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+2 votes

Today Trump said we are collecting billion from China due to the tariffs he put in place.  Who really pays for a tariff?  To me, it doesn't really cost China anything but maybe some reduced demand: the cost comes out of our pockets as higher prices.  Doesn't it?

in Politics by (918,210 points)

4 Answers

+2 votes

You are correct.  The money collected on the tariff is paid by the importer.  Generally, he is an American. The importer generally recovers his tariff tax by raising prices to cover the cost.  Since low income people are mostly buying cheap stuff from China, tariffs are a tax on the poor.  

Tariffs installed by the other side are designed to reduce consumption.  Like soybeans have dropped to zero into China.

by (1,412,070 points)
+2 votes

Yes you are correct. 

Trump is like a fraction of a fraction right on "Gina", they have expected more for access to their market, but that how trade deals go.

They have a market of over 1 billion, US about 300 million, The UK about 65 million, so they are in prime position to get the best deal. 

No man has a  right to fix the boundary to the march of a Nation...

by (2,869,560 points)
+1 vote

China is doing to us exactly as Trump is doing to them. The higher tariffs for them means they will pay more for goods from us, and vice versa. No one wins in the end. And you've gotta remember that anything that comes out of his mouth is either an exaggeration, distortion, or a lie. Most times it's the latter. 

The only true wisdom is in knowing you know nothing.       -Socrates

by (899,910 points)
+1 vote

Isn't Mexico paying for that too? I get confused. I need a flowchart to understand who is paying for what. 

by (324,920 points)
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