1. Zhang sells 1mt of steel to John for $1k.
2. Donald Trump imposes a 20% tariff “to bring manufacturing back.”
3. Now Zhang sells 1mt of steel to John for $1k + 20% = $1.2k.
4. The US collects its $200 from Zhang.
5. Zhang still made $1k.
6. Who paid the tariff?
Just keep giving America away to china ya thats that way
This was one of the reasons my taxes went up under Trump's prior administration.
Zhang the Trader doesn't pay the tariff, John the Importer will.
John will then price his newly-imported and tariff'ed goods with an additional 20% markup; Why would he sell at the same prior price only to reduce his own profit? His whole goal is to make profit, not lose out on it.
Okay, are you buying things at a higher price of your own free will?
If Zhang's price hike is out of your budget, don't buy his steel. This is the same leftist logic that blames "greedy businesses" for higher prices.
Btw, Zhang still paid the tariff in the example. You paid for overpriced steel.
When the argument is flawed from the beginning, only a full correction can be applied. The above just is not how it works, and it has never worked that way.
The seller never pays the Import Tax, ever. Only the recipient pays that additional tax to the government upon receipt of the goods.
Bet you 100 sats PJ never replies, especially not that something was learned today.
Not a reply, just a reaction.
Learn this fully, PJ. It's important to what's coming next year.
