LogFAQs > #984893553

Prestoff posted...

It is a smart way to show WHO exactly is going to pay the tariffs...and it ain't China.

It's all the same, really. Both the producer and the consumer lose. And the lose more than the government gains. Whether that's in the form of paying more or selling fewer units doesn't really matter.

Let's say an item receives a $100 tariff. If the producer pays $100 to export it, they're going to want to sell less of them. Supply and demand are now out of equilibrium and the sale price shifts higher to reflect that.

If the consumer pays $100 to import it, they're going to want to buy less of them. Supply and demand are now out of equilibrium and the sale price shifts lower to reflect that.

In theory, the equilibrium price plus the customer's portion of the tariff is equal regardless of who pays the tariff or even if the split it.

The whole thing about who pays it was always just a distraction from the fact that the US Government is forcing the commodity out of its equilibrium and losing equity to dead loss all to pass on a portion of what was taken from the people to the corporations.