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US businesses and consumers pay 90% of tariff costs, New York Fed says

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Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#151

Post by amanaplanacanal »

JungleGymSam wrote: post #140
LastTrain wrote: post #98

Earlier quoted context omitted.

Very, very few people believe that. This is how it works: Republicans willfully lie to their supporters, who know it is lie, and they then knowingly pass on the lie to you. This could be your conservative friends, family, co-workers. They are all knowingly lying to you. This is a pretty simple form of debasement and a loyalty test - will you repeat this lie for me? The bigger the lie, the more loyal.

you don't actually believe that is a one sided thing do you?

What's the other side, do you think?

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#153

Post by SunshineTheCat »

phkahler wrote: post #112
SunshineTheCat wrote: post #13

Everyone has been getting sold that these tariffs are on "China" or fill-in-the-blank on what country we're "getting" with them. The reality is that's a fundamental misunderstanding of what a tariff is. There is a reason you will find tariffs drop off after the great depression. They make everything more expensive for businesses and in turn, the end consumer. https://en.wikipedia.org/wiki/History_of_tariffs_in_the_Un…

No. The point is to make foreign goods more expensive in order to bring production back to the US. People who don't realize this point out who is actually paying and claim its a problem. Will this bring manufacturing back? It seems to be working to some extent, but its a risk to manufacturers because the whole thing could get reversed after an election.

That is one of the given reasons, but as with everything else about these tariffs, it's nonsensical:

1. It isn't now, nor has it ever been, the role of the federal government to dictate what types of jobs exist in the private sector. 2. Even if this was the end goal, making it easier and more affordable to manufacture in the US would be far better for all parties involved rather than brute forcing it through arbitrary taxes.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#154

Post by neilwilson »

FuriouslyAdrift wrote: post #136
phkahler wrote: post #112

Earlier quoted context omitted.

No. The point is to make foreign goods more expensive in order to bring production back to the US. People who don't realize this point out who is actually paying and claim its a problem. Will this bring manufacturing back? It seems to be working to some extent, but its a risk to manufacturers because the whole thing could get reversed after an election.

I work at a manufacturing supplier (packaging and logistics) and our business has been on fire since the trade war kicked off. Pre-COVID we were at ~$25MM yearly and now we are $150MM+ and growing steadily. We just bought a million sq ft building (that was an old RCA plant) and millions in new machinery to keep up. We are only a regional player, too.

What has been the impact on the distribution in the firm. Have more staff been hired, have more supply contracts been handed out, have worker bonuses increases or has it all flowed to the bottom line?

This is the other side of tariffs that few discuss. It may put import prices up, but it also increases the domestic flow of income.

Which means that those who rely solely on imports pay the cost and those who make the domestic supply get an increase in income as an offset.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#155

Post by embedding-shape »

phkahler wrote: post #112
SunshineTheCat wrote: post #13

Everyone has been getting sold that these tariffs are on "China" or fill-in-the-blank on what country we're "getting" with them. The reality is that's a fundamental misunderstanding of what a tariff is. There is a reason you will find tariffs drop off after the great depression. They make everything more expensive for businesses and in turn, the end consumer. https://en.wikipedia.org/wiki/History_of_tariffs_in_the_Un…

No. The point is to make foreign goods more expensive in order to bring production back to the US. People who don't realize this point out who is actually paying and claim its a problem. Will this bring manufacturing back? It seems to be working to some extent, but its a risk to manufacturers because the whole thing could get reversed after an election.

> It seems to be working to some extent

To what specific extent is it working? Not that I don't believe you, just curious how much it's changed already and in what way.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#157

Post by temp8830 »

jleyank wrote: post #86
stevenjgarner wrote: post #49

Earlier quoted context omitted.

Most people here in the US that I talk to understand that the additional tariffs imposed by the Trump administration are an attempt to get domestic US industries to produce the items that are now being imported subject to the tariff. In some cases that has been successful. In many cases not. Many industries are virtually impossible to de-globalize.

The end result is still higher prices for the end-consumer... If the local businesses were unable to compete with a foreign supplier w/o the tariff, they'll be unable to do it with the tariff. So the consumer will end up paying less than (foreign + tariff) but higher than (foreign).

Yes, and the gamble is that the positives from boosting domestic industry will outweigh the negatives from higher prices. The only people confused about this are NPR-constructed strawmen.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#158

Post by sham1 »

heratyian wrote: post #78

If tariffs are bad, why does every country tariff US-made products so heavily?

Well that's the big question. Do they? Like, why was a 15% tariff imposed to products from here in the EU? And why was Trump toying with the idea of imposing extra tariffs on my homeland of Finland alongside Denmark, Norway, Sweden, France, the UK, Germany, and the Netherlands for sending troops onto Greenland -- after having insulted the whole lot of us -- and of course also to France for daring to not join Trump's little "Board of Peace".

Even if there were massive tariffs towards the US, these are clearly politically motivated economic attacks, not motivated by economics. And that's not a thing an ally would do, regardless.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#159

Post by phkahler »

hackyhacky wrote: post #144
phkahler wrote: post #112

Earlier quoted context omitted.

No. The point is to make foreign goods more expensive in order to bring production back to the US. People who don't realize this point out who is actually paying and claim its a problem. Will this bring manufacturing back? It seems to be working to some extent, but its a risk to manufacturers because the whole thing could get reversed after an election.

Manufacturing jobs are down. [1] [1] https://www.koco.com/article/manufacturing-jobs-us-tariffs/7...

Perhaps because the inputs to domestic manufacturing are currently more expensive. Actually increasing manufacturing capacity first requires construction and capital expenditure. I'm not sure how those metrics are doing.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#160

Post by thisisit »

heratyian wrote: post #78

If tariffs are bad, why does every country tariff US-made products so heavily?

Maybe you have been fed a lie?

In most free trade agreements many products are without tariffs, some have quotas and others yet have tariff. For example, under CUSMA Canada have no tariffs on US made apparel and footwear, diary is under quota and steel has 25-50% tariffs. But then if you hear someone who lies a lot and has an agenda they will only tell you about steel tariffs and make you think that all US made products are under tariff.

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