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Dear Americans, be prepare to get screwed!
(lemmy.world)
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this post was submitted on 07 Nov 2024
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Everyone needs a lesson in how tarrifs work. Tarrifs are a tax on thing that US companies buy. They are intended to make foreign products more expensive to protect domestic producers. So, the American company pays the tariff. They then pass that tariff on to their customer, either another company or an American consumer. Then, the country that the tariff had been applied to applies offsetting tarrifs on American goods.
When the product that the tariff is applied to can't be produced in the US, think advanced microchips or Canadian softwood lumber, Americans pay more but still have to buy the foreign product. With the softwood lumber tarrifs the cost of building a home with Canadian softwood lumber went up by tens of thousands of dollars and Canadian companies laughed all the way to the bank. American consumers paid more and Canadian companies made record profits because the US can't produce enough softwood lumber to meet its needs.
So, the price to American companies and consumers goes up and the cost of American goods overseas goes up. Americans pay the tarrifs and American companies sell less goods overseas.
America loses.
But think of all the failing business that will be super cheap to aquire! /s
Oh I have no doubt that the Blackrocks and Birkshire Hathaway's of the nation are absolutely throbbing at the prospect. Literally diamonds. Those dusty old corpses won't need their hourly viagra until 2030.
Lol the stock market went up by like 15% since he won or something like that. The big banks and holdings groups are wayyy up, same for tesla which just broke 1 trillion.
As it always does. In case you missed it all those things were hitting records all the way through Biden's 4 years.
It's a giant casino. And the only time real people feel it is when it crashes and suddenly shit costs way more than it did last week. It doesn't matter to anyone worth less than 8 or 9 figures.
Yes. I was agreeing with you in the first place.