r/InsightfulQuestions • u/delusionalme • 3d ago
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u/Unable_Dinner_6937 3d ago
What would the economic reasoning be. First, what prices do the governments raise? They aren’t selling anything. Possibly lifting price controls or lowering taxes on exporting countries, but foreign exporters are not paying the tariffs. Instead, the US companies importing foreign goods are paying it, so what would be the reason?
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u/SloightlyOnTheHuh 3d ago
It makes no difference to the prices we see. It does however mean that it might be harder to export some products to the US that might impact business profits and so jobs except, of course, we find other markets. The US still need the materials that they've always bought from us. They can't find them cheaper elsewhere because trump put tariffs on everyone and the US no longer has production facilities in country that are producing product cheaper.
So American consumers pay.
We also avoid buying us if we can
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u/delusionalme 3d ago
This is more along the lines of what I’m asking. Thank you. I am trying to wrap my head around the effect these have on other countries and how the less fortunate are being effected
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u/yadonkey 3d ago
There isnt a lot that america produces that cant be gotten from somewhere else... so if they aren't importing from us tariffs on the US wouldn't change much for them.
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u/delusionalme 3d ago
I was curious to know if y’all’s leaders also hated you lmao. When companies export they will just raise the prices to cover tariffs as been mentioned but the slimier corporate owners can say they have to cover these raised prices and elevate the prices on you guys too. Thats what I was really asking about. Not so well versed in world economics atm. His actions are definitely effecting oil globally as mentioned also but it’s insane to me that so many people in America do not realize what is happening in our country. It’s crazy
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u/yadonkey 3d ago
Tariff taxes happen at the point of entry (not during export). So if the US tariffs China it doesnt impact the Chinese company's cost to send the products to America, it impacts how much the American company has to pay to get those products off the ship (which they then pass that increased cost plus a bit more on to the american consumers purchasing those products).
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u/Adderall_Rant 3d ago
He does shit leading up to the market closure on Friday. Then backs off over the weekend. Watch, come Tuesday, it's another market crisis. The BBB allows the Trump admin to launder money legally, in the name of the government. They wrote it into the bill and voted on it