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If countries are tariffing our companies now, arent our consumers here paying for it????
Posted on 4/4/25 at 7:41 pm
Posted on 4/4/25 at 7:41 pm
Or do we think that US companies are benevolent and just eat the tariffs they are paying abroad? Common sense would tell you they cant pass all the cost on to the consumers there, or they would not sell anything........so they will take extra margin here in the US.
My point is, all this "to do" about paying for tariffs, we are already paying the "baked in" price here.
My point is, all this "to do" about paying for tariffs, we are already paying the "baked in" price here.
10
Posted on 4/4/25 at 7:43 pm to trinidadtiger
That’s now how tariffs work. The tariff is a tax placed after it’s been imported. People of the country who implemented the tariff pay for it.
Posted on 4/4/25 at 7:46 pm to trinidadtiger
Not technically, but it’s possible that they go in at a little lower price point before the tariff, and pass on some of that cost to Americans.
Posted on 4/4/25 at 7:48 pm to trinidadtiger
quote:
the tariffs they are paying abroad
Posted on 4/4/25 at 7:53 pm to trinidadtiger
I will make this easy for you. The majority of Trump's import tariffs will be paid by American consumers.
Posted on 4/4/25 at 7:54 pm to trinidadtiger
quote:
do we think that US companies are benevolent and just eat the tariffs they are paying abroad?
if the UK has a tariff, they pay their government a fee to purchase American goods.
It is to encourage their companies to look for a domestic option before acquiring goods from a foreign nation.
This post was edited on 4/4/25 at 7:55 pm
Posted on 4/4/25 at 7:55 pm to frogtown
Maybe. Maybe not.
China has to be dominant in economic production to keep its citizens from revolting. Their companies may choose to eat the loss rather than lose market dominance.
China has to be dominant in economic production to keep its citizens from revolting. Their companies may choose to eat the loss rather than lose market dominance.
Posted on 4/4/25 at 7:56 pm to trinidadtiger
Roger has no problem with you paying China. He loves China!
Posted on 4/4/25 at 8:04 pm to trinidadtiger
Simple, when the Euros, Canadians, etc. tariff imported US goods, it cost citizens of those countries more money to purchase an American made product as compared to a similar product made in Europe and Canada. The tariff is intended to discourage the purchase of US goods.
So, when the US raises tariffs to a point equal to or greater than the same tariff being imposed on our goods overseas, US citizens will effectively pay for the increased tariffs in the form of higher prices as those foreign countries goods are imported here.
Tariffs are a form of tax that is used to discourage the purchase of foreign made goods and encourage the purchase of goods manufactured domestically.
So, when the US raises tariffs to a point equal to or greater than the same tariff being imposed on our goods overseas, US citizens will effectively pay for the increased tariffs in the form of higher prices as those foreign countries goods are imported here.
Tariffs are a form of tax that is used to discourage the purchase of foreign made goods and encourage the purchase of goods manufactured domestically.
Posted on 4/4/25 at 8:04 pm to trinidadtiger
quote:
If countries are tariffing our companies now, arent our consumers here paying for it????
Yes
Posted on 4/4/25 at 8:08 pm to weptiger
quote:
Tariffs are a form of tax that is used to discourage the purchase of foreign made goods and encourage the purchase of goods manufactured domestically.
But the whole world is discouraged to buy our product while we are encouraged to buy theirs.
That’s the problem here.
And it’s not a one size fits all problem. Like so many think it is.
This post was edited on 4/4/25 at 8:12 pm
Posted on 4/4/25 at 8:14 pm to imjustafatkid
quote:
If countries are tariffing our companies now, arent our consumers here paying for it????
Yes
No. If countries are tariffing our exports their consumers are paying for it.
Posted on 4/4/25 at 8:15 pm to weptiger
Not necessarily. You’re missing the fact that these other nations have structured their own economies as the suppliers of good to the United States. If their companies pass along those costs, American made goods will suddenly become more attractive to consumers. They lose market share and then their own industries suffer. They may have no choice but to eat the loss here in order to retain market dominance.
Posted on 4/4/25 at 8:17 pm to trinidadtiger
quote:
If countries are tariffing our companies now, arent our consumers here paying for it????
No. They make our goods less competitive because they’re more expensive. If the EU slaps a 20% tariff on our widgets and the EU can make those widgets at the same cost as American widgets, American widgets are 20% more expensive to Europeans, so they buy European widgets before they buy American widgets, and it hurts our ability to export goods.
This is why the tariffs are important. We can’t compete globally with exports if other countries are already doing what they’re mad at Trump for proposing.
This has been going on for years and no one has focused on it. If nothing else comes from this, maybe Americans will wake up up to how other countries treat our exports, and frankly, us.
Posted on 4/4/25 at 8:17 pm to weptiger
quote:
Tariffs are a form of tax that is used to discourage the purchase of foreign made goods and encourage the purchase of goods manufactured domestically.
Except domestic companies will also feel inclined to raise their prices because their competitors just became a lot more expensive relative to them.
Companies price their products relative to competitors. If all of your competitors were forced to increase prices to maintain margins, you’d be stupid not to raise your price and reap the higher margin. This is what happened post-COVID with rampant inflation, and will happen again.
Posted on 4/4/25 at 8:19 pm to dgnx6
quote:
But the whole world is discouraged to buy our product while we are encouraged to buy theirs. That’s the problem here. And it’s not a one size fits all problem. Like so many think it is.
This is the most rational thing I have read here today. Thank you
Posted on 4/4/25 at 8:21 pm to dgnx6
quote:Correct. I don’t think I indicated to the contrary. That is what I meant by discouraging foreign produced goods, i.e., U S goods with America being the foreign entity. We have been conditioned to the cheap stuff from China and other places while these same countries tariff our stuff to the point that it discourages its purchase.
But the whole world is discouraged to buy our product while we are encouraged to buy theirs.
The people against the Trump tariffs are generally short sighted, have other bias or just don’t want the model of cheap Chinese goods to be impacted.
Posted on 4/4/25 at 8:21 pm to cameronml
quote:
f all of your competitors were forced to increase prices to maintain margins, you’d be stupid not to raise your price and reap the higher margin. This is what happened post-COVID with rampant inflation, and will happen again.
Yea, this isn’t right or what happened.
American companies won’t raise their prices to be the same price as their now more expensive foreign competitors. They will just retain the same profit margin and gain market share.
Posted on 4/4/25 at 8:30 pm to Riverside
Ok, keep telling yourself that and let me know in 6-12 months.
Posted on 4/4/25 at 8:31 pm to Riverside
Also, they don’t have to raise their price all the way to competitors. They can still be below their competitors and gain share while growing margins, and the US consumer pays more.
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