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Tariffs are effectively a consumption tax --- paid first by importers but inevitably passed on to consumers. Since virtually everyone (individuals as well as b
by jqpabc123 2y ago
Tariffs are effectively a consumption tax --- paid first by importers but inevitably passed on to consumers.
Since virtually everyone (individuals as well as businesses) in the USA is a consumer of imported goods, everyone will be subjected to a massive tax increase.
The only clear winner in this 19th century approach to economics is government --- and even this is questionable over time. Simple minded solutions for simple minded folks.
- rbanffy 2y agoAs a good friend of mine once said, "hatred and simplistic solutions: this is what our country needs". He was referring to Brazil and Bolsonaro, but the sentiment is just about the same.
- droptablemain 2y agoCorrect me if I'm wrong, but isn't the Trump admin's primary goal of tariffs to increase domestic production?
- vdvsvwvwvwvwv 2y agoA china specific tarriff doesn't help there as there are plenty of other exporting countries. Tariffs in general might but what you have now is just more expensive stuff, so fewer sales. People importing materials and putting them together in the US simple make less profit. Apparently people making stuff and/or using immigrant labour are planning accordingly and taking immediate action. I.e. panic buys, layoffs etc.