Why Trump wants Tariffs and who pays

[Pototan]

Donald Trump wants extreme tariffs of foreign goods. He claims the foreign nations or companies will pay. Every reputable economist knows, that in the end, the American consumer pays. Tariffs are a consumer tax on imports. But, no doubt, it does raise money. The Trump tariffs will have the result of a Value Added Tax (VAT) or a sales tax, depending on the goods being provided to the United States.

These actions will result in inflation. The goods will cost more to the consumer, one way or another. This "tax" will raise revenue and allow Trump and his allied Republicans in Congress to cut tax rates for billionaires by leveraging the tariff tax as a new source of revenue.

But make no mistake about it, the tariffs are a sales tax which is the most regressive of all taxes and the average American will take a substantial, negative hit.

[Irish_Dem]

1. What is Trump's goal?

How does he benefit from this?

[Pototan]

2. He can offset some tax cuts

Last edited Fri Jan 31, 2025, 07:19 AM - Edit history (1)

with Tariff revenue in the tax bill. It would be the same as adding a sales tax on the American citizens. When the CBO scores the tax package, the Repukes can point to tariff revenue to pay for some of those cuts.

[Irish_Dem]

3. So give billionaires a big tax cut by giving Americans a huge new sales tax.

[Pototan]

6. You understand my point.

Thank you

[J_William_Ryan]

4. "What is Trump's goal? How does he benefit from this?"

It’s part of Trump’s idiotic, wrongheaded obsession with ‘bringing back jobs.’

Because tariffs make imported goods more expensive, domestic consumers will instead buy the same goods made in the US.

The problem is that goods are being imported because they aren’t made in the US, because they’re too expensive to manufacture here. Consequently, no jobs are ‘brought back’ and consumers end up paying more.

[no_hypocrisy]

5. It's more than that.

When consumers turn to the dwindling number of products made in the U.S., they won't get a break on lower prices.

The American manufacturers will raise their own prices to match that of imported goods.

[Irish_Dem]

7. So Trump's stated reason is a bold face lie. And he knows it.

So there is another reason he is doing it.

[Walleye]

8. Same reason, he does everything, for his own vengeance and vindication

[Irish_Dem]

9. And for power and money.

[Cosmocat]

10. That is the fable

He knows this.

But, it the story he is selling his followers.

So, when they get challenged on it, this is what they will parrot.

[allegorical oracle]

11. Consumers often can't afford to pay more, so they do without. That makes our nation weaker.

[lark]

12. It's the perfect profiteering scheme for him.

Put out massive tariffs on lots of things then let the countries or companays pay him off to remove or reduce the tarriff. That's why he wants them so bad - it hurts greatly the American worker class and lines his pockets at the same time. That's a win-win as far as this ceaseless hater is concerned.