Trump aide says tariffs will raise $6 trillion as White House readies plan

5 comments

Raise $6T or transfer it from one class to another?

Asking for a former friend. You’re the economists.
That is $6 trillion from new tax called "Import tariff". Retail Price = Purchase Price + Transport Costs + Tariff + Profit Margin + Sale Tax
- That's quite inaccurate. Many of these taxes are not additive but multiplicative:
  
  Retail price = ((Purchase price + international transport costs) * tariff + national transport cost) * profit margin * sale tax
  
  In other words, it's even worse than you wrote.
  
  I tryed to be as simple as possible assuming that calculations were made separatly in different functions (programmer here). Anyway, tariff is a tax collected by custom office, payed by importer, included in final price that customer pays for the product.