I'm not talking about the actual amount collected. I'm
Posted on: April 9, 2025 at 08:07:10 CT
90Tiger STL
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talking about the amount calculated vs. the amount passed to the consumer.
The tariff is paid by the purchaser of the goods.
eg. 10% on Product A from China.
Current imports total $1000 on this product from China.
Tariff total potential revenue = $100.
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Reality:
Supplier in China drops price by 5%, now that target is $950.
(in 2018-19) Supplier in China routes shipping through non-tariffed country for 40% of that product, dropping the tariff total by 40% of $950.
US buyer "eats" 5% on this product or sources some from other places
bottom line, US gathers far less than $100 adn consumers pay far less than that $100 extra.
**
Note: I think Trump is full of $hit when he tosses out "$2B a day" and is posturing and boasting and obfuscating - all part of his negotating posture and absurd personal ego.
Edited by 90Tiger at 08:14:50 on 04/09/25