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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Arnoldjrmmer · 56-60, M

Yes consumers face the brunt of tariffs.
The purpose is not to make other countries pay more but to discourage purchasing products where trade is unfair.

China as an example has many factors at work that are ignored in the discussion. Namely that the way China does business is grossly unfair trade practices.
They peg their money to the US dollar to keep the Yuan artificially low.
Their labor force are paid wages far below what any western country would accept, not to mention work conditions.
Theft of intellectual property means they can cut out the cost of research to produce an item. An example is if you wanted to produce a product in china, you are required by Comunist party rules to make your data available. There is a reason why new year model Chinese autos tend to be reskinned Ford or GM designs.

The US spent way too long letting every business run to china in the name of cheap production.
Honestly i would not bother with Tariffs, i would just remove most favored trade status from China and block almost all imports from there over a phased rollout.

If it was workable, I would declare certain industries as "strategic" and penalize those who dont have a base level of US production, pharmaceutical, metal working, shipbuilding, mining, heavy manufacturing and tech. It would take a bit of doing but has precident.

FreddieUK · 70-79, M

@Arnoldjrmmer There's a lot of truth here in the analysis of what's going on. However, since Trumps richest supporters have a lot of their product made in China for all the reasons you state, I can't see there's going to be any meaningful sanction, only posturing.

Arnoldjrmmer · 56-60, M

@FreddieUK i agree, thats why the push is on the minor players like Mexico and Canada. The west enabled the monster that is the CCP and now has to wrangle the bit players out of the orbit of China.
US industries went for short term profit and have no loyalties to anyone other than themselves.
I am also absolutly opposed to any taxpayer money going to "helping" industries if they go broke because of investing in China.

dakotaviper · 56-60, M

@Arnoldjrmmer I agree with what you have stated here. I live in the US South, namely Eastern NC. There used to be Hundreds of Textile Mills here and they're all GONE. Those Mills are now in Southeast Asia. Huge swaths of buildings lying dormant and empty. Many are way too expensive to tear down.