Trump says the Treasury is taking in 'MANY billions of dollars' from the tariffs on China. The only problem is that US companies are paying the price.
But Trump's celebration doesn't take into account who is effectively paying that money.
Chinese exporters do not pay the tariffs. Rather, US importers pay the cost of the duties when the goods come into American ports. Howard Gleckman, a senior fellow at the Tax Policy Center, explained the process in a September article about the mechanics of tariffs.
"A tariff is a tax on imported goods. Despite what the President says, it is almost always paid directly by the importer (usually a domestic firm), and never by the exporting country," Gleckman wrote. "Thus, if the US imposes a tariff on Chinese televisions, the duty is paid to the US Customs and Border Protection Service at the border by a US broker representing a US importer, say, Costco."
"Tariffs are a tax on consumers, primarily, though some of the hit might be borne by Chinese exporters, forced to accept lower margins. But for the president to boast that the U.S. is 'taking in billions' on tariffs makes no sense at all," Shepherdson wrote. "The ostensible objective of the tariffs is to force China to negotiate a new trading relationship with the US, not to raise money — from U.S. consumers! — for the federal government."
https://www.businessinsider.com/trump-who-pays-for-tariffs-trade-war-costs-2019-1
Don the Con Trump, Financial Genius! It's all the media's fault - right Little Joey Shitstain?
But Trump's celebration doesn't take into account who is effectively paying that money.
Chinese exporters do not pay the tariffs. Rather, US importers pay the cost of the duties when the goods come into American ports. Howard Gleckman, a senior fellow at the Tax Policy Center, explained the process in a September article about the mechanics of tariffs.
"A tariff is a tax on imported goods. Despite what the President says, it is almost always paid directly by the importer (usually a domestic firm), and never by the exporting country," Gleckman wrote. "Thus, if the US imposes a tariff on Chinese televisions, the duty is paid to the US Customs and Border Protection Service at the border by a US broker representing a US importer, say, Costco."
"Tariffs are a tax on consumers, primarily, though some of the hit might be borne by Chinese exporters, forced to accept lower margins. But for the president to boast that the U.S. is 'taking in billions' on tariffs makes no sense at all," Shepherdson wrote. "The ostensible objective of the tariffs is to force China to negotiate a new trading relationship with the US, not to raise money — from U.S. consumers! — for the federal government."
https://www.businessinsider.com/trump-who-pays-for-tariffs-trade-war-costs-2019-1
Don the Con Trump, Financial Genius! It's all the media's fault - right Little Joey Shitstain?
