Simple Question

[hurleyjd]

When a country places tariffs on another country goods that are imported whose pocket does the tariff money come out of? Does imported mean that someone is buying goods from another country? Exporting means someone is sending goods to another country? I think I understand this now whose actually pays the tariff? Or is a tariff just another name for a tax on imported goods?

 

[Bright Raven]

When a country puts a tarrif on an imported trade good or class of trade goods, the country from whence the good/goods originated pays the tariff. The money comes from the importer bringing in the goods. In either case, it makes the goods more expensive to produce so the manufacturers of the goods either hike their prices or their profit decreases.

Furthermore, the consumer in the country that levied the tariff is penalized because in most cases those goods go up in retail price. Tariffs have never worked well throughout history. Traditionally, the United States has been an advocate of FREE TRADE.

Yes. Imports are goods being brought into a country. Exports are goods being shipped out to be sold to another country. Tariffs are in most senses a tax or penalty that penalizes the country manufacturing the goods.

 

[ddd75]

free trade... just like everyone else.


"When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%," Trump tweeted April 9. "Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!"

 

[sstterry]

free trade... just like everyone else.


"When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%," Trump tweeted April 9. "Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!"

While these numbers are correct, it leaves out the fact that for every Chinese car imported to the US, that there are six cars exported to China. Nobody wants Chinese cars.

 

[True Grit Farms]

A lot of foreign car companies have opened factories in the US. Which worked good for US till NAFTA came about. I feel the unions made it impossible for US to complete in a world market. When our freeloaders and deadbeats live better than the workers in other countries something isn't right.

 

[TennesseeTuxedo]

Actually free trade has been part of the Republican Party platform for years, Hurley’s party not so much.

 

[Lucky]

Wouldn’t fhis be an easy problem to fix if the foreign countries would just agree with Trumps deal? How is it fair for Japan to charge a 25% tariff on US goods but the US can only charge Japan 2.5%. I’m not sure on the numbers so that’s just an example. We have been getting the shaft for years on trade. I hope Trump gets it straightened out but unfortunately we are going to have to feel the pain.

 

[Son of Butch]

Wouldn’t this be an easy problem to fix if the foreign countries would just agree with Trumps deal?

LOL
Getting 20 different governments to agree on anything is harder than herding cats.
Have you seen the protests in France over higher taxes and declining living standards?
Multiple it by 20. It was tough getting agreements when it was a G5 summit then it went to G7 and now G20.....
forget about swift resolutions.

 

[Mod2]

Can’t leave the politics out.
This thread is circling the drain.

 

[farmerjan]

Wouldn’t this be an easy problem to fix if the foreign countries would just agree with Trumps deal?

LOL
Getting 20 different governments to agree on anything is harder than herding cats.
Have you seen the protests in France over higher taxes and declining living standards?
Multiple it by 20. It was tough getting agreements when it was a G5 summit then it went to G7 and now G20.....
forget about swift resolutions.

Have to agree. Simple Question and a Simple Statement. Getting 20 countries to agree will be very difficult. No matter their "politics", getting a concensus of that many, with the diversity of everything there is, will be difficult. But we do need a more fair across the board policy of some sort. And there will be some major pain until some sort of fairness can be achieved. However I do agree that we need to start somewhere, and the tariffs to even it out are a start even if not the only answer. Letting things come into this country for very little while the receiving country levys "taxes" against us at a much higher rate means we either have to import less from them, or raise the cost of what they send us so equal it out to some degree.

 

[greybeard]

In either case, it makes the goods more expensive to produce so the manufacturers of the goods either hike their prices or their profit decreases.

How so?
A widget is made by Toot&Froot in Balok, Lathon for export and domestic use. It costs 27 frialit to make.
A neighboring country Slithen, has plenty of their own widgets and assesses the equivalent of a 4 frialit import tariff on any Lathon made widget that comes into Slithen.
It still costs the Toot&Froot Co only 27 frialit to make their widgets.


It's only at PoE that a tariff is paid (and it's mostly done electronically nowadays)

Now, if a tariff is levied on a raw material that a nation's business needs to make any given widget, THEN the cost of making it went up....on paper.

 

[hurleyjd]

In either case, it makes the goods more expensive to produce so the manufacturers of the goods either hike their prices or their profit decreases.

How so?
A widget is made by Toot&Froot in Balok, Lathon for export and domestic use. It costs 27 frialit to make.
A neighboring country Slithen, has plenty of their own widgets and assesses the equivalent of a 4 frialit import tariff on any Lathon made widget that comes into Slithen.
It still costs the Toot&Froot Co only 27 frialit to make their widgets.


It's only at PoE that a tariff is paid (and it's mostly done electronically nowadays)

Now, if a tariff is levied on a raw material that a nation's business needs to make any given widget, THEN the cost of making it went up....on paper.

Reason for the billion dollar losses at GM, Ford and others using steel and aluminum. Will the American companies that make steel and aluminum give the consumer a break or not. Taxes and tariffs look like to me that the final user of the product is the one paying the price.

 

[M-5]

In either case, it makes the goods more expensive to produce so the manufacturers of the goods either hike their prices or their profit decreases.

How so?
A widget is made by Toot&Froot in Balok, Lathon for export and domestic use. It costs 27 frialit to make.
A neighboring country Slithen, has plenty of their own widgets and assesses the equivalent of a 4 frialit import tariff on any Lathon made widget that comes into Slithen.
It still costs the Toot&Froot Co only 27 frialit to make their widgets.


It's only at PoE that a tariff is paid (and it's mostly done electronically nowadays)

Now, if a tariff is levied on a raw material that a nation's business needs to make any given widget, THEN the cost of making it went up....on paper.

Reason for the billion dollar losses at GM, Ford and others using steel and aluminum. Will the American companies that make steel and aluminum give the consumer a break or not. Taxes and tariffs look like to me that the final user of the product is the one paying the price.

In regards to GM , They chose the wrong horse to ride . They backed the regulation that was being mandated and the real people spoke with their pocket books because they didnt want what they offered. The consumer always pays in part because of one thing "government regulation" . Get government out of it and the free market will win every time.

 

[backhoeboogie]

Can’t leave the politics out.
This thread is circling the drain.

Mod you are right. Having a sensible discussion is difficult at times.

That's the problem with taxes. United States against China is political in itself. Or Japan or Germany etc. When tend to think of politics on a domestic level.

The Boston Tea Party was over taxes on tea. Now I pay property taxes, income taxes, social security taxes, all of which are cutting my bottom dollar way before I pay sales taxes. A tariff is simply more cost passed on to me if I choose to buy a foreign product. Walmart is stocked full.

 

[hurleyjd]

"That's the problem with taxes. United States against China is political in itself. Or Japan or Germany etc. When tend to think of politics on a domestic level. "

We never hear about South Korea and all of its cars and tractors coming here. Is China the only problem country.

 

[Bestoutwest]

Actually free trade has been part of the Republican Party platform for years, Hurley’s party not so much.

Have you forgotten about TARP?

 

[greybeard]

No, China isn't the only problem.

 

[TennesseeTuxedo]

Actually free trade has been part of the Republican Party platform for years, Hurley’s party not so much.

Have you forgotten about TARP?

https://www.investopedia.com/terms/t/tr ... m-tarp.asp

Who could ever forget TARP?

 

[backhoeboogie]

As of December 2013, the Treasury wrapped up TARP and the government concluded that its investments had earned more than $11 billion for taxpayers. To be more specific, TARP recovered funds totaling $441.7 billion from $426.4 billion invested. The government also claimed that TARP prevented the American auto industry from failing and saved more than 1 million jobs, helped stabilize banks, and restore credit availability for individuals and businesses.

 

[Caustic Burno]

Read an interesting article on how generation X drove a lot of the collapse. A very educated high income generation was carrying way more debt than they could service.
This along with regulations driving manufacturing overseas climaxed into the perfect storm driving every higher unemployment.
It was an interesting read several years ago.