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In reply to the discussion: I have a question [View all]

dalton99a

(94,024 posts)
2. Yep. Tariffs are taxes on consumers
Sun Apr 8, 2018, 10:40 AM
Apr 2018

Chinese consumers will pay higher prices:

https://www.csmonitor.com/Business/2018/0405/In-US-China-trade-spat-soybeans-symbolize-two-economies-intertwined

Even with the tariffs, China will be forced to buy US soybeans, causing its own consumers to pay higher prices for food. (Soybeans are crushed, yielding soybean oil, which is used in a slew of products from margarine to frozen foods, and also yielding soybean meal, which is fed to livestock.) It’s the livestock feed that will be difficult to replace in the short term, so Chinese consumers could see significant rises in meat prices, says Wendong Zhang, an economics professor at Iowa State University in Ames. By taking actions that will hurt its own consumers, China is signaling its willingness to fight US trade tariffs, he adds. For Beijing, “soybeans are a nuclear option.”

Recommendations

0 members have recommended this reply (displayed in chronological order):

I have a question [View all] Ohiogal Apr 2018 OP
I think the Chinese government gets the money. JustABozoOnThisBus Apr 2018 #1
Yep. Tariffs are taxes on consumers dalton99a Apr 2018 #2
Thank you both! Ohiogal Apr 2018 #3
I understand tariffs to be an entry tax. Blue_true Apr 2018 #4
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