How do Tariffs work

[76561199735322835]

Just a reminder. The tariff is not paid by the other country.

A Tariff is 99% the same thing as a sales tax. The money goes to the government. The company or person in the USA pays this tariff (sales tax).

If Home Depot buys lumber from Canada then Home Depot pays the tariff (sales tax) to the federal government. In addition to the price they pay for the lumber. Then they raise the price that you pay for the lumber.
If a supermarket buys Maple Syrup from Canada then the supermarket pays the tariff (sales tax) to the federal government. In addition to the price they pay for the maple syrup. Then they raise the price that you pay for the bottle of maple syrup.

The idea that the other country or company in the other country pays the tariff is completely wrong. But the current government loves it when you believe that.

These tariffs (sales tax) may become permanent as long as the Rs are in control. A new tax that mostly hurts people at the bottom. So that they can give more tax breaks to the Billionaires.

[Abaddon the Despoiler]

What Trump is trying to do is make America the industrial capitol of the world, by encouraging businesses to build there, and Americans to pay extra tax for products not produced in the US.

Over decades it could have the desired result. But in the short term, it's going to increase prices. It's a dangerous game to play when you only have 4 years to show the public you have made a difference.

[vkobe]

Oprindeligt skrevet af Immortalis:

And yet we’re supposed to be against tariffs (which do not impact all products as those that are produced domestically do not suffer the rise in price) and be in favour of higher taxes to companies and corporations.

Because those would somehow not result in said companies or corporations hiking the prices of all their products (and in this case products made domestically suffer just as those that are imported) and the entire thing would just cut the corporate profits, right?


Again, the point of tariffs is not to reduce the prices.
It is to cause the price of foreign goods - that most often are produced with little to no regards for environmental, health and safety regulations, by people that are paid slave wages etc - to be comparable to that of domestic goods - which do need to comply with the aforementioned regulations, pay the workers a fair wage etc.
Because at the end of the day the vast majority of us will take the cheap foreign copy if it’s available for a tenth of the price of the domestic version.
And at the same time the vast majority of us would buy the domestically made product if the difference in price is 50 cents.

Not to mention the fact that by incentivising domestic manufacturing you are in fact creating work for people, with the wealth that goes with it and ultimately stimulating the local and national economy - as opposed to send money abroad so that the people exploiting their workers (and really exploiting them, not like “they cut our 16th coffee break”) can profit.

Now, can we stop pretending that the people who voted for Trump did so because they are dumb hillbilly who don’t understand how things work?

but people who voted for Trump did so because they are dumb hillbilly who don’t understand how things work?

you rid competitor who sell cheap junk, you can be sure the other going to increase the price of their own junk, because the competitor who sold cheap junk is gone

if you dont believe me, it is what happened with steel and aluminium while first trade war between china vs usa, american steel and aluminium companies increased the price of their aluminium and steel they sold in usa

[76561199735322835]

Oprindeligt skrevet af vkobe:

Oprindeligt skrevet af 我很高兴认识你:

Yes and when they see that maple syrup costs more then people in vermont open new maple farms to make profit and price goes down as more maple made

Same with steel if its cheaper to make ateel here than buying from canada then detroit rust belt reopens factories and starts making steel and there are more jobs and leas gangbangers. Basically reverse of movie gran torino

All the car stuff went to mexico and detroit died, with tariffs the factories go back to detroit and the poorest gangbangwrs see there are car jobs and they stop gangbanging

oh sorry, but your theory was dbunked by first trade war between china vs usa

what aluminium company did was increase aluminium price

so the dude in vermont just increase his maple syrup price by 20-25%

because lol if you think big corp in usa not going to use this opportunity to increase the price of their junk they sell to average american

just steel and aluminimum price in usa going to increase until 20%, it mean foreign competitor not sell cheap steel and aluminium, so for them they can increase their price and sell more expansive steel aluminium to average american

💋

[vkobe]

Oprindeligt skrevet af Abaddon the Despoiler:

What Trump is trying to do is make America the industrial capitol of the world, by encouraging businesses to build there, and Americans to pay extra tax for products not produced in the US.

Over decades it could have the desired result. But in the short term, it's going to increase prices. Its a dangerous game to play when you only have 4 years to show the public you have made a difference.

sorry but industrial capitol i back to china

[Abaddon the Despoiler]

Oprindeligt skrevet af vkobe:

Oprindeligt skrevet af Abaddon the Despoiler:

What Trump is trying to do is make America the industrial capitol of the world, by encouraging businesses to build there, and Americans to pay extra tax for products not produced in the US.

Over decades it could have the desired result. But in the short term, it's going to increase prices. Its a dangerous game to play when you only have 4 years to show the public you have made a difference.

sorry but industrial capitol i back to china

That's how it is now, that's what Trump is trying to change. He wants the world to depend on America.

[76561199735322835]

Oprindeligt skrevet af Abaddon the Despoiler:

Oprindeligt skrevet af vkobe:

sorry but industrial capitol i back to china

That's how it is now, that's what Trump is trying to change. He wants the world to depend on America.

LOL No. Just fantasy. And the USA will decline much faster under Trump and the Rs. The rest of the world will cooperate to shut the USA out of everything. We will become the next Greece.

[Zogtar]

Oprindeligt skrevet af Abaddon the Despoiler:

Oprindeligt skrevet af vkobe:

sorry but industrial capitol i back to china

That's how it is now, that's what Trump is trying to change. He wants the world to depend on America.

Good luck, our last vestiges of american steel are being slowly bought and moved to Japan... it'll take decades to turn that around.

[Abaddon the Despoiler]

Oprindeligt skrevet af lady gaagaa 💖:

Oprindeligt skrevet af Abaddon the Despoiler:

That's how it is now, that's what Trump is trying to change. He wants the world to depend on America.

LOL No. Just fantasy. And the USA will decline much faster under Trump and the Rs. The rest of the world will cooperate to shut the USA out of everything. We will become the next Greece.

I didn't say what he was doing, I said that's what's he is trying to do. Maybe everything in your head is fantasy, idk.

[De Hollandse Ezel]

how trade deficit work..

if nation a imports for a larger amount of money goods and services from nation b..
than is the reverse..
=
than nation b will amass nations a currency.

they most likely not want that currency.. they want their own.. so they sell that currency to buy their own.

this will make the exchange rate of nations b currency to go up and a's to go down
(this means ALL countries a's exports get cheaper.. but imports more expensive...
while country b enjouys cheaper imports.. but has their exports go up in price
->
as higher export makes products less attractive for a to buy.. while for b it now gets cheaper to buy a's stuff.. this will grow to a new equabilibirum.

but until that new balance is found.. people in country b will have more purchasing power than in country a.. (and country a will have more unemploument too.. meaning it need to tax the few remaining jobs heavier to pay those benefits.. whiole country b enjoys low unemployment and thus high tax income.. with nothing of it to be spend on beniefits.

so your wealthier if others buy your stuff more than you buy theirs.

=====================================
a tarif now.. raises the price IN the nation where the tarif is made

so I import from you cause your imported price x exchangerate = cheaper than other import or my own nations production..

by slapping a tarif as tax to my countries population.. that same imported product now is more expensive..

so if I could pick for a new watch


90 euro locally madde
80 euro made in japan
70 euro made in swiss

than I will normally import the swiss one.
but if you slap swiss with 35% tarifs.. the stickerprice for consumer of swiss watches will be 70+25% tax = 94.50 euro

tarifs ALWAYS mean you the consumer pay more.
sure you can now buy the japanese one and pay only 80 instead.
buit thats still 10 euro more than without taxes.
also.. you now import 90 worth of goods instead of 10...

if japan than also get 20% tarifs.. (making their watches 96.00 euro

than to you the consumer
90 euro local watch (no tax)
94.50 euro swiss watch (including 35% tarif)
96 euro japanese watch (including 20% tarif)
-> now you want to buy your own nations watch..
but now you pay 20 euro more than you would without tarifs (so your purchasing power goes down the crapper)

granted you do now have a better trade balance.. making your currency stronger and demand higher locally (more jobs, more tax income, less goverment welfare spending) which is great for your goverments budget.. but for you as consumer not so much..


so now the japanese ones are cheaper.. so you get those
-you actually import for a greated amount now.. so it';s WORSE for the trade balance..

it's a far better thing is we get rid off all tarifs.. let our currencies float (so prices are ajusted until trade surplus/defecit in balance...

for if you import those swiss watches... while they buy your other stuff you can still have a balanced trade balance... but both have more purchasing power than if you made everything locally thanks to tarifs.

[steven1mac]

Oprindeligt skrevet af vkobe:

Oprindeligt skrevet af Immortalis:

And yet we’re supposed to be against tariffs (which do not impact all products as those that are produced domestically do not suffer the rise in price) and be in favour of higher taxes to companies and corporations.

Because those would somehow not result in said companies or corporations hiking the prices of all their products (and in this case products made domestically suffer just as those that are imported) and the entire thing would just cut the corporate profits, right?


Again, the point of tariffs is not to reduce the prices.
It is to cause the price of foreign goods - that most often are produced with little to no regards for environmental, health and safety regulations, by people that are paid slave wages etc - to be comparable to that of domestic goods - which do need to comply with the aforementioned regulations, pay the workers a fair wage etc.
Because at the end of the day the vast majority of us will take the cheap foreign copy if it’s available for a tenth of the price of the domestic version.
And at the same time the vast majority of us would buy the domestically made product if the difference in price is 50 cents.

Not to mention the fact that by incentivising domestic manufacturing you are in fact creating work for people, with the wealth that goes with it and ultimately stimulating the local and national economy - as opposed to send money abroad so that the people exploiting their workers (and really exploiting them, not like “they cut our 16th coffee break”) can profit.

Now, can we stop pretending that the people who voted for Trump did so because they are dumb hillbilly who don’t understand how things work?

but people who voted for Trump did so because they are dumb hillbilly who don’t understand how things work?

you rid competitor who sell cheap junk, you can be sure the other going to increase the price of their own junk, because the competitor who sold cheap junk is gone

if you dont believe me, it is what happened with steel and aluminium while first trade war between china vs usa, american steel and aluminium companies increased the price of their aluminium and steel they sold in usa

Why do you think American Steel companies shut down in the 90's. China was selling finished steel for less than you could buy scrap metal. When a company subsidizes the cost of goods, no one can compete. GST Steel was shipping the means of production across the Mexican boarder during a bankruptcy, because the bankrupts only was the US holding only, so when the train full of multi-billion dollar machine crosses the border, who got screwed, the workers, and ultimately the taxpayers who covered the cost.

In the end Trumps tariffs won't amount to to much, since they will not stay in effect long enough for the businesses to change the location of production.

[Blunt Raps]

#1 GDP
"We need to expand. Have them depend on us."

Lol... USA being ran like EA.

[vkobe]

Oprindeligt skrevet af Abaddon the Despoiler:

Oprindeligt skrevet af vkobe:

sorry but industrial capitol i back to china

That's how it is now, that's what Trump is trying to change. He wants the world to depend on America.

yeah and now he convince canada, mexico, Eu to rely less on usa and learn hard way to be able to continue without usa, so his politic is canada and mexico more likely to join brics

and EU become more friendly with brics

some meme possiblity is canada join EU

and also in his first trade war against china, china learn than argentina and brazil food are better than american food

and he force china to develop their own semi conductor industry

we also see same thing with russia, before 2014 russia import food, 4 years later they produce their own food and export it

so mostly trump force other countries to rely less on usa

[76561199735322835]

Oprindeligt skrevet af Abaddon the Despoiler:

Oprindeligt skrevet af lady gaagaa 💖:

LOL No. Just fantasy. And the USA will decline much faster under Trump and the Rs. The rest of the world will cooperate to shut the USA out of everything. We will become the next Greece.

I didn't say what he was doing, I said that's what's he is trying to do. Maybe everything in your head is fantasy, idk.

You have no idea what he is trying to do, You just want to believe in the fantasy version. He could be deliberately trying to tear the USA down to help Russia and Putin. His actions support that idea. No one knows what his real agenda is. He is a lifelong liar. That is a truth.

And the USA can not ever become a world leader in industry. That the whole world will depend on. Not possible. Those days are long gone.

[vkobe]

Oprindeligt skrevet af steven1mac:

Oprindeligt skrevet af vkobe:

but people who voted for Trump did so because they are dumb hillbilly who don’t understand how things work?

you rid competitor who sell cheap junk, you can be sure the other going to increase the price of their own junk, because the competitor who sold cheap junk is gone

if you dont believe me, it is what happened with steel and aluminium while first trade war between china vs usa, american steel and aluminium companies increased the price of their aluminium and steel they sold in usa

Why do you think American Steel companies shut down in the 90's. China was selling finished steel for less than you could buy scrap metal. When a company subsidizes the cost of goods, no one can compete. GST Steel was shipping the means of production across the Mexican boarder during a bankruptcy, because the bankrupts only was the US holding only, so when the train full of multi-billion dollar machine crosses the border, who got screwed, the workers, and ultimately the taxpayers who covered the cost.

In the end Trumps tariffs won't amount to to much, since they will not stay in effect long enough for the businesses to change the location of production.

let me tell you that, american steel company going to increase steel price by 20%, trump just eliminate cheap competitor, so winner is big greed american corp steel company, loser is people like you who buy stuff that need steel part, so enjoy your american steel knife

[vkobe]

Oprindeligt skrevet af Blunt Raps:

#1 GDP
"We need to expand. Have them depend on us."

Lol... USA being ran like EA.

EA is just incompetency

trump is pure sabotage