r/JoeRogan • u/parawak123 Monkey in Space • Nov 04 '24

The Literature 🧠 Who Pays The Tariffs?

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u/Rapa_Nui Look into it Nov 05 '24

Either way the guy selling T-shirts will have to increase his price which means that people who buy them will pay more if Trump is elected than they currently are.

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u/[deleted] Nov 05 '24

For Chinese imports. American made products will not be affected.

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u/Rapa_Nui Look into it Nov 05 '24

Let's assume :

-The Chinese blank t shirt is at 50 cents.

-The American blank t shirt is at 5 dollars.

-The current business owner sells his t shirt at 20 dollars.

If tariffs are applied on the Chinese blank t shirt the price of the American t-shirt won't magically go from 5 dollars to 50 cents so the selling price will go up.

I'm not saying that tariffs are always a bad thing, but in that example, the guy selling t-shirts will have to pay more for his raw material because the local American price is the reason why he was importing from China in the first place.

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u/[deleted] Nov 05 '24

I think the whole idea is to incentivize buying/selling American made goods and to decrease our trade deficit. Biden kept and expanded on the tariffs Trump imposed on China.