Does that mean Chinese people will pay 85% on US goods imported to them?
I”m under the assumption that it’s the people that pay tariffs.
Does that mean Chinese people will pay 85% on US goods imported to them?
I”m under the assumption that it’s the people that pay tariffs.
Comments
It means China will add an 84% tax on the value of all imported US goods. The goal being to decrease the attractiveness of US products in China by increasing their price.
Yes. They pay the tax. The difference being china has more domestic manufacturing – and a consumer can turn away from a US good to a chinese one way more fucking easily than we can find a domestic US good when the chinese one is taxed.
Basically makes importing soybeans from Iowa much more expensive compared to importing the same commodity from Brazil.
It means demand for U.S. goods to China will plummet and prices will rise for people buying them in China. Much like what we are going to see in the U.S. except they have much more manufacturing they can rely on and the U.S. doesn’t.
Yes that is correct. It is so stupid because China’s main imports from the US are agricultural, whereas the US mainly imports manufactured products from China. It is way easier for China to just buy agricultural products from other countries than it is for the US to buy the manufactured products China was making elsewhere, or produce them domestically. So actually tariffs on China may make the trade deficit larger, as they can just not buy anything from the US, but the US still has to buy a lot of stuff from China as it will still be the most economical option even with tariffs in place.
Yes, that is correct.
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It means the Us will slap 104% tariffs on Chinese goods in response.
This is a retaliatory tariff, which is the expected response when one country heavily raises tariffs on the other. The Chinese people will pay the tariff on US goods, which will decrease US sales to China. So this will economically harm the Chinese people by a small to moderate amount but it’s really hurts specific companies that export heavily to China. A company like Boeing gets hits on both sides of the tariffs. They have to pay tariffs on raw materials and parts they use to build airplanes, and then they lose sales to countries like China because their products are too expensive. The companies protected by tariffs really like tariffs, because even though their costs might go up, their business will be thriving because their competitors can no longer compete on cost with them, so they will lobby to keep tariffs in place. The retaliatory tariffs create a different group companies that are getting destroyed by the trade war, and they will start to lobby to get the tariffs removed.
Additionally, retaliatory tariffs prevent countries from shifting the trade balance (which is one of Trumps stated goals with tariffs). So by preventing the US from getting it’s goals, and creating a growing group of anti-tariff groups within the US, they (and everyone else that is retaliating) hope to force the US to end the trade war and return to regular business faster.
Walmart goes bankrupt, nothing happens to China since the last time T was in office his tariffs shifted their dependency on our grains to other markets (S. America) and they depend on us for absolutely nothing now?
Yes, it will eventually be passed onto the consumer by suppliers raising their prices to account for the tarriffs. But think – how much gets imported from China to the US (a-lot) and how much gets imported from the US to China (not so much).
It means US Tax payers will send billions to US farmers because China will stop buying US grain and instead shift to Brazil and other suppliers.
The exact same thing happened in Trump round 1.
All the maga-voting farmers will now be the welfare queens they’ve raged against for decades, existing only because of their attachment to the government teat.
Yeah, the people pay. Not the corporations. Not the billionaires. Just your average broke consumer trying to buy a toaster.
If I was running China I would tell Trump we are no longer doing any business with the US until Trump stops acting like a baby. Good luck dipshits.
The consequences are going to interesting.
Many businesses operate on the basis of “buy from the cheapest supplier and sell for as much as the market will bear”. So after new import tariffs are applied it does not automatically follow that the price to the consumer will increase by the amount of the tariff. Personally, if I was a US business that’s sitting on a lot of stock brought in before the new tariffs came into effect I’d be watching the market and putting the price up as soon as possible. I’d also be talking with my competitors to do a market check – “we are planning to pass on the tariffs what are you doing?”. It’s entirely possible that businesses on higher profit margins will have to take a haircut to stay in business – I suspect sales will slow down in response to the rising costs and profits will fall. Those on tight margins should be planning to downsize, if they are sensible.
I reckon that countries outside the US (EU, UK, Canada, Australasia etc) should anticipate the cost of Chinese imports will go down – demand from US will drop and I expect any surplus stock will be dumped on those markets until such time as production changes to match the new demand – bargains to be had for those consumers outside the US who aren’t too worried about predicted recession and consequent job losses.
I also reckon that, like pretty much like the rest of the world, Chinese consumers will lose their appetite for US products – I suspect lots of them will be well and truly pissed off at what the Republicans have done, and regardless of the timing of any U-turn by the US over import tariffs our negative feelings will remain and any anti-american sentiments will linger for a very long time.
Americans gonna be freaking out at the price increases of their electronics. Phones, gaming consoles, PC hardware, the list goes on. The US is simply not equipped to mass manufacture these products.
Usually the importer pays
If its an import export business that is a lot of money
If you directly import a single item you get to pay
I say usually because its obviously up to the Chinese government exactly how they choose to do it.
So, how much are MAGA hats going to cost now?
Who pays the tax is a complicated question that depends on supply and demand curves of the goods in question, but the simplified answer is that on average the producer and consumer each pays half.
So the country of China will be for half of their own tariffs, but collect 100% of the revenue. The same is true for the US tariffs on China.
In general when 2 governments can tax the same economic activity they tend to overtax. This is why trade deals are ideally negotiated.
The more complicated explanation is that whichever party can more easily trade elsewhere will pay less of the tax and the party that has fewer options will pay more. So if the US can export food to Africa instead of China, but the Chinese cannot find another source of food, then China will pay most of the tariffs. If China can easily import food from SE Asia, but US farmers cannot find a market for their food, then US farmers will end up paying the tariff.
To be clear, when I say “pay the tariff” I mean in the form of lower prices. So if US farmers reduce the price of food they sell to China, then even though the Chinese are technically paying for the tariff the final cost they are paying has changed little, while the price American farmers are selling for has reduced so they are suffering the consequences.
Say the trade deficit stays the same between us. China will pay 265 billion vs US paying 895 Billion. Current trade deficit is 143.5 billion China vs 438.9 Billion US. The idea is to move manufacturing back to America. (good luck) As you can already see with EU and Canada are setting up deals to buy each others stuff and exclude the US. China and the US economies are intwined. My sister alone account for several percentage points with her Wish and Temu daily purchases.
A new iPhone with lots of storage just increased to the equivalent of $2,000 in China.
It means your Temu dildo will now cost $1.84.
Yes that’s exactly what it means. If you’re a American farmer who used to export soybean crops to China, I have some very bad news for you right now..
When a country applies tariffs that countries people pay them. The difference is america exports luxury goods, which are not super critical to chinas economy, while China exports basically every cheap good Americans buy. Not only that, China has spent decades creating a manufacturing industry that can make whatever they need and could probably quickly fill the demand for American made items, where American manufacturing is essentially dead and we import everything. Not only that, america has tariffed every other country, meaning we don’t really have good alternatives to importing cheap goods, while China can trade with every other nation and get alternatives to American made goods.
This is a fuckup of epic proportions that if left in place will cause a nightmare inferno shitstorm on the us’ economy.
The Chinese will pay American products more, that’s correct. Unless they stop buying them because of the higher costs.
It’s the same in the US. People will stop buying costly products if they can, or reduce the frequency of their purchases. If an American still buys the Chinese product and assuming that the importer reflects the tariffs on the end product, the American will pay more.
Bear in mind that American products produced in America without any import (assuming that they exist) will increase in price too, because demand will increase, and competition decreases.
Is this the president of the United States?
Yes, especially at these insane tariff rates, the costs need to be passed on to consumers in order for the companies incurring the tariffs to remain solvent.
Basically, as these rates continue to go up, they become meaningless though. Imagine for a second a 1,000,000% tariff (hopefully this is out of the realm of possibility). The good would become so expensive to import that nobody would import that good and instead businesses/consumers would purchase substitute goods.
As a result, the end game here is that if reciprocal tariffs go back and forth, eventually all the goods that consumers in the US purchase will be from America. All the goods Chinese people purchase will be from outside the US. And, it becomes a game of who is hurt worse by this. Does America produce enough of the goods that US consumers need to maintain their lifestyle?
We will see. The answer is likely no. US consumers will buy a lot less of luxury goods. This will hurt the businesses that create those goods (reduced revenues and profit margins). This will in turn cause increased unemployment and stock prices to go down, which will hurt the investment portfolios of ordinary Americans. This will cause them to purchase even fewer goods and then…boom, all of a sudden you have a recession.
It means that the person/business who imports the American good to China will have to pay 84% of the declared value of the good to the government of China. So, let’s say an importer wants to import an American car. We’ll say the car is worth 50,000 usd. (there’s a whole side conversation about what something is worth, what’s ‘declared value’, what’s ‘fair market value,’ etc. Let’s just skip that for right now). The importer, having already paid the American manufacturer $50,000 must now also pay the Chinese government $42,000.
Sometimes you might see something people call “landed cost.” In this case, the landed cost of that car in China is now $92,000
If the importer turns around and tries to sell the car in China, they’ll want to charge more than $92,000, otherwise they lost money on the deal!
the US economy is never coming back from this idiocy – this isnt a generational mistake its going to be permanent.
Take US soybean for example, China import soybean a lot from US
84% tariff means now soybean price from the US import to China will increase 84% and yes Chinese will have to pay for it if they want to use US soybean
So what’s next, Chinese companies will have to look for other country soybean, because they’re cheaper or they have to increase price, but i doubt it since the first option is much more easier
So what will happen to the US companies who export soybean to China ? Soybean production will be halted or mass lay off because demand decrease, or they can export it to other countries but I doubt the trade volume would be the same as China
Tariffs are like, hey let’s punish regular people for decisions made in gold-plated boardrooms.
When China increases the tariff on US products, it’s the same thing as when the US does it, the local consumers are going to end up paying more. This is because as everyone has explained, tariffs are paid by the importer to the government when importing something, and the importer isn’t going to just eat the cost, they will pass on that increase in cost to the distributor and down to the retailer and the end consumer.
This increase in tariffs will have an immediate effect of slowing down demand for that product, so the end result is that the US manufacturer will end up being able to sell fewer and fewer of that product to China, and vice versa.
The big difference in this case, between China and the US is… the US basically started a trade war with every country on earth. So, if US consumers want to buy a widget, then they can’t buy a widget at the old price any more, because Trump has started a tariff on every country.
But, on the flip side, China has not started a trade war with everyone else. So, if China slaps on a 80% tariff on US pork or US soy beans, then the demand for US soy beans and pork will plummet, but China can simply buy soy beans from Brazil and pork from Europe, at a price that is not going to be substantially different than what the US products were.
>Does that mean Chinese people will pay 85% on US goods imported to them?
Yes. In other words, Chinese importers must pay a tax worth 85% of the value of the goods every time they import something from the US.
Those costs then get shifted onto the consumer in the form of higher prices to try to make up for the lost profit from those taxes.
This makes American goods more expensive for Chinese importers and consumers so they are incentivized to import less from America.
Imagine it like this. Your in a room with 100 people and everyone’s trading what they need. Suddenly you walk in a separate room and decide to charge anyone for doing business with you to walk through the doorway. Cost of goods goes up becuase the companies pass the cost onto the consumer. Now that country puts tarrifs on that doorway too…. except they are still freely trading with the other 98 people. They are gonna see if anyone offers the same products you do with a price cheaper then the tarriffs produced. Now your paying more for things you need and they aren’t buying from you becuase you made other options cheaper then you.
Tariffs could have worked if it wasn’t so easy to get everyone together in the same room but were in a global economy at this point. The world has the means to benefit from the rest of the world. Trumps acting as tho the usd being the reserve currency means everyone must go thru us. Countries even trade in bitcoin now… it’s only the reserve currency at this point becuase of its stability… which trump is destroying.
It’s not a flex. It’s capitalism beefing with itself while we pick up the tab.
Its basically tax on imports paid by the company bringing it in to the country at the point of entry. From there it’s then up to said company to make the decision about whether they want to eat the extra cost and make less money on each sale or if they want to pass that on to consumer by making their products more expensive, resulting in them likely making less sales due to the higher price.
It means we are on our way to 499% tarrifs levied by both China and the U.S. on one another and crazy shit is about to go down.
Tariffs work to make goods from a particular country less attractive to your people. This is fine when that other country isn’t the only source for those goods; people can just buy from elsewhere, or buy locally. There is basically nothing that can only come from the US, so Chinese citizens will naturally buy what they need elsewhere.
Where tariffs don’t work is when you have an insane leader who doesn’t understand what he’s doing raising tariffs on basically every other country. There isn’t really a “somewhere else” to buy things from, so US citizens are forced to either stop buying things, or pay the higher prices.
We export higher ticket items to a relatively poorer population in general and they export lower ticket items to a relatively richer population. Equal tariffs on both sides will hit different. They will import a lot less from us than we will reduce imports. Will not help balance of trade. Just increase costs for everyone.
The biggest US exports to China are to businesses not direct to consumers. Soybeans & grains, semiconductors, oil and gas, pharmaceuticals…
Means shit is about to get real expensive, like real expensive.
> what does it mean when “China slaps tariffs of 84% on U.S. goods in response”
Exactly what it says on the tin – China put a tariff on US goods.
> Does that mean Chinese people will pay 85% on US goods imported to them?
Yes.
> I”m under the assumption that it’s the people that pay tariffs.
That’s correct.
Tariffs, broadly speaking, are used to shape spending. It’s a way to make specific goods less attractive and encourage spending on different goods.
While Trump’s tariffs on Chinese goods are going to get paid by US citizens, they’re also going to make those Chinese goods less attractive and encourage folks to seek alternatives. This is going to hurt the Chinese economy because they’re going to have a harder time exporting those goods to the US.
These new tariffs on US goods are basically a retaliatory measure. While they’re going to be paid by Chinese citizens it’s going to make US goods less-appealing to Chinese citizens/businesses and hurt the US economy.
So imagine you went to a restaurant and you tipped your waiter 84% of your $29 meal. 84% of $29 is $24, so $29+$24=$53.00
Important question! How do these kinds of trade disputes impact global markets?
over at r/Conservative they seem to think this means they will stop seeing chinese products in america.
but really it is the opposite.
it is a tax chinese business will have to pay if they want to import anything from america.
which then means they have to sell that at a higher price so if chinese citizens or people living in china wants anything that is made in america, it will be significantly more expensive.
So I import 100lbs of nickel for $100 from the US to China, then the distributor will turn around to the manufacturer and sell it for $2/lb making roughly 100% profit off the deal. Selling 100lb of nickel for $200. Then the manufacturer will take that nickel and make something out of it and sell it to a storefront. Because of cost of other materials the product is priced at $20. Still making roughly 100% profits, aka doubling the money you put into it.
China puts a 84% tariff on everything, I’m still selling for $100, that has not changed and doesn’t need to, this is the price globally, not just to China.
If a person in China wants to buy and import, they will pay the tariff fee to their government of $84, and pay me $100.
Then the purchaser will turn around to manufacturers and charge them $4/lb for nickel when it used to be $2/lb. At $2/lb they only make 16% profit on the deal and they have to pay workers, taxes, fees, and their own bills and food etc. At $4/lb they are back to making roughly 116% profits, so they could actually lower prices a small amount and still be “unaffected” on their bottom line. Still moving the same amount of material and product, just at a higher value.
But then the manufacturer will look at the $4/lb nickel and other metarials, and they will raise the price to $40 in order to keep their profits roughly 100%.
Then, after all this is said and done, the supplier in America doesn’t make any extra money or lose any, he gets his $100. The buyer in China doesn’t lose any money, they up the price to match the tariff. The manufacturer in China doesn’t lose any money, they up the price aswell. And the consumer is left with everything from America doubling or tripling in price to account for the ridiculous tax that is being given to the government who are the only person that gets anything out of this whole deal
Tariffs are imposed by a country’s government and are paid by the company importing the goods, not the exporter.
Yes that is true Tariffs allways hurt both partys to some extent.
The tariffs will go back to the Chinese government like any tax so the money the Chinese customers spend is still in the country but the customers have to pay upfront. That lowers their incentive to buy the affected products. So this tariff will mostly hurt the US because it applies to all products.
Tariff are typically not applied to all products. While they hurt both sides the real factor is usually what product you put the tariff on.
For example you could put a tariff on wheat from a neighboring country. You don’t do this to explicitly hurt the other country but maybe to boost your economy or protect your farmers from very low prices in the other country. In this example your economy both gets hut and strengthend. People wouldn’t stop buying weat because they still need it. They will pay the higher price for local wheat. Long term the money stays in the country and you protected an industry and jobs.
So normally it’s used smart in a way that does hurt the other country but that’s just a side effect, main priority is to gain some control about key recourses in your economy.
This dumb shit is just petty trade war that destroys both economics. The question is just who needs the other countries trade the most. I’m convinced the USA relies on China more than the other way around.
China will have to match the US tariff so that the balance stays the same as previously. They will wait it out (wich will significantly hurt them) till the US breaks down under the pressure because they need the Chinese trade.
At that point China can basically do whatever they want to get good conditions to start normal trade again.
Trump thought China just didn’t want to go through with the hassle.
It means our president is a foreign agent and an asshole
The person or company importing the item pays the tariff. Realistically that price gets passed to consumers.
I don’t think China cares though. How many products do you have that say Made In China? How Many products say Made In usa?
Shouldn’t have done that. Now china is getting 125% tariff from the US
It’s the people that import the goods into the country. In most cases that’s some kind of company, who will then include that added cost in their selling prices. So ultimately the consumer will pay the price, yes, if they’re still willing to buy the product at that higher price.
Or they may choose to buy imports from a different country (where the tariff prices aren’t part of the equation), or just buy local and avoid them altogether. In this case that means the US loses export business, and the industries that supply those goods are no longer (as) profitable to run, possibly causing them to go out of business.
If you live in China, and you buy something that came from the US, you now pay a new 84% tax on it.
Whichever company imports the US goods will pay an 84% tax at the time of receiving the goods at the port. The importer almost always adds that cost to the price he sells it for. Why wouldn’t they?
You’re not alone. I’m getting tired of articles using ambiguous, sensationalized, personifying language on important news pieces like this because it’s so unclear and leaves a lot up to misinterpretation. I’ve been collecting a list of ambiguous article headlines/titles like these to prove a point.
The idea behind tariffs is that America putting a tariff on Chinese goods will increase the price for American consumers which will make them more likely to buy American-made goods instead. This is common practice for every country since every country wants to promote their own products.
The problem with Trump’s tariffs is that America buys an insane amount of products from China and the cost of moving production to America is significantly higher than just buying Chinese goods. America isn’t in a position to just stop buying Chinese products, so the tariffs will mostly hurt American consumers with a little harm to Chinese companies due to slightly decreased sales.
China put tariffs on American goods because they don’t actually need that many American products since so much is produced by China already. China’s tariffs will mean that US goods will become significantly more expensive and Chinese consumers could still purchase those products at cheaper prices made by Chinese companies. This will hurt American businesses since they’ll lose a significant amount of their sales to Chinese markets and will need to pay more for Chinese products at the same time.
Basically, Trump’s tariffs and China’s tariffs are both hurting America much more than China. The fact that Trump is doubling down on his tariffs shows that he cares more about his bruised ego than the comfort of American consumers. Trump is actively ruining our economy because it makes him feel strong against China
If a country charges a tariff on imported goods, that means that the importer pays more for those goods. So if country A charges country B a 50% tariff, then if an importer in country A buys $100 worth of stuff from an exporter from country B, then at customs, country A charges the importer a $50 tax.
So the imported goods become more expensive for the importer, and the importer will pass on part or all of those costs to the consumer.
So if country A charges a tariff on country B, that is a tax on consumers in country A.
All of Trumps merch will go up in price. Why? ‘Cause ghina!
Easiest way to think about it: The price the Chinese consumer pays on American goods will be 84% higher. That means they’ll more likely buy the closest Chinese option or none at all. Same goes for us here, every country’s goods that we import will become x% more expensive (where x is the tariff on that country).
Theoretically that means you’ll be more likely to buy the American equivalent. The problem is that there usually isn’t an American equivalent because our capitalism model has always encouraged outsourcing of production or down-stream supplies, so we don’t make them in-house anymore.
Conversely, any finished goods we make in the US will no longer have a market abroad because those items will become too expensive in those other countries (Ford/Chevy/Tesla or Coca Cola or Nestle or any of those other things we still manufacture in the US).
If the people of China buy US products, they will pay more for them. This will discourage people from buying US products which means that US manufactures will sell less product. For most things this is not a problem. The opposite is not true for consumers in the USA. Most manufacturing has left the USA so people here do not have a choice to buy “Made in the USA”. Small appliances, large appliances, electronics, autos, clothing, coffee, tea, produce, etc.. You name it and all of it or part of it comes from other countries.