If Donald Trump does put Tariffs on European Countries, wouldn’t that mean people living in the US would have to start paying more as well?

Question

I believe the answer to this question is yes but I’m not too sure. Can you correct me if I am wrong?

slatyb · Accepted Answer

Of course it does. Tariffs are just a sales tax on imported goods.

abc3643 · Accepted Answer

You are correct.

WindAtMyBack · Answer

Maybe. There are several things to consider.

Increase in price is what it's supposed to do. But I said 'maybe' because the increase might not be passed on to you.

The companies exporting to the US effectively have the cost of making and selling their product increase. They DO NOT want that. Companies go out of their way to keep costs down. To them, a tariff is an increase in their costs much the same as an increase in the price of raw materials. They don't want that, especially when they are paying it and their competition is not.

On the US end, let's say a Swedish product is setting on a shelf next to a similar American product. Let's say they both cost $100. Now the cost of the Swedish product goes up to $110 and the American product stays the same. Which one are you going to buy? If you buy the American product, it's cheaper and supports American jobs.

The above is protectionist use of tariffs. It protects US industry and jobs.

However, the prices wouldn't really go up by 10% like that. I was just making a point. It would go up slightly, but not that much. Forbes did an analysis and estimated that a 10% tariff would only result in about a 1% increase in price on average. That's because the 10% tariff is not on the entire amount, but only a portion of it. There are a lot of other costs that aren't affected by the tariff.

1% isn't much to you, but it's a LOT to both the exporter from Europe and / or the importer / retailer in the US. That's because you are only buying one, and they are selling millions. So that 1% really adds up.

You are going to pay taxes no matter what. If you don't pay one way, you'll pay it another. A tariff is just another tax. The only way to NOT pay more tax is for the government to stop growing. As long as they keep growing then you WILL have to pay more tax. Some taxes are preferable to others. I prefer a tariff over income tax for example. I prefer either one over property tax. But you will pay the tax no matter what form it comes in.

NaultD · Answer

Yes. Lets use electric vehicle as an example.

Historically the use of tariffs is to protect domestic products and help buying domestic products. So Tesla is domestic in usa as a growing manufacturing company. we put a huge tariff on other electric vehicles to give tesla more breathing room to grow inside usa by putting tariff on other country's like China that have better electric vehicles.

Tariff is a reasonable tool to help grow an industry and help it get to the point to be competitive on a global market.

What don strategy for tariff is an ass backwards 1990's click bait "experts hate this one simple trick" 3 am infomercials on cable horseshit logic.

lightbulb27 · Answer

Of course.

It's a threat, a $ war to coerce what he wants. It's abuse.

He needs to sell urgency, need and such which I don't think he can do publicly. If I had to bet what the problem is, it's we need the gold silver and resources out of Greenland to survive because we are so broke.

That is usually what causes all the wars and death historically..."we're broke...".

Greenland has no debt and tons of resources... there ya go:)

And he's probably right if we don't take it others will... in time. and that is a problem.

Jersey2 · Answer

The largest group of items that Europe sells to us are drugs. Many of these are US pharmaceuticals that manufacture there for tax breaks. But Trump put a MFN price constraint on the cost of drugs in the US which means that if they sell a pill for $0.10 anywhere else in the world then they must sell it for that in the US, not the $5.00 they were charging. The US price will need to match the lowest price they sell it for anywhere in the world.

Cars is a large import as well. This will simply make US made cars more attractive. This includes BMWs made in the Carolinas or Toyota’s made in Tennessee and certainly Tesla’s made in Texas which is the most American made car.

We will buy things elsewhere as the math changes on cost. Eventually, manufacturers will move manufacturing to the US providing more jobs which is the real plan.

loveslongnails · Answer

LOL Who do you think has been paying for the tariff's all along --- the US companies and individuals who import the goods! The Mango Molester is under the delusion that countries sending goods to the US need that market SO badly, they'll lower the price to the importer by discounting the cost of the tariff. Idiotic, isn't it?

When the US importer pays an extra 10% than it was paying last month for the identical item, you the consumer are going to pay an extra 20%, 30% or more. So every American gets screwed in this scenario. Then Dementia Donnie says he's going to give you back $2K and you cream your pants, not realizing you're getting your OWN money BACK. LOL

No matter how often you explain this to a magat, they just don't get it.

Chazmatazz269 · Answer

Yes, but it also opens up opportunities for US citizens to start or expand companies to fill the void in the domestic market. That’s the whole point. Our economy is vulnerable as long as we rely on foreign markets for goods and services. The tariffs have already halved the US trade deficit and there’s speculation that the deficit will continue to go down. If more US based companies do start up, we could transition into a surplus economy. That’s how strong economies work.

RavVid · Answer

Not if the European exporter take a hair cut.

Take beer. A brewery covers all the costs from sales for the domestic market. The additional cost of brewing up more cans is quite low - lets say it is 10 cents.

So the brewer can afford to sell quite cheaply into an export market.

If the exporter doesn't have capacity to take a hair cut than prices will rise.

exitseven · Answer

President Trump is using tariffs as a stick to get the EU to the table. It is a no brainer that having Greenland as a US territory will be better for NATO and the EU and it will be better for Greenland as well. It is a matter of who is going to get a payday and how can everyone walk away thinking they got a good deal.

Dargil · Answer

Not necessarily. If they want to maintain market share, they will have to reduce their margins a little. They will do that. Because if they don't sell product here. They won't sell it anywhere. Why do you think they are building Mercedes BMWS and Audis and Volkswagens in the United States now? They want to keep market share. And since the European Union is spiraling down the drain, and taxing the living shit out of everything, that's why all the manufacturers are coming here.

goaded · Answer

"If European countries don't stop stepping up to block Trump's Greenland Imperialism, Trump will have no choice but to punch U. S. consumers in the face with more tariffs."

Twalli · Answer

Tariffs are born by our consumers. The most likely result of tariffs is that fewer foreign goods come in because importers have to pay more and then charge more. Fewer people will pay for more expensive things, so importers won't buy too many with the tariffs because they can't sell as many.

FreyaRed · Answer

Yes, if you consomme EU products. No Greenland for Donny, you have to pay more for certain medication, cosmetics, car parts... When orange pedo doesn't get Greenland he taxes you.

AviatorTom · Answer

Only if you bought a European product. The goal of tariffs is to reduce the market, fewer people want to buy the product. It only works for discretionary spending though.

purplepoppy · Answer

Yes plus as Europe retaliates you lose the ability to sell goods to us. Lots of Americans are going to lose their jobs.

Spencer10 · Answer

Yes. You are correct. The EU will not pay these tariffs. Americans pay it.

FunkyMonkee · Answer

Not the way I understand it but, at the moment, I couldn't explain t. I just know that things would be better for us.

sawno · Answer

Yes thats how it works, they increase your prices to make our products less attractive.

laraWM · Answer

Yes you're right. Some part of the price increase could be taken by companies too

jamesgoldman · Answer

They'll pay more for European goods, less sure on the Europeans buying American (very little is imported domestially)

Anonymous · Answer

Yeah but then we switch to domestic products that employs Americans

DextroShade · Answer

Only in the short term until we start actually making things here again.

msc545 · Answer

Yes, of course, it means that. Trump doesn't care.

qwerty2469 · Answer

Only if they bought European products. We don't buy European products. It means they pay is to sell their trash

beefcakebradybatson · Answer

Yep, and your boy doesn't give a flying f**k!!!

Ben9500 · Answer

Tariffs don’t make things cheaper

zombiewoof · Answer

Big time

If Donald Trump does put Tariffs on European Countries, wouldn’t that mean people living in the US would have to start paying more as well?

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Why do some Americans think that imposing tariffs on the EU will have virtually no impact on the American economy?

If Donald Trump does put Tariffs on European Countries, wouldn’t that mean people living in the US would have to start paying more as well?

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Why do some Americans think that imposing tariffs on the EU will have virtually no impact on the American economy?

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