Tariffs on imported goods are a new revenue source paid by exporters for the privilege of selling their product in America. If the costs are passed on to consumers rational shoppers would buy American made, tariff free, lower cost products or do without. The “experts” predicted a trade war. There is no trade war. Trump is a genius.
Pogue Colonel: Then how about getting with the program? Why don’t you jump on the team and come on in for the big win?
“Tariffs on imported goods are a new revenue source paid by exporters for the privilege of selling their product in America.”
No. The foreign exporters do not pay the tariff. The U.S. importer pays the tariff at the time the goods are checked by U.S. customs at the port of entry.
When costs are passed on to consumers, it does not mean the consumer will then buy a “U.S.” made item, becomes the reality is it does not mean there is a comparable U.S. made item. For most item, a comparable item is another foreign import with a company who as managed to keep their prices competitive by cutting costs elsewhere, not by avoiding the tariff.
As to whether or not the tariff costs have been inflationary? It seems not.
That does not change either that tariffs ARE paid by the U.S. domestic importer, amounting to a tax for them, and the tariff revenue has not changed the federal deficit and debt outlook materially.