Just a real quick question for Americans - no angst or fighting.

When a product from overseas - let’s use China as an example - has a tariff on it, you know it’s the American public who pays the higher expense to cover the tariffs, not the exporter right?

I’m just asking because a Texan friend of mine thought tariffs on Chinese products was paid by the Chinese government. But it’s not. It’s the American consume who pays the higher cost.

I know it’s obvious but I just thought if check everyone understood the tariff costs the consumer, not the exporter.

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JimboSaturn · 56-60, M

I understand that the idea is to move industry back to the country in question, but can the country really make this product at the same cost as the foreign country?

And how long will this take? Some industries require huge amounts of entrance capital, who will invest the capital if they can't make it as cost effective as the foreign manufacturer. I suppose it's different for every industry of course.

WintaTheAngle · 41-45, M

@JimboSaturn Yes tariffs are a very unstable thing, they tend to be messy and have unforeseen knock on affects.

Let’s hope it doesn’t trigger another global market crisis.

JimboSaturn · 56-60, M

@WintaTheAngle I remember economics 101, where it was taught that tariffs and taxes cause "deadweight losses" and cause inefficiency in a free market if you are a hard core free market economist, this is bad for everyone.

dakotaviper · 56-60, M

@JimboSaturn what everyone has to understand is that Tariff's are a bargaining chip. You and many other speak of free markets or free trade. But when it's so one sided, it's not FREE. Now is it.

Or let's look at it this way.
There was a Major US Fish Processor that was shut down last year because it was unfairly competing with China. Now is that Free Trade. Because according to the Political Left here in the USA, yes it was justified. Course this was in an area for the past 100 years has Voted at least 85% Democrat, but in the last election voted almost 98% Republican.

JimboSaturn · 56-60, M

@dakotaviper The U S and Canada already had a free trade agreement that Trump touted as a success. A tariff war is completely unnecessary