Prosperdick said:
Waffledynamics said:
Science Denier said:
. It appears that these tariffs are being eaten by most of the countries that are being tariffed. Much like what happened in Trump's first term.
How are they eating the tariffs?
I think he meant the foreign exporters are lowering their prices which equates to "eating the tariff." Obviously the importer pays the tariff, which is why we're seeing hundreds of billions of dollars to the US Treasury.
Anyone that thinks this is a black and white issue is a moron. On some goods there are countries that DESPERATELY need the US market. Those exporters will very likely lower their prices to continue selling to this market.
There are other goods that we will start producing here in the U.S. which will really hurt those foreign countries because our non-tariffed production costs are lower than what they're willing to sell.
Finally there are goods that we can't produce locally but desperately need and the foreign exporter won't budge on their selling price.
This last category is the one that will hit Americans in their pocketbook if the importer isn't willing to eat that cost. It sounds like right now for this last category most importers are eating it, likely to avoid losing any market share. That won't last forever so we'll see how this shakes out over the next 18 months.
The problem with those REEEEEEEEEEing about tariffs seem to think pricing is based on the suppliers cost. Suppliers charge what the market will support. The only way a tariff would be 100% passed thru to the consumer is if the absolute lowest price was the same percentage cheaper than the number two supplier. That is almost NEVER the case. All suppliers are usually very close to each other.
Thus, those suppliers in countries that get hit with the tariffs have to keep their prices the same ADDING IN THE TARIFFS, or they won't be a supplier for long.
Trump understands this, and made it one of his platform issues. Most countries have tariffs and our leaders in the past are more worried about being nice than putting America first. They watched us being taxed and taxed and having our businesses suffer greatly. Not Trump. He is leveling the playing field.
My only fear is that we've lost so much it may just be too late. We will see if all this committed investment comes true or not.
Oh, and to add, if we raise $240 billion this year, that's almost $1 trillion over 4 years. That is some serious cash.
LOL OLD
