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To simplify: if the exporter lowers their price, the consumer pays the same, the exporter gets less, and the consumer pays the tariff to the government. If the
by bregma 1y ago
To simplify: if the exporter lowers their price, the consumer pays the same, the exporter gets less, and the consumer pays the tariff to the government.
If the exporter charges the same price, the consumer pays more, the exporter get the same as before, and the consumer pays the tariff to the government.
The consumer always pays the tariff. The exporter never pays the tariff.
- charcircuit 1y agoPlease pretend that the exporter hypothetically pays the tariff. It just changes who is paying who. The end result is the same.
- exe34 1y agoWe don't have to pretend. We know who's paying. It's the consumer/importer.
- charcircuit 1y agoYou are not listening to what I am writing. I am saying that they are equivalent. If you are not going to engage with my comment, why comment?
- exe34 1y agoThey are not equivalent. What usually happens isn't that people buy less foreign and more local, but that local sellers take advantage and raise their prices to be just below the foreign+tariff. the fact is that IRS is collecting money from the suckers who voted for this and you're desperately trying to make it sound like the exporters are paying for it.
- throw234234234 1y agoSure but what actually matters is the consumer's value received vs value earned. In the end it isn't "who" pays, but who gains and who loses value in the net. NOTE: This includes government spending from the tariff. If the foreign supplier pays the tariff the country COULD be better off in net terms when you add the consumer + government together assuming the government spends all it takes which in a deficit situation is a reasonable assumption.