Quora Digest
Q: Tariffs are paid to the Customs before the product comes into the country, so how does that raise the price to customers in the USA?
Let’s dumb this down so maybe you can finally understand.
Let’s say you sell MAGA hats. You get the hats from China because you chose a Chinese manufacturer to supply them. (You could have chosen an Indonesian manufacturer, but they sell the same hats for $12.) You pay the Chinese manufacturer $10 for every hat you receive, then you sell a hat to a fellow cult member for $15, making a $5 profit from every hat you sell. (This is EXTREMELY simplified - there were already tariffs in place, but we’ll play pretend for the sake of simplicity.)
Then, a tariff of $5 per hat is imposed just because Trump wanted it.
The Chinese manufacturer may still sell you each hat for $10, but in order to receive it, you have to pay $15 to cover both the sale from the manufacturer AND the Customs fee required for the hat to enter the country. Customs is in the U.S. you know, NOT in China as you may assume. You buy from a manufacturer and YOU pay Customs - that tariff is paid by YOU, NOT the manufacturer.
China will complete your order, but YOU have to pay extra now to receive it.
Are you still going to sell the hat for $15 now that you won’t get any profit? Or are you going to raise the cost of the hat to $20 so you keep getting the same profit you made before the tariffs were put in place? And actually, since you have to raise the price anyway, maybe it’s time to increase your profits and raise the price to $25? Because you might as well take advantage of the opportunity since it’s there.
So, a hat that used to cost the consumer $15 now costs them at least $20, possibly $25.
THAT’S how tariffs raise the costs on American consumers, in a very simplified (read: dumbed down) explanation. Because if you think anyone is willing to lose profits over this, you’re even more out of touch than your question already proves you to be.
Q: Tariffs are paid to the Customs before the product comes into the country, so how does that raise the price to customers in the USA?
Let’s dumb this down so maybe you can finally understand.
Let’s say you sell MAGA hats. You get the hats from China because you chose a Chinese manufacturer to supply them. (You could have chosen an Indonesian manufacturer, but they sell the same hats for $12.) You pay the Chinese manufacturer $10 for every hat you receive, then you sell a hat to a fellow cult member for $15, making a $5 profit from every hat you sell. (This is EXTREMELY simplified - there were already tariffs in place, but we’ll play pretend for the sake of simplicity.)
Then, a tariff of $5 per hat is imposed just because Trump wanted it.
The Chinese manufacturer may still sell you each hat for $10, but in order to receive it, you have to pay $15 to cover both the sale from the manufacturer AND the Customs fee required for the hat to enter the country. Customs is in the U.S. you know, NOT in China as you may assume. You buy from a manufacturer and YOU pay Customs - that tariff is paid by YOU, NOT the manufacturer.
China will complete your order, but YOU have to pay extra now to receive it.
Are you still going to sell the hat for $15 now that you won’t get any profit? Or are you going to raise the cost of the hat to $20 so you keep getting the same profit you made before the tariffs were put in place? And actually, since you have to raise the price anyway, maybe it’s time to increase your profits and raise the price to $25? Because you might as well take advantage of the opportunity since it’s there.
So, a hat that used to cost the consumer $15 now costs them at least $20, possibly $25.
THAT’S how tariffs raise the costs on American consumers, in a very simplified (read: dumbed down) explanation. Because if you think anyone is willing to lose profits over this, you’re even more out of touch than your question already proves you to be.
12 comments:
He's turned us into Shit City. FACT.
Let's not forget the entire Republican Party supported Trump's decisions to fire many air traffic controllers and the support staff necessary for them to keep us safe....the entire GOP is supporting this and we must not let the public forget it.
The irony!
And some of his workers are illegal too.
And his wife is an immigrants
No costs of consumer goods are down, they are up, pricing is so up, quit lying Trump!
Eres el chilindrino, fijate.
Stop buying Chinese made shit, Monty.
Most of us buy Chinese shit. However, we are not burning bridges like Trump.
Stop trying to explain tariffs to MAGAs. They will repeat regurgitated nonsense
from FOX and Breitbart. Unable to rationalize or think independently. The
retort is usually on a 4th grade academic level. Trump loves the uneducated.
You forgot to mention that Trump is bringing the air traffic control to the 21st century. Outdated technological systems were left in place by democrats so that they could afford to fund illegal aliens.
Democrats so fascinated by Trump and his family they can't even sleep at night. Poor losers they don't even have a leader.
Newsweek has stated that the United States is taking in RECORD NUMBERS in Tariffs, with the cost of almost all products going down, including gasoline, groceries, and just about everything else," the president wrote on Truth Social on Tuesday night. "Likewise, INFLATION is down. Promises Made, Promises Kept!"
Bend the knee you "indoctrinated" Trumper. Continue to "idolize" the fool and remember the more you bend over the better he fucks you. Enjoy!
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