re: Someone explain the tariffs thing to me

It is nowhere near a guarantee that Americans' would pay more, that's a left wing talking point. Because it will lower taxes which keeps getting overlooked on purpose.

Just like VAT... and how you get jammed if you buy anything in Europe. ever see what a Rolex Box goes for? not the watch, the box. They are nailing US citizens to the tune of 22%. but the US and American citizens are supposed to just eat it.

quote:

---

Trump is proposing reciprocal tariffs, right?
So he just want to impose tariffs on countries that have tariffs on us, right?

I don't see the issue.

---

So, if he counts the VAT tax as a "tariff" in determining what is reciprocal, is that OK with you?

Does the EU get to count all the state and local sales taxes here in the US?

quote:

---

Because America is one of, if not the biggest, consumers in the world. If the price of foreign goods goes up, then, on the margin, our quantity of foreign goods demanded goes down.

If we buy fewer things from foreign countries, the foreign countries get less revenue.

If we are a large percentage of the revenue of the foreign country, but they are a relatively smaller percentage of our expenses, then there’s a unbalanced effect of the tariff (i.e., they are harmed more by the tariffs than we are harmed by the tariffs).

---

That explains why Trump (and you) are confident that he will win the tariff war. But it doesn't quite answer the question.

And your analysis also ignores the fact that although what you say is true regarding any one country, if several countries act united as a bloc against the US on this, the numbers aren't nearly as much in our favor. Don't think that could happen? Google OPEC if you doubt it.

Pro-tariff people seemingly are oblivious to that possibility as well as the obvious fact that these tariffs are temporary. They will only last as long as someone who believes in tariffs occupies the WH.

As I have posted for years, the tariff game is a game of candle chicken. Two guys hold their arms over a flame and the first one who quits due to the pain loses. But damage to both sides is inflicted for as long as the game goes on.

We're betting for a quick game. What if it isn't? What if 15 countries decide to make a pact to not give in and ride it out until 2028? Worse, what if those countries also decide to turn to China and Russia for goods that they would normally import from us while they are resisting the tariffs?

None of that may happen, but the pro-tariff crowd doesn't even seem to consider any of it as a possibility. The original post was to address the statement, "I don't see the issue." Those are potential downsides.

Sounds great for American made products. Sign me up

quote:

---

So, if he counts the VAT tax as a "tariff" in determining what is reciprocal, is that OK with you?

Does the EU get to count all the state and local sales taxes here in the US?

---

Guys, VAT taxes are on internal consumption and applies to domestically manufactured products as well.

Comparing them to tariffs on import (which only affect external manufacturers) is hilariously stupid.

quote:

---

LSUbacchus81

---

quote:

---

We donts calls outs anythings wrongs with Trump arounds heres baw

---

The sad thing is this is actually how this dumbass mofo really talks…

quote:

---

Trump is proposing reciprocal tariffs, right?

---

The tariff thing pretty much always ends in reciprocal tariffs no matter how it begins.

But yes, in many cases other countries have tariffs on the importation of US products into those countries, and my impression is that the administration wants to impose reciprocal tariffs on the importation into this country of products made in the other countries.

Also, Trump is proposing new tariffs on the importation of products made abroad and those countries are imposing reciprocal tariffs on US made products that we export to those other countries.

So whoever fired the first shot, pretty much all of it will end up reciprocal. If we can accept the payment of tariffs on pretty much all goods that are imported into the US, and sustain a reduction on the exportation of our products abroad, then ok. The result will just be higher prices due to increased taxation here and a reduction of markets abroad due to taxation there. It will increase prices and decrease economic activity.

If that is acceptable to you, then there is no issue for you.

quote:

---

We're betting for a quick game. What if it isn't? What if 15 countries decide to make a pact to not give in and ride it out until 2028? Worse, what if those countries also decide to turn to China and Russia for goods that they would normally import from us while they are resisting the tariffs?

None of that may happen, but the pro-tariff crowd doesn't even seem to consider any of it as a possibility. The original post was to address the statement, "I don't see the issue." Those are potential downsides.

---

I just assumed if it didn't work then you adjust course. I don't see why it's not worth a shot. The current trade system is fricked. Something needs to be done. This is a logical idea to fix it and we'll see what happens.

quote:

---

If they are charging $1000 today, but the American consumer is willing to pay $1250, then why are they not charging $1250 today?

The idea that prices will just go up to cover the tariffs is incorrect on most products.

---

Because most products/companies don't have 25% profit margins, meaning they'd make zero profit (and go out of business) keeping prices the same, compared to making some profit with higher prices and reduced demand.

Prices will absolutely go up.