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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIs 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/
dalton99a
(81,513 posts)He is imposing a direct tax on U.S. consumers
TreasonousBastard
(43,049 posts)bottomofthehill
(8,332 posts)NewJeffCT
(56,828 posts)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)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)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)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?
TreasonousBastard
(43,049 posts)at140
(6,110 posts)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)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)Our tariffs have been much lower than our trading partners, since WWII.
Recursion
(56,582 posts)It's still my money leaving my wallet at the cash register
matt819
(10,749 posts)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)Chinese consumers.
Cicada
(4,533 posts)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)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.
Cicada
(4,533 posts)at140
(6,110 posts)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.
Cicada
(4,533 posts)I smell a pyrrhic victory.
at140
(6,110 posts)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.