This was explained to people all over the internet. I remember people posting the dailyshow shirt guy interview where they explain to him how tariffs will impact his business. Some people didn’t care as long as it also hurt everybody they don’t like.
So ask yourself we someone who voted for Trump whines about tariffs. Is this person just dumb or a total piece of shit?.
I might be wrong here, but tariffs can be very effective tools, but as a slow burn. The way they’re being wielded here is asinine.
If you want to affect behavior, tariffs are a long game. They’re passed by Congress so they aren’t tied to the whims of one man. If you don’t want US chicken or EU trucks, make a law and let decades of implementation change behavior.
If you just want them to hurt, you do them the way we are now. The unpredictability hurts businesses and individuals, inside and outside the US. It makes prices and markets volatile and sows distrust. It hurts the vast majority of people, but benefits people who have the stability and assets to buy low and sell high. Each tariff implementation and retraction is just a mini market manipulation giving people with advance knowledge of what is affected to profit.
They’re a tool for correcting price alterations on the seller side. If China is subsidizing the manufacturing of Fidgets, a matching tarrif on the import of Fidgets protects domestic manufacturing from artificially cheap competition by preventing consumers from seeing those low prices.
The subsidies don’t even need to be hostile. The US subsidizes food to lower domestic costs, ensure a stockpile, and keep farmers happy. The side effect of driving down world grain prices is incidental.
Additionally, they strike me as the stick that pairs best with a carrot to spur domestic production of whatever you’ve put tarrifs on, along the lines of the CHIPS act.
I distinctly remember learning about tariffs in Social Studies. That was back in elementary / middle school. I understood it then and so did my classmates.
By the way, if tariffs are directly sent back to the customer through tax reduction on the tariffed category of products, wouldn’t it be painless for the company/customers (if you forget the retaliation tariffs) while increasing you local insensitive to production? (all things equal if you imagine companies reduce the cost of the products properly etc which is not realistic)
I don’t see how that would help. In the ideal case of a finished product, tariffs artificially raise the effective price for the buyer; they don’t change the math on the cost of production. Usually, they hurt the producing/exporting firm by forcing it to increase the asking price, which reduces sales. It reduces sales because the buying/importing firm has to pay higher prices. If the buying/importing firm gets tax reductions that are directly tied to the tariff, then its out-of-pocket expense hasn’t changed, and it can just keep buying the imported product with no effect on its profits. That means that the producing/exporting firm can still sell exactly the same volume of product at the higher price, covering the tariff cost, with no effect on its profits. Nothing much has changed, except a bunch of extra paperwork and transactions.
There’s only incentive to move production locally if the buying/importing firm can switch to a cheaper, local product, but retain the tax benefits, allowing it to keep more money. But that means the tariff money is no longer being collected, so somebody else is paying the taxes while not getting the benefits. In short, tariffs can only work by causing pain to somebody locally.
That’s 2 if’s. Sure, IF both of those things were true, maybe it would net out, but still be a paperwork and cashflow delay for the company (pay the duty today, get the money back at some point in the future) which sucks liquidity out of the market and generally holds back growth and investment.
But that isn’t particularly relevant since neither of those two things will ever happen. The tax cuts will go to the top earners, and retaliatory tariffs are very much a thing and cannot be ignored.
Ah yeah I see I forgot this part, more bureaucracy and delay might hurt cash flow. Thanks that’s a good thinking.
It’s just a though experiment, in real life it’s not a nice math problem to solve like you said.
Personally if I had to cut someone’s hours, all else being equal, the one who took 50 attempts to figure out tariffs would go before the one who took 2.
Trump & Co do love the uneducated.
After brexit, the searches of “What is the European union” skyrocketed in Britain.
Most people are morons who don’t think for themselves.
From what I’ve heard most pro brexit voters thought that leaving ment no non white immigrants allowed, they failed to understand the EU only let European labor in, the people from not white lands gained access from England’s colonial past.
This may be “unpopular opinion” stuff, but I frequently see highly upvoted populist pitches on Lemmy that are just the same; a supposed way of sticking it to the man that will quite obviously be borne by the little guy.
Yeah there are too many poorly educated lefties here. Or worse, well educated and deliberately deceptive.
Dumbasses go from not believing everything a politician tells them to believing everything a politician tells them because he’s dRaInInG the SwAmP. Zero sympathy for anyone still buying their lies.
It’s not an issue of believing/not-believing politicians nearly so much as it is a media environment that’s fully saturated with right-wing propaganda.
What do you tell a person who has been listening to AM Radio for 30 years? What do you tell a person that was taught Ayn-Rand-o-nomics in High School while the teacher clutched a copy of Atlas Shrugged alongside her Bible? What do you tell a person who has never actually been involved in the higher levels of business management, because our economic model is so subdivided and the commodities so fetishized?
You can’t get mad at the loyal acolyte of a cargo cult for praying to the cargo gods if that’s all they’ve ever known. Neither can you simply ignore the Cult Leader, who has been blaring the message from a megaphone into everyone’s ears, for their entire adult lives.
I have immense sympathy for people who are pre-programmed to get hoodwinked by this shit and I count my lucky stars every day that I only get hoodwinked some of the time and mostly on things that don’t obliterate my quality of life when they come due.
But more than them, I feel awful for the people who come after us, because we at least got to enjoy that World’s Greatest Middle Class Life while it was on offer. The next generation is going to be fed all the same propaganda, but they’re going to be doing it from in the pod while eating the bugs.
You can’t get mad at the loyal acolyte of a cargo cult
Yeah, I can. It’s probably not productive or helpful or change inducing, but boy, can I. And some days I don’t have energy to waste on regulating my feelings towards intentful idiots and then I do get mad. It doesn’t change shit but at least I don’t have to bottle all that up.
It’s probably not productive or helpful or change inducing, but boy, can I.
Alright, fair enough. But you cannot see the symptoms of the problem as the root of it.
It doesn’t change shit but at least I don’t have to bottle all that up.
No, no. Sorry. I definitely get that. But at some point you need to look past the guy in clown makeup dancing around your neighborhood to the clown college that’s churning these people out.
deleted by creator
Delete Elon and Trump from existence and nothing will get better.
Why?
Because Americans are dumb as fuck and they’ll still be dumb as fuck when and if those two are gone.
I’m old enough to have seen the same pattern multiple times. Republican leadership fails spectacularly, even pissing off many conservatives in the process. But as soon as the next cycle begins, those conservatives are back onboard voting for the absolute shittiest candidates.
Because to them an actual, literal dictator is better than a Democrat as president.
Our society is circling the toilet and it almost certainly won’t get better within our lifetimes. Prepare yourselves for that.
I actually don’t consider this an issue of being dumb. It IS an issue with being under-educated (often deliberately in R states) and fed a ton of propaganda
There’s ignorance and there’s stupidity. Stupidity will stubbornly resist any attempt to correct its ignorance.
Stupidity is a more dangerous enemy of the good than malice. One may protest against evil; it can be exposed and, if need be, prevented by use of force. Evil always carries within itself the germ of its own subversion in that it leaves behind in human beings at least a sense of unease.
Against stupidity we are defenseless.
Neither protests nor the use of force accomplish anything here; reasons fall on deaf ears; facts that contradict one’s prejudgment simply need not be believed — in such moments the stupid person even becomes critical — and when facts are irrefutable, they are just pushed aside as inconsequential, as incidental. In all this the stupid person, in contrast to the malicious one, is utterly self-satisfied and, being easily irritated, becomes dangerous by going on the attack.
For that reason, greater caution is called for than with a malicious one. Never again will we try to persuade the stupid person with reasons, for it is senseless and dangerous.
…
If we want to know how to get the better of stupidity, we must seek to understand its nature. This much is certain, that it is in essence not an intellectual defect but a human one. There are human beings who are of remarkably agile intellect yet stupid, and others who are intellectually quite dull yet anything but stupid.
That’s willful ignorance. While the willfully ignorant can be stupid (lack of intelligence) more often it seems to be due to arrogance and/or just being an asshole in general
It took Rome 1000 years to collapse. I expect instability in the us for the rest of my lifetime. I’m struggling to balance that reality and also living my life.
Also- I think COVID is to blame too. More people started living from the survival mindset and actually getting sick impacted their brain. Dictatorships help people feel safe.
It took Rome 1000 years to collapse.
I mean, if you want to get extra snarky, Rome’s still there. Still one of the wealthiest cities on earth, to this day. The infrastructure is what makes the city and that can be repaired or rebuilt, improved even, as generations come to their senses.
More people started living from the survival mindset and actually getting sick impacted their brain. Dictatorships help people feel safe.
I pin this far more on the toxic media atmosphere than COVID, although the pandemic definitely took its toll. That said, the current hysteria around migrants and Woke feels a lot more like the post-9/11 moment than COVID. Democrats rolling over sheepishly while a Republican wields unitary executive power to disappear dissidents and intimidate
What folks on here don’t want to accept is that this isn’t the first time we’ve had a President behave like this. Its not even the first time in our lifetimes (for the most part - sorry teenagers). This is more normal than not, in fact. Reagan’s War on Drugs, Nixon’s War on Crime, Eisenhower’s Red Scare, and FDR/Truman’s Japanese Internment echoed all the same fascist tendencies.
What’s really changed in 2025 is the abysmal long term economic outlook. Liberals in 1984 could duck their heads and glare at the rampant poverty around them and mutter “If those hippie slackers had earned an education rather than smoking dope and fucking around, they wouldn’t get picked on by the police”. But now… fucking kids at Columbia University are being targeted. Surgeons are getting targeted. Judges are getting targeted.
Literally the only thing you can do to avoid these purges is Be MAGA. And “Just be MAGA, you won’t get hurt” isn’t something liberals can quite bring themselves to do yet (although keep an eye on Gavin Newsom and Richie Torries and Andrew Cuomo, because its coming).
Dictatorship isn’t making people feel safe. It’s making them feel terrified and helpless.
The city of Rome still exists but the Roman Empire does not. That is the long term future of the us.
The brain drain is necessary for the dictatorship to fully take over. Just like in Russia, I also expect people to eventually have to play along - or lose their job, house etc.
Dictatorship only scares the non maga. Maga feels safer with it.
The city of Rome still exists but the Roman Empire does not.
Absent that brief ill-conceived stint at empire under Mussolini, sure. But the roadways and the ports and the political connections and the religious iconography that centered Rome within the ancient world continue to persist. It isn’t the center of a sprawling intercontinental kingdom, but it holds a privileged place within the modern sprawling intercontinental kingdom of NATO.
Just like in Russia, I also expect people to eventually have to play along - or lose their job, house etc.
Russia’s in a peculiar place precisely because brain drain and privatization and punitive sanctions and the latest round of pointless horrifying bloodshed has sapped it of so many talented and driven young people. But the dictatorship - the bourgeois dictatorship, anyway - came under Yeltsin, following the Gorbachev coup. It brought in an entirely illegal dismantling of public industry and services, a looting of pensions and public reserves, and a fire sale of military hardware which set off a wave of ugly overseas wars in Africa, Oceania, and Latin America.
Only after the country had been hollowed out economically, by a cartel of untouchable oligarchs, did the public warm to the idea of a new singular strongman dictator. And the call for dictatorship was, at its heart, a plea for someone to drag the cartels back into line as part of a national project.
People have to play along in every system, because we’re not self-sustaining little monoids. We are hugely interdependent and most efficient when we are working together in concert as collaborative specialists. What we’re searching for is leadership. But all we seem to be offered is different flavors of oligarchy or autocracy.
The city of Rome still exists but the Roman Empire does not.
That’s because its called Vatican City now.
They’re symptoms, not the problem. Even if they were vanished from existing by will of a djinni or something, another would just take their place.
Why else do Republicans love to defund education? Conservatism requires people to be ignorant about reality in order to have any chance at succeeding.
He’s a sucker. And his news media knows it.
Even if it were a tax paid by foreign companies, what difference does it make? They would just increase the prices the goods are sold at.
So, lets say, a smartphone that is priced at $1000:
With the 20% tariff in place:
If the Chinese conpanies pay the $200 per device, they just sell each phone at $1200 to the US importer.
If the US importers pay the $200 per device, similarily, they would tack on the $200 (on top of the usual markups), making it $1200 per phone.
There is zero difference, the end consumer always foots the bill.
This is so simple to understand, how are people this stupid
Wouldn’t refunding the amount of the tariff to the customer fix this? Ignoring the very important diplomatic and retaliation tariffs which makes the whole post unusable for real life
- Canada sells a product A $100.
- Tariffs makes it $120 when you buy it
- so Canada gets $100, USA gets $20, USA customer pays $120.
- USA has now $20, they can directly refund the customer for $20 via a policy to reduce the price of the category of A.
- So customer gets $20 reduction of the product A via tax something, so USA now has $0 and USA customer actually paid only $100.
- Except now if USA company make the product A they can sell it for like $100 and customer pays $80.
- There is a slight increase of imported goods price here because tariffs cannot actually refund $20, it will be a % of the local vs imported production.
- Over time you can expect to get a local advantage because of this price inequality, so local companies will be subsidized by imports until imports are no longer significant.
Where am I wrong here ?
In your scenario how is the local made $100 item bought at $80? Where is a $20 refund paid from? You are double spending it on both imported and local goods
Not necessarily: the company can choose to absorb part or all the tariff, since the demand would drop at the higher price anyway, and they might make more overall profit at a lower margin per item. But generally yes, most of the cost will be passed on to the consumer and prices will increase on average.
Example:
found the economics student
the end consumer always foots the bill.
Or the consumer can’t/won’t take on the extra burden of cost, and the business loses enough sales to go under.
It’s why they’re called “pass-through costs.”
The difference is that this way it’s much easier to calculate prices.
If the tax were 20%, the exporter would have to do the inverse calculation. That is, “which price will result in me gaining $1000?” Which is not 1200, since 20% of 1200 is 240. x = 0.8y -> y = (1/0.8)*x -> y = 1.25x. so the exporter would have to price it at 1.25x the price, $1250. 20% of 1250 is 250.
So it’s unintuitive that a 20% tax would result in a 25% price increase. That’s my guess why tariffs are applied to the importer instead of exporter.
The only difference would be that money we spent would be going to the companies instead of the government. Tarrifs are a government putting taxes on their people to strangle industries in other countries. In both scenarios we pay the same, but the flow of money is different
didn’t understand why he was told the other countries pay the tariffs
that’s easy: you were willing to vote for a guy who lied over 30 thousand times in his first term so he realized you’re a fucking idiot and he could say anything without you thinking even half a second about it.
WHAT’S THE POINT OF EXPORTING SHIT YOU IDIOT WHY WOULD A COUNTRY DO IT IF THEY HAD TO PAY FOR IT
The real Russian plot we’ve all missed completely has far, far less to do with paying Trump to sell them documents. That’s the 2-dimensional public face of a cold-war that never ended and has been devastatingly effective against the USA.
The real Russian attack that we may never fully comprehend is exactly what they’ve done in other countries that they’ve subsequently annexed, which is making the general population stop caring about what’s true or not. It’s frighteningly easy to poison the well of public knowledge. You simply pour funding into efforts to boost BOTH SIDES of every social issue. When social debates and your nation’s interests are ramped up and the rhetoric gets more and more extreme on both sides of an issue, when every story on both sides becomes suspect, people simply tune out or stop caring about what’s true or not, and this is exactly where we are. Most people are more willing to just throw their arms up and go find a distraction than try to sift through what’s real or not.
It was even easier to pull off in the USA than anywhere else because we have a built-in policy of fierce independence and individuality. We don’t have communities around us, we don’t have social circles that will make us want to step up our game, we don’t have groups of people we care about telling us we’re wrong, we don’t have help from anywhere but inside our own heads. And if you’ve never been taught how your own thoughts can be wrong, if you’ve been fed the “special birthday boy” narrative for so long that you think highly of yourself, truth will seem toxic and poison because it will tell you things about yourself that will hurt. We don’t seek out pain as a species, we use pain a signal to avoid a thing.
You can google “KGB tactics for destabilizing nations” and spend weeks reading about what’s being done to us right now. But most people who read my message here will immediately feel that sneaking doubt or words of caution because “how do we even know what’s real anymore.”
Especially when tariffs go above 100%!
Like, do you believe French companies would be paying the shipping costs to give you free Champagne?
They willing pay the extra funbucks tariff monies for the privilege and honor of shipping it to America (at cost) on a chance some red-hatted half-wit will waste it.
WHAT’S THE POINT OF EXPORTING SHIT YOU IDIOT WHY WOULD A COUNTRY DO IT IF THEY HAD TO PAY FOR IT
Yeah this is grade school level reasoning telling you that it obviously doesn’t work that way.
A country’s aluminum exports for example aren’t extra aluminum they want to get rid of because it’s junking up their basements and America is 1800-got-junk taking it off their hands at cost. It’s a fucking series of material production companies in a different country. They too are based on capitalism and they too require profits in order to function.
If you’re Republican it’s simple:
- A tariff is Trump’s special magic that saves you from foreigners and wokeness, and MexiCanada pays for it.
- Stuff costs more at the store because the Biden Crime Family hurt the economy so bad, not even Trump can fix it right away. In fact it might even take more than 4 years, so we better keep him in office forever.
I don’t think he’ll live more than 4 years anyway. Hopefully the movement collapses when he does
I’m really looking forward to the turmoil in the Trumpublican Party after he’s had his final Big Mac Attack. All the opportunists who’ve been using MAGA to advance themselves will be vying for position and clawing each other to pieces like the rats they are.
The r’s are going to replace one clown with another. Approval isn’t necessary if you’re a dictator.
If you’re a republican at this point you’re one of two classes:
-
Elite, business owner, capitalist. Out for yourself and with enough money and resources and support to do what you want and evade hardships with ease while blaming people below you for their own problems. These are the people who know that if the system changes, they will lose their benefits and comforts and have every motivation in the world to keep pushing right-wing ideology even if they don’t actually believe in it on some level. They have the luxury of not actually caring.
-
One of the people below the elite who work two or more jobs or can’t get ahead no matter what they do because the system is designed to keep the poor where they are and keep filtering the wealth upwards. These are the people without the time or education to learn why their lives are trash, and manage to watch 30 minutes of FOX or OAN news clips on facebook every Sunday night before bed so they truly, honestly believe that immigration and trans people are the source of all their problems and genuinely don’t understand why the good guys aren’t doing something about all the bad guys, because this is the extent of their mental strength.
In truth I’d bet most of these people in numbers 2 are watching this stuff on their phones far more often than 30 minutes on Sunday night.
The wildest stuff comes up on my coworkers and acquaintances apps while scrolling. Like they’ll be watching a cooking video then scroll down and a video about why this trans woman is the devil shows up. Usually they’ll scroll right by but it’s a constant stream of hate/disinformation on top of the usual low quality click bait.
-
