Today 11:42 am
You're such a blind suck-up to the CNN spin that you can't use your own tiny brain to figure out what really happens economically, and you, who touts yourself as a student of economics, yet you don't know ****!maineman » Today, 10:19 am » wrote: ↑ You don't know what the **** you're talking about.
Tariffs that Trump plans are ALWAYS paid by the importer of the goods to the US government. China doesn't pay ****. The importer - like GE, for example, who buys most of their appliances from China- would pay the US government a tariff on the refrigerator or the dishwasher and IMMEDIATELY pass that increased cost on to the consumer. GE sells a **** of appliances in the US to folks like you and me, and we will pay that tariff ourselves. One purpose of tariffs is to stimulate domestic production. Still, China produces so much of our home appliances that domestic producers cannot ramp up production to steal market share from China with increased supply. They will instead raise prices - just not as much as the tariff bump. The KitchenAid dishwasher that was $300 will now sell for $320, but that will seem like a better deal than the GE model that went from $290 to $345. Either way, the consumer is hosed.
https://www.cnn.com/2024/09/09/politics ... index.html
Sure, if all things remain the same, LG would raise the price on their appliances to cover the cost of that new tariff. But is LG the ONLY appliance manufacturer in the country? What about Frigidaire, Sharp, Samsung, Maytag, Haier, Whirlpool, and at least half a dozen more? Suppose several of them are either manufactured here in the US or in a country other than China that may not get hit with the same tariff because they trade fairly with us? Now, LG's price to the consumer (including the increased price to cover the tariff) comes in at $50 or more than a comparable model of refrigerator that DOES NOT have to pay the tariff, so what happens? Quite simply, the consumer either buys a similar model from another brand or CHOOSES FOR THEMSELVES to pay the higher cost for whatever reason.
And don't discount the likelihood that once LG sees that higher cost for production in China, they might very well open up or retool a US based manufacturing facility to make those appliances here instead, which would save on the tariff PLUS bring thousands of great jobs back into THIS country!
In those instances, China could either drop their costs and eat that new tariff themselves so as not to lose a major manufacturer to relocate back to the US, or accept that their sales to the US will now drop by 30% or more as they lose out to the competition.
THAT is how the Trump plan would work, you simpleton!
But you go right ahead swallowing the biased left-wing **** you're fed by the news network that's been in the tank for Kamaltoe and Biden for years, telling you nothing but half-truths because they know what gullible morons Democrats like you are!