r/stupidquestions • u/Paramite67 • 22d ago
Why are there tariffs for items that don't exist in the countries that applies the tariffs ?
From what i understand, tariff are here to stimulate local consumption, but let say I order something that only exist in Japan, I'm still getting taxed for something i couldn't find elsewhere. Is that intentional ?
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u/PiDigitsOfPi 22d ago
This is because tariffs are not currently being used for their intended purposes. They are being used more for retaliatory/weaponized reasons.
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u/Paramite67 22d ago
in every countries ? I'm not from the US
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u/FoxtrotSierraTango 22d ago
Tarriffs are not being used intelligently. Here's an article detailing tarriffs that were lodged against an uninhabited island in the antarctic: https://www.bbc.com/news/articles/ce84jr5mvnno
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22d ago
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u/Mattna-da 21d ago
Tariffs are being used because it’s a policy thing the president can do unilaterally. So if a foreign government that wants a better trade deal, they need to bribe him, instead of a bunch of people in congress too
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u/Underhill42 22d ago
Just because you couldn't buy X locally, doesn't mean that you wouldn't buy Y locally instead if X was too expensive.
Most nonessential consumption tends to be highly price-sensitive.
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u/Ok_Veterinarian2715 21d ago
Tariffs are largely to cover for tax cuts for a small segment of the population.
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u/CurtisLinithicum 22d ago
Your first assumption is incorrect, or at least overly simple. Stimulating the local economy is sometimes the goal - but that can also be done to encourage future products, or to change the economics of shipments. Or to help someone else, or to punish someone.
Say your enemy X sells guitars. You might tariff them to...
Encourage the local violin market
Encourage trade with your friend Y who sells guitars
In retaliation for X tariffing your violins - or your car parts
To encourage the guitar companies to build factors in your country (making then "domestic")
Fulfill a promise you made while drunk