Leopards Ate My Face

5606 readers

1696 users here now

Rules:

If you don't already have some understanding of what this is, try reading this post. Off-topic posts will be removed.
Please use a high-quality source to explain why your post fits if you think it might not be common knowledge and isn't explained within the post itself.
Links to articles should be high-quality sources – for example, not the Daily Mail, the New York Post, Newsweek, etc. For a rough idea, check out this list. If it's marked in red, it probably isn't allowed; if it's yellow, exercise caution.
The mods are fallible; if you've been banned or had a comment removed, you're encouraged to appeal it.
For accessibility reasons, an image of text must either have alt text or a transcription in the comments.
All Lemmy.World Terms of Service apply.

Also feel free to check out !leopardsatemyface@lemm.ee (also active).

Icon credit C. Brück on Wikimedia Commons.

founded 2 years ago

MODERATORS

TheTechnician27@lemmy.world

418_im_a_teapot@lemmy.world

1426

Tariff Isn't Tax on Other Countries?🤪 (lemmy.world)

submitted 1 day ago by TheBat@lemmy.world to c/leopardsatemyface@lemmy.world

175 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] Sceptique@leminal.space -1 points 4 hours ago (1 children)

Wouldn't refunding the amount of the tariff to the customer fix this? Ignoring the very important diplomatic and retaliation tariffs which makes the whole post unusable for real life

Canada sells a product A $100.
Tariffs makes it $120 when you buy it
so Canada gets $100, USA gets $20, USA customer pays $120.
USA has now $20, they can directly refund the customer for $20 via a policy to reduce the price of the category of A.
So customer gets $20 reduction of the product A via tax something, so USA now has $0 and USA customer actually paid only $100.
Except now if USA company make the product A they can sell it for like $100 and customer pays $80.
There is a slight increase of imported goods price here because tariffs cannot actually refund $20, it will be a % of the local vs imported production.
Over time you can expect to get a local advantage because of this price inequality, so local companies will be subsidized by imports until imports are no longer significant.

Where am I wrong here ?

[–] Dnb@lemmy.dbzer0.com 2 points 3 hours ago

In your scenario how is the local made $100 item bought at $80? Where is a $20 refund paid from? You are double spending it on both imported and local goods