Do we still remember that Tariffs are supposed to raise the price of foreign goods and make domestic goods more reasonable for buyers? it targets buyers and this is how it works regardless of how it is presented to the public, I don't imagine lots of supporters if presented as it is.
What if tariffs?
71–80 of 286 posts
Re: What if tariffs?
#72Earlier quoted context omitted.
The exporter gets paid the same as before. The buyer pays more. There's a subtle difference, can you spot it?
Let's imagine, hypothetically speaking, that demand is perfectly inelastic. The price of a good is $10, and buyers will absolutely refuse to pay more than $10 under any circumstances. Before a tariff is imposed, the seller sells the good for $10 and keeps $10 in revenue. If a tariff of $1 is imposed under these hypothetical circumstances, does the buyer pay more? Does the exporter get paid the same as before? Clearly…
The exporter may sell less to the US, but typically they will then sell the difference into non-US markets, reducing the impost. This is exactly what happened in a lot of (not all) markets a few years ago, when China tried to intimidate Australia with trade restrictions [1]. When Chine dropped the restrictions, they found that they were now competing with more buyers and so paying higher prices.
[1] https://www.ussc.edu.au/chinas-trade-restrictions-on-austral...
Re: What if tariffs?
#73Re: What if tariffs?
#74Large order in from Venezuela
Re: What if tariffs?
#75The number 39 refers to the 39% tariff rate on Switzerland. Kind of insane that the American President just made up a lie that tariffs are paid by foreign countries and rest of the administration just went along with it. It flies in the face of any common sense.
Depending on the circumstance, the burden of tax can fall more on consumers or on producers based on the elasticity of supply and demand.
Microeconomics 101: https://www.khanacademy.org/economics-finance-domain/microec...
Re: What if tariffs?
#76Earlier quoted context omitted.
The exporter gets paid the same as before. The buyer pays more. There's a subtle difference, can you spot it?
Let's imagine, hypothetically speaking, that demand is perfectly inelastic. The price of a good is $10, and buyers will absolutely refuse to pay more than $10 under any circumstances. Before a tariff is imposed, the seller sells the good for $10 and keeps $10 in revenue. If a tariff of $1 is imposed under these hypothetical circumstances, does the buyer pay more? Does the exporter get paid the same as before? Clearly…
Losing sales isn't the same as paying the tariff. The person importing the item pays the tariff. Their item won't be released from customs if they don't pay. They pay to the US government.
The correct thing to say is that the tariff has an effect on demand because of the impact of adding a tariff on top of the price.
Re: What if tariffs?
#77Earlier quoted context omitted.
As with many things in economics the effect of a measure often depends on the timeframe one considers. Honestly, anything could be true if one just chooses the appropriate timeframe. However, the tariffs clearly introduce an inefficiency which - globally speaking - will be net negative. Locally speaking, though, who knows …
> However, the tariffs clearly introduce an inefficiency which - globally speaking - will be net negative. Nobody can predict this. Tariffs are used by trump mostly as a negotiation and distraction tactic. In that sense they've been extremely effective.
[flagged]
Re: What if tariffs?
#78Earlier quoted context omitted.
As with many things in economics the effect of a measure often depends on the timeframe one considers. Honestly, anything could be true if one just chooses the appropriate timeframe. However, the tariffs clearly introduce an inefficiency which - globally speaking - will be net negative. Locally speaking, though, who knows …
> However, the tariffs clearly introduce an inefficiency which - globally speaking - will be net negative. Nobody can predict this. Tariffs are used by trump mostly as a negotiation and distraction tactic. In that sense they've been extremely effective.
> they've been extremely effective.
yes, as a pump and dump scheme. He and people in his administration have made a lot of money with tariffs!
Re: What if tariffs?
#79[dead]
Re: What if tariffs?
#80It looks so terrible I thought the idea behind it was “this is what the US can manufacture without importing foreign materials”. But nah, it’s just an ugly watch with a pretty dumb marketing stunt that makes it less usable as a watch.
It’s a part of a collection: “WHAT IF?” https://www.swatch.com/en-ch/bioceramic-what-if.html
Should be called "WATCH IF?".