Why Trump's tariffs make sense.

[Woodznutz]

The consumers who buy imports should pay the tariffs as they are the ones who are causing the trade deficit. Anyway, even with the tariff costs those products are still likely cheaper than if made domestically. Trump has to keep repeating the falsehood that foreign companies are paying the tariffs. He would be in serious political trouble if he told the truth (this is true of all politicians).

 

[task0778]

The consumers who buy imports should pay the tariffs as they are the ones who are causing the trade deficit.

Or the price of US goods are too high, thanks to high taxes and the cost of labor plus compliance with too much regulation (thanks Dems). Consumers on the low side of the income ladder try to stretch their dollars by purchasing stuff at the lowest price they can and I don't have a problem with that.

I do not see the trade deficit as that big of a deal. So what? That deficit is balanced by investments coming back into the US for our debt and private business. As long as we are careful about where foreign investments are made for national security reasons, then WTF? And here's another thing: didja know that U.S. law does, in fact, subsidize foreign investment in the United States by imposing much lower tax rates on foreign investors than American ones? And that subsidy gives an advantage to imported goods over home goods as dollars earned by foreigners can be more profitably invested in the United States than dollars earned domestically.

 

[Blaster]

 

[Woodznutz]

Or the price of US goods are too high, thanks to high taxes and the cost of labor plus compliance with too much regulation (thanks Dems). Consumers on the low side of the income ladder try to stretch their dollars by purchasing stuff at the lowest price they can and I don't have a problem with that.

Even with the additional cost of tariffs most imports are still cheaper than the same domestically made products would be. However, the tariffs should encourage domestic production of those products. Sadly, most business startups are way downstream of the manufacturing sector.

 

[task0778]

Even with the additional cost of tariffs most imports are still cheaper than the same domestically made products would be. However, the tariffs should encourage domestic production of those products. Sadly, most business startups are way downstream of the manufacturing sector.

Yeah, but if true then where's the gain for Trump's tariffs? If the imported stuff is still cheaper than domestic, then all you're really doing is forcing import companies to pay more money to the federal gov't and then getting paid back by merchants when they buy whatever it is and then they get paid back when consumers buy the products. Mostly it ends up covered by the consumers.

Do not forget there is also a retaliation when foreign countries raise tariffs or quotas on our stuff exported to them. Payback is hell sometimes, maybe not as much as the tariff but it is a hit to somebody. So, winners and losers and I don't like our gov't playing winners and losers.

And then there's the uncertainty created with Trump's tariffs delayed, reduced, created, or dropped altogether when a deal is reached. That's great but what about US businesses that are trying to make business decisions based on future projections of supply and demand? It gets kinda hard, so many companies are holding their cards and not doing as much expansions or creating new businesses. And that means fewer jobs.

 

[Mac-7]

The consumers who buy imports should pay the tariffs as they are the ones who are causing the trade deficit. Anyway, even with the tariff costs those products are still likely cheaper than if made domestically. Trump has to keep repeating the falsehood that foreign companies are paying the tariffs. He would be in serious political trouble if he told the truth (this is true of all politicians).

I agree that trump has not adequately explained tariffs to the public

And probably has not applied them in the best possible way

But the need for tariffs exists and that has not changed

 

[Woodznutz]

Yeah, but if true then where's the gain for Trump's tariffs? If the imported stuff is still cheaper than domestic, then all you're really doing is forcing import companies to pay more money to the federal gov't and then getting paid back by merchants when they buy whatever it is and then they get paid back when consumers buy the products. Mostly it ends up covered by the consumers.

Do not forget there is also a retaliation when foreign countries raise tariffs or quotas on our stuff exported to them. Payback is hell sometimes, maybe not as much as the tariff but it is a hit to somebody. So, winners and losers and I don't like our gov't playing winners and losers.

And then there's the uncertainty created with Trump's tariffs delayed, reduced, created, or dropped altogether when a deal is reached. That's great but what about US businesses that are trying to make business decisions based on future projections of supply and demand? It gets kinda hard, so many companies are holding their cards and not doing as much expansions or creating new businesses. And that means fewer jobs.

That all begs a larger question, that is, what is the citizen/consumer's role in all of this?

 

[martybegan]

The consumers who buy imports should pay the tariffs as they are the ones who are causing the trade deficit. Anyway, even with the tariff costs those products are still likely cheaper than if made domestically. Trump has to keep repeating the falsehood that foreign companies are paying the tariffs. He would be in serious political trouble if he told the truth (this is true of all politicians).

So, no companies, when faced with any cost increase, try to find ways of mitigating it before raising prices?

They may not eat all the tariffs, but I'm sure they do the math and see how much of their profit margin they can give up, and if there are any other savings to be had during production or transport.

 

[task0778]

That all begs a larger question, that is, what is the citizen/consumer's role in all of this?

I have always felt that my 1st responsibility is to my family and myself. Then comes everything else, in whatever order each of us prioritizes. To be honest, the fucked-up gov't we have is not anywhere near the top in those priorities and that includes state and local gov't. To our society and communities I feel responsible to obey the laws passed and honor those who execute them. But nothing tops the top priority; I don't care where it comes from and I will not buy a domestic product if it costs significantly more than an imported one after tariffs are applied.

 

[my2¢]

The consumers who buy imports should pay the tariffs as they are the ones who are causing the trade deficit.

Buyers of domestic products also are affected by higher prices caused by tariffs. Domestic auto producers of trucks have profited from the Chicken Tax as any limitation of competition comes at a cost to the consumer.

https://www.cato.org/commentary/why-are-pickups-so-expensive-blame-chicken-tax

 

[IM2]

Domestic business often buy parts or supplies from overseas and tariffs on parts and supplies increases the cost of what they make. So no, global tariffs do not make sense.

 

[Woodznutz]

Buyers of domestic products also are affected by higher prices caused by tariffs. Domestic auto producers of trucks have profited from the Chicken Tax as any limitation of competition comes at a cost to the consumer.

https://www.cato.org/commentary/why-are-pickups-so-expensive-blame-chicken-tax

Most products and services are affected by the tariffs regardless of where they're made. The whole global economy is now in "Babylon".

 

[Woodznutz]

I have always felt that my 1st responsibility is to my family and myself. Then comes everything else, in whatever order each of us prioritizes. To be honest, the fucked-up gov't we have is not anywhere near the top in those priorities and that includes state and local gov't. To our society and communities I feel responsible to obey the laws passed and honor those who execute them. But nothing tops the top priority; I don't care where it comes from and I will not buy a domestic product if it costs significantly more than an imported one after tariffs are applied.

Anyone who does right by themselves and their family is automatically helping the country. The problem is recognizing what is right. Many believe that by being sick they are helping employ healthcare workers.

 

[task0778]

Anyone who does right by themselves and their family is automatically helping the country. The problem is recognizing what is right. Many believe that by being sick they are helping employ healthcare workers.

Very true. There is another side or facet to this discussion, which is something called creative destruction. Basically it means if a business cannot compete without gov't intervention then they should find ways to become more competitive or do something else. Tariffs kinda interfere with that process a little bit. I know that foreign gov'ts use protectionist policies to assist their businesses and thereby create an unfair advantage, but I'm not sure that is all that bad if our businesses and consumers get a better price out of it. But then there are the domestic businesses here that compete with the foreign imports and get screwed. I can see tariffs designed to target specific countries if that is the case. Those tariffs ought to be supported by Congress, but sadly politics dictates what happens.

 

[Woodznutz]

Very true. There is another side or facet to this discussion, which is something called creative destruction. Basically it means if a business cannot compete without gov't intervention then they should find ways to become more competitive or do something else. Tariffs kinda interfere with that process a little bit. I know that foreign gov'ts use protectionist policies to assist their businesses and thereby create an unfair advantage, but I'm not sure that is all that bad if our businesses and consumers get a better price out of it. But then there are the domestic businesses here that compete with the foreign imports and get screwed. I can see tariffs designed to target specific countries if that is the case. Those tariffs ought to be supported by Congress, but sadly politics dictates what happens.

I favor balanced trade with each nation. In our largess we accepted trade imbalances for the good of developing countries. But what happens is that those countries don't "develop" for the benefit of their people.

 

[task0778]

I favor balanced trade with each nation. In our largess we accepted trade imbalances for the good of developing countries. But what happens is that those countries don't "develop" for the benefit of their people.

Depends on the circumstances. If we're talking about a big imbalance then I'd say some kind of response is needed from us. Are they a friend or foe? Do they sponsor terrorists? I'd rather stay out of another country's business if possible.