I don't know why it's so difficult for most people to simply explain how something works. It's always nice when you finally find a video that puts things in simple terms and doesn't speed through it but also doesn't stretch it out.
@@Thorinoaken I will admit that is true. But it's a way to incentivize domestic production. Unfortunately, we're forced to pay a minimum wage and provide safe working conditions where China can pay slave wages and employ children. Tariffs should be a way to punish them for those practices. They're essentially undercutting our workers as well as keeping wages low.
This was really helpful, thank you. Also, one other piece from how I understand that I think is also crucial to consider: In the original scenario, yes, after the tariffs are implemented, Country A could begin charging customers $15 for that product. OR, what could ALSO happen: Country A isn't able to provide those products (at least not yet, until they decide or figure out a way to provide, which will take time) or its version is far inferior (again, at least for now, until they're able to make their product better) to Country B's, so companies in Country A go on importing and selling products from Country B, but now charge customers $20 to offset the additional cost of the tariffs they have to pay. So, either way, the customers in Country A foot the extra bill at the end of the day. Anyone feel free to let me know if I have that wrong.
We’re talking about value differences here. Both sides understand tariffs and capitalism. My take: if the Chinese price point is only possible due to their slave labor rates, I don’t think we should be validating Chinese factory employers not for altruistic human rights reasons, but because we would need to drop minimum wage to $1.52/hr to stay competitive (I also care about human rights so it’s a win win). Furthermore we cannot be allowing other countries to undercut American companies when that opportunity should be going to American competition. Lastly, we need to stop pretending that it’s not incredibly destabilizing to shop more and more of our reliance over to countries that are not our friends.
While I don’t disagree with any of your points, the problem comes in with the fact that 90% plus of the products that we import from China are not even manufactured here at all by any companies . Also, under our current system which values profits far above people, especially since we’re talking about huge corporations in most cases, slave labor considerations in countries that would undercut our prices are not even considered.
@@thommanleyyou’re correct, that’s why we need to create our own stuff here and not rely on another country who are benefiting to our, and the salve laborers’, detriment
@@myeshaspeaks1In order for us to have more American made things, we have to be able to afford to buy those things personally. Which means our wages must increase to give us buying power (that 60% of us don't have at all) to account for the higher costing items. There's a massive wealth inequality growing larger every year. With 2/3 of the country able to buy less and less, we cannot compete with cheap labor/products. Corporations are making massive profits that get siphoned up top but does not trickle down to the majority working class to maintain a strong stable economy. This problem plays into everything else including obesity and declining birth rates.
+ 100% of the tarriffs are payed by the importer and not by the exporter. If the exporter sells DAP or DDP the cost of transport up untill the importers door will be added to the price of the goods. In case of CIF, CFR, FCA (generally all incoterms with C anf F) the importer directly pays all domestic costs. As for EXW shipments the importer pays for everything directly even the exporttaxes in the country of origin. If you have any understanding of global shipping you know that eventually the consumer in the importing country will pay more for everything including domestic cause they can raise Prices to stay competitive. And because they can slap on the domesticly produced label they can even sell over imported Marketplace and people will pay for it to "support" domestic products.
Thank for explaining! This so relevant at the moment. And I was getting a little confused but I think I have a little bit of a better understanding now
Where does the $5 come from? Or go to? Done at the port of entry? At the distributor? At the final retailer? I know it adds $5 to each unit at the end but where does it start and how imposed?
The people importing the item from B pay the 5 to the government A. Then the price of the item from country B for the importer to buy is essentially $15 ($10 to country B+$5 to government A). In order for them to sell it for a profit they need to add their mark up to it so goods from country B wouldn’t be priced at $15 like the item from country A they would be priced at say $16. Then country A producers think well if people are still buying them at 16 I guess then we can charge that too. So the price of the goods you bought for $13 before tariffs came would initially increase due to the tariffs, and then have a secondary increase due to a lack of competitiveness that normally helps to drive prices downwards. So you used to pay $13 and now you pay 16 plus you just triggered a trade war so all your prices go up. And don’t forget the sales tax on top of those increases. Sale tax is a percentage so you pay more on a 16 dollar item than you did on the 13 dollar item.
@@ThinkingCap_ So people just shouldnt learn and educate themselves and blindly elect a tyrant who doesnt even know how his own economic policies would work? Interesting bro.
it says pretty clearly at the beginning, “to protect domestic product” and with the strategy of lowering taxes for independent businesses down to 15%, its making manufacturing competitive for being in the US. Thus creating jobs.. along with the deregulation in many areas, like energy. Making us, again, competitive in another market, and adding jobs with lowering the price of energy for the citizens. It’s a strategic move that allows us to actually attack the debt and enhance the worth of the dollar.
The way you ended this video is so important Find the information on the topic youre looking into and come up with your own conclusion Media feeds us talking points of each side nowadays instead of just presenting the facts and letting us think for ourselves
An interesting note for americans: the scenario explained the US company was losing money. For the most part this is untrue about the vast majority of businesses. Most have seen record profits...and continue to raise prices...then boasting record profits next year...
Trump and Harris both proposed policies that are bad for free markets. Kamala's rent-ceiling idea is arguably worse. Tariffs against enemy countries seem reasonable to me if they're not too extreme. They hurt in the short-term but in the long-term if it pushes America to manufacture more goods at a lower cost then progress is made. We'll have to see, but if Trump can improve taxes and de-regulate then that may save americans more money than they would be losing to a tariff so it may be a net win.
how is it that Lefties understand tariffs but don't understand how printing money affects inflation, how DEI weakens products and services, how drag queen story hours undermine parents, how abortion makes life cheap, how control of the media creates distrust of the gov't, how unconstrained immigration causes prices of housing to skyrocket, sows chaos in courts and threatens the security of every American...how do they not understand all that?
He didn't mention how country b has slave labor and can produce things super cheap. Buy from country b supports slave labor child labor. Also country a has union and has t9 pay good wages which makes it hard to lower costs.
When trump takes power there won't be any unions..no collective bargaining because you believe musk a al will protect you.... think again he might be rich but he really is dumb...son of a poor father... don't think so
Maybe Kamala should have presented this short video throughout her campaign instead having a concert with all those celebrities with bad images on themselves right now but it probably wouldn’t matter because trump would of said she’s lying and they would have believed it
It would be really great if people like you would not vote ever. 2019 Trump was going to impose Tariff's on Mexico if they didn't comply to his demands. Mexico bowed. You should just stick to multicolored flags, and different pronouns fight.
@@truthhurtsdontit Hahaha you're still with the wall hahaha. Trump got them to bow in 2019, and it's documented. Just do like you did his four years last time, drop to your knees and yell at the sky with tears rolling down your face every single day. Provide the comedy.
Tariffs protect consumers from lower prices. Copper from China and copper from Argentina is still copper. If China can make it cheaper, that's good, cause everyone can buy it at a list price. The thing that I never understood was the complaining about counties "dumping" goods. No business is just sending free stuff , there is always a buyer.. Unilateral free trade should be the US policy.
And they're only IF country A does business directly with county B. For example, there is a traffic on Chinese steel, but it is imported by an American company. The company buys its steel from China directly but the American company ends up paying the tariff because it is the one doing the importing. So now it's affecting American companies instead of China
I don’t think you understood the video. If it’s more expensive to import steel than buy locally, American companies won’t import. This creates demand for local sources goods and floods the market with jobs as companies compete within America to earn our dollars.
@@rickybaker42 That's the idea, you're right on that,but you have to think big picture too. If a company A imports from China and Chinese imports get a tariff, company A can't just shut down and say welp we're done. They have contracts and orders to honor, and workers who can't just lose their job, so they're stuck with that contract and the new tariffs. Plus, if Chinese steel gets a tariff but not German steel (for example), now the demand for German steel goes up, eventually hurting the Chinese economy. The increase in American goods is the ultimate goal, but that takes time..the factories need to be built, people need to be trained, infrastructure needs to be developed, etc.
@@Kraidismyspiritanimal that’s true, it’s a problem if we don’t have steel factories of our own. I imagine steel is not the best example because we could source locally if we wanted to, but I’m sure there is some good that, should a tariff be applied, would create the issue you’re describing. I just don’t think Trump would impose tariffs willy nilly without looking downstream and making sure we couldn’t handle it
I'm here after country A "America" put tariffs on country B "China" this may have short term benefits for country A but long term effects also until country B is not your country.
@@LearntoInvest Trade war is real. There are gangs, mafia, involves, if Country C is weak unlike A & B, i am from Pakistan category 'C' but honest than A & B now, ruled by hell corrupts till the end of 2018, for last 8 months, Pakistan has been trying its best to meet the measures to tackle trade deficits, bent down economy, Pakistan provide corridor to China for one belt & road initiative started by China to meet the middle east & Europe in days rather than weeks. I think trade is better than bombings which country 'A' do. Problem is no one is loyal & trusted all are working for their interest that put World on real threat, i.e Climate, Water, Animals & Humans.
I don’t know how I feel about this. Prices are regulated by supply and demand. And sometimes government laws makes making things in America expensive. While at the same time other counties don’t go through the same stringent testing American products go through if it costs less
I think labor is where most of the production cost disparity stems from. Countries that pay workers $5 dollars a day are going to have products much cheaper than similar products made in the US based on that alone.
If the domestic consumers don't like the quality of the imports, they won't buy them. If they do like the products and/or the prices, domestic producers have an incentive to innovate.
Free market is possible when everybody plays by the same rules. Countries have different regulations that influence cost so you sometime have to even the playing field with tariffs for a fair competition
Weather for the countries but they're not good for the consumers. The consumers are the one who gets screwed in all of this. It guarantees that everything that you buy goes up exponentially
It wouldn’t work because those morons don’t watch videos, they watch titles and argue with anyone without understanding the topic 😂 Many economist and Mitch McConnell said it was a bad idea to have tariffs
Please inform democrats that Biden kept Trump's tariffs because so much money is pouring in. Also please tell Kamala Harris voters that if you take tariffs away that means country A (AKA USA) will lose jobs because of not having tarrifs.
American importers pay the Tariff not the out of the country manufacturers that’s providing the goods. So how in the heck is Trump plan going to benefit the average American citizen? Our paychecks not increasing.
Trump thinks this is the answer; but it’s not. It hurts American companies that import, since they have to pay the tariff, increasing the price to distributors and retailers and customers.
Then why did it work so well? There are ways to do it intelligently and strategically. The economy was already recovering from Covid in 2021 when he left office. Then everything turned to a shitstorm and inflation went up to 9%, a record high, in 2022. It amazes me that people don’t think the BUSINESSMAN knows how to make money.
The truth is that trump refuses to learn that what he used to believe about tariffs is wrong. For whatever reason he thinks the exporter pays the tariff to the US government. And we get all the money and nothing else changes. But you can't convince him he's wrong! Vote Harris Walz! 💙💙
Then those companies would have to invest in domestic labor instead of foreign labor. That means more jobs for Americans. Buying imports is just giving money to other countries instead of Americans.
@@TheSilentWalkerz Inflation was actually not that out of hand and unemployment was at some of the best rates in decades, the inflation act that biden enacted literally dramatically rose inflation.
+ 100% of the tarriffs are payed by the importer and not by tye exporter. If the exporter sells DAP or DDP the cost of transport up untill the importers door will be added to the price of the goods. In case of CIF, CFR, FCA (generally all incoterms with C anf F) the importer directly pays all domestic costs. As for EXW shipments the importer pays for everything directie even the exporttaxes in the country of origin. If you have any understanding of global shipping you know that eventually the consumer in the importing country will pay more for everything including domestic cause they can raise Prices to stay competitive. And because they can slap on the domesticly produced label they can even sell over imported Marketplace and people will pay for it to "support" domestic products.
All makes sense until the end. Basically explains how tariffs are bad for almost everyone except a select few companies that benefit by getting to be lazy, cost inefficient, not innovating, and relying on the government to artificially manipulate the market then somehow can’t come to the conclusion that tariffs are, usually, bad.
if all countries have tariffs its good for thier country or protect there resources. but the consumer is not happy because of the price is growing higher. it maybe us also use tariffs to control the market because other countries is allied or some country is puppet by US because us fund them or to help their country. but they will pay US life time and US can demand any rules or managing their government
Basically if your an own of a company tariffs are good so you get less competition from other countries but for the common citizen this would be bad if someone wants to buy that import from the other country or don’t want to pay more taxes for a product that might be higher in quality than what their countries company is selling. Good for business bad for normal citizens
funny how every country has tariffs on USA but we're told its a bad thing isn't it? one thing this video misses: tariffs are a bargaining chip for better trade deals and keeping good paying jobs
My co worker is a trumper, seriously can't stand him when he makes small talk about politics. But then I learned how much he loves avocado hummus. Especially the ones imported from Mexico... 😂
@@armandojtorres2129 so now my question is what if country b decides to not sell to country a due to its high tariffs price ? Now country a not only does not have the resources to produce the product but now they don’t have no one to sell it to them and what if it’s a high demand product … correct me if I’m wrong
@@AhmoseImhotephigh tariff price? the country B doesnt have to pay anything, it’s the country A’s companies that import those goods have to pay the tariffs.
I'm not sure I understand this. Do you mean we charge more import taxes to other countries products? If this is the case why did we stop doing it to start with?
Simple to those who are here after the trade war thing then you simply use high quality American goods or simply start a business that's not in America
You've been getting f*cked and don't even realize it. You ever wondered why China imposes tariffs on American goods? It's not because they are bad thing.
The only way i can see it being a good thing is if country A can sell country Bs product at a loss for country b, so country a would sell country bs product for 9 dollars while also making the extea 5 of so a profit of 1 dollar to country A on every item sold in country a, idk if im fully understanding it but yeah thats the only way it would be good. If thats even how it could work orherwise prices are just gonna continuously rise because people arent going to import here anymore and then guess what that means we cant get materials from other countries for cheap so we wont be able to make anything here cheap until we build the facilities to do so and that will take us years.
Missed the part where if that company overseas couldn’t afford it they’ll bring their company over to another country to avoid the tariffs which creates more jobs.
How do you avoid a tariff? Businesses and manufacturing will move back to being American-made in the long term. Thanks Trump for prioritizing American made products, businesses, and most importantly, jobs. This video only covers the initial phase of implementing tariffs. Of course it's epxensive in the beginning. After people adjust, the dust settles with a thriving economy.
I don't know why it's so difficult for most people to simply explain how something works. It's always nice when you finally find a video that puts things in simple terms and doesn't speed through it but also doesn't stretch it out.
this is difficult for me honestly, who pays the tarrif?
@@bings2867 if you put tarrifs on china, americans companies will have to pay, which in turn makes americans pay
@@Thorinoaken thank you i ended up figuring that out yesterday, really took me a bit to find that out.
@@Thorinoaken I will admit that is true. But it's a way to incentivize domestic production. Unfortunately, we're forced to pay a minimum wage and provide safe working conditions where China can pay slave wages and employ children. Tariffs should be a way to punish them for those practices. They're essentially undercutting our workers as well as keeping wages low.
@@bings2867maybe you’re just stupid
I love your explanation I goofed off in school and the way you put it makes perfect sense and very easy to understand. Thanks
FINALLY!! A video that visually explained this in an easy way
Thank you. I've questions for a long time and this explains everything. The consumer is the one who suffers.
I’ve been trying to understand what is tariff because of social studies and this video was the best thing i’ve ever watched on youtube! THANK YOU!!
You explained this in a professional and very clear manner.
This was really helpful, thank you. Also, one other piece from how I understand that I think is also crucial to consider: In the original scenario, yes, after the tariffs are implemented, Country A could begin charging customers $15 for that product. OR, what could ALSO happen: Country A isn't able to provide those products (at least not yet, until they decide or figure out a way to provide, which will take time) or its version is far inferior (again, at least for now, until they're able to make their product better) to Country B's, so companies in Country A go on importing and selling products from Country B, but now charge customers $20 to offset the additional cost of the tariffs they have to pay.
So, either way, the customers in Country A foot the extra bill at the end of the day.
Anyone feel free to let me know if I have that wrong.
No you are correct the consumer will pay especially in us (don't deserve capitals). Bigly stupid country
You made it so clear, thank you so much! I have an assignment due on International Trade tomorrow and this was the best explanation
Very nice presentation. Simple to understand the meaning of Tariffs.
OMG thank u so much for this. I didnt play attention in class and I didnt really understand what my teacher was saying so thank u. :)
Now I have a better understanding of how tariffs work. Thanks.
It was so easy to understand.
You explained it within 3 minute.
We’re talking about value differences here. Both sides understand tariffs and capitalism.
My take: if the Chinese price point is only possible due to their slave labor rates, I don’t think we should be validating Chinese factory employers not for altruistic human rights reasons, but because we would need to drop minimum wage to $1.52/hr to stay competitive (I also care about human rights so it’s a win win).
Furthermore we cannot be allowing other countries to undercut American companies when that opportunity should be going to American competition.
Lastly, we need to stop pretending that it’s not incredibly destabilizing to shop more and more of our reliance over to countries that are not our friends.
While I don’t disagree with any of your points, the problem comes in with the fact that 90% plus of the products that we import from China are not even manufactured here at all by any companies . Also, under our current system which values profits far above people, especially since we’re talking about huge corporations in most cases, slave labor considerations in countries that would undercut our prices are not even considered.
@@thommanleyyou’re correct, that’s why we need to create our own stuff here and not rely on another country who are benefiting to our, and the salve laborers’, detriment
@@myeshaspeaks1In order for us to have more American made things, we have to be able to afford to buy those things personally. Which means our wages must increase to give us buying power (that 60% of us don't have at all) to account for the higher costing items. There's a massive wealth inequality growing larger every year. With 2/3 of the country able to buy less and less, we cannot compete with cheap labor/products. Corporations are making massive profits that get siphoned up top but does not trickle down to the majority working class to maintain a strong stable economy. This problem plays into everything else including obesity and declining birth rates.
+ 100% of the tarriffs are payed by the importer and not by the exporter. If the exporter sells DAP or DDP the cost of transport up untill the importers door will be added to the price of the goods. In case of CIF, CFR, FCA (generally all incoterms with C anf F) the importer directly pays all domestic costs. As for EXW shipments the importer pays for everything directly even the exporttaxes in the country of origin. If you have any understanding of global shipping you know that eventually the consumer in the importing country will pay more for everything including domestic cause they can raise Prices to stay competitive. And because they can slap on the domesticly produced label they can even sell over imported Marketplace and people will pay for it to "support" domestic products.
@@Haley_HaloVery good point!
Nice quick video that explains very clearly about what a tariff is to me
End result still raises prices. To those who were concerned about rising costs.
Solid presentation, you explained tariffs well
As always John, I appreciate you sticking with me. I've got more videos coming out later this week.
I look forward to seeing them.
How does this video only have 15 likes it explains it so well and was very helpful!
Thanks, I really appreciate that! 😀
Thank for explaining! This so relevant at the moment. And I was getting a little confused but I think I have a little bit of a better understanding now
finally came across a video that taught me what I was seeking to learn. Thank you!!
Nicely explained.
So basically the end user is either screwed internationally or domestically.
Exactly
I really like your explanation. 🙏 It helped me understand tariffs
Another big problem is, country A would increase price to $18 unnecessarily too on top of no innovation
This is such a great explanation!
It was clear and easy to understand, thank you for the lesson.
Thanks for giving me a clear understanding...i think I get it
:) any questions... Fire them my way, I'm always happy to help :) thanks for the support
Great, simplified explanation!
doode that was good it was throughly explain with visual graphics it’s 10x any classes or schooling bro
Excellent explanation! Thank you.
Where does the $5 come from? Or go to? Done at the port of entry? At the distributor? At the final retailer? I know it adds $5 to each unit at the end but where does it start and how imposed?
The people importing the item from B pay the 5 to the government A. Then the price of the item from country B for the importer to buy is essentially $15 ($10 to country B+$5 to government A). In order for them to sell it for a profit they need to add their mark up to it so goods from country B wouldn’t be priced at $15 like the item from country A they would be priced at say $16. Then country A producers think well if people are still buying them at 16 I guess then we can charge that too. So the price of the goods you bought for $13 before tariffs came would initially increase due to the tariffs, and then have a secondary increase due to a lack of competitiveness that normally helps to drive prices downwards. So you used to pay $13 and now you pay 16 plus you just triggered a trade war so all your prices go up. And don’t forget the sales tax on top of those increases. Sale tax is a percentage so you pay more on a 16 dollar item than you did on the 13 dollar item.
Great questions. I'm asking myself the same questions.
You’re better at explaining than most college professors
Who's here after listening to Trump's half-baked idea for saving America?
✋
So his idea is half-baked but you had to go to a youtube channel in order to learn what a tariff even is? Interesting bro
@@ThinkingCap_dont discourage people from fact checking, thats how we elect liars.
@@ThinkingCap_ So people just shouldnt learn and educate themselves and blindly elect a tyrant who doesnt even know how his own economic policies would work?
Interesting bro.
@@lukejones8365im telling you man
U still gotta dumb it down a bit for the Trumpers to understand 😂😂😂
it says pretty clearly at the beginning, “to protect domestic product” and with the strategy of lowering taxes for independent businesses down to 15%, its making manufacturing competitive for being in the US. Thus creating jobs.. along with the deregulation in many areas, like energy. Making us, again, competitive in another market, and adding jobs with lowering the price of energy for the citizens. It’s a strategic move that allows us to actually attack the debt and enhance the worth of the dollar.
The way you ended this video is so important
Find the information on the topic youre looking into and come up with your own conclusion
Media feeds us talking points of each side nowadays instead of just presenting the facts and letting us think for ourselves
No matter what spin is put on it!
Consumers always lose in trade wars!
Loving your channel. Thanks
An interesting note for americans: the scenario explained the US company was losing money. For the most part this is untrue about the vast majority of businesses. Most have seen record profits...and continue to raise prices...then boasting record profits next year...
Hi can I use this video for internal training? Please reply to me within 7 days? Thank you
Please show this to every MAGAt you know
Trump and Harris both proposed policies that are bad for free markets. Kamala's rent-ceiling idea is arguably worse. Tariffs against enemy countries seem reasonable to me if they're not too extreme. They hurt in the short-term but in the long-term if it pushes America to manufacture more goods at a lower cost then progress is made.
We'll have to see, but if Trump can improve taxes and de-regulate then that may save americans more money than they would be losing to a tariff so it may be a net win.
how is it that Lefties understand tariffs but don't understand how printing money affects inflation, how DEI weakens products and services, how drag queen story hours undermine parents, how abortion makes life cheap, how control of the media creates distrust of the gov't, how unconstrained immigration causes prices of housing to skyrocket, sows chaos in courts and threatens the security of every American...how do they not understand all that?
@@davido1953Nothing you said is true nor relevant to the topic at hand. MAGAT.
@@aries4378 lol
@aries4378 you know those guys don't use logic and reason. They just wear red hats spout nonsense 🙄..
Pls do what is job argument. Thank you
God, thank you for your wisdom and love and guidance over all costs and productions in Jesus name. Amen 🙏
It's more secure for domestic producers but more expensive for consumers.
He didn't mention how country b has slave labor and can produce things super cheap. Buy from country b supports slave labor child labor. Also country a has union and has t9 pay good wages which makes it hard to lower costs.
I take it that us doesn't have slaves mmmmn I don't believe that
When trump takes power there won't be any unions..no collective bargaining because you believe musk a al will protect you.... think again he might be rich but he really is dumb...son of a poor father... don't think so
@@neilmachon9828 under paid slaves
Maybe Kamala should have presented this short video throughout her campaign instead having a concert with all those celebrities with bad images on themselves right now but it probably wouldn’t matter because trump would of said she’s lying and they would have believed it
She did. Where the hell were you?
Yeah, you clearly weren't paying attention. People not paying attention is why she lost, not Beyonce.
It would be really great if people like you would not vote ever. 2019 Trump was going to impose Tariff's on Mexico if they didn't comply to his demands. Mexico bowed. You should just stick to multicolored flags, and different pronouns fight.
@@mariocervantes8101just like Mexico was going to pay for the wall huh. Did you even know is how tariffs work?
@@truthhurtsdontit Hahaha you're still with the wall hahaha. Trump got them to bow in 2019, and it's documented. Just do like you did his four years last time, drop to your knees and yell at the sky with tears rolling down your face every single day. Provide the comedy.
Thank you
Good video
What software tool was used to create a video like this?
I used a software called videoscribe
@@LearntoInvest Thanks!
Tariffs protect consumers from lower prices. Copper from China and copper from Argentina is still copper. If China can make it cheaper, that's good, cause everyone can buy it at a list price.
The thing that I never understood was the complaining about counties "dumping" goods. No business is just sending free stuff , there is always a buyer..
Unilateral free trade should be the US policy.
No decision ever made in business is for the consumers benefit...
And they're only IF country A does business directly with county B. For example, there is a traffic on Chinese steel, but it is imported by an American company. The company buys its steel from China directly but the American company ends up paying the tariff because it is the one doing the importing. So now it's affecting American companies instead of China
I don’t think you understood the video. If it’s more expensive to import steel than buy locally, American companies won’t import. This creates demand for local sources goods and floods the market with jobs as companies compete within America to earn our dollars.
@@rickybaker42 That's the idea, you're right on that,but you have to think big picture too. If a company A imports from China and Chinese imports get a tariff, company A can't just shut down and say welp we're done. They have contracts and orders to honor, and workers who can't just lose their job, so they're stuck with that contract and the new tariffs. Plus, if Chinese steel gets a tariff but not German steel (for example), now the demand for German steel goes up, eventually hurting the Chinese economy. The increase in American goods is the ultimate goal, but that takes time..the factories need to be built, people need to be trained, infrastructure needs to be developed, etc.
@@Kraidismyspiritanimal that’s true, it’s a problem if we don’t have steel factories of our own. I imagine steel is not the best example because we could source locally if we wanted to, but I’m sure there is some good that, should a tariff be applied, would create the issue you’re describing. I just don’t think Trump would impose tariffs willy nilly without looking downstream and making sure we couldn’t handle it
Wouldnt this become inflationary on a GLOBAL SCALE if implemented poorly?
(Looks at the Smoot-Hawley Tariff Act of 1922)
Why, yes. Yes it -would- did.
There's a main reason why tariffs aren't widely used anymore
I'm here after country A "America" put tariffs on country B "China"
this may have short term benefits for country A but long term effects also until country B is not your country.
For sure, I'm not a big fan of tariffs. Since its Country A's responsibility to pay for the tariff, I believe that any benefits are small if at all.
@@LearntoInvest Trade war is real.
There are gangs, mafia, involves, if Country C is weak unlike A & B, i am from Pakistan category 'C' but honest than A & B now, ruled by hell corrupts till the end of 2018, for last 8 months, Pakistan has been trying its best to meet the measures to tackle trade deficits, bent down economy, Pakistan provide corridor to China for one belt & road initiative started by China to meet the middle east & Europe in days rather than weeks. I think trade is better than bombings which country 'A' do. Problem is no one is loyal & trusted all are working for their interest that put World on real threat, i.e Climate, Water, Animals & Humans.
Update on China's decrease in GDP (don't know what it is)
Better to have buyouts and correction overtime than war and crime👍
I don’t know how I feel about this. Prices are regulated by supply and demand. And sometimes government laws makes making things in America expensive. While at the same time other counties don’t go through the same stringent testing American products go through if it costs less
I think labor is where most of the production cost disparity stems from. Countries that pay workers $5 dollars a day are going to have products much cheaper than similar products made in the US based on that alone.
If the domestic consumers don't like the quality of the imports, they won't buy them. If they do like the products and/or the prices, domestic producers have an incentive to innovate.
WHAT IS A QOUATAS?? PLEASE HELP ME
Bravo!
So buy the 14$ widget made in your country? Vs the widget with an added slave labor tax,
Then isn't a tariff the antithesis of a free market?
Yes.
Which is ironic that so many republicans support it 😂
Free market is possible when everybody plays by the same rules. Countries have different regulations that influence cost so you sometime have to even the playing field with tariffs for a fair competition
Weather for the countries but they're not good for the consumers. The consumers are the one who gets screwed in all of this. It guarantees that everything that you buy goes up exponentially
Please share this to a Trump voter you know.
Will be a good review for them. Show to a democrat if you care to share new knowledge with them.
It wouldn’t work because those morons don’t watch videos, they watch titles and argue with anyone without understanding the topic 😂 Many economist and Mitch McConnell said it was a bad idea to have tariffs
@@TheSilentWalkerz Virtually all economists, in fact.
@@cincent5805 Said Trumpists won't be paying attention, unfortunately.
Please inform democrats that Biden kept Trump's tariffs because so much money is pouring in.
Also please tell Kamala Harris voters that if you take tariffs away that means country A (AKA USA) will lose jobs because of not having tarrifs.
American importers pay the Tariff not the out of the country manufacturers that’s providing the goods. So how in the heck is Trump plan going to benefit the average American citizen? Our paychecks not increasing.
Trump thinks this is the answer; but it’s not. It hurts American companies that import, since they have to pay the tariff, increasing the price to distributors and retailers and customers.
Then why did it work so well? There are ways to do it intelligently and strategically. The economy was already recovering from Covid in 2021 when he left office. Then everything turned to a shitstorm and inflation went up to 9%, a record high, in 2022. It amazes me that people don’t think the BUSINESSMAN knows how to make money.
The truth is that trump refuses to learn that what he used to believe about tariffs is wrong. For whatever reason he thinks the exporter pays the tariff to the US government. And we get all the money and nothing else changes. But you can't convince him he's wrong! Vote Harris Walz! 💙💙
Then those companies would have to invest in domestic labor instead of foreign labor. That means more jobs for Americans. Buying imports is just giving money to other countries instead of Americans.
@@c-tfamilychronicles6517Nope, it actually caused a huge inflation problem for prices in 2016 to 2020. Stop listening to Fox News 😂
@@TheSilentWalkerz Inflation was actually not that out of hand and unemployment was at some of the best rates in decades, the inflation act that biden enacted literally dramatically rose inflation.
came here after maddog trump tarif
Nice
Am here after President Trump imposed tariffs on Colombia
Oooooh I get it now. So basically what you're saying is that I'm an idiot?
I imagine this video got a very.... "random" spike in views recently
+ 100% of the tarriffs are payed by the importer and not by tye exporter. If the exporter sells DAP or DDP the cost of transport up untill the importers door will be added to the price of the goods. In case of CIF, CFR, FCA (generally all incoterms with C anf F) the importer directly pays all domestic costs. As for EXW shipments the importer pays for everything directie even the exporttaxes in the country of origin. If you have any understanding of global shipping you know that eventually the consumer in the importing country will pay more for everything including domestic cause they can raise Prices to stay competitive. And because they can slap on the domesticly produced label they can even sell over imported Marketplace and people will pay for it to "support" domestic products.
All makes sense until the end. Basically explains how tariffs are bad for almost everyone except a select few companies that benefit by getting to be lazy, cost inefficient, not innovating, and relying on the government to artificially manipulate the market then somehow can’t come to the conclusion that tariffs are, usually, bad.
Hahaha and the people in country A, PAY MORE for the widget
if all countries have tariffs its good for thier country or protect there resources. but the consumer is not happy because of the price is growing higher. it maybe us also use tariffs to control the market because other countries is allied or some country is puppet by US because us fund them or to help their country. but they will pay US life time and US can demand any rules or managing their government
Basically if your an own of a company tariffs are good so you get less competition from other countries but for the common citizen this would be bad if someone wants to buy that import from the other country or don’t want to pay more taxes for a product that might be higher in quality than what their countries company is selling. Good for business bad for normal citizens
funny how every country has tariffs on USA but we're told its a bad thing isn't it? one thing this video misses: tariffs are a bargaining chip for better trade deals and keeping good paying jobs
And paying off debt...
@@billsmith3182 yup
That's good to know but it's still might end up with that other country just going with somebody else
But thank you very much for telling me about that
For who?
Trump supporters googling what a tariff is after the election. 😂
My co worker is a trumper, seriously can't stand him when he makes small talk about politics. But then I learned how much he loves avocado hummus. Especially the ones imported from Mexico... 😂
Not a trump supporter but now curious about tariffs.
If the usa can put tariffs in everyone, what say other countries would do the same to the USA
Either way it ends up costing consumers billions of dollars, so it's bad
Why dont country A just find a more cost efficient way to produce there own product instead depending on country b
Resources
@@armandojtorres2129 so now my question is what if country b decides to not sell to country a due to its high tariffs price ? Now country a not only does not have the resources to produce the product but now they don’t have no one to sell it to them and what if it’s a high demand product … correct me if I’m wrong
@@AhmoseImhotephigh tariff price? the country B doesnt have to pay anything, it’s the country A’s companies that import those goods have to pay the tariffs.
@@zzzmzzz4466 ok I get i had to watch again ..
@@AhmoseImhotep good questions!
I'm not sure I understand this. Do you mean we charge more import taxes to other countries products? If this is the case why did we stop doing it to start with?
Trump supporters scratching their bald heads in a year wondering why this is happening and why they can't blame Biden somehow for it.
This hasn’t even happened yet and how is this a bad thing?
Oh they'll find a way 🙄😂
you forgot county c, now that all widgets are 16$ i can buy the nice French press widget instead of the Chinese one.
Simple to those who are here after the trade war thing then you simply use high quality American goods or simply start a business that's not in America
So in the end we are still gonna get f*cked 😢
You've been getting f*cked and don't even realize it. You ever wondered why China imposes tariffs on American goods? It's not because they are bad thing.
What is a widget? How do widgets Work?
Donald went to Wharton but still doesn’t know what a tariff is.
trump should watch this
The only way i can see it being a good thing is if country A can sell country Bs product at a loss for country b, so country a would sell country bs product for 9 dollars while also making the extea 5 of so a profit of 1 dollar to country A on every item sold in country a, idk if im fully understanding it but yeah thats the only way it would be good. If thats even how it could work orherwise prices are just gonna continuously rise because people arent going to import here anymore and then guess what that means we cant get materials from other countries for cheap so we wont be able to make anything here cheap until we build the facilities to do so and that will take us years.
It only work if countries are dependent on sales in country A
Widget
maga！
I still don't get it okay i got it now 😊
Missed the part where if that company overseas couldn’t afford it they’ll bring their company over to another country to avoid the tariffs which creates more jobs.
Let see how that work
The company oversees is not paying the tariffs. The importer is the one that pays the tariff.
Econ 101: Consumers pay.
Trump says he didn't start any wars… Well, he did. Trade wars. Absolute buffoon.
Bring those low wage factory jobs that nobody will want to do back i guess is his great plan to save the economy
How do you avoid a tariff? Businesses and manufacturing will move back to being American-made in the long term. Thanks Trump for prioritizing American made products, businesses, and most importantly, jobs.
This video only covers the initial phase of implementing tariffs. Of course it's epxensive in the beginning. After people adjust, the dust settles with a thriving economy.
This video is for the uneducated.
Stop buying and selling to the us then
USA destryed
Do yall know what this Video did not Explain....... TRADE DEFICIT!!!!!
It's purpose is to BUY american goods over foreign goods.
Who pays the cost of raising taxes on American companies?
Tariff is an *Arabic* word .
from Ta'rif : to
If people dont know how it works. They should go back to school and get an education,
Ever wonder why trump is getting rid of the department of education