Trump threatening taxing coffee imports is without question the greatest risk to economic productivity our country has ever faced. Have you ever had domestically-grown coffee? The best we have is Kona coffee from Hawaii, and it's very much an... acquired taste.
The even bigger issue there is that Hawaii doesn’t have enough land to grow lots of coffee, even if there was a strong economic incentive to grow more coffee there, there’s a hard limit to how much can be grown on islands. Not to mention that there are other agricultural products competing for that land and developing more land will have a huge ecological impact there.
You could, hypothetically, grow very excellent coffee using indoor hydroponics and modern climate control tech. in most of the US. But even if that would be economically viable we don’t have that infrastructure. It would be years before we could produce enough coffee locally for American consumers. Same goes for a lot of food/drink product which are currently imported.
More to the point, even if it were economically viable and we could setup the infrastructure on the land, most people aren't going to do it until they've had a cup of coffee in the morning.
While Tariffs sound like an interesting idea, reality is often full of surprises. 1. Tarrifs assume everything you import is something you can make domestically. But here's the thing: a lot of products are made from raw materials across the world, rubber from thailand, wood from Brazil, gold from Canada, and so on. 2. Can local production even support local demand? 3. There's a reason why businesses buy goods from overseas. They are more affordable / higher quality. If there are tarrifs, businesses might still import their same goods because local goods just aren't good enough (more expensive or lower quality). 4. Even if every business switches to local goods, prices will rise for local goods. There is no requirement for US manufacturers to expand production, and even if they do, it will take time. 5. Finally, the increase in prices can lead to layoffs and increased unemployment cos it's more expensive to run a business (more than the jobs created by increased demand)
@@Roboman1807 not cutting down Brazil rainforest would be a good thing. We collectively don't use much actual rubber anymore Gold outside electronics is kinda a waste but we can mine in Alaska Just saying many of the products you are on about ultimately are not necessary
Well, after they deport the supposed “60 million illegals”, then demand should drop by a lot! (Which is 20% of the US btw) Though, if factories are having a hard time finding people now, I can’t imagine 20% of America being gone is going to help find any candidates.
You failed to address the purpose of a tariff in this entire argument. Americans rotate product choices to American Made to not have to pay the tariff, in the event it's a mandatory import like for example, bananas, it will probably be extremely low if at all, then AMERICANS BUILD BUSINESSES to fill the gaps you're describing.
@@shuhei9571 yeah maybe but he’s also cutting taxes for disgustingly wealthy people, and altogether that means that the government gets less money from taxes
@@_Epidemic_ it works out fine if you also cut down government costs, but the lower class is always hurt more by any form of taxes or raised costs. We have less money so when we lose any of it, it hurts much more.
@@shuhei9571 Listen buddy, have you done the math? Because people that actually do the math for a living have said it won't work. ffs know your place, you don't know what you're talking about, obviously have no education on the matter, and haven't done anything but ignorantly speculate. Nothing is this simple, except Trump supporters.
Not quite. Trump is setting the tariffs for businesses here in America on purpose, not other countries. It’s to incentivize domestic production over imports with American companies so they stop outsourcing to other countries for cheaper prices. This strategy has been used before and does make new jobs, but it does stress the economy for a long amount of time if not done in tandem with other economic policies which is why he’s willing to remove taxes on social security, tips, overtime, and other things. A lot of people won’t discuss that last part which is why they make it seem so bad, but context does matter. It’s ambitious but manageable if he plays his cards right.
@@BlueSoulGamer I agree with you But the stress will be passed down to people and this plan works good on the long run Also do you trust the government to play its cards right ???
@@BlueSoulGamer THANK GOD. SOMEONE OTHER THAN ME UNDERSTANDS. If he succeeds, I'm looking for whatever the market has a hole in that isn't being taxed, and building a business.
@@foolishgamer99 1861-1933; Isn't a made up period of time. Then world war 2 happened, EVERYONES ECONOMY got shaken up at the same time, and it stopped being effective, so other options were pursued.
@@VyseMalicewhen was this tariff based economy? Because US tariffs actually peaked during the Great Depression and it's largely understood within the field that the severity of the Depression was actually worsened because of the fact that everyone tried to use protectionism, and lower tariffs would have made things better
@Just-saying4 almost everything we purchase has some part or even the entire thing produced outside of the U.S. Other countries having tariffs on U.S. made goods already gives U.S. companies a reason to sell to U.S. buyers. It will increase prices of almost everything with no benefit.
@nomuom2086 the benefit is returning manufacturing to USA Yes it will cost more than imported items. But it curtails our dependency on foreign manufacturing. Especially China as we are likely to be in conflict with them in the next decade. If we don't take the pain now we are screwed later.
All taxes are pushed on to the consumer unless it's something finite in supply. Tarrifs, corporate taxes, fines, etc are all just pushed on to the consumer in the end.
Not how supply and demand work. (Specifically for corporate taxes). The current price is already optimal for the company in terms of profit. So increasing the price would decrease demand and profit. Note this is different in the case of tariffs since they are a cost *per good*, meaning a decrease in revenue from increasing prices in response to tariffs could still be an increase in profit.
@@mcpecommander5327perhaps. Trumps policies have been in effect for 4+ years now. Enough time to see their effects and to study them. His tariffs on washing machines, solar panels, aluminum, and steel were 100% passed on to US firms and end consumers resulting in a net loss to the US economy of $16 billion.
@@mcpecommander5327 directly and in the short term I agree, but over the long term you decrease investment and supply - unless you initiate some for of capital control or tariffs to compensate.
@@Redicule_research._ridiculoustariffs absolutely hurt the middle and lowest class. They are the ones who buy the cheapest version which is imported. You can argue about wage gains, but you could say the same about X tax funding a welfare program. Progressive income taxes are the only that don't hurt the lowest income earners.
But don’t you think that the domestic business is that buy the overseas product would have to pay the tariff and then place that difference on top of the product to sell it to to the US citizens? Like if McDonald’s buys french fries from China and they have to pay the 300% tariff don’t you think french fries would go up by 300%
@@tompatchak8706 The overall idea in theory is to encourage domestic production that will not be at a price disadvantage. But in reality, when there are domestic suppliers of similar products, they typically just raise their prices to match that of the foreign supplier + tariff. And then there's the retaliatory tariffs. Basically all of the collected additional tariffs for Trump's trade war against China went to paying subsidies to soybean farmers who lost business in China. China still needed to import soybeans and could buy from Russia and Brazil.
Kamalas plan is to tax unrealized gains, which means any and all investments from the middle Class are worthless. Homes? Twice as unaffordable. 401k? Gone. The greater economy? Crashed. So this election is a choice between someone that wants to just demolish the middle class and the entire economy, and someone who wants to screw you in the short term to help you in the long term.
@@D2h2766I would like you to know, that there are in fact more Democrats than Republicans, and if every Democrat and Republican voted, Kamala would win the popular vote
@desran4447 How the heck does this incentivize business coming back to the states? Companies get cheap labor abroad and then push the price of tariffs on consumers. They literally won't have to change anything. Not to mention industries that never had any foothold in the states to begin with like a lot of fruits, produce, and electronics.
@@millerbrown3051 If you make tariffs high enough it will be cheaper to pay Americans than pay tariffs. This is a very simple concept - you make manufacturing here worth it. As for things that can't be manufactured here - you can either make exceptions or just offset it with tax cuts or subsidies or whatever, doesn't matter. What matters is that incentive
@@CupaTwiningS No, they won't. First of all, because it will require a strong leader and second of all because, although it is diffirent in every case, they most likely can't afford it. Who will they buy from instead? You can't just stop doing business with America, not without some serious economic and political consequences that nobody wants to be blamed for
The media has somehow forgotten that 45 also said that he would DEVALUE the US DOLLAR. Then ask yourself who will benefit hugely from tariffs and devaluation: his corporate billionaire buddies. Not you.
@@aaronjjacquesgenerally if you have enough money to drop into stocks that you can actually expect a sizeable return, you arent doing it to pay your bills😂
@kiyoraka3537 i was $197,652 in the.whole when I started using the "tax cuts for the rich" within 2 years i had wiped out that debt. Live on rice and beans Work 60-80 hours a week Throw every dollar at paying off your debt Borrow the money back to buy enough stock to pay your smallest bill Take the dividend to pay bill (which will grow just as fast as the bill does due to inflation) Use the money you used to pay down your debt faster Repeat with the next smallest bill The interest will be tax deductible now use the tax deduction to pay down the principle At some point number of shares will exceed 100 Sell a covered call (2 years out) against those stocks Use the premium to pay off the principle (20-35% of current stock price) If the call strike you will be "forced" to sell the stock use that money to pay down the debt If the call doesn't strike you can repeat the process again (another 20-35%)
When an individual has no understanding that tariffs increase the shelf price of goods for consumers they have no place being President. He has no understanding of just how much America imports as it no longer has the capability within anymore, he also believes the world will come begging for oil even though its price is being artificially boosted due to lower demand and greater supply.
Raising prices only affects those who can barely afford to eat, thus making us less choosy with who and where we work, allowing shitlord bosses (like trump) to dominate during his presidency
He does understand that and it will mean one of two things: more money for the budget or even more generous tax cuts, which will offest the increase in prices. Its you who doesn't undestand that bringing production back to America is way more valuable than consumers having a slightly cheaper product
The whole point of the tarrifs are to drive production back to the US... Which is way more valuable to us than having a lower price on imported goods, we need production to be here in the states where there's fair labor laws, emissions standards, and less susceptibility to global trade problems like what we saw during covid with supplies that were only produced in China
I went through why theye types of tariffs are bad in school. Policies like this are called Protectionism and on the scale Trump is proposing, it would temporarily boost the US economy, then quickly go down a slippery slope down to economic downfall.
I mean what you mentioned is why tariffs can be effectively used in specific situations to help as sort of training wheels for certain domestic producers or industries so they can move up the development curve and become more efficient and cheaper. But yeah tariffs become a problem when you employ them for too long, and for industries/products that can't easily be supplemented by domestic producers.
I love how all of Trump's followers are now economic "experts" spreading nonsense in this comment section about how his tariffs are going to be so great for us.
@ whatever people tell me they do their own research. I will listen and I will read what they sent me but only if it’s not from Newsmax or Fox News or any kind of right leading website, especially like church website or Catholic league websites cause they’re obviously skewed One Direction. If you send me some shit from Fox News, I’ll point out that they’re not a news channel, they lied about the election and Dominion voting machine company seven times more than what the company is worth and they fired I think two of their “news anchors” right after that even the judge even Fox News said that they entertainment and news, but so you can get sources from
Dude ran a casino into the ground. The business model of a casino is literally to take money from someone and give them back less money. He's THAT bad at running a business. 😂
Not to mention most tariff costs are just placed into the customer via price hikes. Corporations don't increase domestic production, they just charge us more for the same goods. Such moronic foreign policy, incredibly infantile
At best, some corporations will move to places like Brazil, Bangladesh or the Philippines to get lower tariffs. But this pipe dream of America being 100% independent (which was NEVER EVER the case) and manufacturing coming back like it was 150 years ago is just not happening.
I think many americans seriously underestimate how expensive US-based manufacturing is and that 200% tariff on chinese manufactured IPhone will likely still be cheaper than one produced domestically
@@Tyshkevich Apple start manufacturing in India but still no production in the states. Manufacturing industry in the US is too bad for high end brand like Apple. Although Apple did add more suppliers that has production in US during Biden’s term
An iPhone is kind of odd because most of the parts aren't actually made in China. It's just the final assembly point with maybe some parts like the battery and the boards made in China. But something like 90% of the costs of materials/assembly of an iPhone are from outside of China.
@@fredfeng5716 In the 90s I used to ride my bike past one of Apple's manufacturing facilities in Fremont, California. Company owned/operated and not a contractor. They had been making Macs there since the 1980s. I believe they closed shop in the late 90s. However, Apple doesn't really care where it's made. They care who runs the factory - whether it's Foxconn or Pegatron, who are the best in the world at contract manufacturing - whether it's in China or India.
I suspect a lot of people think that tariffs are something another country pays to import something into the US, and that is a punishment on other countries. No. Tariffs are something that you as an individual American citizen, are (effectively) paying on any imported goods. Trump wants imported goods to be so expensive that you have no choice but not to buy them, or pay the government when you have to.
The main problem with tariffs is if you put a tariff on someone else’s stuff they’re going to put tariffs on your stuff in retribution almost every time 😂
And what about the car companies or local manufacturers that rely on cheap raw materials to be able to pay employees and keep the lights on? Last time these tarrifs happened, thousands of people were laid off due to the increased price of aluminum
Good argument, but I'm from Bethlehem and shutting down our "Quality Materials" manufacturer cut the average wage of my city in half, and the casino they replaced it with brought drugs, poverty, and crime. You tariff Chinese Steel, every single building in America improves in quality, and no one gets to break the law to cut corners anymore. Society will improve, businesses will be forced to use higher quality materials, and stuff stops falling apart.... like the bridge the barge hit.... that people stopped talking about... made of which materials specifically. Wasn't surprised when I looked up the information on the people who constructed it, and who they bought from. All public record my friend.
@@VyseMalice You're acting like American companies don't already use quality materials. The only Chinese steel(pig iron) with issues is not used in any American buildings, and American buildings go through SIGNIFICANTLY more scrutiny than any Chinese building. Also, considering the fact that the US manufactures less than 10% of our own steel, and have been for decades, there's literally no base of industry to catch up. That means there will literally be no steel that cannot be imported, as the manufacturing capabilities physically do not exist. As for the bridge example, that's flat out dumb. That bridge was struck in one of its main support columns. It'd be like kicking someone at the knees and claiming that legs have weak bones because they fell over. Basically any civil engineer will tell you that the collapse happened purely due to human error, and nothing to do with "Chinese Steel", which is also dumb because most of our steel is Canadian and Mexican.
@@moomie1634 I was a safety officer at Amazon, and left due to DEI's destroying our safety standards and corporate covering for them. You think I don't know what our industrial equipment is made with?
@@VyseMalice Amazon is well known for sweatshop culture, and most of their issues have very little to do with DEI, because 95% of DEI positions are corporate postings. I know multiple engineers at Amazon, and the issues there are way more to do with rapid expansion and new management issues rather than some made up issue. Improper training is not the result of DEI.
@@moomie1634 No, I'm talking ground level workers, hiding policy, hiring people who speak neither english or spanish, calling Seattle, making them FLY IN NEXT DAY, and it getting covered up after someone piled 5ft past the guard bar, knocked down steel scaffolding, and smashed a 3rd party driver standing 5 feet from me. Which is why I quit. Injury reports reached almost 60% higher than the national average, they dropped wages by $4 per center, when 3 years prior it was $1 annual raises because all the money went to safety incidents.
Something you forgot to add, which is really important for context, is its not chinese businesses that are paying these tariffs. Its US companies that import the goods from chinese markets. China doesnt pay a dime of those tariffs.
Do you understand, that Kamala Harris literally wants to implement on price controls on food supplies; which has caused scarcity, historically, and is a irrefutable fact. You think TRUMP, who had grocery prices outside two groupings at the lowest prices during his entire presidency pre-covid, is going to do WORSE than price controls? Are you insane?
He choses not to understand them Ive heard him be told "tarrifs dont work lik that" when he says it will cost another county money (instead of saying that Americans will be the ones paying the tarrif fees)
Yeah. That the really bizarre thing. His own companies import stuff from China (the junk sold at his hotels and golf course) and either they or their suppliers pay the tariffs. But then again Trump might be "don't bore me with the details" when someone just tells him what the total costs are.
@@ypw510It’s all just part of his xenophobia. He doesn’t want foreign people or foreign goods in the country. His deportation and tariff plans are his ways of trying to get rid of both.
@@adams3560 Trump sure doesn't seem to be very consistent about it. His golf courses and hotels are filled with Trump branded crap that's made overseas - mostly in China.
I mean other countries do end up paying an economic burden when you implement a tariff against their exported goods. For a US consumer, If the price of a tariff plus the import price of a good surpasses the domestic price, then the consumer has no incentive to import, and has to support the domestic production. The country that was formerly exporting now loses a ton of money from that good they were exporting, which counts a price they are paying.
If everything tanks at the same time it will stabilize, it's actually a good way to cripple enemies recovering from wars with necessary supplies. It's a strong strategic move militarily. Especially considering America's primary export is food.
What they don't tell you is that these prices get passed down to the consumer. The manufacturers don't want to hurt their profits so they just charge more, and the corporations purchasing those products don't want their profits to hurt either so they just charge more. Tariffs will only result in us paying more.
Greedflation focus grouped better. The decision not to focus on cost-push was a Kamala campaign mistake based on surveys showing most voters couldn’t understand the economic messaging.
@@theBear89451 it's hard being economically literate and involved with politics. You have to accept that politicians will say incorrect things sometimes because the complex technical truth doesn't resonate with voters.
I'm one of those people; I was making $1200 more a month at the same job when he was in office. I also took the day off work, and I'm spending the entire day driving Republicans to polls in PA, so bring your A game if you're in my state.
@@VyseMalicethat doesn’t jive with your other stories at all. You need to use different accounts if you’re pretending to be other people. But, sure, I’m stoked to spend twice, or five times (my bad), as much on stuff. Thank goodness you were here to show us the error of our ways… and education, historical knowledge, and common sense. 🙏🙏
He wants this while also wanting to cut funding and grants for farmers. Were about to get a taste of what famine is like. The state I'm in already ended the summer lunch program and I watch hungry children sit around my apartment complex during the summer. And I cannot feed them because I am in a low income household due to a disability. I hate it here.
I also remember him putting something on the farming exports we would send to China. And China didn't want to pay all of it, so they went and started importing from other places. That cost farmers $25.6 Billion over an 18 month period. This was all before the pandemic, which again hurt farmers. I remember seeing dairy farmers having to dump gallons of milk because there wasn't as much demand (like the little milk containers given out at schools).
You forgot to mention that when a tariff is placed. The country who placed the tariff has to pay it, not the country the tariff is placed on. That is how Trump added $7 trillion to our national debt.
Domestic industry is wonderful and it is something that the US should strive for in the future. The problem is that the US' domestic industry sucks right now. There are no cheaper US made options so companies still go to places like China and India. Even with tarrifs domestic products are still going to be more expensive. This means they will still choose to import products except now they are more expensive.
So something we normally get from China, we'd pay a higher price for. Which means an American producer can be less efficient at producing that. Which means even if we can produce it here, we pay a higher price. And China will place tariffs on our exports, which means American producers can't sell our products overseas. A better solution is to develop an economy that beats China's prices and quality.
It would take YEARS to move even a fraction of manufacturing to the US. Nobody wants a plant spoiling air and water quality in their community. Putting them away means no available workers, leading to either paying more for workers or building homes, and schools, and infrastructure. None of this is fast or cheap.
Even things that can be made here, the factories still have to be set up and the know-how still needs to be taught. It’s not like setting up a factory is easy. Here’s my solution: we have a 200% tax on anything imported from the Netherlands because they are too smug and what exactly do they make anyway?
Not to mention wages in the us are way higher compared to places like China. Meaning that companies would need to either spend more here or give everyone the lowest possible amount of pay with more work
@@user-em9hg6jz5s They will spend more here if you raise tariffs to the point where it doesn't matter or even cheaper to manufacture here and that is the point. Its not about collecting money, which also would help with the deficit, but you can always just cut taxes more if you are worried about the cost of living. The point is to make companies create jobs here, this will make the country way richer in both the short and the long term
@desran4447 the dream of manufacturing here is long dead man. It'll be too costly for companies to even start here as a place. Mexico isn't a bad spot but for here? Too much. Remember big cooperations want to spend as little money possible to maximize profits, not benefit the people.
@@noreenmcgovern2840 do I need to spell it out? Manufacturing outside the states is cheaper and tariffs will sky rocket prices. Furthermore, economists literally said it's bad for the economy, for Christ's sake, if people can't appeal to you guys regarding climate collapse because the economy is god, then SURELY, economists stating that it should be relatively gospel right? It's between them and a bunch of rich ghouls.
He never said anything about taxing fruits and vegetables he mentioned auto industry, computer hardware, steel, and other industries but never essentials stop spreading lies and misinformation
Trump Supporters: "TRUMP IS THE GREATEST ECONOMIC MIND TO EVER LIVE AND WILL SAVE US ALL!" Literally everyone who has even existed in the same room as an Econ 101 Book: "Trump is gonna make the "Great Depression" look like a Minor Pot Hole if he does what he says he wants to." Like seriously, Trump is gonna "save" the economy the same way Kristi Neom "saves" her dogs.
It's important to mention that tariffs are paid the domestic company doing the importing, which is why many experts say companies will just increase their prices to offset it. In my opinion, no amount of tariffs will offset the practically non-existent labor cost of chinese manufacturing companies.
Mussolini liked Tariffs, he tariffed wheat and Anti-Pasta was born. Imagine Italy without pasta, it happened under the Fascists as did a lot of other unsavory deeds and acts of villainy.
Mussolini did in fact try to discourage pasta and tried to get the italians to eat rice, but it was the futurists (who were tied in some way to the fascists, but still different) who were the most anti-pasta.
Nissan, Toyota, and Subaru all have car factories in the US because of tariffs. US jobs from foreign manufacturers that is how tariffs can benefit the US.
Exactly, I think Trump is saying these massively large percentages to be hyperbolic, and if he does try implementing large tariffs like that, it'd just be threatening to do it to incentivize foreign countries moving factories here. More jobs + more locally manufactured goods = less dependence on our enemies like China. They aren't a bad thing like what everyone else in this comment section seems to think 😮💨😭
Tariff is a stop gap measure to promote industrialization. Yet doing so in the US with sky high cost it is basically ISI similar to what latin america did in the late 20th century. If anything it’s mostly not going to work.
So weird to me, because if you ask a Republican why they’re against higher wages for workers, they’ll reply with “because the cost gets passed to the consumer”, and yet….
In 2012, we found out that North Korea was out shopping for materials for their ICBM program. So we went to a country that has those materials and offered to buy them at a premium rate to keep them from selling them to North Korea. In 2017, tRump put a tariff on those materials and forced that third world country to sell to NK. So, when those missiles are flying, remember who helped build them.
it’s true we get less economic benefit with tariffs, and the consumer loses out but it’s definitely a good thing to have local production of certain things especially if we get cut off on access to critical industry. Though that’s not saying I agree with all he does and does not tariff as Trump has made some questionable choices
In that case you don't impose tariffs, you give out subsidies until we have the infrastructure to compete. Tesla is a perfect example of a super successful company buoyed almost entirely from subsidies.
Yes. Instead of buying chinese steel at 3000$ per ton, you will buy American Monopolistic steel at 10 000$ per ton. Everybody will be so awe that reducing the offre will not at all affect price! Like giving monopolies to 3-4 cronies will not at all be detrimental to the only advantage of capitalism : competition.
This is literally the Tariff of Abominations during John Quincy Adams Presidency, which nearly tanked the US economy at the time. If Thomas Jefferson hadnt strengthened the US economy (through the somewhat blunderous Embargo Act), the entire economy would have crashed. Which is exactly what could happen here.
YES. It will be so great. Empty shelf everywhere. The new Iphone would only cost 3000$ more. Car 10 000$ more. So great. No more steel. No more aluminium. No more computer. It will be awesome!
They can't, the US market is the biggest market there is, they have nowhere to go. US can dictate what to do and what not to do to the entire world all at the same time because it is just this rich and powerful, all you need is someone with enough balls to actually use this power
I asked a customer what industry do we, the US, have. She went silent. If the common people don't know, we have to soon know! BTW we are predominantly a service industry. It could involve middle-management of companies. Down to register and stock management. Aside from that our exports are aircrafts. Grain and animal products if you wanted food.
He wasn’t talking about taxing coffee. He never said he was going to tax coffee what he said he was going to put tariffs on or US companies that make their products in another country to sell here.
Coffee, Cocoa, Vanilla, Tropical fruit. Those four things are not grown domestically and can't be because of climate. That means your complaint of Starbucks being overpriced is going to be you crying salty tears next year remembering how cheap it actually was before Trump's Tariffs.
I was working in a hardware first go around, prices are just gonna creep up. Without the infrastructure 4 years isn't enough time to start producing all this. We'd mark the same stuff up every other week.
Tariffs are not evil. The free trade mania destroyed the economy of countries like Mexico & Australia. Tariffs, if targeted are a net positive for a country.
You are correct if tarrifs worked in the best case most theoretical situation it would be great but the thing is no country can make all the stuff it needs by itself and these tarifs can just destroy everything
Fledgling industry tariffs have mixed evidence. Not sure about Australia but Mexico's problem with low tariffs is that they were one sided, artificially imposed reductions by the IMF. US tariffs are low because of WTO agreement rounds and bilateral trade agreements. Raising US tariffs would increase prices with minimal domestic growth in the short run, tank export driven industries when agreement partners withdraw in response in the medium term, and stagnate and likely crash the economy in the long run. There are no winners
Yes, the Tara will make things more expensive for stuff that is being imported. But it's important to note that he is removing income tax on tips and overtime
@@idemanddonuts he has also bragged in the past about hating paying people overtime, there won’t be a tax on overtime because there will be no Overtime pay
Biden is the one who increased the overtime caps after Trump lowered it. That’s already happened. Why don’t you guys know he was already president? He has a record (more than one, ba-dum-ching), may i suggest researching it?
Anyone who has taken a basic Econ class has learned the difference between normative and positive statements. Positive statements are just how things are. Normative statements are your opinions. The positive statement is that tariffs will increase prices. People can have opinions that support tariffs for a number of reasons, but the fact so many people including a presidential candidate are arguing against this pretty basic positive statement is bizarre to me
Chips for tech components are mostly imported because of both the difficulty and required machinery. This will severely impact the costs of things like phones and computer parts on both domestic companies and consumers This sucks
I think you guys at WP are doing a great job at explaining various aspects of the political and jura of the US... I do however wonder why Bezos would block WP from endorsing the candidate that's not planning to place tariffs on 80%+ of the goods sold through his little side business called amazon or something like that.
Even if what he says about tariffs was true, who would ever trade with a country that imposes 1000% tariffs on goods. Even his 200% idea is ridiculous.
One thing this video totally ignores is the fact that tariffs sometimes are not just tax on products, but a leverage for trade negotiations. We have allowed our nation to be a trade deficit, wherein we import so much more than we export. When we use to tariffs to encourage other nations to allow us to export products to them, we encourage domestic production and ensure that their import prices are competitive. China has WAY over leveraged their access to import to America at ridiculously cheap prices, undercutting many products made by companies in America. For those imports, China use import costs typically reserved for developing nations, wherein wiping out a lot of competitors in the last 20 years.
What im also confused about, why would you want to being back basic jobs like growing some crops, making cloths or mining coal or whatever. When you can instead do higher level jobs like car manufacturing, chip manufacturing and stuff like that.
The problem is labor scaling. Jobs are high earning because they grow at a rate slower than population while producing value inline with population growth.
Tariffs incentivize factories being put here (secondary sector not necessarily primary, some things just generally have to be imported).. this bring the US more jobs, and yes the producer pay that extra tax, BUT the money from that is still going to the US treasury- So in summary, it's making the country money, jobs, reducing foreign dependence and all of you in this comment section are freaking out despite Trump mostly only proposing a 20% tariff on countries except for China which is 3 times that. It's almost entirely about incentivizing China to build factories here, AND GUESS WHAT, they will! Because we are their biggest trade partner.
3x 20% is 1000%? Ok. Giving you the benefit of the doubt, what you’re suggesting is that to drive manufacturing, we need to tax people who spend the most on cheap goods, i.e. poor people. You’re further assuring that this massive hurt on our people will result in a massive good, assuming that the tariffs are more expensive than building thousands of new factories in America… using tariffed products. Where’s the economic proposal that shows how long the net good will take? I’m kidding. He doesn’t have one. He just makes this stuff up after he hears a new word, and people attempt to justify it.
@TheGooglyminotaur You can't possibly believe he's serious about a 1000% tariff man, that's absurd! It would cut off our trade with every country... I'm not Trump's biggest fan, my friend, I don't even particularly like him so you don't gotta hate me for it, but sometimes you've gotta step back and stop taking every word that comes out of the man's mouth as a literal itemized list of what he's actually going to do- the other branches of government simply won't allow the implementation of tariffs at such a massive scale when the average Joe is doing alright as is now. I genuinely do believe though Trump will implement REASONABLE tariffs as he's permitted to do, and I don't think they'll negatively impact the economy as harshly as all of you propose... I suppose we'll just have to revisit this conversation in the coming days if he wins... best of luck to your candidate though- if they win, I wish them the best of luck and I'm praying for their wisdom regardless of what I think of their policies.
I know it's like a journalism ethics thing but saying "some economists say" feels like laundering the facts. It is guaranteed to raise inflation and slow growth, there is no respected economist that thinks 10-20% tariffs would be anything but horrible for the US economy. It's like the one thing the entire field can agree on, tariffs are paid for by importing consumer and a plan like this would just immediately raise prices on everything by nearly the entire tarrif rate
Trump threatening taxing coffee imports is without question the greatest risk to economic productivity our country has ever faced. Have you ever had domestically-grown coffee? The best we have is Kona coffee from Hawaii, and it's very much an... acquired taste.
The even bigger issue there is that Hawaii doesn’t have enough land to grow lots of coffee, even if there was a strong economic incentive to grow more coffee there, there’s a hard limit to how much can be grown on islands. Not to mention that there are other agricultural products competing for that land and developing more land will have a huge ecological impact there.
You could, hypothetically, grow very excellent coffee using indoor hydroponics and modern climate control tech. in most of the US. But even if that would be economically viable we don’t have that infrastructure. It would be years before we could produce enough coffee locally for American consumers.
Same goes for a lot of food/drink product which are currently imported.
He wont, he however will impose tariffs to companies that have or want to take the manufacturing to another country.
More to the point, even if it were economically viable and we could setup the infrastructure on the land, most people aren't going to do it until they've had a cup of coffee in the morning.
I think mean that once you drink Kona coffee you won’t drink any other coffee.
While Tariffs sound like an interesting idea, reality is often full of surprises.
1. Tarrifs assume everything you import is something you can make domestically. But here's the thing: a lot of products are made from raw materials across the world, rubber from thailand, wood from Brazil, gold from Canada, and so on.
2. Can local production even support local demand?
3. There's a reason why businesses buy goods from overseas. They are more affordable / higher quality. If there are tarrifs, businesses might still import their same goods because local goods just aren't good enough (more expensive or lower quality).
4. Even if every business switches to local goods, prices will rise for local goods. There is no requirement for US manufacturers to expand production, and even if they do, it will take time.
5. Finally, the increase in prices can lead to layoffs and increased unemployment cos it's more expensive to run a business (more than the jobs created by increased demand)
@@Roboman1807 not cutting down Brazil rainforest would be a good thing.
We collectively don't use much actual rubber anymore
Gold outside electronics is kinda a waste but we can mine in Alaska
Just saying many of the products you are on about ultimately are not necessary
@Just-saying4 it's an example. But can you truly say that everything that Americans use can be made in America?
Well, after they deport the supposed “60 million illegals”, then demand should drop by a lot! (Which is 20% of the US btw)
Though, if factories are having a hard time finding people now, I can’t imagine 20% of America being gone is going to help find any candidates.
@lazyfoxplays8503 should lowering housing costs as well.
I am not seeing the downside tbh
You failed to address the purpose of a tariff in this entire argument. Americans rotate product choices to American Made to not have to pay the tariff, in the event it's a mandatory import like for example, bananas, it will probably be extremely low if at all, then AMERICANS BUILD BUSINESSES to fill the gaps you're describing.
This is How to tax the middle and working class without raising their income tax😢
Unless you also lower their income tax, and now it evens out.
@@shuhei9571 yeah maybe but he’s also cutting taxes for disgustingly wealthy people, and altogether that means that the government gets less money from taxes
@@shuhei9571cool
He's not gonna do that though
@@_Epidemic_ it works out fine if you also cut down government costs, but the lower class is always hurt more by any form of taxes or raised costs. We have less money so when we lose any of it, it hurts much more.
@@shuhei9571 Listen buddy, have you done the math? Because people that actually do the math for a living have said it won't work. ffs know your place, you don't know what you're talking about, obviously have no education on the matter, and haven't done anything but ignorantly speculate. Nothing is this simple, except Trump supporters.
Trump still thinks that tariffs are taxes that other countries pay 🤦♂️
Not quite. Trump is setting the tariffs for businesses here in America on purpose, not other countries. It’s to incentivize domestic production over imports with American companies so they stop outsourcing to other countries for cheaper prices. This strategy has been used before and does make new jobs, but it does stress the economy for a long amount of time if not done in tandem with other economic policies which is why he’s willing to remove taxes on social security, tips, overtime, and other things. A lot of people won’t discuss that last part which is why they make it seem so bad, but context does matter. It’s ambitious but manageable if he plays his cards right.
@@BlueSoulGameryou sound like you want another boston tea party event
@@BlueSoulGamer I agree with you
But the stress will be passed down to people and this plan works good on the long run
Also do you trust the government to play its cards right ???
@@BlueSoulGamer THANK GOD. SOMEONE OTHER THAN ME UNDERSTANDS. If he succeeds, I'm looking for whatever the market has a hole in that isn't being taxed, and building a business.
@@BlueSoulGamer yep because it worked so well when he did it on Chinese products...
FUN FACT- "tarriffs are bad" is one of the very few statements economists almost unanimously agree on. 93% of the economists surveyed said so
Yes because if there's someone I trust it's economists. Like say the ones who have historically come from UChicago have made questionable remarks.
@@VyseMalice what do you mean by wealthiest
We making new stuff up yall. “Tariff based economy”
@@foolishgamer99 1861-1933; Isn't a made up period of time. Then world war 2 happened, EVERYONES ECONOMY got shaken up at the same time, and it stopped being effective, so other options were pursued.
@@VyseMalicewhen was this tariff based economy? Because US tariffs actually peaked during the Great Depression and it's largely understood within the field that the severity of the Depression was actually worsened because of the fact that everyone tried to use protectionism, and lower tariffs would have made things better
So thats going to MASSIVELY increase prices of almost everything... WHY ARE PEOPLE VOTING FOR THIS DUDE.
As one supporter I knew said (don't condone him at all), "I'll vote for him over the woman"
Only things that a manufactured outside USA.
Yes hate trump all you want
But most countries have tariffs on goods coming out of the USA.
@Just-saying4 almost everything we purchase has some part or even the entire thing produced outside of the U.S. Other countries having tariffs on U.S. made goods already gives U.S. companies a reason to sell to U.S. buyers. It will increase prices of almost everything with no benefit.
@nomuom2086 the benefit is returning manufacturing to USA
Yes it will cost more than imported items.
But it curtails our dependency on foreign manufacturing.
Especially China as we are likely to be in conflict with them in the next decade.
If we don't take the pain now we are screwed later.
@@Just-saying4It will cost more than imported goods, which means that people will buy less, which will hurt the economy.
All taxes are pushed on to the consumer unless it's something finite in supply. Tarrifs, corporate taxes, fines, etc are all just pushed on to the consumer in the end.
Not how supply and demand work. (Specifically for corporate taxes). The current price is already optimal for the company in terms of profit. So increasing the price would decrease demand and profit. Note this is different in the case of tariffs since they are a cost *per good*, meaning a decrease in revenue from increasing prices in response to tariffs could still be an increase in profit.
At the other hand only tariffs don't hurt te lowest class
All other taxes tenf to trickle down to the poorest, especially land and property tax
@@mcpecommander5327perhaps. Trumps policies have been in effect for 4+ years now. Enough time to see their effects and to study them. His tariffs on washing machines, solar panels, aluminum, and steel were 100% passed on to US firms and end consumers resulting in a net loss to the US economy of $16 billion.
@@mcpecommander5327 directly and in the short term I agree, but over the long term you decrease investment and supply - unless you initiate some for of capital control or tariffs to compensate.
@@Redicule_research._ridiculoustariffs absolutely hurt the middle and lowest class. They are the ones who buy the cheapest version which is imported. You can argue about wage gains, but you could say the same about X tax funding a welfare program.
Progressive income taxes are the only that don't hurt the lowest income earners.
You forgot to mention that domestic businesses pay tarrifs not the country that is being tarrifed
Exactly. But Trump tries to explain it away as the exporter paying the tariffs.
Cost-push identifies non-binary.
Well, the companies are the ones turning away from the American labor force... Why shouldn't they pay the price?!
But don’t you think that the domestic business is that buy the overseas product would have to pay the tariff and then place that difference on top of the product to sell it to to the US citizens?
Like if McDonald’s buys french fries from China and they have to pay the 300% tariff don’t you think french fries would go up by 300%
@@tompatchak8706
The overall idea in theory is to encourage domestic production that will not be at a price disadvantage. But in reality, when there are domestic suppliers of similar products, they typically just raise their prices to match that of the foreign supplier + tariff. And then there's the retaliatory tariffs. Basically all of the collected additional tariffs for Trump's trade war against China went to paying subsidies to soybean farmers who lost business in China. China still needed to import soybeans and could buy from Russia and Brazil.
And half the country is still voting for him
Less than if you're talking about actual votes. A lot of ppl don't vote.
@@BS-bd4xobut at the end of day we all know who’s been winning the majority since 2008
Probably more than 50%. I feel like even Harris will vote Trump at this point.
Kamalas plan is to tax unrealized gains, which means any and all investments from the middle Class are worthless. Homes? Twice as unaffordable. 401k? Gone. The greater economy? Crashed. So this election is a choice between someone that wants to just demolish the middle class and the entire economy, and someone who wants to screw you in the short term to help you in the long term.
@@D2h2766I would like you to know, that there are in fact more Democrats than Republicans, and if every Democrat and Republican voted, Kamala would win the popular vote
to summarise: trump wants to raise your taxes.
He lowered them and can lower them more to offset this, its not about the money, its about incentives to do buisness here and not abroad
@desran4447 How the heck does this incentivize business coming back to the states? Companies get cheap labor abroad and then push the price of tariffs on consumers. They literally won't have to change anything. Not to mention industries that never had any foothold in the states to begin with like a lot of fruits, produce, and electronics.
@@millerbrown3051 If you make tariffs high enough it will be cheaper to pay Americans than pay tariffs. This is a very simple concept - you make manufacturing here worth it. As for things that can't be manufactured here - you can either make exceptions or just offset it with tax cuts or subsidies or whatever, doesn't matter. What matters is that incentive
@desran4447 No, what you're really doing is hurting our exports. Because the other countries are going to raise tariffs in return.
@@CupaTwiningS No, they won't. First of all, because it will require a strong leader and second of all because, although it is diffirent in every case, they most likely can't afford it. Who will they buy from instead? You can't just stop doing business with America, not without some serious economic and political consequences that nobody wants to be blamed for
The media has somehow forgotten that 45 also said that he would DEVALUE the US DOLLAR. Then ask yourself who will benefit hugely from tariffs and devaluation: his corporate billionaire buddies. Not you.
Or anyone who buys enough dividend stocks to pay their bills.
@@aaronjjacquesgenerally if you have enough money to drop into stocks that you can actually expect a sizeable return, you arent doing it to pay your bills😂
@kiyoraka3537 i was $197,652 in the.whole when I started using the "tax cuts for the rich" within 2 years i had wiped out that debt.
Live on rice and beans
Work 60-80 hours a week
Throw every dollar at paying off your debt
Borrow the money back to buy enough stock to pay your smallest bill
Take the dividend to pay bill (which will grow just as fast as the bill does due to inflation)
Use the money you used to pay down your debt faster
Repeat with the next smallest bill
The interest will be tax deductible now use the tax deduction to pay down the principle
At some point number of shares will exceed 100
Sell a covered call (2 years out) against those stocks
Use the premium to pay off the principle (20-35% of current stock price)
If the call strike you will be "forced" to sell the stock use that money to pay down the debt
If the call doesn't strike you can repeat the process again (another 20-35%)
To be fair trump's supporters are farmer and the lower middle class 🤷♂️
Bankrupt the country and let elon and company buy everything
When an individual has no understanding that tariffs increase the shelf price of goods for consumers they have no place being President. He has no understanding of just how much America imports as it no longer has the capability within anymore, he also believes the world will come begging for oil even though its price is being artificially boosted due to lower demand and greater supply.
Raising prices only affects those who can barely afford to eat, thus making us less choosy with who and where we work, allowing shitlord bosses (like trump) to dominate during his presidency
He does understand that and it will mean one of two things: more money for the budget or even more generous tax cuts, which will offest the increase in prices. Its you who doesn't undestand that bringing production back to America is way more valuable than consumers having a slightly cheaper product
The whole point of the tarrifs are to drive production back to the US... Which is way more valuable to us than having a lower price on imported goods, we need production to be here in the states where there's fair labor laws, emissions standards, and less susceptibility to global trade problems like what we saw during covid with supplies that were only produced in China
@@desran4447😂 I bet you think his tax cuts for the top .1% actually benefited you
@@Not_Loadingit wouldn't work... It's not the 50s 🤡
The sad part is that those willing to vote for him have such little understanding of pretty much everything. They need to be told what to think
That's rich. Considering you're voting for someone who doesn't think at all
@@noreenmcgovern2840lol
@@noreenmcgovern2840you were told to think that.
I went through why theye types of tariffs are bad in school. Policies like this are called Protectionism and on the scale Trump is proposing, it would temporarily boost the US economy, then quickly go down a slippery slope down to economic downfall.
I mean what you mentioned is why tariffs can be effectively used in specific situations to help as sort of training wheels for certain domestic producers or industries so they can move up the development curve and become more efficient and cheaper. But yeah tariffs become a problem when you employ them for too long, and for industries/products that can't easily be supplemented by domestic producers.
I love how all of Trump's followers are now economic "experts" spreading nonsense in this comment section about how his tariffs are going to be so great for us.
They can be, but Trump's acting like his tax cuts didn't directly lead to *more* companies outsourcing
They do their own research
@@tompatchak8706 “research”
@ whatever people tell me they do their own research. I will listen and I will read what they sent me but only if it’s not from Newsmax or Fox News or any kind of right leading website, especially like church website or Catholic league websites cause they’re obviously skewed One Direction. If you send me some shit from Fox News, I’ll point out that they’re not a news channel, they lied about the election and Dominion voting machine company seven times more than what the company is worth and they fired I think two of their “news anchors” right after that even the judge even Fox News said that they entertainment and news, but so you can get sources from
@ or like Donnie says “but the people on tv said…..”
Tariffs on everything. Tell me you have no clue how to run an economy. But then, Trump can't even run a business.
Well sure. Trump claims that the exporter pays the tariffs. He's that clueless.
I doubt he could even run a temperature properly.
He can run them into bankruptcy...
Dude ran a casino into the ground. The business model of a casino is literally to take money from someone and give them back less money.
He's THAT bad at running a business. 😂
@
He managed to lose that money while notoriously stiffing his creditors.
Not to mention most tariff costs are just placed into the customer via price hikes. Corporations don't increase domestic production, they just charge us more for the same goods. Such moronic foreign policy, incredibly infantile
At best, some corporations will move to places like Brazil, Bangladesh or the Philippines to get lower tariffs.
But this pipe dream of America being 100% independent (which was NEVER EVER the case) and manufacturing coming back like it was 150 years ago is just not happening.
I think many americans seriously underestimate how expensive US-based manufacturing is and that 200% tariff on chinese manufactured IPhone will likely still be cheaper than one produced domestically
Actually he did this and apple ceo started building a facility here in the US. Look it up.
@@Tyshkevich Apple start manufacturing in India but still no production in the states. Manufacturing industry in the US is too bad for high end brand like Apple. Although Apple did add more suppliers that has production in US during Biden’s term
An iPhone is kind of odd because most of the parts aren't actually made in China. It's just the final assembly point with maybe some parts like the battery and the boards made in China. But something like 90% of the costs of materials/assembly of an iPhone are from outside of China.
@@fredfeng5716
In the 90s I used to ride my bike past one of Apple's manufacturing facilities in Fremont, California. Company owned/operated and not a contractor. They had been making Macs there since the 1980s. I believe they closed shop in the late 90s.
However, Apple doesn't really care where it's made. They care who runs the factory - whether it's Foxconn or Pegatron, who are the best in the world at contract manufacturing - whether it's in China or India.
I suspect a lot of people think that tariffs are something another country pays to import something into the US, and that is a punishment on other countries. No. Tariffs are something that you as an individual American citizen, are (effectively) paying on any imported goods. Trump wants imported goods to be so expensive that you have no choice but not to buy them, or pay the government when you have to.
You are correct. That is exactly how these people think it works.
The main problem with tariffs is if you put a tariff on someone else’s stuff they’re going to put tariffs on your stuff in retribution almost every time 😂
How to ruin an entire class of people 101
So more tariffs will help it go from the $1.25 Tree to the $5 Tree 😂
Yep. Seems like they had that plan to up the price about that time and Covid and supply chain shut down gave them the perfect excuse to do it
Problem
Ain’t with tarrifs to China .. it’s that he wants to tariff every damn outside producer! Wth is he thinking!
He can’t think.
And what about the car companies or local manufacturers that rely on cheap raw materials to be able to pay employees and keep the lights on? Last time these tarrifs happened, thousands of people were laid off due to the increased price of aluminum
Good argument, but I'm from Bethlehem and shutting down our "Quality Materials" manufacturer cut the average wage of my city in half, and the casino they replaced it with brought drugs, poverty, and crime. You tariff Chinese Steel, every single building in America improves in quality, and no one gets to break the law to cut corners anymore. Society will improve, businesses will be forced to use higher quality materials, and stuff stops falling apart.... like the bridge the barge hit.... that people stopped talking about... made of which materials specifically. Wasn't surprised when I looked up the information on the people who constructed it, and who they bought from. All public record my friend.
@@VyseMalice You're acting like American companies don't already use quality materials. The only Chinese steel(pig iron) with issues is not used in any American buildings, and American buildings go through SIGNIFICANTLY more scrutiny than any Chinese building. Also, considering the fact that the US manufactures less than 10% of our own steel, and have been for decades, there's literally no base of industry to catch up. That means there will literally be no steel that cannot be imported, as the manufacturing capabilities physically do not exist. As for the bridge example, that's flat out dumb. That bridge was struck in one of its main support columns. It'd be like kicking someone at the knees and claiming that legs have weak bones because they fell over. Basically any civil engineer will tell you that the collapse happened purely due to human error, and nothing to do with "Chinese Steel", which is also dumb because most of our steel is Canadian and Mexican.
@@moomie1634 I was a safety officer at Amazon, and left due to DEI's destroying our safety standards and corporate covering for them. You think I don't know what our industrial equipment is made with?
@@VyseMalice Amazon is well known for sweatshop culture, and most of their issues have very little to do with DEI, because 95% of DEI positions are corporate postings. I know multiple engineers at Amazon, and the issues there are way more to do with rapid expansion and new management issues rather than some made up issue. Improper training is not the result of DEI.
@@moomie1634 No, I'm talking ground level workers, hiding policy, hiring people who speak neither english or spanish, calling Seattle, making them FLY IN NEXT DAY, and it getting covered up after someone piled 5ft past the guard bar, knocked down steel scaffolding, and smashed a 3rd party driver standing 5 feet from me. Which is why I quit. Injury reports reached almost 60% higher than the national average, they dropped wages by $4 per center, when 3 years prior it was $1 annual raises because all the money went to safety incidents.
Something you forgot to add, which is really important for context, is its not chinese businesses that are paying these tariffs. Its US companies that import the goods from chinese markets. China doesnt pay a dime of those tariffs.
he's going to starve U$
You are paying less taxes because of Trump
Do you understand, that Kamala Harris literally wants to implement on price controls on food supplies; which has caused scarcity, historically, and is a irrefutable fact. You think TRUMP, who had grocery prices outside two groupings at the lowest prices during his entire presidency pre-covid, is going to do WORSE than price controls? Are you insane?
Threatening to put a tariff on coffee is like the domestic version of trying to incite a Boston Coffee Party.
I think you really need to spell out that a tariff is paid by whoever is importing the good. Not by the manufacturer or seller... The buyer.
We are all screwed thanks Americans 😢
He choses not to understand them
Ive heard him be told "tarrifs dont work lik that" when he says it will cost another county money (instead of saying that Americans will be the ones paying the tarrif fees)
Yeah. That the really bizarre thing. His own companies import stuff from China (the junk sold at his hotels and golf course) and either they or their suppliers pay the tariffs. But then again Trump might be "don't bore me with the details" when someone just tells him what the total costs are.
@@ypw510It’s all just part of his xenophobia. He doesn’t want foreign people or foreign goods in the country. His deportation and tariff plans are his ways of trying to get rid of both.
@@adams3560
Trump sure doesn't seem to be very consistent about it. His golf courses and hotels are filled with Trump branded crap that's made overseas - mostly in China.
I mean other countries do end up paying an economic burden when you implement a tariff against their exported goods. For a US consumer, If the price of a tariff plus the import price of a good surpasses the domestic price, then the consumer has no incentive to import, and has to support the domestic production. The country that was formerly exporting now loses a ton of money from that good they were exporting, which counts a price they are paying.
Just more proof that man bought his degree from Wharton.
"Tariff? Stop showing off, I know words too you know" -Duck Guy
We did this one time
World's economy tanked
If everything tanks at the same time it will stabilize, it's actually a good way to cripple enemies recovering from wars with necessary supplies. It's a strong strategic move militarily. Especially considering America's primary export is food.
@@VyseMaliceBro actually trying to say the Great Depression was good. Y'all will do anything to justify bad policy
What they don't tell you is that these prices get passed down to the consumer. The manufacturers don't want to hurt their profits so they just charge more, and the corporations purchasing those products don't want their profits to hurt either so they just charge more. Tariffs will only result in us paying more.
And voters are going for Trump because they care about ‘inflation’ (insert biggest eye roll ever)
Greedflation focus grouped better. The decision not to focus on cost-push was a Kamala campaign mistake based on surveys showing most voters couldn’t understand the economic messaging.
@@theBear89451 it's hard being economically literate and involved with politics. You have to accept that politicians will say incorrect things sometimes because the complex technical truth doesn't resonate with voters.
I'm one of those people; I was making $1200 more a month at the same job when he was in office. I also took the day off work, and I'm spending the entire day driving Republicans to polls in PA, so bring your A game if you're in my state.
@@VyseMalicethat doesn’t jive with your other stories at all. You need to use different accounts if you’re pretending to be other people. But, sure, I’m stoked to spend twice, or five times (my bad), as much on stuff. Thank goodness you were here to show us the error of our ways… and education, historical knowledge, and common sense. 🙏🙏
@@TheGooglyminotaur Nothing you said remotely addressed a single one of those arguments. You just threw word salad opposition.
He wants this while also wanting to cut funding and grants for farmers. Were about to get a taste of what famine is like. The state I'm in already ended the summer lunch program and I watch hungry children sit around my apartment complex during the summer. And I cannot feed them because I am in a low income household due to a disability. I hate it here.
Could? More like absolutely will. The literal worst thing you can do in a free market is a tariff
I also remember him putting something on the farming exports we would send to China. And China didn't want to pay all of it, so they went and started importing from other places. That cost farmers $25.6 Billion over an 18 month period. This was all before the pandemic, which again hurt farmers. I remember seeing dairy farmers having to dump gallons of milk because there wasn't as much demand (like the little milk containers given out at schools).
Tariffs aren’t a horrible idea, but the problem is putting tariffs on EVERYTHING
when used in moderation, they can be good. sorta
You forgot to mention that when a tariff is placed. The country who placed the tariff has to pay it, not the country the tariff is placed on. That is how Trump added $7 trillion to our national debt.
Domestic industry is wonderful and it is something that the US should strive for in the future. The problem is that the US' domestic industry sucks right now. There are no cheaper US made options so companies still go to places like China and India. Even with tarrifs domestic products are still going to be more expensive. This means they will still choose to import products except now they are more expensive.
He's a very sick man !
Chinese strategy to Trump: Absolutely don’t interfere, let the man cook.
didn't he bypass a tariff HE imposed just to import bibles made in china?
So something we normally get from China, we'd pay a higher price for. Which means an American producer can be less efficient at producing that. Which means even if we can produce it here, we pay a higher price. And China will place tariffs on our exports, which means American producers can't sell our products overseas. A better solution is to develop an economy that beats China's prices and quality.
For those wondering thats roughly $200 increase per month. Can you afford an extra $200/month on what you normally buy now?
"I voted for Trump because I wanted lower grocery prices"
Well, I hate to be the bearer of bad news, but...
Cant wait to ask my conservative coworkers why the economy is so shitty under trump if he was supposed to fix it
Don't forget it can hurt American exporters due to causing a trade war
Definitely should have included the chinese tariffs have crippled our economy and we had to pay out farmers the amount we made in those tariffs
It would take YEARS to move even a fraction of manufacturing to the US. Nobody wants a plant spoiling air and water quality in their community. Putting them away means no available workers, leading to either paying more for workers or building homes, and schools, and infrastructure. None of this is fast or cheap.
Even things that can be made here, the factories still have to be set up and the know-how still needs to be taught. It’s not like setting up a factory is easy. Here’s my solution: we have a 200% tax on anything imported from the Netherlands because they are too smug and what exactly do they make anyway?
Not to mention wages in the us are way higher compared to places like China. Meaning that companies would need to either spend more here or give everyone the lowest possible amount of pay with more work
ASML
If there will be money to be made people will do it and way faster than you think, all you need to do is give them an incentive
@@user-em9hg6jz5s They will spend more here if you raise tariffs to the point where it doesn't matter or even cheaper to manufacture here and that is the point. Its not about collecting money, which also would help with the deficit, but you can always just cut taxes more if you are worried about the cost of living. The point is to make companies create jobs here, this will make the country way richer in both the short and the long term
@desran4447 the dream of manufacturing here is long dead man. It'll be too costly for companies to even start here as a place. Mexico isn't a bad spot but for here? Too much. Remember big cooperations want to spend as little money possible to maximize profits, not benefit the people.
To Trump the word Tarriff is just a cool word.
Unfortunately he has absolutely no idea what it means.
And WE pay it as importer, not China or whatever like he claims
I side with the economists on this one
trump is quite possibly the absolute dumbest possible choice anyone could vote for
Well we’re talking about the general American public so you know
@@donxx1206 i hate that youre right
@@donxx1206 based sonic picture.
Is that so? Why wouldn't you want manufacturing to come to come back to the states?
@@noreenmcgovern2840 do I need to spell it out? Manufacturing outside the states is cheaper and tariffs will sky rocket prices. Furthermore, economists literally said it's bad for the economy, for Christ's sake, if people can't appeal to you guys regarding climate collapse because the economy is god, then SURELY, economists stating that it should be relatively gospel right? It's between them and a bunch of rich ghouls.
The most beautiful word in the dictionary is 'beautiful.'
He never said anything about taxing fruits and vegetables he mentioned auto industry, computer hardware, steel, and other industries but never essentials stop spreading lies and misinformation
You're telling me that America can't make Morrocan coffee?!
U think they just gonna eat the cost? Lmao
Sidenote from this depressing news- this guy is my favorite 😭
Trump Supporters: "TRUMP IS THE GREATEST ECONOMIC MIND TO EVER LIVE AND WILL SAVE US ALL!"
Literally everyone who has even existed in the same room as an Econ 101 Book: "Trump is gonna make the "Great Depression" look like a Minor Pot Hole if he does what he says he wants to."
Like seriously, Trump is gonna "save" the economy the same way Kristi Neom "saves" her dogs.
That’s a very good analogy.
It's important to mention that tariffs are paid the domestic company doing the importing, which is why many experts say companies will just increase their prices to offset it. In my opinion, no amount of tariffs will offset the practically non-existent labor cost of chinese manufacturing companies.
Mussolini liked Tariffs, he tariffed wheat and Anti-Pasta was born. Imagine Italy without pasta, it happened under the Fascists as did a lot of other unsavory deeds and acts of villainy.
I wonder if the democrats would censor this as misinformation, or if it would be fine since it helps them 🤔
That’s fascinating considering the Romans ate antipasto 🤔
Mussolini did in fact try to discourage pasta and tried to get the italians to eat rice, but it was the futurists (who were tied in some way to the fascists, but still different) who were the most anti-pasta.
Nissan, Toyota, and Subaru all have car factories in the US because of tariffs. US jobs from foreign manufacturers that is how tariffs can benefit the US.
Thank you for making sense
Exactly, I think Trump is saying these massively large percentages to be hyperbolic, and if he does try implementing large tariffs like that, it'd just be threatening to do it to incentivize foreign countries moving factories here. More jobs + more locally manufactured goods = less dependence on our enemies like China. They aren't a bad thing like what everyone else in this comment section seems to think 😮💨😭
WHY HAS NO ONE MENTIONED *RECIPROCAL TARIFFS?!*
It’s not that he’s raising taxes
It’s that he’s raising YOUR taxes specifically. It shifts the burden from the rich to the poor and middle class
Tariff is a stop gap measure to promote industrialization. Yet doing so in the US with sky high cost it is basically ISI similar to what latin america did in the late 20th century. If anything it’s mostly not going to work.
Do you like bagels
*y e s*
Yes
yes I had one yesterday
My light in the dark
So weird to me, because if you ask a Republican why they’re against higher wages for workers, they’ll reply with “because the cost gets passed to the consumer”, and yet….
This guy is full of the exaggerated swagger of a black teen great job !
Still better than unrealized stock market growth tax
In 2012, we found out that North Korea was out shopping for materials for their ICBM program. So we went to a country that has those materials and offered to buy them at a premium rate to keep them from selling them to North Korea. In 2017, tRump put a tariff on those materials and forced that third world country to sell to NK. So, when those missiles are flying, remember who helped build them.
it’s true we get less economic benefit with tariffs, and the consumer loses out but it’s definitely a good thing to have local production of certain things especially if we get cut off on access to critical industry. Though that’s not saying I agree with all he does and does not tariff as Trump has made some questionable choices
In that case you don't impose tariffs, you give out subsidies until we have the infrastructure to compete.
Tesla is a perfect example of a super successful company buoyed almost entirely from subsidies.
Yes. Instead of buying chinese steel at 3000$ per ton, you will buy American Monopolistic steel at 10 000$ per ton. Everybody will be so awe that reducing the offre will not at all affect price! Like giving monopolies to 3-4 cronies will not at all be detrimental to the only advantage of capitalism : competition.
This is literally the Tariff of Abominations during John Quincy Adams Presidency, which nearly tanked the US economy at the time. If Thomas Jefferson hadnt strengthened the US economy (through the somewhat blunderous Embargo Act), the entire economy would have crashed. Which is exactly what could happen here.
Maybe it backfires.
And then EU and China leave out the US market.
YES. It will be so great. Empty shelf everywhere. The new Iphone would only cost 3000$ more. Car 10 000$ more. So great. No more steel. No more aluminium. No more computer. It will be awesome!
There's no conceivable benefits to his plan
They can't, the US market is the biggest market there is, they have nowhere to go. US can dictate what to do and what not to do to the entire world all at the same time because it is just this rich and powerful, all you need is someone with enough balls to actually use this power
@@joshuanorman2 Reviving domestic undustry? Its literally the sole reason of protectionsim
@desran4447 and it literally will not work, ask any accomplished economist.
I asked a customer what industry do we, the US, have. She went silent. If the common people don't know, we have to soon know! BTW we are predominantly a service industry. It could involve middle-management of companies. Down to register and stock management. Aside from that our exports are aircrafts. Grain and animal products if you wanted food.
The US also exports media, ie Netflix.
He wasn’t talking about taxing coffee. He never said he was going to tax coffee what he said he was going to put tariffs on or US companies that make their products in another country to sell here.
i.e. coffee
Products such as - wait for it - COVFEFE
Coffee, Cocoa, Vanilla, Tropical fruit. Those four things are not grown domestically and can't be because of climate. That means your complaint of Starbucks being overpriced is going to be you crying salty tears next year remembering how cheap it actually was before Trump's Tariffs.
I was working in a hardware first go around, prices are just gonna creep up. Without the infrastructure 4 years isn't enough time to start producing all this. We'd mark the same stuff up every other week.
Gringos really voted their own demise
Not some say extreme tariffs would cause inflation. Most do.
Trump 2024 🇺🇸
Did you watch the video? None the less he won so congrats I guess
Tariffs are not evil. The free trade mania destroyed the economy of countries like Mexico & Australia. Tariffs, if targeted are a net positive for a country.
You are correct if tarrifs worked in the best case most theoretical situation it would be great but the thing is no country can make all the stuff it needs by itself and these tarifs can just destroy everything
Fledgling industry tariffs have mixed evidence. Not sure about Australia but Mexico's problem with low tariffs is that they were one sided, artificially imposed reductions by the IMF. US tariffs are low because of WTO agreement rounds and bilateral trade agreements. Raising US tariffs would increase prices with minimal domestic growth in the short run, tank export driven industries when agreement partners withdraw in response in the medium term, and stagnate and likely crash the economy in the long run. There are no winners
Yes, the Tara will make things more expensive for stuff that is being imported.
But it's important to note that he is removing income tax on tips and overtime
@@idemanddonuts he has also bragged in the past about hating paying people overtime, there won’t be a tax on overtime because there will be no Overtime pay
@@pocketmarcy6990 Exacly.
Biden is the one who increased the overtime caps after Trump lowered it. That’s already happened. Why don’t you guys know he was already president? He has a record (more than one, ba-dum-ching), may i suggest researching it?
"Some coffees"? More like all coffees. US simply can't meet it's own demand. So result will be Low supply + High demand = Inflation.
Anyone who has taken a basic Econ class has learned the difference between normative and positive statements. Positive statements are just how things are. Normative statements are your opinions.
The positive statement is that tariffs will increase prices. People can have opinions that support tariffs for a number of reasons, but the fact so many people including a presidential candidate are arguing against this pretty basic positive statement is bizarre to me
Chips for tech components are mostly imported because of both the difficulty and required machinery. This will severely impact the costs of things like phones and computer parts on both domestic companies and consumers
This sucks
Thanks for ecomomic instability, America!
I think you guys at WP are doing a great job at explaining various aspects of the political and jura of the US...
I do however wonder why Bezos would block WP from endorsing the candidate that's not planning to place tariffs on 80%+ of the goods sold through his little side business called amazon or something like that.
Are people gonna get more sallery to afford the now more expensive imports or home made goods?
It is unlikely
@@WhyWert They won't :D Waiters already live off tips. Its already fine not paying a living wage
Even if what he says about tariffs was true, who would ever trade with a country that imposes 1000% tariffs on goods. Even his 200% idea is ridiculous.
Couple that with wanting to remove the Chips Act and you should know he doesn't want to help the workers.
You should explain free trade economics in your next video about tariffs, there is a lot more to it than “coffee can’t be grown in America”
Amen
One thing this video totally ignores is the fact that tariffs sometimes are not just tax on products, but a leverage for trade negotiations. We have allowed our nation to be a trade deficit, wherein we import so much more than we export. When we use to tariffs to encourage other nations to allow us to export products to them, we encourage domestic production and ensure that their import prices are competitive. China has WAY over leveraged their access to import to America at ridiculously cheap prices, undercutting many products made by companies in America. For those imports, China use import costs typically reserved for developing nations, wherein wiping out a lot of competitors in the last 20 years.
What im also confused about, why would you want to being back basic jobs like growing some crops, making cloths or mining coal or whatever. When you can instead do higher level jobs like car manufacturing, chip manufacturing and stuff like that.
The problem is labor scaling. Jobs are high earning because they grow at a rate slower than population while producing value inline with population growth.
Ok, but isn't the plan to also decrease taxes, which could save that much or more for citizens?
He said that his last presidency also but never massively reduced tax burden of the middle class
Decrease taxes on the rich. Which means we pay more to keep things going
I'd support the idea if he was able to get rid of other taxes.
Tariffs incentivize factories being put here (secondary sector not necessarily primary, some things just generally have to be imported).. this bring the US more jobs, and yes the producer pay that extra tax, BUT the money from that is still going to the US treasury- So in summary, it's making the country money, jobs, reducing foreign dependence and all of you in this comment section are freaking out despite Trump mostly only proposing a 20% tariff on countries except for China which is 3 times that. It's almost entirely about incentivizing China to build factories here, AND GUESS WHAT, they will! Because we are their biggest trade partner.
Like all the ones built last time he was in office?
3x 20% is 1000%? Ok.
Giving you the benefit of the doubt, what you’re suggesting is that to drive manufacturing, we need to tax people who spend the most on cheap goods, i.e. poor people. You’re further assuring that this massive hurt on our people will result in a massive good, assuming that the tariffs are more expensive than building thousands of new factories in America… using tariffed products.
Where’s the economic proposal that shows how long the net good will take? I’m kidding. He doesn’t have one. He just makes this stuff up after he hears a new word, and people attempt to justify it.
@TheGooglyminotaur You can't possibly believe he's serious about a 1000% tariff man, that's absurd! It would cut off our trade with every country... I'm not Trump's biggest fan, my friend, I don't even particularly like him so you don't gotta hate me for it, but sometimes you've gotta step back and stop taking every word that comes out of the man's mouth as a literal itemized list of what he's actually going to do- the other branches of government simply won't allow the implementation of tariffs at such a massive scale when the average Joe is doing alright as is now. I genuinely do believe though Trump will implement REASONABLE tariffs as he's permitted to do, and I don't think they'll negatively impact the economy as harshly as all of you propose... I suppose we'll just have to revisit this conversation in the coming days if he wins... best of luck to your candidate though- if they win, I wish them the best of luck and I'm praying for their wisdom regardless of what I think of their policies.
I know it's like a journalism ethics thing but saying "some economists say" feels like laundering the facts. It is guaranteed to raise inflation and slow growth, there is no respected economist that thinks 10-20% tariffs would be anything but horrible for the US economy. It's like the one thing the entire field can agree on, tariffs are paid for by importing consumer and a plan like this would just immediately raise prices on everything by nearly the entire tarrif rate
That's why the economy is rough rn.. not but bc of Biden, but bc it takes a cycle for the economy to recover from the last president..
exactly, but maga supporters will blame biden, when in reality it causes a ripple effect.