I would say someone has to pay for the unemployment costs of idling our manufacturing work force.
But no the cost differential between slave wage products and the cost of US workers goes to the stock holders. So hopefully the tariff will just negate that. So the increase will be negligible.
I’m afraid any tax has its downside. Taxing imports does hurt the American consumer who now faces less attractive choices.
As for stockholders, some benefit, some lose. Those who hold stock in companies that compete against tariffed goods gain. Those who own stock in companies that are subject to the tariff lose.
Also, there will be further repercussions. If we erect tariffs against others, they may increase their tariffs against us.
Now here is something that most people don’t fully appreciate. Trade is reciprocal; you trade something for something.
Imagine that we bought from no one - Island USA. In that case, no one would buy from us. This would be good for some of our producers. However those who produced for export would suffer.
If tariffs are too high, expect smuggling.
Americans will tolerate low taxes. It may be best to have a variety of taxes, so that no one tax is too high. But I think the best answer is to cut government spending so we don’t need so much tax revenue. Also, grow the economy!
“But no the cost differential between slave wage products and the cost of US workers goes to the stock holders. So hopefully the tariff will just negate that. So the increase will be negligible.”
A 45% tariff on imported goods has been proposed. You actually think the impact of a 45% increase in the cost of goods will be “negligible”?