Originally posted by dadudemon
The exporter obviously pays the tariffs. It is economically short-sighted to think that the importing country will not eventually pay for an increased tariff because the cost is increased for the good being imported.But it's not as simple as say, "Americans pay for the tariff." No, Mexico would pay for the increased tariff. All Mexican companies would be forced to pay that tariff. And Americans may switch to American goods or other foreign goods that cost less. Which harms Mexican businesses. Americans won't magically pay for the more costly Mexican goods especially if those costs rise above American good costs.
And keeping those dollars in the US is already one of the talking points Trump has had for ages. You think Trumpers are going to be upset that we have to pay 30 cents more for some domestic avocados or $12 more for a Vizio TV that had to be manufactured in the US due to the cost-benefit not being there for Mexico? No, they will celebrate. And be happy about it.
I believe that is wrong and I double checked. A tariff is almost always paid by the importer; not the exporter.
What Is A Tariff And Who Pays It?
"A tariff is a tax on imported goods. Despite what the President says, it is almost always paid directly by the importer (usually a domestic firm), and never by the exporting country. Thus, if the US imposes a tariff on Chinese televisions, the duty is paid to the US Customs and Border Protection Service at the border by a US broker representing a US importer, say, Costco." -snip
Which in turn the company passes the increase (or part there of) to the consumer, ie you and me. So in regards to Trump's Tariff-Wall idea, we'd still be paying for it.
Speaking of: Trump supporter eyes moving factory to Mexico over tariffs
A supporter of President Trump is considering moving his company's production headquarters to Mexico in an effort to avoid Trump's tariffs on Chinese imports, according to The New York Times.
Pat LeBlanc, the chairman of EBW Electronics, voted for Trump in 2016 but told the Times that the tariffs are "killing us."
“I just feel so betrayed. If we fail because the company is being harmed by the government, that just makes me sick," he added, saying that he expects that his profits in 2019 will be cut in half because of the tariffs -snip
Trump's silly trade wars are harming US companies and Americans.