Explain Like I'm Five

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ELI5 how tariffs work. Are they not just like taxes one country puts on another? If so why do people especially republicans keep with Trump on imposing? Would it not hurt the US? (lemmy.world)

submitted 1 month ago by [email protected] to c/[email protected]

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[–] [email protected] 18 points 1 month ago

Generally, it’s free money for the government. The cost is put on the consumer not the country of export. It can favor domestic products by making the imports too expensive.

So, the BYD tariff was so high that pretty much no one will buy one.

But when they do it on steel, or something similar, and companies have to buy it anyway, that cost is just added to the final price.

Essentially, tariffs are a tax that disproportionately affect low to middle income people the most.