Tariffs Economic Impact

I sell in US and I also support ecommerce sellers in US. Most of us have raised the prices of products to counter the tariffs. You are actually paying income tax as these tariffs.Some products which can be produced in US will benefit from tariffs. But the whole point of not having tariffs is to buy cheap labour from outside and move your own country up the value chain.Also, no one is going to start manufacturing these products because the next President is going to remove the tariffs and d

Paying a price on goods entering the country will not encourage the manufacturing of those goods to come back to the US, it will only reduce the flow of goods coming in, increase the prices consumers pay or reduce selection. Also, dont you think the natural reaction of any country on the other end of such a tariff would be to slap a tariff on our goods and services? So the net result is lower international trade overall. The result of that is that goods have to be manufactured in thousands of pl

The explicit goal of tarrifs is yo raise prices. This is not a bug, it's the whole reason for tarrifs to exist.The argument is that if the going rate for something is high enough, it makes sense to manufacture it locally. And of course local manufacturing has major knock-on benefits.This logic falls down though when you bring the capital cost, and life-span of a factory into account.I'm only building a factory if I expect prices to -remain high-. And tarifs are set (uni

Besides the time and cost to do that, which may make it uneconomic, there is also the fact that their inputs would be subject to tariffs in the US and exports to other countries from the US would be subject to retaliatory tariffs.Your point is basically Trump propaganda at this point. Tariffs have historically had unintended consequences. For instance the tariffs on LCD screens basically killed the laptop industry in the US.Maybe, just maybe, after 20 years of tariffs it might come true, f

Raising the price of imported goods via tariffs is designed to make domestic products comparatively price-competitive. Once you've driven all of your manufacturing offshore, tariffs won't work. While there are a few toolmakers left in the US, there are, for example, no cellphone makers, etc.

Not buying these materials from the low cost producer is plagued with economic problems.It increases costs for all consumers (aka inflation), makes American manufacturers and their products less competitive and hurts the overall economy.Bottom line: Tariffs ultimately hurt as much as they help --- if not more. Only a simpleton would think this sort of juvenile policy applied on a large scale is how you "Make America Great Again".

A china specific tarriff doesn't help there as there are plenty of other exporting countries.Tariffs in general might but what you have now is just more expensive stuff, so fewer sales. People importing materials and putting them together in the US simple make less profit.Apparently people making stuff and/or using immigrant labour are planning accordingly and taking immediate action. I.e. panic buys, layoffs etc.

It’s pretty well accepted that tariffs lead to overall worse outcomes for all parties involved.Some reasons:- Someone mentioned price elasticity below. The demand for the product might actually drop because of higher prices from local producers- Local producers become less competitive, especially if the imported item was not cheaper because of lower labor cost but because of innovation- The downstream high-value supply chain becomes less competitive if tariffs are applied to an inter

A weak currency means more exports but higher import prices. Add the additional tariff coming soon means anything from China will get more expensive. Perhaps this forces Trump to drop them.. it could backfire and create a local industry that will compete against China.

Aren't tariffs (import taxes) supposed to benefit employees?