24 Jan 2025 5:50 am
How do taxes vs tariffs work?Johnny You » Today, 3:59 am » wrote: ↑ Trump does not seem to understand how tariffs work. I admit that before Trump brought them up, I had less understanding.
He keeps saying foreign countries will have to pay them. He cannot make a foreign country do that.
Guess who pays the tariffs?
It is widely accepted by economists that the Smoot Hawley Tariff act prolonged the Great Depression in the 1930's. After it was enacted, everyone quickly realized the tariffs were having a negative impact on the recovery and everybody Smoot Hawley was voted out in the next election cycle.
It is difficult to understand how tariffs work. I was fearful we would lose our export. Well it turns out our Canadian partner was exporting more to the US than we were exporting to Canada. A realignment is in place and contractors are specifically requesting that equipment destined for delivery in the US is built in the US to avoid a 20% tariff on the labor gozinta.. So we will get more work to build for the 400 million customers in the US. There is some danger we will miss out on opportunity to market to the other 7.7 Billion customers on the planet. 90% of everything in our skids is foreign sourced, 20% or more on all of it could price us out of the global arena.
https://en.wikipedia.org/wiki/Smoot%E2% ... Tariff_Act
Taxes are paid by citizens honoring ideas cradle to grave.
Tariffs are paid by non citizens to do business from other countries than the citizens of the country business is being done in.
The government gets paid twice, citizens pay the cost for both revenues.
Most people saving humanity are highly educated idiots that don't navigate space with their own brain and you are a perfected example.