4 ms·
tariffs don't work like a tax to the producer they are an extra tax on the end customer. A widget made in china that has a tariff on it doesn't cost the compan
by monkeywork 6y ago
tariffs don't work like a tax to the producer they are an extra tax on the end customer.
A widget made in china that has a tariff on it doesn't cost the company in china anymore - it does increase the cost for the person buying here though.... but unless there is a competitor that can sell a competive product cheaper than that the only downside is to the customer.
- Reason077 6y agoTariffs on a widget made in China would make that widget less competitive relative to competing widgets made in other countries. Chinese widget sales would fall, so it would “cost” them in the form of reduced sales and profits. Even if there is no competing widget, sales still fall due to demand elasticity.