So a tariff on goods coming into the USA. Who pays for that?
The USA purchaser or the across the border seller?
Yes
the importer.
Some would have you believe the buyer always pays, but that is not true.
OFTEN the Seller/Importer just eats it and takes it off their bottom line.
“So a tariff on goods coming into the USA. Who pays for that?”
Are you being intentionally obtuse or you really don’t know?
It’s essentially a tax on everything that is imported to US from Mexico. It will raise prices on those items which will make the Mexican product unattractive price wise to the consumer making another choice preferable.
If it’s an item that can’t be imported form another source.....Just don’t buy it. Pretty simple really.
What does is make Mexico less
competive as Americans shop
for cheaper alternatives. Or
they will stop purchasing Mexican
goods altogether.
either way , the pain comes at the register. Most of us will only notice the price gap shrink (just a bit) between “made over there” and “made over here”.
I value a free market, Just finding it harder to have a free market when it has become dominated by major players filling bureaucratic bank accounts.
looks like the Libs will finally get a big centralized government that limits freedom by forcing us to use government to stop them...
We reaffirm our belief in the protective tariff to extend needed protection to our productive industries. We believe in protection as a national policy, with due and equal regard to all sections and to all classes. It is only by adherence to such a policy that the well being of the consumers can be safeguarded that there can be assured to American agriculture, to American labor and to American manufacturers a return to perpetrate American standards of life. A protective tariff is designed to support the high American economic level of life for the average family and to prevent a lowering to the levels of economic life prevailing in other lands.
In the history of the nation the protective tariff system has ever justified itself by restoring confidence, promoting industrial activity and employment, enormously increasing our purchasing power and bringing increased prosperity to all our people.
The tariff protection to our industry works for increased consumption of domestic agricultural products by an employed population instead of one unable to purchase the necessities of life. Without the strict maintenance of the tariff principle our farmers will need always to compete with cheap lands and cheap labor abroad and with lower standards of living.
The enormous value of the protective principle has once more been demonstrated by the emergency tariff act of 1921 and the tariff act of 1922.
We assert our belief in the elastic provision adopted by congress in the tariff act of 1922 providing for a method of readjusting the tariff rates and the classifications in order to meet changing economic conditions when such changed conditions are brought to the attention of the president by complaint or application.
We believe that the power to increase or decrease any rate of duty provided in the tariff furnishes a safeguard on the one hand against excessive taxes and on the other hand against too high customs charges.
The wise provisions of this section of the tariff act afford ample opportunity for tariff duties to be adjusted after a hearing in order that they may cover the actual differences in the cost of production in the United States and the principal competing countries of the world.
We also believe that the application of this provision of the tariff act will contribute to business stability by making unnecessary general disturbances which are usually incident to general tariff revisions.
Demand is elastic, no?