Trump Supproters - Defend Trump's Understanding of Tariffs

[El OchoCinco]

We’re taking in tens of billions of dollars, we're giving some of the money to the farmers. I'm making the farmers more than whole. The farmers are doing better than if China, frankly, were buying," Trump said.

WRONG - and you all bought it.

 

[El OchoCinco]

“I think our tariffs are very good for us,” he told reporters on the way to Air Force One before flying to the G-7 Summit in France. “We’re taking in tens of billions of dollars. China is paying for it.

 

[Optionpro007]

OK I will type slowly as some of you still don't get it.

products from country being levied with tariffs become more expensive...

WHO
PAYS
THAT
TARIFF
AND
HIGHER
PRICE?

U.S. does...not China.

China did not pay billions in tariffs to the U.S. treasury.

Who actually pays the tariff?

OK, so the importer remits the tariff to its nation’s customs service, but who really pays the tax on imported goods? The answer, I am sorry to say is, it depends.

A business will, if it can, pass its higher after-tax costs on to consumers. Thus, the price of Chinese TVs sold in the US may rise rapidly. But the firms selling those TVs eventually will face competition from companies that sell lower-cost TVs made in a third country that is not subject to the import tax. In that case, some of the tax may be paid by the firm’s shareholders in the form of lower profits or by its workers in the form of lower compensation.

https://www.taxpolicycenter.org/taxvox/what-tariff-and-who-pays-it

 

[El OchoCinco]

Corporate America had been putting increasing pressure on the White House to consider tariff relief as it explored ways to support the economy, and was pleased that the Trump administration was moving in that direction. I think of this as a financial measure more than a trade matter John Murphy, senior vice-president for international policy at the US Chamber of Commerce John Murphy, senior vice-president for international policy at the US Chamber of Commerce, said the move was “welcome” and would be particularly important for apparel and footwear companies paying tariffs between 15 per cent and 30 per cent on many imported goods.

Wait...I thought China was paying those tariffs...

 

[El OchoCinco]

Who actually pays the tariff?

OK, so the importer remits the tariff to its nation’s customs service, but who really pays the tax on imported goods? The answer, I am sorry to say is, it depends.

A business will, if it can, pass its higher after-tax costs on to consumers. Thus, the price of Chinese TVs sold in the US may rise rapidly. But the firms selling those TVs eventually will face competition from companies that sell lower-cost TVs made in a third country that is not subject to the import tax. In that case, some of the tax may be paid by the firm’s shareholders in the form of lower profits or by its workers in the form of lower compensation.

https://www.taxpolicycenter.org/taxvox/what-tariff-and-who-pays-it

If you take all that you just wrote and read it 4x...guess what...it IS NOT FUCKING CHINA paying.

You are going on about what the effect could be blah blah blah... but the importer pays the tariff as soon as the good touch the shore...NOT FUCKING CHINA.

Tariffs are collected at the port of entry by the U.S. Customs, with the duty paid by the immediate U.S. purchaser of the good. In effect, the U.S. purchaser pays a sales tax to the Customs Service for the right to import the good.

 

[El OchoCinco]

Chinese goods are cheap compared to American products that even with the tariff, importers absorbed the cost and prices remained stable.

You think tariffs on Chinese parts made a difference?

Caterpillar still imported parts from China to make their tractors but paid 15% tariff on those parts. Did Caterpillar switch to U.S. made parts? No of course not, you don't suddenlt switch from one month to the next when a tariff is imposed and change your whole production process. U.S. importer had to pay the tax not CHINA.

 

[El OchoCinco]

I love all these posts coming in and still no one refutes the well known economic and trade principal that the importer pays the tariff.

Something taught in Economics 101 yet unkonw by 99% of the Administration or those that do know are too afriad to speak up and get fired - seriously....no one in the USTR office knows this?

The goal is to make Chinese products so expensive that imports from china drop significantly and force China to the trade talks. But that still means U.S. importers pay the tariffs if they keep buying and U.S. is so dependant on China imports that the amont of imports in from 2017 2018 2019 barely budged or had the desired affect.

CHINA DID NOT PAY US BILLIONS.

 

[Dr. Love]

Corporate America had been putting increasing pressure on the White House to consider tariff relief as it explored ways to support the economy, and was pleased that the Trump administration was moving in that direction. I think of this as a financial measure more than a trade matter John Murphy, senior vice-president for international policy at the US Chamber of Commerce John Murphy, senior vice-president for international policy at the US Chamber of Commerce, said the move was “welcome” and would be particularly important for apparel and footwear companies paying tariffs between 15 per cent and 30 per cent on many imported goods.

Wait...I thought China was paying those tariffs...

I am all about taking away China's unfair trade practices. The US consumer has barely felt a pinch from the tariffs. Even though you are correct about who ends up paying the tariffs, ultimately it is China the one that loses.

If you are pro-Chinese, indeed, you have good reason to make a big deal about this.

 

[El OchoCinco]

Chinese firms with few non-Chinese competitors will feel little pressure to adjust, leaving the tariff burden to the U.S. buyer. In textbook terms, these firms face a low price elasticity of demand.

 

[El OchoCinco]

I am all about taking away China's unfair trade practices. The US consumer has barely felt a pinch from the tariffs. Even though you are correct about who ends up paying the tariffs, ultimately it is China the one that loses.

If you are pro-Chinese, indeed, you have good reason to make a big deal about this.

I like making a big deal how stupid that the President says something wrong and you all swallow with both hands on the shaft.

Several studies have shown U.S. consumer has paid higher prices and the US Chamber of Commerce as asked Trump to suspend tariffs for 90 days to give them financial support due to the higher taxes they are paying.

So...as I often can do in less than 30 seconds....you are proven incorrect.

Trying to call me pro-chinese is just deflecting your mistake. I am not pro china but I know for a fact China is not paying us a dime in tariffs and if you believe that, I hope you kept the receipt for your college degree though this is taught in high school economics.