top | item 42915794

(no title)

tivert | 1 year ago

> The truth is (as I’m sure you all know) these are fees that we pay to the federal government separately when we import goods from these countries. Other countries don’t pay a dime.

The mistake you're making is only considering first order effects (gov collecting tariff taxes), and ignoring second and greater order effects (how people respond to those taxes).

The truth about tariffs is actually more complicated: https://www.nytimes.com/2025/01/20/opinion/trump-tariffs-tra...:

> A good place to start disentangling things is the argument ad nauseam over who pays for tariffs — the consumer or the foreign producer? Contrary to what both sides sometimes assert, the question has no simple answer. “Despite over a century of theoretical debate on the incidence of tariffs, sound empirical evidence on who bears the burden of trade tariffs is sparse,” according to a 2015 article in the University of Chicago’s Chicago Policy Review.

> ...It’s true that up front, a U.S. tariff is levied on Americans, not foreign producers. But what really matters is who bears the ultimate cost. If the foreign producer continues to charge the same amount at the border, then the final price goes up by the amount of the tariff, and the American bears the full cost. But if the foreign producer cuts its price at the border by the amount of the tariff so that the final price paid by the American is unchanged, then the foreign producer bears the full cost of the tariff.

> Typically, the cost will be split. Americans won’t have to bear much of the cost of the tariff if the foreign producer is willing to accept a smaller profit to hang on to its share of the U.S. market. That calculation will vary product by product.

discuss

order

caspper69|1 year ago

I don't want to insult you, but I do want to insult the NYT quotes you posted. Frankly, they are about the dumbest effing comments I've read in a while.

I will just pose a simple question- how many industries that trade in real goods have margins in excess of 25%?

How many industries do you know of that would keep going in the face of a 50% haircut to their profit?

Those quotes say nothing and are pure conjecture.

I will tell you exactly who will pay the increase (and then some, because there's always juice on top of juice): we will; you and I, and every person and family we know. That's who.

zppln|1 year ago

> how many industries that trade in real goods have margins in excess of 25%?

The fentanyl industry maybe?

orwin|1 year ago

> how many industries that trade in real goods have margins in excess of 25%?

Key point here is "real goods". Services in general, digital or financial especially, i could see it, but i guess those aren't concerned.

tivert|1 year ago

> Those quotes say nothing and are pure conjecture.

Apparently not: https://www.nytimes.com/2025/02/02/world/us-tariffs-canada-c...:

> When Mr. Trump imposed tariffs on China during his first term in the White House, some studies found that part of the cost was passed on to American consumers. Suppliers in China also cut their prices in many cases to offset part of the cost of the tariffs. [emphasis mine]

> I will tell you exactly who will pay the increase (and then some, because there's always juice on top of juice): we will; you and I, and every person and family we know. That's who.

It's worth noting that you're basically quoting a line of political attack. From the same article I linked above:

> Democrats spent the weekend hammering the message that Mr. Trump was responsible for making life in America more expensive.

> “In one reckless move,” said Representative Gabe Vasquez, Democrat of New Mexico, “the president just raised the price you pay for gas, the truck you drive to work, a computer for your small business and everything at the grocery store, from avocados to tequila.”

Underneath all that noise, I'm sure things are far less simple than any side's attacks claim. Unfortunately, all almost anyone hears on any issue are political attacks, which are blasted from the rooftops.