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By the way, if tariffs are directly sent back to the customer through tax reduction on the tariffed category of products, wouldn't it be painless for the company/customers (if you forget the retaliation tariffs) while increasing you local insensitive to production? (all things equal if you imagine companies reduce the cost of the products properly etc which is not realistic)
this post was submitted on 17 Mar 2025
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I don't see how that would help. In the ideal case of a finished product, tariffs artificially raise the effective price for the buyer; they don't change the math on the cost of production. Usually, they hurt the producing/exporting firm by forcing it to increase the asking price, which reduces sales. It reduces sales because the buying/importing firm has to pay higher prices. If the buying/importing firm gets tax reductions that are directly tied to the tariff, then its out-of-pocket expense hasn't changed, and it can just keep buying the imported product with no effect on its profits. That means that the producing/exporting firm can still sell exactly the same volume of product at the higher price, covering the tariff cost, with no effect on its profits. Nothing much has changed, except a bunch of extra paperwork and transactions.
There's only incentive to move production locally if the buying/importing firm can switch to a cheaper, local product, but retain the tax benefits, allowing it to keep more money. But that means the tariff money is no longer being collected, so somebody else is paying the taxes while not getting the benefits. In short, tariffs can only work by causing pain to somebody locally.
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literally googling tariffs, brings you to a government page that lists tariffs, duties, and taxes under the same fucking definition.
How people like this DO NOT understand this shit, is beyond me. I can respect the humility in changing your position after being that stupid though, please, due your due diligence before mindlessly repeating the shit other people tell you, so you don't look stupid.
What, visit a website, read it, then comprehend it? What, like a book?! May as well ask them to make a phone call.
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And the people who voted for the orangetard will still be shafted by him and his mafia yet will continue to blame "obiden" for their economic woes. π₯±
Some people genuinely are fucking dumber than a rock
Where was this posted?
Your telling me the US government can't just demand other countries pay them money for no reason?
/j
There are people who don't know how tariffs work?
If America is the sole buyer, then the tax would be shared between both countries. (Lower demand will lower the price that the foreign supplier can ask for, making up some of the extra tax cost). But since USA is doing these tariffs on so many countries, other countries will just lay new trading routes.
So yeah, USA will feel it.