Tariffs, how they actually work

[WorldWatcher]

No, it wouldn't since that is likely going to price cars so high that nobody but the elite can afford a new one. The idea that America can maximize revenue at the expense of Americans is criminal.

I bought a new car last year as our retirement car.

I check recently and the price jump for the same model is $5000 higher.

WW

 

[pknopp]

I would like links to the Obama promises. I quite agree he did some stupid stuff.

I hold no fondness for the Democratic Party's hypocrisies. Be that as it may, I can see their representatives are not nearly as extreme as are MAGAts.

Just look at the endless lies over tariffs for example.

I have no desire to settle for "less extreme". If people would have held Obama accountable, there is no Trump.

 

[Crepitus]

Says the guy who loves the party of socialists?

That's rich.

YOu kids can't even figure out when you're being taxed.

 

[cnm]

I have no desire to settle for "less extreme". If people would have held Obama accountable, there is no Trump.

Enjoy your 'more extreme' then.

 

[pknopp]

Enjoy your 'more extreme' then.

Sucks either way for me.

 

[Leo123]

Foreign countries dont make any money. American companies source stuff for the lowest cost they can and pass that savings into the market.

• Ralph Laruen makes a polo in China for $16. The factory profits $2.
• Its shipped to the US for $2 and the freight company profits 50 cents
• The shirt has a tariff for $2 and the US profits $2.
• Ralph Lauren sells the shirt to Macy's for $40 and profits $20
• Macy's sells the $99 ticketed shirt to Me for $80 on sale and profits $40

So to recap:

• The Chinese factory made $2
• The international freight company make 50 cents
• Ralph Lauren made $20
• Macy's made $40

So what exactly is the problem here?????????????????????????

Slave factory.

 

[Leo123]

One example that shows your example is wrong...

Shoe industry. The American shoe industry at this time, has a manufacturing base that can manufacture up to 25 million pairs of shoes to satisfy our market and demand.

The other 2.5 billion pairs of shoes sold a year to Americans, are imported from foreign countries.

This line of yours that PRETENDS like there is a choice to buy American and then we won't have to pay the much higher price for shoes is simply IMPOSSIBLE, because there is no longer a manufacturing base in the USA to serve our demands. And this is the case with many products made overseas.

For the shoe industry, it would take 20 years to build up a shoe manufacturing base, in America, to meet our needs.

And ONE thing you are leaving out....even with tariffs on imports, US Manufactured shoes, still retail higher than overseas imported footwear....

So you are forcing inflation higher, American made goods cost a lot more to manufacture, so their retail prices are just as high or higher than what the shoe would cost, even if their tariffs were raised to 100%.

No matter what, tariffs cause all goods, to go up in price and brings higher prices to us, whether paying the higher tariff on goods or paying the American factory price...inflation.

Trump is NOT doing Tariffs as reciprocal tariffs on goods the foreigners put high tariffs on us for...that would be smart policy....

He is throwing out all of these ridiculous high tariff rates for the entire country then reneging, then reissuing, then reneging again, then by this cut off of the deal date, then the date extended...

ABSOLUTE CHAOS....

No business can plan their next season's buy and business that way.... It's absolute madness!

Nike would be nothing without overseas child and slave labor.

 

[candycorn]

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 goal wasn’t to re-shore jobs? You guys ssid it was.

 

[candycorn]

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.

Many (if not most) American goods have components imported and tariffed. The prices go up in that scenario.

American cars should be thousands of dollars cheaper than imported cars. Instead; domestic mfgs have raised their prices. That is why the stock market has risen.

 

[JWBooth]

They work by enriching protected industries and impoverishing those lower down the economic ladder.

 

[Flopper]

Many (if not most) American goods have components imported and tariffed. The prices go up in that scenario.

American cars should be thousands of dollars cheaper than imported cars. Instead; domestic mfgs have raised their prices. That is why the stock market has risen.

Tariffs fundamentally contradict the principle of free trade, a core foundation of the capitalist system. Tariffs are a form of protectionism by government intervention in the free market to restrict imports, which shields certain domestic industries from foreign competition and damages others by raising the prices of raw material. No government that claims to support deregulation can support global tariffs.

 

[Care4all]

Nike would be nothing without overseas child and slave labor.

Nah, they got out of that decades ago, from the bad publicity....and factory worker's income has gone way up, from slave labor wages when started...it's still only about a quarter to a third of US labor costs...we have other costs of labor in addition to wage, that employer's pay like SS taxes, and Medicare taxes match, and unemployment insurance %, disability insurance, healthcare insurance benefit, life insurance benefit etc etc etc it adds up.

But to the overseas labor costs the importer has to add shipping costs by boat, any Insurance to cover the shipment being damaged or sunk, then freight costs for trucking from California's ports to the East Coast warehouses and on to retailers...and excise taxes and any tariff levies when it arrives at port, and the agent fees they hire to get their shipment out of port customs and on to a truck etc etc etc...

When all of that was paid, the product total cost for the item was still 25%-50% less than if manufactured in the U.S. when I did this for a living....it could be a little less of a profit advantage now since Chinese Labor costs have risen...but not by much.

 

[Care4all]

Foreign countries dont make any money. American companies source stuff for the lowest cost they can and pass that savings into the market.

• Ralph Laruen makes a polo in China for $16. The factory profits $2.
• Its shipped to the US for $2 and the freight company profits 50 cents
• The shirt has a tariff for $2 and the US profits $2.
• Ralph Lauren sells the shirt to Macy's for $40 and profits $20
• Macy's sells the $99 ticketed shirt to Me for $80 on sale and profits $40

So to recap:

• The Chinese factory made $2
• The international freight company make 50 cents
• Ralph Lauren made $20
• Macy's made $40

So what exactly is the problem here?????????????????????????

Excellent summary!

--------------

The State collects sales tax on the $80 sale, too!

 

[Mac-7]

White Collar Hates Blue Collar

It's better to have the money circulating within America than having it leach out to Third World sweatshops.

The money that goes to china funds the buildup of the chinese military

 

[candycorn]

Tariffs fundamentally contradict the principle of free trade, a core foundation of the capitalist system. Tariffs are a form of protectionism by government intervention in the free market to restrict imports, which shields certain domestic industries from foreign competition and damages others by raising the prices of raw material. No government that claims to support deregulation can support global tariffs.

You’re right of course.

I was more focusing on what the consumer sees when they go to Home Depot.

Stanley tape measures should be dollars cheaper than foreign made products.

Instead, in most cases, they are still far more expensive even though they don’t suffer directly via the tariffs.

 

[kyzr]

I bought a new car last year as our retirement car.
I check recently and the price jump for the same model is $5000 higher. WW

Where was it made?

 

[Leo123]

Nah, they got out of that decades ago, from the bad publicity....and factory worker's income has gone way up, from slave labor wages when started...it's still only about a quarter to a third of US labor costs...we have other costs of labor in addition to wage, that employer's pay like SS taxes, and Medicare taxes match, and unemployment insurance %, disability insurance, healthcare insurance benefit, life insurance benefit etc etc etc it adds up.

But to the overseas labor costs the importer has to add shipping costs by boat, any Insurance to cover the shipment being damaged or sunk, then freight costs for trucking from California's ports to the East Coast warehouses and on to retailers...and excise taxes and any tariff levies when it arrives at port, and the agent fees they hire to get their shipment out of port customs and on to a truck etc etc etc...

When all of that was paid, the product total cost for the item was still 25%-50% less than if manufactured in the U.S. when I did this for a living....it could be a little less of a profit advantage now since Chinese Labor costs have risen...but not by much.

They went to Cambodian sweat shops.

 

[WorldWatcher]

Where was it made?

Indiana

Ww

 

[Cellblock2429]

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.

/----/ Excellent post, but you need to dial it back so the public school-educated libs can understand.
Meanwhile: https://finance.yahoo.com/news/toyo...-growth-despite-trumps-tariffs-151301624.html

 

[The Sage of Main Street]

The world is changing. People need to move with the times and learn new skills, instead of sitting around and blaming everything on DEI.

Deplore, Exclude, Infiltrate

The entire Left and the entire Right, the whole specious spectrum, are enemies of MAGA. We must kick the Dead Right out of our party, just like the Democrats kicked the Segregationists out of their party. Instead, the Bushwackos have infiltrated MAGA, posing as its mentors.