Explain Like I'm Five

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If Trumps tariffs go thru would that not cause the countries the tariffs are imposed on just raise their prices? And a result of that hurt the american consumer? Why do it to begin with? (lemmy.world)

submitted 14 hours ago by [email protected] to c/[email protected]

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[–] funkless_eck 215 points 14 hours ago* (last edited 14 hours ago) (3 children)

there's one layer missing, which is that the US widget makers make their widgets from ingredients and components that don't exist in the US, if you put a tarrif on everything, you can't make a $12 US widget any more because widget juice now costs twice as much

[–] [email protected] 159 points 14 hours ago

Excellent point and kudos to you for knowing that widgets are juiced based.

[–] [email protected] 16 points 14 hours ago (1 children)

you can’t male a $12 US widget any more because widget juice now costs twice as much

At my job, I turn $20 of raw material into 25 pieces I sell for $16 each. Double my material costs, and to break even, I have to make another $20 from the sale of those 25 pieces. I have to charge $16.80 instead of $16.

[–] funkless_eck 30 points 13 hours ago

it depends on what you make. Margins on food, farming, automobiles, oil and gas, medical devices tend to be pretty small, comparatively speaking. Which are all fairly critical industries.

[–] tabarnaski 10 points 13 hours ago (2 children)

Also : what does the government plan to do with all this new tax money?

[–] matlag 45 points 13 hours ago (1 children)

Since they're about to let go all of these gov employees, they will need a lot of money to hire consulting companies for pretty much everything. That's what started happening in France and Canada already.

These private companies consultants are so much more efficient and cheaper than low paid gov employees who've been running the ship for decades. You totally believe it, right?

[–] [email protected] 22 points 12 hours ago

Oh and don't look behind the curtain, it's definitely not Musk or someone similar who owns the consultant companies they happen to use federal funds on, nor do they just so happened to be big donors to Our Lord and Savior Trump™

No no no, that would be corruption to the core and we all know the incoming administration is comprised of all the Paragons of Virtue™ our society has to offer.

[–] otp 13 points 13 hours ago* (last edited 13 hours ago)

Build another wall?

EDIT: Silly me. It's for tax cuts to the rich. Of course.