I think a big problem with the tariffs on foreign goods is that if the rival domestic goods will also likely go up for certain products. For example, let's say a foreign bananna and domestic banana are $1 each. A 10% tariff on the foreign banana is then passed, to cause the foreign banana to be between $1.06-$1.10. The company producing the domestic banana realizing they could make more money now charges $1.05 since it's clear the consumer would be willing to pay more with little drop in demand.
@ibx2cat Interestingly enough I work in the US tax field. The corporate tax rate is the lowest its been since the tax system was first introduced. It's at 21% right now, and likely won't go up as that was a permanent change under Trump's tax cuts in 2018, and Trump will be in charge when many of the act's provisions expire. For context, prior to the act, the US' highest corporate tax rate was 35%. So while the US will get revenue, it's not as much as they used to get. Although, I think the world average is about 22% right now. Also, many US companies are not C-Corps to avoid the corporate tax. S-Corps and Partnerships for example can avoid the corporate tax rate and pay at individual tax rates instead. Definitely an interesting topic if that extra government and possible domestic job creation is worth some inflation.
While that is true, the domestic banana company could also decide to maintain price in order to take market share. Companies aren't always motivated exclusively by increasing profit margins short-term, sometimes they'll make decisions that will increase it over time.
@@Amthepopeconsumers love their 2 dollar all-American bananas, they are clearly twice as good as to those dirty cheap 1 dollar foreign Bananas because they cost more and they come with a us flag on the box.
100 years ago, the US became very isolationist and imposed high tariffs, as well as refusing most immigrants. This didn't completely change until Dec 7 1941.
time change and time is different from the past. America has a lot of resource in natural resource and other. Also new technology, its not the 1920 anymore. the world keep changing if you like it or not. The world is not standing still in a time frame, it always keep moving.
@@billlhooo6485Actually, economic principles in the past can be used to predict things that happen today. More economic factors can be introduced, but something very, very crazy has to happen to change the base principles of human trade. 100 years ago is not a long time at all. There are a good few new technological factors to consider, but the base principles nonetheless remain the same, and if things are done right, the US could very well return to the isolationism of itself 100 years ago.
@@theyeening We're already $35T in debt, so international reforms, by which I assume you mean connections/relationships/assistance, would only increase the deficit, unless it's practically free aid, but not enough free aid is even being provided to Ukraine, so no, that won't help.
Tell that to the oligarchs. The 1% are more globalised than ever. And do you think people doing so much more shopping online from China is non-globalised?
@@Khloya69 In British English the s is prefered to the z in most cases. There was no spelling error here, only your American English coming into contact with British English.
The main issue with trade deficits isn't the actual exchange of goods for money but that the flip side of that is the other side wants to dispose of their currency and does so by purchasing physical assets in the deficit country. If you assume that all peoples in all countries believe and value the same things, that doesn't matter. If you assume that different peoples and different countries have different priorities, the sale of the physical assets of your country can be a very large problem.
Let's also not forget that Trump seems to forget that the US buyers are the ones who pay the import tariffs, not the foreign sellers. He throws this around with extra imports specifically on China like it's the foreign sellers paying for the privilege. It hurts the sellers because less will be purchased, but the additional money paid is domestic.
"Should I buy this more expensive foreign good over this cheaper local one?" The average consoomer is stupid, sure, but they're not completely regarded, mate. Each dollar not earned is a dollar lost in my book.
It still harms them. If everything from China becomes as or similarly expensive to things made domestically, no one will buy them as chinese goods are regarded as poor quality.
@@Ariverfish You might be forgetting that the local goods will also become more expensive because most if not all industries rely on international partners, yes even food
The prices of goods would go up either way, didn't matter if Trump or Harris won. Sure, Trump's tariffs might increase the prices of goods, but Harris's corporate tax increases will do the same. If corporations need to pay more of their profits towards taxes, they will need to increase the price of their products because they have a legal obligation to make set amounts of profit for their shareholders. Any increase in corporate tax, like proposed by Harris, is an increase to the consumer too. Both candidates will increase prices, the only difference is that the tariffs are more likely to create local jobs, whereas the corporate tax increase won't. If enough jobs are created, and if the tariffs are done right, wages might also increase due to higher demand of labor, which could possibly nullify the price increase entirely. More jobs, with a shrinking labor pool due to declining birthrates, equates to higher wages.
It’s like Americans (and others) assume that if imported good are more expensive, U.S. goods would be automatically cheaper, have the infrastructure, be the same quality, etc. If they were serious, they’d prop up domestic industries in addition to the tariffs
The global supply chain disruptions from a couple of years back gave another reason for concern. Global markets are efficient, but they're also fragile, and depend on things going smoothly at every step of a long process.
You need to make a video on how demographics influence world trade. China is going through a demographic collapse that will impact their ability to produce sufficient consumer goods for the rest of the world in a few years from now. Maybe we can view the US tariffs as a way to build up domestic production before China stop producing stuff?
to clarify the actual effects of the steel tariffs - steel imports dropped by 24%, prices increased by 2.4%, HOWEVER, the production only increased by 1.9%. Meaning they made the industries that relied on steel imports shrink by 22%. So, sure, you kept the local steel industry going, but at the cost of countless other industries. Those down-the-line industries are the ones where the actual money is made. Making base-level products is incredibly low margin, which is why the west outsources it to countries with cheaper labour. So forcing that labour to be done in the US, instead of abroad, means that you can't have nearly the same total economic output. Tariffs are meant to be used in security-related ways. For example, tariffing Chinese EVs, or microchip/semiconductor production. But, we have already shown that tariffs don't need to be the only way. The Chips Act, for example, created a ton of incentives for chip manufacturing in the US, and it didn't have to cannibalize the export market. Because tariffs are not a one-way interaction. They are incredibly easy to put into place, but incredibly difficult to remove.
While I agree with you, there’s also the sovereignty argument. idk if that name makes sense, but what I mean is that if a country outsources all of its base-level products, they become dependent on other countries. They are are left to the mercy of, say china, to keep their economy going. What if the countries that provide the US with steel suddenly rise their prices or straight up stop selling it to them? Then all of the down-the-line industries that need steel (or competitive steel prices) are worse off than in the protectionist escenario.
@ then they lose their largest customer. It goes both ways. You can’t buy something without a seller. that’s the second part of the comment, that they’re supposed to be for any security issues. On the flipside, however, being reliant on other countries is incredibly powerful. Post-WW2, the world has been increasingly peaceful. As industries developed, areas specialized, and we found various minerals concentrated on other continents, we have required international stability in far more regions. It has been unprecedented with how peaceful it has been. There were 2 decades were between WW1 and WW2. And now here we are, 80 years past that. Since then, there have only been very localized conflicts. Now look, there is a large section of the world that is completely cut off, and now they are free to do as they please, because they produce everything themselves. And what do they do? They invade their neighbours, rig elections, send and fund terrorists abroad, commit cyber warfare. What do they care? We do no business with them, we have no leverage over them at all. The only response then is militaristic. So, really, if you actually cared about protecting your own citizens, you’d want the world to be more intertwined, so you don’t have to resort to sending them to the battlefront.
If US produced good are already expensive for EU market compared to China wouldn't rising tarifs make US products more undesirable and thus make less money for US? As for why US is growing more than EU I think one factor is just size. American continent can still house a lot of people while in Europe a lot of productive regions are already densly populated. U can also transform unproductive regions like deserts slowly with time while while you can't transform ocean around European continent to house more people. It is only natural that US economy is ingrowing EUs.
That’s assuming Europe also rises its tariffs with the US. Which I don’t think they’ll do, the last thing Europe wants right now is increase their dependence on china and their imports.
@@oscarou9288 If Trump built a new NAFTA deal in 2016, he created this current deal himself. If he applies actual tariffs that is going to be really fucking weird and all bets are off, for anything
This will really hurt EU and overall US alliance structure. I don't think EU can survive without major reforms if US becomes isolationist, a break up of EU and regional conflicts can be on the table. Most countries will start implementing their own security agenda and that might even be development of nuclear weapons in countries like Romania, Ukraine, Germany, Poland, Sweden. Isolation will be good for US economy but will be terrible for its Hegemony, allies, global trade and world peace. I want to cry at a corner
I don't think he actually wants to implement these tariffs. I think it's just a threat to try and keep foreign nations such as the EU in line with him. Pretty smart, if I'm correct, in my opinion.
Tariffs will make things more expensive domestically, HOWEVER, people forget that he wants to lower taxes, abolish income tax, no tax on tips, no tax on overtime, AND he wants to deregulate business, which also lowers prices. All in all, I think it will just about even out, and even if it doesn't, that's the price I'm willing to pay for things to be made in the USA again. Is it a little more expensive? Yes. But it creates jobs and keeps money in our own economy. Also doesn't support Chinese child labor.
Ah yes, have the strongest standing military in the world and magically finance it somehow. At least you will indeed have job with your polluted air and water. yum! And last I heard workers rights are a form of regulation on business.
@@Josep_Hernandez_Lujan Nestle is sneaky. I didn't know they still claim to be Swiss despite 98% of their production and assets not being in Switzerland. They'd be interestingly effected.
It’s not that simple. Something that is “made in America” could have left and entered the country 10 times during its manufacture, or use parts/components imported from different countries. Just because something doesn’t say it was made in Europe it doesn’t mean the tariffs won’t affect its price.
I'm def not an expert on this. Just morally right now I see this as a benefit to human rights as if goods can be produced cheaply, its very likely due to the producing country having less rights for its workers such as a certain country forcing factory workers to work 6 days a week with long shifts with a very small wage. If that country with less human rights is then able to price countries producing the same goods at the same standard but with higher labour costs due to higher welfare standards then even though its better for the consumer, its worse for the human race in general as it creates a spiral on how many human rights can be reduced. Ofc if the cheaper producing country pays its workers the same wage and has more innovative methods than another country then it makes sense that they're rewarded and tariffs can harm things like that. I've just found in general, cheaper goods are caused by someone getting screwed over. There are many other aspects of this to consider however I think tariffs could help this aspect.
- Businesses pay increased tax on retained earnings. “Look, they are paying their fair share! This hurts their profits and they totally won’t increase prices on consumers or reduce wages!” - Businesses pay increased tax on Tariffs. “OH MAH GAWD THIS IS A SALES TAX AND IT HURTS JOBS!” 🤔
increasing prices increases tax due and reduces consumer demand in the first example. in the second example, increasing prices keeps their margins the same but also hurts consumer demand. the first example taxes are on profit only and dont increase costs. if they raise prices, their margin goes up and the tax on that margin increases, but they can choose not to and eat the reduced profits at no cost to anyone but shareholders. if they are subject to tariffs, their costs go up irrespective of their margins or net profit. raising the price is a necessity to keep the same margins, but reduced demand could mean they sell less, and thus shrink as a company. shrinking is not a risk if taxes go up because their costs havent changed. profitable companies cannot become unprofitable like with tariffs, so they wont go out of business like they would with tariffs. apples and oranges.
wow people paying 80-200k+ on a foreign car are gonna pay 5k more, oh no....... just make a manufacturer in the US and get around it like other companies have
@@Ariverfish If you punch me in the face and then I punch you back, we might be equal, but who gained anything from that? The only thing that changed is that we both have a sore face - even if my face is more sore than yours. I know this analogy is flawed, because there are genuine reasons to impose tariffs. But a 20% tariff of EVERYTHING will just make things worse.
@@yiannchrst Good, then we'll settle the fight with a beer at the pub. Friendship will only truly be achieved once people start treating each other as equals.
@@noterrormanagement No you got me all wrong. I am not saying it's not a terrible idea I'm saying I don't care about your garbage country that has done more damage to the world than any other nation in modern history.
I think a big problem with the tariffs on foreign goods is that if the rival domestic goods will also likely go up for certain products.
For example, let's say a foreign bananna and domestic banana are $1 each.
A 10% tariff on the foreign banana is then passed, to cause the foreign banana to be between $1.06-$1.10.
The company producing the domestic banana realizing they could make more money now charges $1.05 since it's clear the consumer would be willing to pay more with little drop in demand.
this raises even more revenue for governments through increased corporation taxes
@ibx2cat Interestingly enough I work in the US tax field. The corporate tax rate is the lowest its been since the tax system was first introduced.
It's at 21% right now, and likely won't go up as that was a permanent change under Trump's tax cuts in 2018, and Trump will be in charge when many of the act's provisions expire. For context, prior to the act, the US' highest corporate tax rate was 35%. So while the US will get revenue, it's not as much as they used to get. Although, I think the world average is about 22% right now.
Also, many US companies are not C-Corps to avoid the corporate tax. S-Corps and Partnerships for example can avoid the corporate tax rate and pay at individual tax rates instead.
Definitely an interesting topic if that extra government and possible domestic job creation is worth some inflation.
@@ibx2catwhat about the consumers? Tho
While that is true, the domestic banana company could also decide to maintain price in order to take market share.
Companies aren't always motivated exclusively by increasing profit margins short-term, sometimes they'll make decisions that will increase it over time.
@@Amthepopeconsumers love their 2 dollar all-American bananas, they are clearly twice as good as to those dirty cheap 1 dollar foreign Bananas because they cost more and they come with a us flag on the box.
100 years ago, the US became very isolationist and imposed high tariffs, as well as refusing most immigrants. This didn't completely change until Dec 7 1941.
The difference today is that America is basically dying this time and will need radical (including very internationalist) reforms in order to survive.
@theyeening we were in the great depression dipshit. We are better off now than we were back then. We dont need to go back.
time change and time is different from the past. America has a lot of resource in natural resource and other. Also new technology, its not the 1920 anymore. the world keep changing if you like it or not. The world is not standing still in a time frame, it always keep moving.
@@billlhooo6485Actually, economic principles in the past can be used to predict things that happen today. More economic factors can be introduced, but something very, very crazy has to happen to change the base principles of human trade. 100 years ago is not a long time at all. There are a good few new technological factors to consider, but the base principles nonetheless remain the same, and if things are done right, the US could very well return to the isolationism of itself 100 years ago.
@@theyeening We're already $35T in debt, so international reforms, by which I assume you mean connections/relationships/assistance, would only increase the deficit, unless it's practically free aid, but not enough free aid is even being provided to Ukraine, so no, that won't help.
The world is deglobalising, I don't think anything can stop it now.
Tell that to the oligarchs. The 1% are
more globalised than ever. And do you think people doing so much more shopping online from China is non-globalised?
I hope it's a temporary reversion - but I'm willing to see if it's successful for anyone involved
I feel like at this point it's more helpful than harmful. I'm looking forward to the international nationalism.
You can’t even spell deglobalizing.
@@Khloya69 In British English the s is prefered to the z in most cases.
There was no spelling error here, only your American English coming into contact with British English.
Tariffs are good if domestic industries have an incentive to be developed.
Except it wnt happen. The jobs in China will become jobs in Mexico
Bringing those factories back to the rust belt
The main issue with trade deficits isn't the actual exchange of goods for money but that the flip side of that is the other side wants to dispose of their currency and does so by purchasing physical assets in the deficit country. If you assume that all peoples in all countries believe and value the same things, that doesn't matter. If you assume that different peoples and different countries have different priorities, the sale of the physical assets of your country can be a very large problem.
the deficit country is the one sending more cash than goods.
This is one of my favorite channels on RUclips!
Jesus!
Let's also not forget that Trump seems to forget that the US buyers are the ones who pay the import tariffs, not the foreign sellers. He throws this around with extra imports specifically on China like it's the foreign sellers paying for the privilege. It hurts the sellers because less will be purchased, but the additional money paid is domestic.
I dont think he forgot, he never knew in the first place 🤣
"Should I buy this more expensive foreign good over this cheaper local one?"
The average consoomer is stupid, sure, but they're not completely regarded, mate.
Each dollar not earned is a dollar lost in my book.
It still harms them. If everything from China becomes as or similarly expensive to things made domestically, no one will buy them as chinese goods are regarded as poor quality.
@@Ariverfish You might be forgetting that the local goods will also become more expensive because most if not all industries rely on international partners, yes even food
The prices of goods would go up either way, didn't matter if Trump or Harris won.
Sure, Trump's tariffs might increase the prices of goods, but Harris's corporate tax increases will do the same. If corporations need to pay more of their profits towards taxes, they will need to increase the price of their products because they have a legal obligation to make set amounts of profit for their shareholders. Any increase in corporate tax, like proposed by Harris, is an increase to the consumer too.
Both candidates will increase prices, the only difference is that the tariffs are more likely to create local jobs, whereas the corporate tax increase won't. If enough jobs are created, and if the tariffs are done right, wages might also increase due to higher demand of labor, which could possibly nullify the price increase entirely. More jobs, with a shrinking labor pool due to declining birthrates, equates to higher wages.
It’s like Americans (and others) assume that if imported good are more expensive, U.S. goods would be automatically cheaper, have the infrastructure, be the same quality, etc. If they were serious, they’d prop up domestic industries in addition to the tariffs
I’ve seen many lectures about tariffs from the mises institute, all they do is harm consumers in the USA, we pay the price
The global supply chain disruptions from a couple of years back gave another reason for concern. Global markets are efficient, but they're also fragile, and depend on things going smoothly at every step of a long process.
You need to make a video on how demographics influence world trade. China is going through a demographic collapse that will impact their ability to produce sufficient consumer goods for the rest of the world in a few years from now. Maybe we can view the US tariffs as a way to build up domestic production before China stop producing stuff?
if it reduces the import and export of goods surely the oil value will plummet as well?
How can you bounce so much up and down when your chair doesn’t move at all? How is that physically possible?
He’s very excited 😂
to clarify the actual effects of the steel tariffs - steel imports dropped by 24%, prices increased by 2.4%, HOWEVER, the production only increased by 1.9%. Meaning they made the industries that relied on steel imports shrink by 22%. So, sure, you kept the local steel industry going, but at the cost of countless other industries. Those down-the-line industries are the ones where the actual money is made. Making base-level products is incredibly low margin, which is why the west outsources it to countries with cheaper labour. So forcing that labour to be done in the US, instead of abroad, means that you can't have nearly the same total economic output.
Tariffs are meant to be used in security-related ways. For example, tariffing Chinese EVs, or microchip/semiconductor production. But, we have already shown that tariffs don't need to be the only way. The Chips Act, for example, created a ton of incentives for chip manufacturing in the US, and it didn't have to cannibalize the export market. Because tariffs are not a one-way interaction. They are incredibly easy to put into place, but incredibly difficult to remove.
While I agree with you, there’s also the sovereignty argument. idk if that name makes sense, but what I mean is that if a country outsources all of its base-level products, they become dependent on other countries. They are are left to the mercy of, say china, to keep their economy going. What if the countries that provide the US with steel suddenly rise their prices or straight up stop selling it to them? Then all of the down-the-line industries that need steel (or competitive steel prices) are worse off than in the protectionist escenario.
@ then they lose their largest customer. It goes both ways. You can’t buy something without a seller. that’s the second part of the comment, that they’re supposed to be for any security issues. On the flipside, however, being reliant on other countries is incredibly powerful. Post-WW2, the world has been increasingly peaceful. As industries developed, areas specialized, and we found various minerals concentrated on other continents, we have required international stability in far more regions. It has been unprecedented with how peaceful it has been. There were 2 decades were between WW1 and WW2. And now here we are, 80 years past that. Since then, there have only been very localized conflicts. Now look, there is a large section of the world that is completely cut off, and now they are free to do as they please, because they produce everything themselves. And what do they do? They invade their neighbours, rig elections, send and fund terrorists abroad, commit cyber warfare. What do they care? We do no business with them, we have no leverage over them at all. The only response then is militaristic. So, really, if you actually cared about protecting your own citizens, you’d want the world to be more intertwined, so you don’t have to resort to sending them to the battlefront.
13:00 Update Germany has Concord Switzerland.
He said it's mainly going to be used as a threat to keep US manufacturers from leaving.
The Ukraine war has shown us the importance of having domestic manufacturing capacity. How much is security worth?
If US produced good are already expensive for EU market compared to China wouldn't rising tarifs make US products more undesirable and thus make less money for US?
As for why US is growing more than EU I think one factor is just size. American continent can still house a lot of people while in Europe a lot of productive regions are already densly populated.
U can also transform unproductive regions like deserts slowly with time while while you can't transform ocean around European continent to house more people. It is only natural that US economy is ingrowing EUs.
I wonder if lower workers rights also helps
@@racool911 100%. That's why it never is better to live in the US.
That’s assuming Europe also rises its tariffs with the US. Which I don’t think they’ll do, the last thing Europe wants right now is increase their dependence on china and their imports.
The US raising tarrifs on foreign goods wouldn't also rase EU tarrifs against US goods
toycat didn't say 2nd channel don't care... does this mean he cares now? or just he cares so little he can't even be bothered to say it
i agree completely toycat
how are the tariffs going to make britan float away
Like I said in that jib jab video of Bush's second term, Lineage. Bush and Trump are simular than you think.
15:52 let's gooo my brethren
"Caveman economics" was a very eloquent and sophisticated way of describing our current global economy. Please stick to this format!
The map on the thumbnail got me tweaking bruh
The problem with Trump is his "America first" is looking more and more "America only".
NO PROBLEM WITH THAT 💪💪🇺🇸🇺🇸🦅🦅🍔🍔🛢️🛢️🗽🗽
BASED
What do you mean I’m not sure
Good. He president of America not president of the world
Good we need someone like that in the uk
Economics are not the only consideration……
The tariffs does not affect NAFTA countries (Canada + Mexico) they should be in the bubble
Didn’t trump literally threatened Elon musk with rising tariffs if he opened up a Tesla plant in Mexico?
This aged really poorly...
@@oscarou9288 If Trump built a new NAFTA deal in 2016, he created this current deal himself. If he applies actual tariffs that is going to be really fucking weird and all bets are off, for anything
Hopefully they will
Ozempic about to go💸📈🔝
You're not doing Minecraft anymore?
They better 😎
/s
Let's tax Mcdonald's!
This will really hurt EU and overall US alliance structure. I don't think EU can survive without major reforms if US becomes isolationist, a break up of EU and regional conflicts can be on the table.
Most countries will start implementing their own security agenda and that might even be development of nuclear weapons in countries like Romania, Ukraine, Germany, Poland, Sweden.
Isolation will be good for US economy but will be terrible for its Hegemony, allies, global trade and world peace. I want to cry at a corner
Short answer: Yes.
Long answer: Trump's tariffs are hurting the global economy, except Russia. They want to go back to isolationism.
Good
Trump destroys everything he touches
If 'isolationism' gets us to stop sending troops all over the world I support it!
I don't think he actually wants to implement these tariffs. I think it's just a threat to try and keep foreign nations such as the EU in line with him. Pretty smart, if I'm correct, in my opinion.
He is an idiot and will do whatever he has the power to do.
@@samuilpetkov497 damn we're still coping?
Tariffs will make things more expensive domestically, HOWEVER, people forget that he wants to lower taxes, abolish income tax, no tax on tips, no tax on overtime, AND he wants to deregulate business, which also lowers prices. All in all, I think it will just about even out, and even if it doesn't, that's the price I'm willing to pay for things to be made in the USA again. Is it a little more expensive? Yes. But it creates jobs and keeps money in our own economy. Also doesn't support Chinese child labor.
0% chance we see abolition of income tax, honestly
@@ibx2cat He plans to abolish income tax?
Ah yes, have the strongest standing military in the world and magically finance it somehow. At least you will indeed have job with your polluted air and water. yum! And last I heard workers rights are a form of regulation on business.
@@eren_t_ It wouldn’t be the first time a politician hasn’t lived up to a promise
We need to abolish the republic, tbh.
Hopefully
what the fuck
minecraft youtubers politicised
this isnt his minecraft channel
Nah, he's been talking geography and politics for years on his second channel. This isn't new.
Is the USA continuing to run trade deficits good economics?
Dude really needs to quite talking politics and polices hes missing so much
So many other countries practice mercantilism and already have higher tariffs than Trump's proposing. Somehow this is left unsaid.
:c
Never mind the UK leaving the EU, it seems Germany has. If UK is 6th/7th biggest economy, France is usually just behind, or sometimes ahead
I don't think I buy anything American besides Pepsi and Xbox
You will be surprised how many non American products are owned by American companies now
Basically all streaming services, windows, circle K petrol stations, Apple, Spotify, monster energy, nestle, Nike.
@@GribGFX Nestlé is Swiss though
@@Josep_Hernandez_Lujan Nestle is sneaky. I didn't know they still claim to be Swiss despite 98% of their production and assets not being in Switzerland. They'd be interestingly effected.
@@GribGFX They're shady for sure
give burmuda back to canada
I hope it would, then Brexit would finally get rolling after how the Tories butchered it.
*Another idiot who thinks we can make Brexit work...*
Lol. Lmao even.
Trump's policies seem... Counterintuitive
anime pfp checks out
@@ved0697trump supporter spotted
@@hisky.Kamala supporter spotted
Catching this at 1 view and a min ago is crazy
I mean nothing i really buy comes from europe so 🤷♂️
Not a lot of people i know do either
It’s not that simple. Something that is “made in America” could have left and entered the country 10 times during its manufacture, or use parts/components imported from different countries. Just because something doesn’t say it was made in Europe it doesn’t mean the tariffs won’t affect its price.
I'm def not an expert on this. Just morally right now I see this as a benefit to human rights as if goods can be produced cheaply, its very likely due to the producing country having less rights for its workers such as a certain country forcing factory workers to work 6 days a week with long shifts with a very small wage. If that country with less human rights is then able to price countries producing the same goods at the same standard but with higher labour costs due to higher welfare standards then even though its better for the consumer, its worse for the human race in general as it creates a spiral on how many human rights can be reduced. Ofc if the cheaper producing country pays its workers the same wage and has more innovative methods than another country then it makes sense that they're rewarded and tariffs can harm things like that. I've just found in general, cheaper goods are caused by someone getting screwed over. There are many other aspects of this to consider however I think tariffs could help this aspect.
- Businesses pay increased tax on retained earnings.
“Look, they are paying their fair share! This hurts their profits and they totally won’t increase prices on consumers or reduce wages!”
- Businesses pay increased tax on Tariffs.
“OH MAH GAWD THIS IS A SALES TAX AND IT HURTS JOBS!”
🤔
increasing prices increases tax due and reduces consumer demand in the first example. in the second example, increasing prices keeps their margins the same but also hurts consumer demand. the first example taxes are on profit only and dont increase costs. if they raise prices, their margin goes up and the tax on that margin increases, but they can choose not to and eat the reduced profits at no cost to anyone but shareholders. if they are subject to tariffs, their costs go up irrespective of their margins or net profit. raising the price is a necessity to keep the same margins, but reduced demand could mean they sell less, and thus shrink as a company. shrinking is not a risk if taxes go up because their costs havent changed. profitable companies cannot become unprofitable like with tariffs, so they wont go out of business like they would with tariffs. apples and oranges.
@@jonathanodude6660
Too long, didn't read.
@@jonathanodude6660but their costs have changed because tax is a cost of business.
wow people paying 80-200k+ on a foreign car are gonna pay 5k more, oh no....... just make a manufacturer in the US and get around it like other companies have
That sounds like it will be good for American workers. 😊
@@frogmantoad8110 yes they can finally start getting paid a better wage once the companies open plants in the US instead
Good. Maybe they will
Start paying their fair share.
What makes you think the EU won’t raise tariffs as well tho?
@@sit-insforsithis1568Then the US will raise and match their tariffs in retaliation. Equality.
@@Ariverfish If you punch me in the face and then I punch you back, we might be equal, but who gained anything from that? The only thing that changed is that we both have a sore face - even if my face is more sore than yours. I know this analogy is flawed, because there are genuine reasons to impose tariffs. But a 20% tariff of EVERYTHING will just make things worse.
@@yiannchrst Good, then we'll settle the fight with a beer at the pub. Friendship will only truly be achieved once people start treating each other as equals.
I really hope that Trump goes all the way. It will be a win-win. He either fixes everything, or destroys everything and we get someone better elected.
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I am just going to answer the title; no it won’t and i welcome the tariffs. Please go nuts Mr Trump.
Me when i think i'm smarter than all the world's top economists
@@noterrormanagement No you got me all wrong. I am not saying it's not a terrible idea I'm saying I don't care about your garbage country that has done more damage to the world than any other nation in modern history.