Do you know what a tariff is?
Sure I do. It's what China does to our goods when they are sold in their country.
But we shouldnt return the favor, right?
#74 | Posted by boaz a
So, you DON'T know what a tariff is.
Ok, let me explain.
A tariff is paid by the COMPANY that imports something from another country.
So, say Company A makes widgets and to make widget they need flungs from IDK, say -------------.
If a tariff is put on imports from ------------- then the flungs cost is increased by the tariff.
This cost is now part of the price to build a widget, which is generally passed on to the consumer
So, you see, that is decidedly NOT something paid by -------------.
So, either Company stops making widgets OR raises the price as finding flungs is not possible elsewhere (as flungs are not made here and the tariff applies to everyone).
NOW ALSO consider ------------- is unhappy as they cannot export flungs. So they put a tariff on doohickeys imported from the good old USA. So, fewer doohickeys from the US are exported.
You see this is what happened last time when ------- was relatively restrained with tarriffs.
American soybean farmers (IIRC) lost a BOATLOAD of money as china stopped importing (they went to Canada or Australia IIRC)
So, ------- had to use tax payer money to reimburse the farmers
Sooooo, American paid MORE for chinese goods AND had to reimburse farmers
I know, I know you are too stupid to understand.
but, truth hurts bitch