So lets hypothesize I’m a small business owner and I purchase my material in China and take the import and sell in America. Trump decides to slap a tarriff on this import which in turn then impacts my costs and who I have employed. In turn if I’m running on small margins I’ll go to the least common denominator and start laying off.
OR I’ll find a different overseas supplier of the product who hasn’t had a tariff slapped on. This is a global market and as a small business owner will find a means to procure the cheapest route available.
So either it’s loss of more jobs through tariff or I find it elsewhere on the market. What exactly is the purpose of a tarrif (penalty) again?
Sure, if all you do is slap tariffs on all imports. That’s why decreasing the taxes and regulatory burdens have to happen at the same time.
+35% tariff - 25% (35%) corp taxes - cost of regulations - cost of Obama care + cost of acquiring material from US sources. Overall the price of the good could be a bit higher but more people will be working and be able to afford the increase.