US Politics |OT|

[Pyro as Bill]

the-pi-guy said:

Pyro as Bill said:

So you'd damage your own economy just to damage your opposition, just like Trump?

"So you'd hurt your fists, just to damage the person attacking you?"

Pyro as Bill said:

I don't think the tariffs have anything to do with any trade deficit. They're designed to damage the economic capacity of anyone China could quickly and easily control. Like sanctioning Belarus only it's proactive instead of reactive.

The tariffs were based on trade deficits.

the conversation

"Trump’s new reciprocal tariffs have been calculated by taking the US trade deficit with each country, dividing it by total US imports from that country, then halving the resulting ratio and converting it into a percentage.

For example, in 2024, the US imported approximately US$605.8 billion from the European Union, but exported only $370.2 billion, resulting in a trade deficit of $235.6 billion.

Dividing the deficit by total imports from the EU gives a ratio of 39%. The White House interpreted this figure as the EU’s trade “advantage” and subsequently imposed a “discounted” 20% tariff on EU products – roughly half of 39%."

So putting a tariff on literally everyone? 

Pyro as Bill said:

You're not paying the higher taxes, American companies are. If you retaliate then you'll pay more.

We are paying the higher costs. 

Companies aren't going to let these taxes drive into their profit margins, they're going to extend the costs to us. 

It's a major issue with this kind of taxation scheme. 

Most companies will absorb some or all of the cost temporarily especially if they believe the tariffs are temporary and then Trump will be a hero when prices drop. If he doesn't remove tariffs then it should be easy for the Dems or a never trump Republican to win the next election.