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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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GerOttman · 61-69, M
that's only true if you buy the product. if you were to buy an American made product, assuming such were available, there would be no penalty.
FreddieUK · 70-79, M
@GerOttman
assuming such were available

There may be a lot hidden in that phrase. As has been suggested above, if an industry is more-or-less moribund in the States, then making product available at volume and immediately is not possible. The incoming tarrifed product will simply be more expensive with no alternative, thus adding to the cost pf living. The UK used to pride itself in the standard of its products, but trying to find something not at least partially made abroad is almost impossible because consumers were happy to buy cheap while at the same time bemoaning that UK industry was disappearing. That has perhaps been the main cause of the trade deficit the US experiences.
Northwest · M
@GerOttman
that's only true if you buy the product. if you were to buy an American made product, assuming such were available, there would be no penalty.

I'm sure you understand you did not answer the question, but that's MAGA. 🤣
GerOttman · 61-69, M
@Northwest i love that you love me! Go Birds!!
GerOttman · 61-69, M
@Northwest Oh, also, I did answer the question. I love that you can't understand the answer! Go TDS!!!
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MethDozer · M
@GerOttman Yes and no. With a tariff on an imported goods, competing domestic goods have less competition and less price competition encourages higher markup.
GerOttman · 61-69, M
@MethDozer Yes and no... Artificially discounted imports push domestic production out, then have control over pricing and distribution.
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MethDozer · M
@GerOttmanYou just moved the goal posts.
GerOttman · 61-69, M
@MethDozer No I didn't move anything. You made a point, I responded... It's not one dimensional situation, there are a variety of considerations to, umm consider!
MethDozer · M
@GerOttman Trump just increased the tariffs and steel and aluminum. You know what that means? Only one thing. Overly expensive American made vehicles are now going to be even more expensive. MAGA.
MethDozer · M
@GerOttman No you did move them because the premise is there is an American made good competing wit a foreign good. Without a helper foreign good available, American goods have no incentive to keep their costs as low as possible. Capitalism works on extracting the most amount of wealth it possibly can.
GerOttman · 61-69, M
@MethDozer I don't think so. The whole tariff ploy is just a shell game. The overall markets will even themselves out. The tariffs are just a bully tool to get concessions from other governments. They won't last long and won't affect much.
MethDozer · M
@GerOttman Toh can't raise the price of a raw material without raising the prices of the finished product. Corporations and big business will never, ever, ever absorb costs. They will always pass it down to keep investors happy.

Look at what the years of tariffs on Canadian lumber has done to inflate the housing market.


Besides, foreign companies didn't just come in and bulldoze American business. Nor did the "gubmint" send jobs overseas. American corporations and businesses sent the jobs and production overseas.the CEOs and investors sent them out of the country. Because they only care about extracting wealth and hording it.
GerOttman · 61-69, M
@MethDozer I understand what you have said, I disagree with pretty much all of it. What else can I say?
MethDozer · M
@GerOttman you don't agree that CEOs and Investors sent their production overseas because " Moore mUhkneee" Who sent it then?