OK.. We put a tariff on avocados, for example... The seller charges the same price, but adds the tariff. The buyer pays more, because of the added tariff, and passes the cost to the consumer.

Who pays?

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Posted by Decisions

Member since Mar 2015

1514 posts

Posted on 5/20/24 at 6:13 pm to Back to Scat

quote:
OK.. We put a tariff on avocados, for example... The seller charges the same price, but adds the tariff. The buyer pays more, because of the added tariff, and passes the cost to the consumer. Who pays?

Tariffs are placed to protect markets from product dumping that could outcompete local producers. Avocados aren’t a good example since we can’t feasibly produce anything close to what we consume.

A better example would be the steel and aluminum tariffs. You put those on while removing regulations holding back local production and then it’s win-win. The price remains stable for consumers while keeping those dollars inside our own economy turning over multiple times rather than being exported abroad.

This post was edited on 5/20/24 at 6:16 pm

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Posted by BCreed1

Alabama

Member since Jan 2024

2417 posts

Posted on 5/21/24 at 8:17 am to Back to Scat

quote:
OK.. We put a tariff on avocados, for example... The seller charges the same price, but adds the tariff. The buyer pays more, because of the added tariff, and passes the cost to the consumer.

Who pays?

Depends on the structure of the tariff. With Trump's, he left a loophole that lowered the tariff if you put in a plant in the USA.

Also, try telling anybody in the middle class that Trump's tariffs hurt their pockets. They will laugh.

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