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> Most finished products weren't taxed but raw materials were. This is kind of a simplistic summary. The tariffs were targeted to ensure certain industries rem
by hiram112 6y ago
> Most finished products weren't taxed but raw materials were.
This is kind of a simplistic summary. The tariffs were targeted to ensure certain industries remain solvent in the US so we're not dependent on foreign imports. In some cases, that meant products farther down the manufacturing chain, and in others, closer to the source.
For example, steel was one of "raw materials" we targeted. We might not be so concerned about finished products using steel at the moment (e.g. cars), but we want to ensure we can create tanks and fighter jets in wartime. So you'd expect we would tariff imported steel, but not cars, because the cost of the steel in a modern car (which is more than half its weight) is not that significant compared to the other components.