Can someone explain to me, so I can explain to my libtard cousin, how the tariffs are paid by China? He keeps posting that consumers pay the tariffs, but we know that’s clearly not true because Trump makes China pay. Is it that China has to pay 10% when they sell the goods, or something else. I’m dealing with a real idiot here.
Hope this helps.
The owner of ten motels needs to buy an alarm clock for each room, and has been paying $15.00 each.
He finds some coming from China that are priced at $12.00 each and places an order from China.
There is now a tariff put on those alarm clocks but the buyer will no pay more than $12.00 each, so China incorporates the tariff and keeps the price at $12.00, making less of a profit.
The buyer sees no price increase and the seller (China)pays the tariff. As tariffs increase China pays more until it can’t make the sale because it would lose money.
China loses, we win.
Just point at inflation. Simply there is none meaning we are not paying more for stuff. Then point at China devaluing their currency. Before it took 90 of their cents to buy something in the world. Today the same thing costs them a dollar of their currency. Who is paying the tariff? They are eating it by making their stuff worth less and we are not paying for it... That simple.
The other way to explain it is this. They sold us a cup for a dollar before the tariffs. They now sell us that same cup for 90 cents and there is a 10 cent tariff. Same cup costs us the same dollar. US government gets 10 cents. Chinese now only got 90 cents. Who paid for the 10 cents. Remember we always paid a dollar. China paid the US government 10 cents. We know they are selling it at 90 cents because there is no inflation (we aren’t paying more) and our companies are not taking a loss, in fact retail is doing GREEEEAT as Tony the Tiger would say. Record profits for Walmart which is Chinas sales floor here in the US.
If that doesn’t get through write the cousin off but do send a “breathe in, breathe out, repeat” sign. To steal a line: If that doesn’t get through, your cousin “is the reason there are directions on shampoo bottles.”