of lack factories, trained workers, etc.

 

[Crepitus]

We used to have that option. But then other countries put tarrifs on ours and we didn’t do the same so they and their cheap labor and closed markets make them now.

It’s amazing how nobody on your side has to ask about finding anything made in China.

Tariffs have nothing to do with there being no TVs made in America.

And why are you looking for stuff made in China? Go to ******* walmart for crap's sake.

 

[candycorn]

your basic misunderstanding of tariffs is that you claim that they cause the prices of domestically produced goods to rise. That is simply not true.

It’s true. The proof is everywhere. American made products—because of the tariffs— should be cheaper than imported products across the board. Instead they are still almost always more expensive.

 

[candycorn]

The Importing company can demand a lower price coming in to cover the tariff cost. If not? They don't import the item you don't need to buy anyways Cheese Stain.//

And they sell nothing—-their costs are built in (labor, taxes, utilities—not having inventory to sell means no income.

 

[Muhammed]

Multiple choice question! When the goods arrive, who pays the tariff fees?

The enemy of the American worker.

 

[Flopper]

Democrats lie that tariffs are a tax on Americans. Not true.

Most of the tariffs are paid by the importers, not the consumers, and as you say, if you buy American there is no tariff.

And you think importers pay the tariffs and out of the goodness in their hearth, they don't pass the cost on to the retailer.

 

[kyzr]

And you think importers pay the tariffs and out of the goodness in their heart, they don't pass the cost on to the retailer.

If they do they will sell a lot less. Take half a loaf and like it.

 

[Missouri_Mike]

Tariffs have nothing to do with there being no TVs made in America.

And why are you looking for stuff made in China? Go to ******* walmart for crap's sake.

Of course they do. We let them sell to us with no tariffs and let them tariff our products. Free and fair trade right? Well that’s what the tariffs are doing. Making it fair.

 

[Flopper]

And they sell nothing—-their costs are built in (labor, taxes, utilities—not having inventory to sell means no income.

Y

True. Labor unions benefit from tariffs, but historically prices do go up if the tariffs are large enough and last long enough. So, lots of other people are negatively affected cuz their dollars don't stretch as far as they used to. It hasn't happened yet for the current tariffs that Trump applied, but I think it will.

Any benefit an industry gets from government protective tariffs tend to be short lived for two major reason.
First, other countries who were hit by high US tariffs will respond with higher tariffs on US exports.
Second, whenever government decides to protect an industry which can't compete, it will becomes less completive.

Years ago the US goverment tried to protect US textile companies from foreign completion with tariffs and government contracts. Instead, of modernizing plants, cutting the size of the workforce and going after specialized clothing, they did what they have done for 50 years and when the goverment protective tariffs and non-completive contracts disappear so did the textile industry in the US.

Competition acts as a catalyst for innovation by creating pressure to outperform rivals.

 

[Flopper]

Of course they do. We let them sell to us with no tariffs and let them tariff our products. Free and fair trade right? Well that’s what the tariffs are doing. Making it fair.

Fair depends on what side you are on. Until 2018, when Trump started his first trade war with China, WTO tariffs were used by China on imports which were generally less than 10%. The problem was not the WTO rates, it was the addition fees charged to importers depending on where the imports were going. In addition, China was developing certain industries where they did not want completion from abroad. So they started issuing import licenses for certain goods which were difficult to get. This was the beginning of trade wars with China.

The US will likely never manufacture TVs on a large scale for several reasons.

First and most important is the lost of technical expertise needed to manufacture high quality televisions at a relative low price.

Second, China, Taiwan, and South Korean have developed supply chains that involves a number of countries at a considerable investment. The goal has been to produce the highest quality components at the lowest price. The home country, designs the products, manages the supply chain and does the final assembly and testing in plants that are highly automated.

Lastly, these giant TV manufactures have been able keep labor cost down by managing their supply chain which takes advantage of low labor rates in 3rd world counties and highly automated assembly plants.

 

[dudmuck]

Democrats lie that tariffs are a tax on Americans. Not true.

Most of the tariffs are paid by the importers, not the consumers, and as you say, if you buy American there is no tariff.

 

[Missouri_Mike]

We didn’t cut off trade. We made it fair. You can pay your people 80 cents a day in you factories. But when you ship your products we’re going to tariff them as if you paid a decent wage.

I really don’t get the lefts stance here. You want our minimum wage to be 20 bucks an hour because anything less is slave wages, but then you also want other countries to be able to sell you cheap shit paying people a dollar a day to produce it.

Seriously, how the **** are you thinking we are going to pay our people more when you won’t buy their 20 dollar an hour products because you can get the Chinese shit cheaper.

Decide what the **** you want here. You either buy cheap shit from China and **** over our workers or you demand higher minimum wages for people to make things you won’t buy because it’s more expensive than the Chinese shit. How does that work?

Democrats are idiots.

 

[Flopper]

We used to have that option. But then other countries put tarrifs on ours and we didn’t do the same so they and their cheap labor and closed markets make them now.

It’s amazing how nobody on your side has to ask about finding anything made in China.

There are many reason for the demise of American TV manufacturing. Congress put tariffs on foreign TV manufactures but it was too late. By the 1980's Japan was beating the US manufactures in price, quality and features. The last US manufacturer, Zenith called it quits in 1998 and went into bankruptcy the following year.

One reasons is of course the cost of labor but there is another reason. Essentially all us tv manufactures were also major players in selling military electronics to the government. While the Japanese were putting their money in making better TV tubes, better color, and better sound at a lower price, American manufacturers were putting their money into defense electronic. It would been huge mistake for congress to have put a large tariff on imported TVs in hopes preserving a dying industry.

 

[Winco]

And you think importers pay the tariffs and out of the goodness in their hearth, they don't pass the cost on to the retailer.

Bottom line is this.....and this is indisputable.

Some American, consumer or importer, pays the tariff.
Not the Exporter.
JFC, these trump cult members will defend everything trump does.

BTW, where is the tariff revenue, which is 100% true, going?
It's NOT paying down the National Debt.

 

[Flopper]

We didn’t cut off trade. We made it fair. You can pay your people 80 cents a day in you factories. But when you ship your products we’re going to tariff them as if you paid a decent wage.

I really don’t get the lefts stance here. You want our minimum wage to be 20 bucks an hour because anything less is slave wages, but then you also want other countries to be able to sell you cheap shit paying people a dollar a day to produce it.

Seriously, how the **** are you thinking we are going to pay our people more when you won’t buy their 20 dollar an hour products because you can get the Chinese shit cheaper.

Decide what the **** you want here. You either buy cheap shit from China and **** over our workers or you demand higher minimum wages for people to make things you won’t buy because it’s more expensive than the Chinese shit. How does that work?

Democrats are idiots.

Putting tariffs on low-cost foreign goods harms the economy by raising prices for consumers and domestic businesses, increasing production costs for industries that rely on those imports, and potentially triggering foreign retaliation which hurts U.S. exporters and reduces jobs in exporting sectors.

American manufacturing is only 10% of US economy. It doesn't make sense to punish the 90% to protect business that can't compete. Even worse government protection stifles innovation and creativity and creates a demand for more government protection.

 

[Utilitarian]

All the focus is on tariffs, but no one talks about how most of the world subsidizes shipping from China. If various nations stopped doing that (including us), then trade would favor China a lot less.

 

[Muhammed]

The Chinese heavily subsidizes domestic manufacturers in order to flood the USA with cheap goods and deindustrialize the USA. That's a major part of their total war strategy against the USA.

 

[kyzr]

"the economy if failing"

full employment
3.8% GDP
The Fed lowering interest rates
The stock market setting records daily

You must be really stupid. You don't know what an "economy' is.

 

[Aldo Raine]

The exporting company writes a check?

Uhm no, no they absolutely do not!

 

[ThunderKiss1965]

Tariffs are a fee put on foreign products imported into the US for sale to Americans. Their purpose is to help american producers compete with cheap foreign goods. they do not increase the price of american goods sold in america. If you insist on buying Chinese goods you will pay a tariff. The way to avoid that is to buy american made products.

For example: Italy puts a 100% tariff on Harleys sold in Italy. Why? so Italians will buy Italian motorcycles. its simple and it works. It amazes me how the left is unable to understand this simple concept. Foreign countries have been putting tariffs on american goods for years. Trump is merely doing the same thing to them.

If you hate tariffs, the fix is simple: Buy American.

The reason the left is throwing tantrums over the tariffs is because Trump, that's it. They had no issue with the Biden's administrations 100% tariffs on Chinese EV's,, 50% on solar panels and 25% on Lithium-ion batteries.

Biden finalizes China tariff hikes, including for EVs, batteries and solar panels