Everyone needs a lesson in how tarrifs work. Tarrifs are a tax on thing that US companies buy. They are intended to make foreign products more expensive to protect domestic producers. So, the American company pays the tariff. They then pass that tariff on to their customer, either another company or an American consumer. Then, the country that the tariff had been applied to applies offsetting tarrifs on American goods.
When the product that the tariff is applied to can’t be produced in the US, think advanced microchips or Canadian softwood lumber, Americans pay more but still have to buy the foreign product. With the softwood lumber tarrifs the cost of building a home with Canadian softwood lumber went up by tens of thousands of dollars and Canadian companies laughed all the way to the bank. American consumers paid more and Canadian companies made record profits because the US can’t produce enough softwood lumber to meet its needs.
So, the price to American companies and consumers goes up and the cost of American goods overseas goes up. Americans pay the tarrifs and American companies sell less goods overseas.
America loses.
But think of all the failing business that will be super cheap to aquire! /s
Oh I have no doubt that the Blackrocks and Birkshire Hathaway’s of the nation are absolutely throbbing at the prospect. Literally diamonds. Those dusty old corpses won’t need their hourly viagra until 2030.
Lol the stock market went up by like 15% since he won or something like that. The big banks and holdings groups are wayyy up, same for tesla which just broke 1 trillion.
As it always does. In case you missed it all those things were hitting records all the way through Biden’s 4 years.
It’s a giant casino. And the only time real people feel it is when it crashes and suddenly shit costs way more than it did last week. It doesn’t matter to anyone worth less than 8 or 9 figures.
Yes. I was agreeing with you in the first place.
What I love… what I really love… is that this happened during the administration of Trump’s favorite president (other than himself), Andrew Jackson:
Hadn’t heard of this one, thanks. Americans are pros at not learning from history.
I thought this part was particularly funny/familiar:
It was a bill designed to fail in Congress because it was seen by free trade supporters as hurting both industry and farming, but it passed anyway.
Edit: That article lead me to this one, which gave me a good chuckle. How quaint: https://en.wikipedia.org/wiki/Petticoat_affair
these women, dubbed the “Petticoats”, socially ostracized Secretary of War John Eaton and his wife, Peggy Eaton, over disapproval of the circumstances surrounding the Eatons’ marriage and what they deemed her failure to meet the “moral standards of a Cabinet Wife”.
After further reading about Peggy Eaton’s childhood, kind of a bummer. Also, John Eaton pulled a King David/Bethsheba on her first husband, quite literally… That’s wild.
Once Timberlake told Eaton of his financial troubles, Eaton unsuccessfully attempted to have the Senate pass legislation that would authorize payment of the debts Timberlake had accrued during his Naval service. Eventually, Eaton paid Timberlake’s debts and procured him a lucrative posting to the U.S. Navy’s Mediterranean Squadron; many rumormongers asserted that Eaton aided Timberlake as a means to remove him from Washington, in order for Eaton to socialize with Peggy.
What a shithead. Literally sent him to fight pirates so he could bang the dude’s wife hahah
So in your example, I guess the tariffs don’t apply to Canada? Because the proceeds of tariffs go to the government of the country charging them.
I’m not sure what you’re asking. If you’re referring to softwood lumber the profits of Canadian lumber companies were at record levels because the US needs Canadian softwood lumber with or without tarrifs. The tarrifs didn’t affect sales at all so with the increased demand despite the tarrifs Canadian companies didn’t suffer at all. US consumers spent more and the money went to the US government which presumably gave some of the money to uncompetitive US softwood lumber companies to subsides their unprofitable operations. It’s a tax on US consumers.
Canadian softwood lumber companies pay a stumpage fee to sustainably harvest softwood on public land. US softwood lumber companies pay much higher prices to harvest lumber mostly on private land. It’s all about extracting the highest profit for the most wealthy people. Canada has a better system and the US is salty about it. The US has lost at the WTO every time but refuses to accept the result so it ignores its treaty obligations and just forges ahead with the illegal tarrifs which hurt US consumers.
Good. I hope he does it. Don’t let any of his yes-men or cronies tell him what a horrible idea it is. Let the whole fucking country burn.
Democrats, calling for deportations: Look at this disgusting tankie
This post is about tariffs.
… what
The joke is twofold:
- Some people, mostly authoritarian communists, claim that the ‘tankie’ is being used to describe anybody too far left.
- Democrats are by now very right on immigration.
Democrats will stop calling for deportation when they see what kind of bottom line putting people in labor camps brings.
TIL, lots of Trumps voters don’t even know how tariffs work and thought the foreign companies are the one who paid those instead of the domestic buyers themselves.
Even if, did they think prices would just stay the same? Tariffs only work if production is moved back home, which for many industries won’t happen, which means costs will be passed on to consumers.
Also, the costs would still be passed on to consumers even if the production was moved back home, because it will cost more in general. And gotta keep those profit margins up.
Doesn’t matter who the tax is levied against. All costs will be passed on to the buyer. They should be familiar with this idea. It’s the Republican’s key talking point against business taxes.
Where so you think American farmers buy their fertilizer? Where they sell most of their soy and corn sell to? Maaaaany companies are either buying or selling to/from China. Many will go bankrupt, bany will struggle.
China is strengthening ties with Russia to replace u.s trade, and it shows that Putin is laughing his ass off at how he played a whole country, other than his I mean
They’ll blame democrats for the price increases. Bet me.
Same as last time
Same as every time, this shit is so damn tiring
Rich get richer, poor people suffer. Americans are so f dumb i cant take it
For years, us, Canadians went to USA for shopping. Next year with the exchange rate at the highest for US$, and Canada without tariff, a shit load of americans will come to Canada to buy their electronics and stuff.
They’ll still have to pay the tariff when crossing the border back to the USA, unless they want to risk smuggling it.
I .Ean that’s how it was for Canadians, it’s not like we had an actual work around there either. People just don’t bother to declare stuff when crossing.
A Canadian I used to know told me their family would have some cheaper items in the back seat that they’d declare and hide the more expensive stuff. Apparently it did work.
That was my shoplifting tactic when I was a kid.
Well not the backseat part, I hid chocolates in my bike helmet and always bought something like a drink.
All the idiots that didn’t buy anything got caught instantly.
REGULATIONS
Returning to the U.S.
Less than 48 hours in Canada:
$200 USD worth of goods per person, tax and duty freeAny purchase of alcohol or tobacco products may be subject to duties and taxes
48+ hours in Canada:
$800 USD worth of goods per person, tax and duty freePurchases may include 1 litre of alcohol, 200 cigarettes (1 carton), and 100 cigarsFamily members can combine their tax and duty allowances
So our 19 year olds who need abortions, what stops them from going there getting care and then having a drink a smoke and coming home after. Except the prospect of not wanting to come back?
The fact our healthcare system is woefully overburdened already?
She can, but I guess she’ll have to pay for it/go to private.
The US is at least 40 years removed from any kind of real electronics manufacturing at scale.
This kind of thing takes generational knowledge to get right and we outsourced that knowledge a long time ago.
We are now several generations from being able to manufacture electronics on the level.
Either trump has no idea how anything works or he’s actively trying to destroy the American economy.
He will just give out stimulus checks to make everyone think the economy is good. Somehow that’s not socialism though it’s American!
yep, warm up those money printers. And too bad for anyone who has saved a nestegg for retirement-- thats all getting watered down now. ah well.
Jokes on them, in 50+ years I’ve accumulated almost nothing anyhow!
He likes Russia so much that he wants the US to become like it. He’s following the post-USSR playbook. He’s trying to destroy the economy so he and his billionaire buddies can buy up the scraps for pennies on the dollar. Which will turn him into an oligarch and will keep him in power after his term is up. And he isn’t going to pay for any of it. He will steal money from the people like he did in his first term with his golf course and his cult following will keep giving him money and buy his crypto coins. That’s why he wants to get rid of cryptocurrency regulation.
Porque los dos?
Can someone please explain to me why he STILL doesn’t have any understanding of how tarrifs work?
You’re making the mistake in that his intention is to improve things.
He doesn’t have to make things better, he just has to say he has made them better. That’s all he’s ever done and it’s worked.
yOu’Re FiReD
A candidate that expressed nuanced understanding of economic principles would have been less likely to win the election.
A candidate that instead promises answers that intuitively sound right. If imports are expensive, then obviously the big business owners will build domestic and give us more money. If you get rid of immigrants, then the business owners will have to pay more for citizen workers. Simple answers that are easier for people to believe in.
Attempts to explain nuance? That ranges from nerds overcomplicating things and/or those darned liberal elites trying to truck them.
This cuts both ways. In 2020 Biden won not due to a more sophisticated understanding of things, but simply because things were bad, and the other guy therefore was the obvious choice. So to overcome an incumbent, you just have to have people believe stuff is bad, and provide some believable explanation that you could fix it.
he STILL doesn’t have any understanding of how tarrifs work?
How do you STILL think this isn’t all intentional? They know what they’re doing. They don’t care if we can afford it or not. This is about the conservatives’ bottom line, lol. They don’t care about you, America, China or whether any of it works.
It doesn’t do anything for their bottom life because the tariff is something we pay TO CHINA
A tariff is what you pay to the government of the port of call to get the item you shipped.
When you pay $1000 for a DJI drone and it get’s to Seattle the US government says “pay us $600 or it goes back on the boat.”
The Chinese company sees literally zero impact other than possibly less orders and probably a wave of refused merch. Which they might keep some or all of the purchase price of anyway.
Russia wants to pit the US and China against each other to distract and destabilize them both. So all of this is great for Russia’s bottom line.
The tariffs got them elected. The fallout of them is a write-off and not their problem. They were the means to an end for votes and swaying opinions and they did their job.
I believe that he does, and he knows shit will cost more, but he ALSO knows that his followers have no clue whatsoever. So prices will increase, and he’ll blame it on one of their many “others”. Keeping them scared and mad is the key to their control over them
His followers know he’ll deliberately cause instability, that’s what they want.
Some people want more expensive shit as long as its made in america or with american goods. Thats the point of a tariff.
But not the idiots that said inflation was their main issue. Trump told them 3 ways he’s going to economically hurt them 1. Tariffs 2. Raising taxes (unless you are 1%) and 3. Mass Deportation.
Because he is so senile his brain can’t follow a 3 step logic chain anymore.
Fuck.
It hasn’t even started yet and I know that I have 4 more years of this stupidity news ever single day
Oh wait
Since Trump will install himself as a dictator, then die, we have a few decades of couche fucker Vance to look forward to, yeeeiii
I’m not convinced we’ll go even a single decade of this regime without total socioeconomic collapse.
The Hitler lasted from July 1932, and Hitler killed himself in April 1945 - 13 years.
Mussolini lasted from 1922 to his execution in 1945 - 23 years.
Stalin lasted 1924-1953 - 29 years.
Fascism inevitably implodes and crates untold suffering along the way, but you might have longer than you think.
The main difference is that in equal measure to being a fascist, Trump is an idiot.
Fascism and idiots - I couldn’t name a more iconic duo - though I do agree with you point… Trump is exceptionally stupid, and has surrounded himself with gibbering idiots like Musk and RFK.
…that said, when Trump’s heart inevitably explodes, Vance will almost certainly have competent (evil) advisors, and they’ll get (horrible) shit done.
Isn’t this exactly what Trump said Harris was gonna do and that he was gonna not do?
Vincent
yooooo name twinsies!
Mexico about to make a killing in shipping.
They already have been. China has been working at circumventing restrictions by basically offloading raw materials or parts to Mexico and having them build the product to ship to the US.
Hola world.
American Kazahstan.
I hope Trump turns out to be the best president in history. Prove me wrong, conservatives. I want to hear how it’s going by the fourth year.
Everyone who says he’s not the best President ever will be shot.
I mean, what do you think? He announced that. Apparently this is what the US-Citizens want.
It’s that damn reality that needs to be punished. Stupid facts and laws of economics making Trump look worse than he is.
I had similar thoughts in 2016 when he had a first attempt, and it was a dumpster fire. I’m not optimistic this time around.
Dumpster Fire has evolved into a Garbage Dump Fire.
As someone who works for a large US-based company, we are locking in large contracts ASAP for compute power to hopefully keep us sated and avoid these from being an extinction event. We were already discussing some vendors not offering supply contracts already because they see the writing on the wall for their own profit margins
Brought this up to a friend who is very pro Trump and he said
“Part of trying to get industry back in the country (which we would be better off with) involves making imports less appealing.”
These people have no concept of geo politics and global trade. For example, we produce a lot of the world’s soy, that’s a major export, not many other countries do it on a large scale like that - so we cut the other countries some slack and tell them we won’t produce this particular good so you can have a hand in the global economy. Yes having the production here would be ideal as I’m all for it, but the world is so much more than Murica and they can’t see past their fucking noses.
It’s way, way more than that. Specialization and comparative advantage underpins the entire globalized economy which is the only way to allow us to get more for the same amount of labor. Without it, we simply regress. US farmers grow soybeans so that Chinese manufactures can make the tractors to allow the US farmers to grow the soybeans, and that only works with free trade. And in this scenario there is no one else making a tractor for anywhere near the same cost, and no one else who can grow such a large volume of soybeans, otherwise the trade probably wouldn’t be happening in the first place. And so the alternative is that both countries have to make both independently. And that is more expensive without the efficiencies of economy of scale, more expensive because of lower supply because we don’t have the capacity to produce that many tractors and China can’t grow that many soybeans, and more expensive because of the infrastructure costs being duplicated and spread out over less units.
And so we both end up with less tractors and less food that are more expensive. Now add in petrochemical fertilizers imported from Canada, steel and coal for the metal used in the tractor imported from Australia, all the industries that support them also getting caught into this, and where every one of those companies is tied into their regional, national, and the global economy. And that is just for tractors and soybeans.
We trade for almost everything. And every single item that we trade, we do so because it is cheaper than making it ourselves. Tariffs are an artificial tax on efficiency, and we are literally less prosperous with them in place. Some things are a matter of national security, of not allowing a foreign government leverage over your society, but we’re talking about his genius plan to put tariffs on literally fucking everything - soybeans and tractors, but also clothing, toys, electronics, appliances, vehicles, on and on and on. And a tariff on it will increase the price, because that is just how economics works.
we could have a more robust economy where we do make everything and they make everything and nothing needs to be more expensive, if we just let it be less profitable
There are chinese tractor companies? I only know US, Italian, French or German tractor companies.
I specifically looked it up just to be sure, John Deere does have multiple factories in China and a good amount of their website wording includes “assembled in USA”, sort of like cars and appliances and a lot of things, usually to get around existing tariffs and import duties. They do also have factories in Germany, Mexico, india, and of course multiple in the USA, but I kept it simple for the sake of the explanation, because China also does produce a lot of soybeans as well.
And a tariff on it will increase the price, because that is just how economics works.
this is not very scientific.
No, but its exactly correct in a short sentence. Science wishes it could be that exact.
Please tell me any way a tax, an additional cost added on to something could lower the price.
it’s not causal
The cost of getting the goods to consumers goes up. Does the consumer pay:
A) More
B) Less
C) The same
This election was decided by the majority of people in this country not being able to answer this very simple question
Edit: oh shit I didn’t even notice it was you lmao I see you’re still roleplaying The Person With The Worst Takes
why did the cost go up? what other variables are at play?
Good guess, but that wasn’t one of the options. Does the consumer pay:
A) More
B) Less
C) The same
I promise you, if you think about it for even a moment, this has a very intuitive answer
we can’t know
Just be sure to remind him at every opportunity that he voted for things to be more expensive.
I will
Three different ways trump has promised to his effective income
- Tariffs - prices directly go up
- Income taxes will be raised unless he’s in the 1%
- Mass Deportation will make food more expensive because there won’t be any Latinos to pick crops.
Yes it does.
Do you know why we outsourced everything to China? Because they can do it cheaper.
You can get it back, have it higher quality, more jobs, better control over it, all that good stuff. But it won’t be cheaper.
The US sells things they can make comparatively cheaper (not just price, its an opportunity cost) - better educated population, logistic, access to raw material, infrastructure investments. China sells things they can do cheaper - usually the fact that life is cheap in China.
I agree with a lot of what you said. “Better educated population.”
Doubt
While I mostly agree, but let’s not underestimate Chinese education and the culture built around overachieving.
Nah, I was joking about the fact I wouldn’t say we are more educated than anyone ever again. After this week, I’m going to assume we are around 192nd in education, maybe 193rd. Out of the 193 members of the UN
Sorry clarification.
I listed things a country may have that can create a competition advantage. I’d also argue the better infrastructure for the US as well.
Does he also know local companies will capitalise on the price increase?
Current import price: 80
Current USA made price: 100
Tariff import price: 200
Tariff USA made price: 190
Trump is banking on foreign companies moving their operations to the US. There’s also a high chance that Trump actually won’t do anything. The guy talks a lot.
It will take more than 4 years to move much of anything to the US. Will anyone think it’s worth it?
