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
Some trade is tariff free, there are lots of these agreements most of which the Republicans in general and Donald in particular want to ditch North American Free Trade Agreement or NAFTA being one. So that exporters and importers don’t face additional costs when crossing borders, free trade in general means more trade which is generally good for business, the issue comes where one country becomes very good at producing one item and politicians fear for jobs in that sector in their country or region, this then leads to protectionism and tariffs which are generally bad for business. https://youtu.be/nI5Ckw4CtsY
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