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We agree. The revenue is not easy to calculate exactly and it is not the purpose of the tariff.

If retail prices were to remain the same, then the wholesale import price would need to drop to $1.33T and the revenue would only be $267B rather than the $333B ca_Conservative posited. It is still $267B taken from the pockets of the foreign producers and as US tax revenue would replace half the corporate income tax or two thirds of the current deficit.

If foreign producers are not willing to take the full hit, then import prices go up some but so do the tariff revenues and American products are more competitive.

If people can only afford a $35K car, will they still buy a BMW that is now $40K or will they look more closely at the GM or Ford products that are still $35K ? Or will GM & Ford settle for selling fewer cars at $38K ?

How do things change if the German tariff revenue is handed over to Ford & GM for each car they export (which is what Germany did to the BMW that was exported to the US) and their cost per unit for American sales is lowered ?

Or do the US and Germany agree that Germany will credit the VAT on American imports in exchange for no tariffs on German imports and we actually achieve “free trade” ?

This is the political purpose of tariffs and the point Trump has been making about “free trade”. Trump is not a socialist and his trade goal is not tax revenue like the liberals’ tax-so-we-can-fund-more-spending schemes.

Sorry: That was “central_va” original comment and not “ca_Conservative”.

If retail prices were to remain the same, then the wholesale import price would need to drop to $1.33T and the revenue would only be $267B rather than the $333B ca_Conservative posited. It is still $267B taken from the pockets of the foreign producers and as US tax revenue would replace half the corporate income tax or two thirds of the current deficit.

Tariffs are like taxes. Ultimately they are paid by the consumer. The loss to the foreign manufacturers will not be the tariff paid, but the revenue from loss of sales to people who either bought domestic, or didn't buy at all.

For goods that we don't have domestic manufacturing for, the consumer won't have much choice but to pay more or do without until we get manufacturing online here to compete. For goods that require a substantial investment to set up manufacturing facilities the investors are going to need to have some degree of confidence that the tariffs are going to remain in place long enough for them to see a return on their investment.