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] 5 points 1 month ago (1 children)

When there’s enough competition, tariffs shouldn’t matter. For example, if refrigerators are made domestically and also imported from Europe, Japan, Canada, Mexico, and Korea — setting a tariff on say Chinese refrigerators shouldn’t do anything to the consumer. The problem is everyone has sold all their manufacturing to Chinese companies.

[–] [email protected] 2 points 1 month ago

That's like half the truth. In countries where they don't treat workers like slaves, the labor costs are larger and the end product costs more.

If you treat your workers as a disposable commodity, it's much cheaper to make stuff.