2 ms·
every tax ever conceived is ultimately always paid by the consumer, yes. The point of such a tariff is however to increase the price of the foreign product, ess
by y4mi 9y ago
every tax ever conceived is ultimately always paid by the consumer, yes. The point of such a tariff is however to increase the price of the foreign product, essentially giving local competitors a price advantage.
- nyxtom 9y agoThis doesn't work so well when your entire manufacturing industry explicitly relies on chinese production. Everything from debt to infrastructure has some dependency rooted in China. This is the whole point. Increase reliance on china for just about everything and it makes the idea of counter tariffs next to impossible.
- logfromblammo 9y agoInaccurate. Taxes are usually shared between consumers and their trade partners, and the relative burden on each is determined largely by price elasticities in the supply and demand curves. Generally speaking, the more sensitive consumers are to changes in price, the more the tax burden is shifted to suppliers. In the case of an import tariff, it is paid entirely by consumers, and domestic suppliers get a windfall from it, rather than sharing the burden. That's because there are two supply curves in play, domestic and international, and only one demand curve, because consumers generally don't care where the goods come from, and the internal trade of foreign markets is ignored.