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<blockquote data-quote="RobGMN" data-source="post: 8884233" data-attributes="member: 683408"><p>Trump wanted secure borders his first time around, and failed to secure them. </p><p>How is a tariff going to secure the borders? </p><p>And don't say the tariffs are a bluff. He tried it before and will try it again, because he thinks it works.</p><p>And he keeps claiming that the foreign manufacturers pay a tariff, and his followers seem to to believe. Maybe HE even believes it. But that's just not how a tariff works, and never has.</p><p></p><p></p><p>The foreign companies sell to importers, who then sell directly to the public (like WalMart, AutoZone, BestBuy, etc) or they sell to a retailer who can't or doesn't want to be an importer (like Steve's Stereo Shops, or Bill's Ford Dealership).</p><p>Importers pay the mfgr for the goods, then pay a tariff on the goods when they get here. WalMart pays the tariff and tacks it right on to the product. They did exactly this during Trump's last run, and they have stated they will do this again if he imposes tariffs.</p><p>Steve's Stereo doesn't pay the tariff, but they will pay a higher wholesale price for the goods, which will result in a higher retail price so they can keep their doors open.</p><p>The tariffs Trump imposed on imported goods from China in 2018 cost the average American household and extra $500/year for their goods, disregarding inflation increases.</p><p>They figure it'll be closer to $2,600 per household if he imposes the tariffs he wants.</p><p></p><p>But let's not forget that it's not a one-way street. Other countries can, have, and will hit us too. Remember the trade war with China? it didn't work out so well.</p><p></p><p>Exactly. NO ONE WANTS TO LOSE MONEY. That tariff is going to be passed directly to us in the form of increased costs for goods. That is an instant inflationary increase, when inflation has been dropping for 2 years and is right about where it should be.</p><p>But it's "good" inflation because Trump will be the DIRECT cause of it?</p><p></p><p>I'm struggling to find the good in that, and I truly do not see how it will stop drugs or illegal immigration.</p></blockquote><p></p>
[QUOTE="RobGMN, post: 8884233, member: 683408"] Trump wanted secure borders his first time around, and failed to secure them. How is a tariff going to secure the borders? And don't say the tariffs are a bluff. He tried it before and will try it again, because he thinks it works. And he keeps claiming that the foreign manufacturers pay a tariff, and his followers seem to to believe. Maybe HE even believes it. But that's just not how a tariff works, and never has. The foreign companies sell to importers, who then sell directly to the public (like WalMart, AutoZone, BestBuy, etc) or they sell to a retailer who can't or doesn't want to be an importer (like Steve's Stereo Shops, or Bill's Ford Dealership). Importers pay the mfgr for the goods, then pay a tariff on the goods when they get here. WalMart pays the tariff and tacks it right on to the product. They did exactly this during Trump's last run, and they have stated they will do this again if he imposes tariffs. Steve's Stereo doesn't pay the tariff, but they will pay a higher wholesale price for the goods, which will result in a higher retail price so they can keep their doors open. The tariffs Trump imposed on imported goods from China in 2018 cost the average American household and extra $500/year for their goods, disregarding inflation increases. They figure it'll be closer to $2,600 per household if he imposes the tariffs he wants. But let's not forget that it's not a one-way street. Other countries can, have, and will hit us too. Remember the trade war with China? it didn't work out so well. Exactly. NO ONE WANTS TO LOSE MONEY. That tariff is going to be passed directly to us in the form of increased costs for goods. That is an instant inflationary increase, when inflation has been dropping for 2 years and is right about where it should be. But it's "good" inflation because Trump will be the DIRECT cause of it? I'm struggling to find the good in that, and I truly do not see how it will stop drugs or illegal immigration. [/QUOTE]
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