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How do US consumers gain from tarifs? My company is US based with some manufacturing done in the US, some in China and some in EU. We are constantly dealing wi
by avgDev 8y ago
How do US consumers gain from tarifs?
My company is US based with some manufacturing done in the US, some in China and some in EU. We are constantly dealing with price changes due to tarifs, and consumers are going to get hit hard once the price increases travel up the food chain to the end product.
The way tarifs are talked about by our president is laughable and sad. That is not good for the US.
Trump plans to use $12 billions to help farmers hurt by tarifs.
https://www.washingtonpost.com/business/economy/white-house-readies-plan-for-12-billion-in-emergency-aid-to-farmers-caught-in-trumps-escalating-trade-war/2018/07/24/7bec9af4-8f4d-11e8-b769-e3fff17f0689_story.html?utm_term=.4c17f44241e5 https://www.washingtonpost.com/business/economy/white-house-...
- wpietri 8y agoI believe that brookhaven_dude means that low US tariffs are good for US consumers because that keeps prices low for them. Whereas high foreign tariffs on US goods are in effect a tax on foreign consumers, meaning they get less for their money.
- mabbo 8y ago> Whereas high foreign tariffs on US goods are in effect a tax on foreign consumers, meaning they get less for their money. When prices are higher, consumers buy less. So those foreign consumers are indeed getting less for their money- so they will buy less US Goods, reducing the money coming to US producers. Instead, those foreign consumers will buy local goods at lower prices.
- wpietri 8y agoExcept that foreign competition will reduce prices overall. Tariffs blunt that, meaning foreign consumers will buy local goods at higher prices than they would without tariffs.