Weren’t the cost of tariffs being absorbed by importers? Apparently, that’s not always the case.
President Donald Trump announced Friday that he was scrapping U.S. tariffs on beef, coffee, tropical fruits and a broad swath of other commodities — a dramatic move that comes amid mounting pressure on his administration to better combat high consumer prices.
Nice to see someone finally realize that the costs are tariffs are being passed onto American consumers and businesses.
Well that is not entirely true. That exists on some items, but not on many manufactured items. I find it amusing when the argument that tariffs raise costs for the consumers in the country that imposes them yet not a word is said about that effect in the countries that have long had tariffs on products from the U.S. After all, it is never mentioned that Trump imposed RECIPROCAL tariffs on countries. So to sum up….it is bad for the U.S. economy to put tariffs on other countries but good for other countries to have done so for decades.
Tariffs are a tool to be used with great caution as hey can cause many unintended consequences, as can be seen here. I can understand that countries will want to protect their domestic industries, otherwise you end up like the rust belt or southern Ontario. The question I have is how can you support your domestic industries and be fair to your trading partners? Imposing tariffs like the US does seems to hurt the people you are trying to support. Locking people out of your own market while selling into theirs like China does seems rather unfair to everyone else.
I’m still waiting for Trump to reduce the price of pharmaceuticals by 1000% which he’s repeatedly promised to do.
You should look into just how badly Americans are screwed on drugs by Big Pharma.
Joey
Totally agree. Americans, as individuals and as taxpayers, are being screwed by big pharma.
But how do you reduce drug prices by 1000%?
I’ll take TRUMP over that SENILE BIDEN OR KAMALA any day of the week…………..some people are NEVER SATISFIED……….I don’t see anyone BUT TRUMP that gives his SALARY away to a CHARITY, do you??? didn’t think so………..just wait and see how that works out in New York City and NOW Seattle with the newly elected COMMUNISTS??? nothing is FREE and those Cities will find that out……..
Tired
If you’re talking to me, yes I give away 100% of my income.
About 50% goes to various governments, the other 50% goes to help family members who have lost jobs due to Trudeau 2.
I’m living off my savings.
How much do you give?
WeIl it is a piece from AP. Give it whatever weight you deem appropriate.
Well, you have to give the AP some credit … as they didn’t call Trump ‘TACO’ in this article. Several knowledgeable posters here have explained why US beef prices are tied to the reduction of beef supply and the consolidation of beef processing to only TWO major slaughterhouses who have price gouged due to lack of competition.
The coffee I always buy … two pound bags of Peet’s Major Dickason’s Blend, whole bean, at COSTCO went from $17.95 to $20.95 under Biden. The price hasn’t gone up since then.
The US Stock Market continues to set All Time Record Highs. Investors aren’t the least bit spooked by the price of tariffed bananas or overall consumer inflation.
I suspect the increase in the cost of beef has to do with stupid climate change rubbish and tax implications….there have been for many years tax relief on a rancher acquiring a basic herd. I haven’t followed it lately, but you can bet the Trudeau Liberals screwed ranchers over on that because they bowed down to the climate gods.
Tariffs were always intended to be a “short term pain for long term gain” strategy. That hasn’t changed at all…the intent was to promote more American production, and it is working. Temporary relief on some commodities (especially ones not easily produced in the USA) to ease the transitions is a good move under the circumstances.
The American economy is moving in the right direction now thanks to President Donald Trump. I sincerely hope that he stays the course.
“The American economy is moving in the right direction”
Currently GDP growth is robust but jobs growth is stagnant. Whether in the longer term the US economy will prosper under Trump’s tariffs is a matter of speculation. Most economists are skeptical.
Yup,Tariffs are a tool.
Only the media and TDS sufferers ,yes I know,would claim “Trump admits defeat,lowers tariffs”.
Part of the “conflict” with Can Ahh Duh,is the perception..
To the US tariffs are a temporary tool,on the path to more open trading.
For Canada tariffs are a permanent protectionist tool.
Elbows up retards!.
Soon to be academic as the tariffs will be back to pre-Trump levels when the Supreme Court votes 9-0 to give tariff power back to Congress like the Constitution says. “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises” Also any treaties evolving from negotiations require super majority approval of the Senate. “He (the President) shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur;” If Trump wants his tariffs to be in effect, by treaty, he better start talking to Democrats.
Wait. Are you referring to the Congress that was just shut down for 90 days for purely anti-Trump reasons? You expect THAT gridlocked Congress to renegotiate unfair, imbalanced, tariffs that have hollowed out American manufacturing?
Sorry … but the past 90 days have PROVEN we are facing a dire Emergency in America.
Not real sure you know what you are talking about….Congress has delegated tariff powers to the president over the years through various laws, starting with the Reciprocal Trade Agreements Act of 1934, allowing the president to negotiate trade agreements and adjust tariffs without further congressional approval.
Congress may not fully delegate or cede the power to impose tariffs to the president. That would be viewed by the courts as overwriting the constitution. At best they may delegate limited powers to the president.
This court case is over whether the president has exceeded those limits.
Sooooo … what was that COVID emergency which suspended all our constitutional rights? Didn’t the President simply declare an emergency… for a decidedly non-fatal virus? Then lied and twisted the statistics of ‘cases’ to keep the curtailment of constitutional rights going longer? Yep. Emergency Powers.
I say 7-2, or at worst 6-3.
If it’s 8-4, Americans should demand a recount.
If it’s 80 million-0, I will have to suspect the Democrats.
Technically the importers pay the cost of tariffs.
But market forces mean that in practice the costs are shared by many other entities, including the foreign exporters, and downstream buyers and final consumers.
Did anyone ever seriously suggest that the cost of tariffs would be entirely absorbed by the importing companies? Because that would be naive beyond belief.
Trump says the tariff income comes from other countries.
https://x.com/bennyjohnson/status/1989787138703966414
Trump is technically wrong, and mostly wrong even when allowing for the redistribution of costs from market forces.
Agreed, the cost is always passed down to the final consumer of the affected products and/or services.
In the US the trade-off is that customs duties are paying more for government, which is supposed to lower federal taxes.
At a presentation years ago, the Sweetgrass Port Director bragged about all the programmes US duties were paying for including 100% bankrolling NASA.
If price competition from domestic suppliers or lower tariff other foreign suppliers prevents importers from passing the entire tariff costs to consumers.
I buy cutting tools (carbide endmills and taps). I have experienced no price increases. U.S. makers were competitive with PRC before and remain so.
Yawn.
WHAT countries received the tariff reductions? Do the tariff reductions apply to key parts of their economies?
Does this help to cement the relations between those countries and the United States? HOW could this be useful for the United States in creating conditions favorable for governments we like, for encouraging other governments to perhaps start playing our ball game rather than someone else’s…like the UK or the EU member states, as an example?
Can tariffs be used as an instrument of foreign policy as well as domestic?
Thank you for your attention to this matter
— or not and just keep yammering about how “tariffs don’t work!!! now (please) take your tariffs off my country President Trump!!! you’re destroying America (you’re destroying my country)!!!”.