Tariffs Explained to MAGA by a Professional Importer/Exporter

[aggiesal]

8. I agree that consumers pay the tariffs, but the 1st interviewer does have a point. ...

Let me explain, I'll use shoes.

Company 1 is a US company that makes gym shoes and pays employees a living wage with benefits & pays wage taxes like Social Security, ... Their shoes cost $20 to make per pair & they charge $30 wholesale & the wholesaler charges $50 retail.

Company 2 is a foreign company that makes gym shoes and pays employees a slave wages with no benefits & pays no wage taxes like Social Security, ... Their shoes cost $5 to make per pair & they charge $20 wholesale & the wholesaler charges $40 retail.

Here is how I was taught about tariffs.
The US wholesaler that's purchasing the gym shoes from Company 2, would have to pay a tariff of $10 to match the price that a wholesaler paid Company 1.
So both wholesalers have now paid $30 for a pair of shoes.
Presumably they will each retail at the same $50 to the consumer (i.e. you & me).

At this point we have a decision to make. For $50 we get to decide which are the better gym shoes, instead of just purchasing the cheaper price of $40.
Again we the consumer now get to decide which is the better pair of shoes.
Yes, if you purchased the Company 2 shoe, you paid for the tariffs fee, but either way you're paying $50.

It is a strategy to maintain US jobs, if done correctly.
But we all know Mierda47 is just implementing blanket tariffs which will cause a tariff war and everyone will suffer.

If I got this wrong, please feel free to correct, so I can better understand.