Chinese tariffs, who pays?

[noonereal]

When the President placed tariffs on China who paid them/pays them?

Do the Chinese send us a check or are the tariffs collected from USA companies?

 

[Lord Tammerlain]

When the President placed tariffs on China who paid them/pays them?

Do the Chinese send us a check or are the tariffs collected from USA companies?

Tariffs are paid by the importer, who ever that is

Now the effects can be varied. The exporter might lower prices to remain competitive, or do final assembly somewhere else to avoid tariffs, or if their product is good enough leave the prices as is. The importer faces higher prices generally, and has three options eat the cost, pass the cost on to the customer or a mix of the two

 

[Vadinho]

Tariffs are built into the price by the importer or they are below the line costs added to the invoice. I know because we collect millions of dollars of tariffs every year paid for by our US customers. China does not pay the tariff, we do.

 

[noonereal]

Tariffs are paid by the importer, who ever that is

Now the effects can be varied. The exporter might lower prices to remain competitive, or do final assembly somewhere else to avoid tariffs, or if their product is good enough leave the prices as is. The importer faces higher prices generally, and has three options eat the cost, pass the cost on to the customer or a mix of the two

I know this, I want to see how many people don't understand this simple Economics 101 (we are assuming the importer is an American company here, I did not want to get crazy in the detail for the poll)

 

[swing_voter]

I think the market has adjusted to work around the tariffs.


Capitalism is good at working around things.

 

[eman623]

Ultimately, no one will pay the tariffs. People are rational and will seek lower cost, non-tariff alternatives.

OTOH, if you a consumer who thinks China is a great country and thinks Chinese products are just the best, then I suppose you'll pay the premium to get your hands on that renowned Chinese manufacturing quality and integrity.

 

[PIPEWRENCH]

I think the market has adjusted to work around the tariffs.


Capitalism is good at working around things.

Taxes and/or tariffs work. The tax on cigarettes is a good example. If the tax and the money generated by the tax is used to help people stop smoking and to prevent people from starting smoking it is a great solution to a terrible problem.

If the EPA requires our factories to not pollute the air this is a good thing. But if the cost creates an unfair advantage for factories in other countries that could care less about polluting the air a tariff to level the playing field is a great idea. Using the tax/tariff money to clean up the environment from previous damage or research towards solving future environmental problems is a win-win.

The sad fact is the tax money is usually used to create an over bloated government that does more harm than good.

 

[What if...?]

Ultimately, no one will pay the tariffs. People are rational and will seek lower cost, non-tariff alternatives.

OTOH, if you a consumer who thinks China is a great country and thinks Chinese products are just the best, then I suppose you'll pay the premium to get your hands on that renowned Chinese manufacturing quality and integrity.

Just recently bought a Chinese made small motorcycle.

Less than three grand out the door.

Not a freeway machine, m2 class. But it goes 45 mikes an hour for about 25 miles.

There are exactly zero American made machines that are similar in capability and price.

The world is adopting dozens of machines in this class. But only the CSC City Slicker has been homologated (approved for sale as a motor vehicle in America).

Oh, and by the way, i paid the tariff.

 

[noonereal]

Taxes and/or tariffs work. The tax on cigarettes is a good example.

this is a 3 clown shoes stupid post.

an educational program is what caused a reduction in smoking, not a tax. Good grief... you simple break the back of the poor who smoke with these insane taxes on cigarettes.

 

[Drawdown]

When the President placed tariffs on China who paid them/pays them?

Do the Chinese send us a check or are the tariffs collected from USA companies?

That isn't really the point though of raising them. It makes other companies and other countries able to compete with China. Raising the cost of doing business with China encourages competition.

 

[eman623]

Just recently bought a Chinese made small motorcycle.

Less than three grand out the door.

Not a freeway machine, m2 class. But it goes 45 mikes an hour for about 25 miles.

There are exactly zero American made machines that are similar in capability and price.

The world is adopting dozens of machines in this class. But only the CSC City Slicker has been homologated (approved for sale as a motor vehicle in America).

Oh, and by the way, i paid the tariff.

Sometimes there's no alternative but to buy a Chinese-made product. We moved to a service economy - a decision which we are as a country rethinking especially for essentials like medicine - but for the time being it is what it is. I would expect American manufacturers to start moving to non-tariff countries for manufacturing e-motorcycles to reduce costs to their customers.

 

[Vadinho]

Ultimately, no one will pay the tariffs. People are rational and will seek lower cost, non-tariff alternatives.

OTOH, if you a consumer who thinks China is a great country and thinks Chinese products are just the best, then I suppose you'll pay the premium to get your hands on that renowned Chinese manufacturing quality and integrity.

One invoice alone cost my customers 40 grand for networking equipment. That is one of thousands we do every year. China did not pay it, our clients did. And no, factories will not move to Scranton or Gary, they will move to Mexico or Vietnam or Thailand. Wake up.

 

[OrphanSlug]

When the President placed tariffs on China who paid them/pays them?

Do the Chinese send us a check or are the tariffs collected from USA companies?

Terrible polling options, economics 101 tell us who pays for tariffs... the consumer.

 

[Grand Mal]

That isn't really the point though of raising them. It makes other companies and other countries able to compete with China. Raising the cost of doing business with China encourages competition.

Protectionism in a global economy is so short-sighted it's hard to justify even badly. My best guess is that Trump just sees it as a source of revenue and doesn't care who pays it, with the added bonus of claiming to be 'tough on China' to his cheering fan club. Hell, he even puts tariffs on raw materials, putting American companies who manufacture in America at a competitive disadvantage both at home and internationally.

 

[eman623]

One invoice alone cost my customers 40 grand for networking equipment. That is one of thousands we do every year. China did not pay it, our clients did. And no, factories will not move to Scranton or Gary, they will move to Mexico or Vietnam or Thailand. Wake up.

You don't know the future, but I'm find with Mexico, Vietnam and Thailand manufacturing. Those countries are not seeking global economic domination, waging huge state-sponsored industrial espionage against us, released a global pandemic, or ever imprisoned a million Uyghurs in slave labor camps and shaved their heads so the could sell their hair on the international market.

 

[chuckiechan]

When the President placed tariffs on China who paid them/pays them?

Do the Chinese send us a check or are the tariffs collected from USA companies?

China pays with reduced profitability.

Tariffs give countries an incentive to move their supply chain from China to somewhere else. That means the profits do not go to China!

The answer to “Who pays” is a tricky one. In simple pure economics, the buyer pays by paying more. But this higher price attracts others in to the tariff-free market, causing prices to go down again.

So the simple answer becomes “Yes and yes”, because you need to mix in lost opportunity costs of lost domestic wages and “institutional amnesia” caused by forgetting how, over time, to make certain things.

(There will be a quiz on Friday!)

 

[Grand Mal]

One invoice alone cost my customers 40 grand for networking equipment. That is one of thousands we do every year. China did not pay it, our clients did. And no, factories will not move to Scranton or Gary, they will move to Mexico or Vietnam or Thailand. Wake up.

After the last round of tariffs on steel and aluminum Harley-Davidson moved more of their work to Thailand.

 

[chuckiechan]

Just recently bought a Chinese made small motorcycle.

Less than three grand out the door.

Not a freeway machine, m2 class. But it goes 45 mikes an hour for about 25 miles.

There are exactly zero American made machines that are similar in capability and price.

The world is adopting dozens of machines in this class. But only the CSC City Slicker has been homologated (approved for sale as a motor vehicle in America).

Oh, and by the way, i paid the tariff.

There is nothing wrong with buying that motorcycle from China. The tech is mature, the patents are long expired, and China can build them by the millions for the Asian market. That is just peachy if we leave human rights out if it.

We are not talking about motorcycles. We are talking about intellectual theft, spying, and counterfeiting all under the protective wing of the government. China intends to leverage this behavior to become the world’s manufacturer by 2050. (No explanation as to how anyone buys their products if they have no jobs at home...)

BTW, great discussion, lousy poll.

 

[bluesmoke]

We collect the tariff from the importer who are most often American companies that eventually pass it on to the end buyer, being most often an American citizen/resident.

 

[noonereal]

That isn't really the point though of raising them. It makes other companies and other countries able to compete with China. Raising the cost of doing business with China encourages competition.

My point was to see how many believe the lies the President has told about China sending him a check from the tariffs.

 

[noonereal]

Terrible polling options, economics 101 tell us who pays for tariffs... the consumer.

Read some of the replies and lean. Some companies absorb the cost and do not pass it along.

The attitude in this reply is terrible BTW. Take a happy pill.

 

[noonereal]

China pays with reduced profitability.

Tariffs give countries an incentive to move their supply chain from China to somewhere else. That means the profits do not go to China!

The answer to “Who pays” is a tricky one.

It is not tricky at all. You are complicating it needlessly for our purposes which is to see who actually believes teh drivel Trump says about this.

 

[Noodlegawd]

Ultimately, the consumer pays. The only question is whether the effect is worth the price.

 

[Peter King]

In the end the only one who really pays is the US customer because the US companies that have to pay the tariffs will make the customers pay what they have had to fork out to the US government.

 

[Drawdown]

My point was to see how many believe the lies the President has told about China sending him a check from the tariffs.

They do and they pay by the billions. The tariffs are collected at import, not when sold so the US is paid its money whether people buy the goods or not.