If you have the time, please go back and read my posts in this thread. I think you may be under the false impression that we are taxing China. We are not. That is not what a tariff is or how it works.
A tariff is a tax levied against imports from another country BUT that tax is applied to the import side. That means US companies that import any tariff targeted goods will be required to pay that tax. For instance, if a US company wants to buy neodymium for magnets (required for a ton of electronics, medical devices, etc...) from China (who mines ~90% of global supply), they will have to pay an extra 25% to our government. This was only an example and I'm hearing that neodymium may no longer be on the final list. We won't know for certain until September though.
Yes you are correct its the American companies, that are paying the tax. One can't blame gamingsoul for this error. We hear constantly from Trump the bullshit about who's actually paying eg
Trump “Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products,”
Which is a total lie, as its as your said the USA companies that are paying this 25% not chinese companies.
Though this can also hurt Chinese companies as well as the americn ones, as if everything costs an extra 25% from china they are more likely to buy from another country instead of China
Trump is going about this the wrong way, its like he has no idea of whats going on.
One of the first things he done when he got into power was to pull the USA out of the TPP, I think chiefly because it was an Obama thing.
Didnt the moron know the TPP was created specifically to combat China in business, it was a collection of countries bordering the pacific, excluding China to work together to combat Chinese shady business practives eg with IPs etc
No wonder the guy's companies have been bankrupt 6 times, now hes trying to do that but on a larger scale
Classic Dunning KrugerLast edited by GProgrammer - on 29 May 2019