A lot of people don't seem to understand the most basic thing about tariffs, and why they are controversial economic tools.

Tariffs do exactly one thing: they make the price of something imported, higher. Nothing else.

They do NOT make domestic products cheaper.

That makes it extra important to know what the goal is, before you enact them.

Historically, tariffs have been used for a number of different goals. Sometimes the goal is to allow local industries to be able to compete with foreign industries, by making the end products cost the same, or make local products cost less. Sometimes they have been applied, simply to bring in revenue for the home government, when there are no local industries to protect.

What's least common, is simple punishment of a foreign nation.

Tariffs on finished goods, will usually make the domestic equivalent more economically attractive.

Tariffs on raw materials, make the cost of the final domestic products produced with them, much higher. If the goal is to help domestic raw materials companies, at the expense of the cost of living of the customer classes, that tariff application can work, providing domestic customers continue to buy the final products, at the now much higher cost to them.

But there's a hole in the system. That is, that if you raise tariffs on steel and aluminum, for example, domestic companies which were only able to compete with foreign manufacturers because they got cheaper steel and aluminum from overseas, will now lose in the marketplace, and the businesses will fail. Domestic steel and aluminum wont cost less to make because of the tariffs, so they wont be able to save the domestic manufacturers. Those business owners will have no other choice, but to end production altogether, or shift manufacturing out of the country.

Either way, one thing is certain: the cost of living for the rest of the domestic population will RISE because of the tariffs.

That's why American leaders have historically not been at all unified on tariffs being the idea tool to use to address all economic issues.

Tariffs are a tricky business.

I read your mess.

I also understand more about tariffs than you realize. Try this on for size- don't believe everything you read on the 'net, or what you hear on the tube. Most of Trump's tariffs have been proposed. He uses those as a bargaining chip, to get countries to the table. Some, are bringing their businesses to our shores to avoid paying those out. Not a thing wrong with that. Make your product with our workers.


If businesses fail because they're using foreign metal, then chances are reasonably good that their product was at best, fair. Count on the good companies figuring out how to use domestic metal. Also count on more steel and aluminum plants reopening. Since a lot of obama era regs have been rolled back, its becoming possible to start production again. More plants up and running, means more competition, lower prices.

It'll also mean that there will be fewer people available to mow your grass.

i read your mess.
i think i'll agree not believe some anonymous text on the internet that claims to know more than i realize at the same time proving that he knows about as much as i thought he did...
if not less.

One minute liberals are mad that the rich corporations got a tax cut. The next minute they are crying corporations can't afford to pay a little more for materials. Contradictions

All countries should go to 0 tarriffs and let's have real free trade. Oh wait, other countries don't want to give up their advantage over ours.

So let's just continue to flood or country with cheap garbage from China forever and then continue to complain about the quality of that cheap ****

Good plan

So now, China wants to start talking about tariffs with us, again. Could it be that they are starting to see the fallout of paying higher tariffs to us? Perhaps they're starting to feel the screws tighten.

When in doubt, hit 'em in the wallet.

very little of iPhones are built in the US...he is probably worried because we import them from China...

The screws are tightening

People here on this site know I worked in china for years.. over 15.. lived there for 2 and I worked at those factories producing our ..cheap crap. I have been to well over 200 of them... hey, I actually built one there for a Hong Kong based company.

So I know.

And here is the problem China has.. it s a communist country, meaning it is the governments responsibility to find work for its people.. and there a billion of them. And at least half work in factories or companies servicing / supplying factories. ( trickle down effect) that are producing products for the west.. mainly the U.S.. Before that they ( the factory workers) were peasants in villages. ( trust me.. I know)

These factory workers are now accustomed to .. getting paid.. they like it and expect it. They have no will or want to go back to peasant life in their home village. None what so ever. And if the factories which are producing product destine for the U.S should close up ( which they will), China is going to have a huge problem on their hands.. a huge one. A problem they do not want or can deal will


You see, these workers got accustom to western money.. and they ain't going back to the rice paddies.

No other western country has the buying power of the U.S... none

So, who has who by the b*l*s