Yeah, whenever people say “the other country pays” (well, before this election cycle) what they meant was that the higher price would encourage shoppers to buy domestic this the other country “pays” because they get less revenue. Prices would go up either way though because of the domestic goods were cheaper they would’ve already been the first pick. The thing about taxes is that it doesn’t really matter if it’s placed on the supply or demand side, the end effect is the same. Sure, it will feel different and there might be different short term effects, but it’s the same regardless. The price is higher and government gets a cut.
So I don’t really understand why people believe that even if the foreign country/company was paying the tariff why people would think prices stay the same. As if other countries are just going to get a 25% fee and not increase prices by ~25% to cover that.
The most charitable argument for Trump would be that foreign businesses reduce their prices such that the price paid by their US customers is the same as before the tariffs to remain competitive in the US market, but I think most MAGAs literally just never thought about it.
Yeah, whenever people say “the other country pays” (well, before this election cycle) what they meant was that the higher price would encourage shoppers to buy domestic this the other country “pays” because they get less revenue. Prices would go up either way though because of the domestic goods were cheaper they would’ve already been the first pick. The thing about taxes is that it doesn’t really matter if it’s placed on the supply or demand side, the end effect is the same. Sure, it will feel different and there might be different short term effects, but it’s the same regardless. The price is higher and government gets a cut.
So I don’t really understand why people believe that even if the foreign country/company was paying the tariff why people would think prices stay the same. As if other countries are just going to get a 25% fee and not increase prices by ~25% to cover that.
The most charitable argument for Trump would be that foreign businesses reduce their prices such that the price paid by their US customers is the same as before the tariffs to remain competitive in the US market, but I think most MAGAs literally just never thought about it.