Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

left-of-center2012

(34,195 posts)
Tue Sep 18, 2018, 02:33 PM Sep 2018

Is Trump right that China is paying billions in tariffs?

President Trump is vowing that his latest round of tariffs will help win a trade war,
adding that China is "now paying us billions of dollars in tariffs."

China isn't paying the tariffs, however -- the duties are paid by importers like Ford or Walmart that either swallow the cost or pass it along to consumers. In other words, it's often U.S. consumers who are footing the bill for tariffs.

Mr. Trump's tariffs are designed to make certain goods more expensive for U.S. consumers, who in turn are likely to seek out lower-cost items made in the U.S. or from countries that aren't facing the higher tariffs.

Americans "will soon face higher prices for common goods," Daco noted. "Since the U.S. production apparatus is not geared towards producing most goods imported from China, import substitution would not be a readily available solution."

https://www.cbsnews.com/news/trump-tariffs-on-china-who-pays-tariffs-fact-check-billions-statement/

22 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Is Trump right that China is paying billions in tariffs? (Original Post) left-of-center2012 Sep 2018 OP
Fucking liar. dalton99a Sep 2018 #1
More of a fucking moron than liar this time. TreasonousBastard Sep 2018 #7
Nope, we are when we buy product from China bottomofthehill Sep 2018 #2
and, most of the Chinese good imported to the US NewJeffCT Sep 2018 #5
My understanding is... at140 Sep 2018 #3
True, that's a sensible interpretation Hav Sep 2018 #6
I did notice something different at walmart this week and I think tariffs may be why... GemDigger Sep 2018 #4
More likely they found a cheaper Jordanian sweatshop. TreasonousBastard Sep 2018 #8
China is no longer the cheapest labor country at140 Sep 2018 #13
Protectionist tariffs are often justified to keep imports out to protect nascent... TreasonousBastard Sep 2018 #9
Not enough recent data to predict that because at140 Sep 2018 #14
In the sense that the store pays sales tax Recursion Sep 2018 #10
The motherfucker doesn't have a clue matt819 Sep 2018 #11
And the cost gets passed on to the consumer, which more often than not is an American rather than FSogol Sep 2018 #19
Does wal-mart pay the sales tax, or does the buyer pay it? Cicada Sep 2018 #12
In theory, the US tariff makes foreign products at140 Sep 2018 #15
TV factories will not move to Ohio, they will go to Vietnam Nam Cicada Sep 2018 #17
Correct, it will not be 100% at140 Sep 2018 #18
Russia "won" against Germany. 20 million died. Cicada Sep 2018 #20
I have never seen a war without mayhem & grief at140 Sep 2018 #21
Same as all taxes MichMan Sep 2018 #16
He has no idea what a trade deficit or a tariff is. WhiskeyGrinder Sep 2018 #22

NewJeffCT

(56,828 posts)
5. and, most of the Chinese good imported to the US
Tue Sep 18, 2018, 02:46 PM
Sep 2018

are also imported for US corporations that have operations in China. Like, the iPhone, made in China for Apple, IBM laptops, etc

A few exceptions are Chinese branded goods like cellphones (Huawei, OnePlus, etc) and appliances (Haier, but they opened a plant in South Carolina a few years back, so may not be imports anymore?)

at140

(6,110 posts)
3. My understanding is...
Tue Sep 18, 2018, 02:37 PM
Sep 2018

US Customs has the job of collecting any existing tariffs as products come in to the country. Whether they are doing that job or not, there is no way I can find out easily.

For example if a China made car comes in, and it's value is $20,000 then customs should collect 25% tariff money, $5000, from the exporter before the car will be allowed to go into the US market.

Hav

(5,969 posts)
6. True, that's a sensible interpretation
Tue Sep 18, 2018, 02:48 PM
Sep 2018

Still, it's strange to think about it as "China" paying for it. A company will be paying that at first. But the increasing costs will most likely be covered by the customer who buys the product and not by the producer or the seller.

GemDigger

(4,305 posts)
4. I did notice something different at walmart this week and I think tariffs may be why...
Tue Sep 18, 2018, 02:40 PM
Sep 2018

I was walking by a sweatshirt that was cute so I looked at the inside tag and "gasp" made in Jordan and so I looked at a few more and all were the same. To escape tariffs maybe?

at140

(6,110 posts)
13. China is no longer the cheapest labor country
Tue Sep 18, 2018, 05:58 PM
Sep 2018

Other Asian countries such as Indonesia, mynmar, Bangladesh, Jordan etc are taking away the business from China, for products which are low tech and requires lower skill labor. China is focused on making high tech products such iPhones, airplanes, machine tools (China bought engineering from the outfit I worked for in 1980), MRI & CAT scanners, automobiles & Trucks etc.

TreasonousBastard

(43,049 posts)
9. Protectionist tariffs are often justified to keep imports out to protect nascent...
Tue Sep 18, 2018, 03:08 PM
Sep 2018

domestic industries. They shouldn't last after the local industries don't need the protection any more.

These are not protectionist. These are punitive, and that sort of thing never ends well.

at140

(6,110 posts)
14. Not enough recent data to predict that because
Tue Sep 18, 2018, 06:01 PM
Sep 2018

Our tariffs have been much lower than our trading partners, since WWII.

matt819

(10,749 posts)
11. The motherfucker doesn't have a clue
Tue Sep 18, 2018, 03:32 PM
Sep 2018

Holy crap. He doesn't know how tariffs work.

Tariffs are collected by the governments. Tariffs are not paid by governments. They are paid by individuals and companies.

FSogol

(45,488 posts)
19. And the cost gets passed on to the consumer, which more often than not is an American rather than
Wed Sep 19, 2018, 01:23 PM
Sep 2018

Chinese consumers.

Cicada

(4,533 posts)
12. Does wal-mart pay the sales tax, or does the buyer pay it?
Tue Sep 18, 2018, 04:25 PM
Sep 2018

Walmart sells a motorcycle helmet with a price $100.00. The buyer pays $107.25. Who pays the 7.25?

Same with tariff. A shipload of tvs lands at Long Beach, the bill says fifty million dollars. Target stores pays 62.5 million. 50 million goes to the Chinese manufacturer 12.5 million goes to US government. Who paid the 12.5 million? Not China.

at140

(6,110 posts)
15. In theory, the US tariff makes foreign products
Tue Sep 18, 2018, 06:07 PM
Sep 2018

More expensive for US buyers, allowing local manufacturers to make it here,
Creating jobs here, with equivalent loss of jobs in foreign countries.

If we expand jobs here, our government collects more income taxes.
While the foreign government loses income taxes and have to pay benefits to their unemployed.

But this is all theory, and it may or may not work.

at140

(6,110 posts)
18. Correct, it will not be 100%
Wed Sep 19, 2018, 01:19 PM
Sep 2018

And will not affect 100% of products. Some industries could gain such as steel & aluminum, TV production could go to some other cheaper labor country on whom we don't impose stiff tariffs. But a tariff war with China will definitely hurt China and it could just as likely hurt US for certain segments of industry. Keep in mind China exports $500+ Billion to US while we export $130+ Billion to China. Which means China has more to lose in a trade war.

at140

(6,110 posts)
21. I have never seen a war without mayhem & grief
Thu Sep 20, 2018, 10:09 AM
Sep 2018

which is why my biggest resentment is against neocons, such as Lindsey Graham, John Mcain, Bush-43 & others. And trade war is a war of sorts without bullets. There will be casualties.

Latest Discussions»General Discussion»Is Trump right that China...