[DannyTN]

"Tariffs are like taxes. The end-user pays the tariff. Just as the end-user pays the tax."

No, tariffs are not like taxes because only the imports are taxed. Therefore a couple of things can happen.

• Production can move here and avoid the tariff altogether.
• If production doesn't move here, then the tariff has to be paid, but that can come from either a price rise in price to the consumer or a reduction in profits for the producer.
• If China doesn't absorb the tariff, then the price to the end user will rise and the American Consumer will pay and the American government will benefit.
• If China does absorb the tariff to keep production from moving here and to keep it's own people employed, then that's a direct hit to the Chinese government which taxes it's firms with a 90% tax. Chinese government loses, American government wins.

The best result though, is that production moves back to the U.S. because then Americans are earning salaries, paying income taxes, and spending money in the American market. And none of that is happening, when Americans are unemployed.

[Cringing Negativism Network]

Enthusiastic bump!

Good post.

[1rudeboy]

Here is an interesting paper that details how Obama's vaunted tariff on Chinese tires cost American consumers $1 billion dollars, and saved 1000 jobs.

If you look closely, there is a neat little graph that shows how much domestic producers raised their tire prices after the tariff on Chinese tires was imposed.

So keep promising what you cannot deliver. I want a pony.

[okie01]

If production doesn't move here, then the tariff has to be paid, but that can come from either a price rise in price to the consumer....

Exactly, Danny. Exactly. The tariff has to be paid...and what is the "price rise to the consumer" if not a tax?

Protectionism is a dead-end street.

Unless it is less expensive to produce the item in the U.S. But, because it wasn't, that's why the production moved overseas in the first place.

[Toddsterpatriot]

If China doesn't absorb the tariff, then the price to the end user will rise and the American Consumer will pay and the American government will benefit.

First thing you've said that I agree with.

The problem is, you think this is a good thing.