How wrong can they be? (Sales up sharply; Chinese pass ZERO costs of tariffs on to US consumers.)

2019-06-14 | Dangus

[bert]

This morning the President said we have collected billions in tariffs from China. That is simply not true. All tariff collections are made by US Customs before entry is permitted. The tariffs are paid by the American purchaser. Generally the purchaser is a corporate entity that passes all or some along to the consumer at the time of the final sales.

Later in his remarks, the president elaborated and explained that China was devaluing the currency or directly subsidizing China Exports to the USA. That is not the same as the claim that China is paying us money in the form of tariffs.

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Just $850.00 dollars to 100%.

[mfreddy]

This couldn’t be more wrong. I work for several companies that import kitchen cabinets, and a closet shelving manufacturer. All 3 companies have had multiple price increases that have mirrored the tariffs.

I also represent a domestic kitchen cabinet manufacturer that uses imported plywood for the sides of the cabinets. They have also raised prices due to the tariffs.

[DoodleDawg]

China doesn’t pay the tariffs; the importer does. And you can bet that they pass the costs on.

[dangus]

>> This couldn’t be more wrong.<<

It never ceases to amaze me when people believe that their anecdotes mean more than than million of data points.

[dangus]

>> China doesn’t pay the tariffs; the importer does. And you can bet that they pass the costs on. <<

Did you even read the article?

[Brian Griffin]

Many prices are higher.

I’ll generally wait to buy until Chinese learn to play the Trump way.

[dangus]

>> This morning the President said we have collected billions in tariffs from China. That is simply not true. All tariff collections are made by US Customs before entry is permitted. The tariffs are paid by the American purchaser. <<

The “American” purchaser is usually an American-incorporated subsidiary of the foreign company doing the importing. For instance, American Honda Motor Company imports Hondas from Japan and is owned by the Honda Motor Company of Tokyo.

>> Generally the purchaser is a corporate entity that passes all or some along to the consumer at the time of the final sales. <<

In this case at least, that turns out to be 100% wrong.

[mfreddy]

It never ceases to amaze me when people believe agenda driven reporting over real world experience. I have had exposure to the Chinese markets for years. The radical escalation in prices is being passed on almost to the penny in reflection of the tariffs.

[bert]

BS rationalization that is untrue. You are delusional

Lowes and Walmart are not foreign corporations. Sears is not a foreign corporation. Apple is not a foreign corporation.

[dynoman]

That’s true, a study was done on it;

http://www.econpol.eu/publications/policy_brief_11

https://www.bloomberg.com/news/articles/2018-11-19/china-is-paying-for-most-of-trump-s-trade-war-research-says

[billyboy15]

The tariffs are indeed collected by US Customs and despite your claim the tariff cash DOES IN FACT GO INTO THE GENERAL TAX FUND.

You are also not correct in saying these tariff costs are “paid by the American consumer”. Clearly that has not happened because importers have either eaten the increases or part of them while laying off the rest to possibly the wholesaler or perhaps even the producer of the goods being imported.

Could tariffs be passed on to consumers at some point? Maybe but as long as importers and wholesalers have choices of from whom they buy and we allow free competition in this country the likelihood is slim. In fact you can produce no numbers showing any increases in tariffs have been passed along to the consumer?

Get your facts straight next time before being a Debbie Downer and trying to blame MAGA for non existing problems.

[dynoman]

Did their price go up? Or are they ripping off the consumer?

Read post 12.

And this;

“Chinese exporters bear costs of Trump’s trade war, say EconPol researchers”
http://www.econpol.eu/press_releases/pm_2018-11-19

[dangus]

>> It never ceases to amaze me when people believe agenda driven reporting over real world experience. I have had exposure to the Chinese markets for years. The radical escalation in prices is being passed on almost to the penny in reflection of the tariffs. <<

Agenda-driven reporting? This isn’t from NBC News, this is from the Import Price Index from the Bureau of Labor Statistics. These are career bureaucrats who, if they had a political leaning, sure as hell wouldn’t be supportive of Trump’s tariffs.

[DannyTN]

Which means the tariffs are high enough yet.

Sure the US is getting the tariff money which is a win. But the goal was to bring industries, production and jobs back to the US.

To do that, you need to see the cost of Chinese goods increase, so that American goods can begin to take the market share.

[dangus]

Mostly probably just whining because they fear the long-term damage due to their industry of replacing American workers. The Chinese are trying to keep manufacturers relying on them, but ultimately they’re just defeating themselves, giving supply chains time to cultivate other sources.

[bert]

You are posting wishful thinking.

The consumers ultimately pay the China tax

The purpose of the tariffs is to make Chinese products so expensive they will cease to be competative. That fact was realized by Mexico and the EU. They changed the ir ways and there is no tariff.

Those here that worship at the tariff alter think the purpose is to raise revenue and eliminate the income tax. That is not true.

[Pelham]

..if they did read it, maybe they write copy for NPR...

[gogeo]

The article was spot on. You’re either economically illiterate or splitting hairs.