What exactly are tariffs and how do they work?
What exactly are tariffs and how do they work?
I have 0 maths or economy skills, so I do need it explained like I'm 5. They're in the news a lot atm but I just don't understand them
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It's a US tax on buying foreign stuff.
Problem us, in a global economy, local alternatives often don't exist are still aren't competitive in price.
So it's just a giant consumer tax disguised as "being tough on foreign nations"
So people buying stuff from overseas have to pay a tax on what they buy?
Bingo
What do you think the real reason for the government doing that is?
Putin has been blackmailing Trump, Trump is following orders. It by far the most logical explanation, and is common knowledge in the intelligence community. He has alienated all of America's traditional allies, halted all support of Ukraine, exempted only Russia from tariffs, removed the protections against foreign interference. Soon you will see sanctions and travel bans lifted
Yes, you go off behaviour not words and his behaviour shows hes pro Russia. How do the tarrifs help Russia? Does anyone know for certain what he's blackmailing him with?
The tariffs hurt America. Some think it'll crash our economy.
Ahhhhh so it's sabotage to the US for Putin I understand thanks
The official excuse is to incentivize Americans to buy American made products. If you want to sell goods in America, then it should also be produced in America. Red state voters think this sounds like a good idea, because it will bring back more low skill jobs to America (red state voters generally don’t like education).
The problem is that this is very reckless, and probably won’t change anything (except making things cost way more). It completely turns the global market upside down. Other countries will answer by trading less with America.
I believe what will happen over time (if this continues) is that US is going to get economically weaker. They will rely more on export of their own goods, and to compete in the global market they must reduce their salaries. The average American will get poorer. The low skill jobs are back, but the salaries are shit.
The rich will somehow get richer as always.
That was really easy to understand thanks
The companies bringing the stuff into the US pay this. As a consumer, all you'll see are increased prices. You'll never see tariff details on a receipt. Unless you directly import something yourself.
The importer passes the costs on to you the consumer.
Ah of course they don't want to pay it themselves