Because applying an import tax, regardless of the fact that Americans pay it, creates a reduction in demand for that product, and therefore a motivation for the foreign exporters to try to lower their prices to compensate and keep the price the same for the America customer, which then hurts the foreign economy. Trump is basically dangling the impact of lost sales and threatening to cut it even more.
The logic only works if the US is assumed to be too big to fail, and that the exporter can not absorb the loss of American sales, and that they have no other markets they can grow to cover those loses. Those assumptions are not necessarily true.
I really don’t know enough about this to be sure, but I would assume the US mainly imports goods that they cannot produce on their own, right? So a reduction in demand wouldn’t occur and it really doesn’t make a lot of sense in this scenario. But again, I’m not an expert. Would love to see a statistic how much of the goods being imported by the us could realistically be replaced by their own production.
That being said, the orange turd continuously makes it seem like a 20% tariff on a country means that that country pays 20%, which is just false and dumb.
That’s the issue.
Trump wants those goods to be produced in the US to regain the skills. The Americans have noticed that manufacturing weapons is not enough. They have to manufacture regular products, too, to improve the skills that are needed for advanced weapons. With tariffs, American products become competitive again.
Maybe tariffs with Europe are not high enough and Greenland is just an excuse to rise them higher despite the existing trade agreement.
WASHINGTON—In a historic outcome that promised to halt the rising scourge of the United States in its tracks, America has defeated America at the ballot box, sources confirmed Wednesday. “After 248 years of tense and often divisive conflict, we can finally say, as of this morning, that the nation turned out at the polls and delivered a decisive blow to the nation,” said electoral analyst Kurt Howitzer, describing the results as a remarkable triumph of the democratic experiment over democracy. “It’s a stunning turn of events. But it really shows the power of one citizenry to come together and prevail over themselves. The message was loud and clear: We are sick and tired of our country, and we want it to end.” At press time, millions of emotional Americans had reportedly gathered on the National Mall in an impromptu celebration of their resounding victory over the forces of liberty and equality.
Russia and china must be throwing a party right now
Plus, 1st round of tariffs worked ao well for US economy /s
I still don’t understand why he or his followers don’t know how tariffs work. Do they know they have to pay them, not we?
It’s like he’s hitting himself in the face and says he’ll only stop when he gets what he wants.
Because applying an import tax, regardless of the fact that Americans pay it, creates a reduction in demand for that product, and therefore a motivation for the foreign exporters to try to lower their prices to compensate and keep the price the same for the America customer, which then hurts the foreign economy. Trump is basically dangling the impact of lost sales and threatening to cut it even more.
The logic only works if the US is assumed to be too big to fail, and that the exporter can not absorb the loss of American sales, and that they have no other markets they can grow to cover those loses. Those assumptions are not necessarily true.
I really don’t know enough about this to be sure, but I would assume the US mainly imports goods that they cannot produce on their own, right? So a reduction in demand wouldn’t occur and it really doesn’t make a lot of sense in this scenario. But again, I’m not an expert. Would love to see a statistic how much of the goods being imported by the us could realistically be replaced by their own production.
That being said, the orange turd continuously makes it seem like a 20% tariff on a country means that that country pays 20%, which is just false and dumb.
That’s the issue. Trump wants those goods to be produced in the US to regain the skills. The Americans have noticed that manufacturing weapons is not enough. They have to manufacture regular products, too, to improve the skills that are needed for advanced weapons. With tariffs, American products become competitive again.
Maybe tariffs with Europe are not high enough and Greenland is just an excuse to rise them higher despite the existing trade agreement.
I believe the onion app headline was “America defeats America.” I couldn’t have put it better myself. It’s a shame.
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