how do tariffs on exports work. The R’s are saying increased tariffs won’t cause manufacturers/distributors to pass the costs onto consumers here in the US. I was wondering if American manufacturers follow that same model. Are goods exported to foreign countries outside the US subject to tariffs, and are those tariffs absorbed, or passed onto foreign consumers?
In: Economics
If you ask politicians their plans never negatively affect their constituents. If you ask economists they’ll tell you that tariffs negatively affect both the buyer and the seller The buyer is forced to pay an inflated price. And the seller will lose customers.
But that’s not all. It will have a knock-on effect in adjacent industries. For example, a tariff on steel means anything with steel is more expensive, which can start to harm businesses (see also Case-Labs). A tariff on Chinese electric car imports means American carmakers do not have to compete, which is great for them and terrible for consumers.
TL:DR; politicians lie.
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