Trump Tariffs, explained

Tariffs have emerged as one of the most important flash points in the 2024 presidential election. Former president Donald Trump has promised massive new duties of at least 10 percent on all imports, characterizing tariffs as a solution to everything from paying off the federal debt to helping solve the nation’s child-care crisis.

Vice President Kamala Harris has attacked Trump’s plan as a “national sales tax” that could send inflation soaring and cost the average American family thousands of dollars every year.
But how do tariffs work, and how would Trump’s plans affect the U.S. economy?

[GSBarlev]

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.

[Roboman]

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)

[erik]

This is How to tax the middle and working class without raising their income tax😢

[norious]

Trump still thinks that tariffs are taxes that other countries pay 🤦‍♂️

[crumb]

FUN FACT- "tarriffs are bad" is one of the very few statements economists almost unanimously agree on. 93% of the economists surveyed said so

[nomuom]

So thats going to MASSIVELY increase prices of almost everything... WHY ARE PEOPLE VOTING FOR THIS DUDE.

[mathewlloyd]

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.

[yuvalne]

to summarise: trump wants to raise your taxes.

[TheRealBrandonMcDuff]

You forgot to mention that domestic businesses pay tarrifs not the country that is being tarrifed

[eh]

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.

[sanjaynataraj]

And half the country is still voting for him

[GruntUK]

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.

[garretwirkus]

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

[UXBen]

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.

[rachellereeve]

Tariffs on everything. Tell me you have no clue how to run an economy. But then, Trump can't even run a business.

[theolwinkledink]

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

[dannyawesome]

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.

[alexmikhylov]

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

[AliasA]

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.

[Thatguy-unyq]

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 😂