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.
@@Thor12233 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.
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.
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.
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...
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.
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.
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.
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
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.
@@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.
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
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.
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
+ 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.
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.
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?
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.
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
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.
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.
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.
I understand that the goal is to generate more revenue, but threatening a 25% tariff on Canada - who just so happens to export A LOT of products and resources may not be the best idea. 75% of all Canadian exports are to the US, where only 17% of US exports are crossing the border into Canada. He wants to tax us? Sounds like a great idea, IF Canadian politicians had the balls to do as he does. 25% tariff on 75% imported goods…
@@ShawsOwnit’s simple to explain. You’re correct, this video doesn’t defeat Trump’s idea. And Trump knows that. Trump is playing on the lack of knowledge of the American people just to get elected. Unlike most Americans I do research. Trump and his cronies know China has a loophole. China can ship those goods to Mexico and Thailand to go around tariffs. That’s what the American people don’t know and understand. The optics make Trump look good. But guess what? Those goods are still getting in doing damage to the US manufacturing sector.
@@ShawsOwnNobody wins a trade war, first off. The tariff costs will be put on the shoulders of the consumers, and that is an absolute guarantee. The importers are not going to pay the tariff hike. So we just stop buying certain things that we don't absolutely need. But some items are absolutely necessary, and those costs will go up. And we import ALOT from China, not just gadgets and doodads but critical products like farming equipment, medical supplies, a good portion of our technology, etc. There is no logical way to put a blanket tariff on imports from China that doesn't hurt US working families, individuals, small businesses and even large corporations that are still doing business in the US. In order to cut costs, big business will outsource manufacturing and production. It's just a bad idea all around. Are ANY economists in favor of setting these high tariffs on imports? I'd be surprised if any are. Small tariffs work, large tariffs create higher prices and can ultimately lead to trade wars.
@@pcdosgirl that's the point, stop sourcing our manufacturing to other countries, to stop companies from using other countries for cheap labor, so we're getting manufacturing jobs back to America so we can have good paying jobs again. Also we don't get "AbSoLUtElY nEcESSaRy" from China, farming equipment(that's John Deere, so America/mexico), medical equipment/supplies are mostly produced in America, and our technology mostly come from other Asian countries(Taiwan, Japan, and South Korea).
@@pcdosgirl Yeah his isolationist stance is pure populism. His voters don't seem to see the implications. My guess is he will not do a third of what he says if he get elected because it would send inflation flying
Trump believes that imposing tariffs will encourage manufacturers from country B to set up business in the US creating foreign investment and jobs and threfore avoid having tariffs imposed on their products. What Trump dosen't say is that the US government will offer/ pay subsidies or tax breaks in order for them to set up business in the US.
They are good. Especially if country A uses quality materials and pays it workers a living wage. Meanwhile country B uses cheap materials and slave labor. Bring manufacturing back to the USA and give us back quality merchandise.
Then everything will cost 5-10x what it does now. If people wanted expensive quality products made domestically there would be a greater demand. What you want is to place a tax on all Americans to subsidize the jobs of a few American workers. That's a handout.
If the consumer prefers the imported item for whatever reason, they will buy it. Domestic manufacturers then have an incentive to improve their products.
So basically tariffs screw the majority of people because they can't buy it for as cheap as they were. Tariffs is just a small word for Corporate Greed... Wouldn't it make more sense if country A just bought country B's for $12 & sold them for $13 because that sounds more like a win win, instead of a win lose lose
Completely laughable. The goal of economics isn’t just to produce things to consume at lowest possible prices (that’s corporate and Jewish greed). Even though that’s how it is now that shouldn’t be the goal. That’s how you get foreign capture of a country, low wages, and reliance on foreign workers to do higher skilled jobs for lower wages instead of having a domestic population doing so and making high wages and growing its domestic industrial capital capabilities to be self dependent.
From what I'm gathering just that a Tarrif will be used as a tool to negitiate better deals. Because ultimately a tarrif will hurt the working, and middle class. So instead of US Sending trillions of dollars to foreign countries. He may even use the Tarrifs to get those countries to plant factories in the US for a tax cut. But we can only wait to see
Or the businesses just close shop in China and move to another country where work is cheap and the tarrifs are less. I can't forsee many, if any, business bringing back manufacturering to the US because of our minimum wage. The whole reason manufacturering left the US is because the fat cats at the top found a way to pay workers less and themselves more. However, I'm no prophet so we shall see 😮💨
Companies will just export their work to other countries instead of China to get around it. Nobody will be producing in America even with these tariffs.
@@Swiftie-ef2ip Yup, a shoe manufacturer has already started their plan to send the work to Cambodia and Vietnam. I guess they were already working on moving away from China (probably due to his last administration lmao)
If your country is having everything imported from other countries, then what is your country..?? Is it really a superpower..? Or is it depending on other countries for its very own survival ? If you look at the example in the video with country A, being America, and B, being, China.. You should say, how could China produce items so much cheaper than the USA.? The answer is that America overtaxed all of its biggest manufacturing companies, and forced them into the arms of China and other countries, where they pay low taxes, and 75% less on payroll because those countries are perfectly fine with slave labor.. I'm not going to argue whether slave labor is real or not, because we all know it is, so please don't be silly. But that is how China produces products so much cheaper than the USA.. because all of our American manufacturing companies, are no longer American companies. So what steps should America take to regain its position as world leader..? 1. Put tariffs on any company who attempts to compete with American companies. 2. Lower taxes for all major manufacturing companies, and make it easy for them to run their business in America, and that will also employ millions of people. 3. Expose slave labor, and shame any country who allows it by coming to a mutual agreement with other countries, that nobody will buy products from countries who allow slave labor. Your companies will be glad to come home, Americans would be employed by those returning companies, we wouldn't have to buy from manufacturers who live across Oceans, and there would be no trade war. The only countries who lose in trade wars, are small countries who depend on others for their very own survival.. That doesn't sound like America would lose, it sounds like China would lose.. and maybe that is why China, Russia, Ukraine, Israel, Hamas, and Al-Qaeda, all called for peace with America within 72 hours of Donald Trump becoming President Elect. Not to mention the European union deciding to buy natural gas from the USA after Trump was elected, so it seems as if these other countries know very well what the outcome of a tariff war with America would look like.. And they don't want anything to do with it, so they have decided to play ball the right way thanks to Donald Trump following step 1, and using tariffs.
I just see this as a consequence of capitalism. Businesses will do what they can do avoid taxes, production costs, etc. Government can try to regulate the game but never beat it.
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
@@Thor12233 thank you i ended up figuring that out yesterday, really took me a bit to find that out.
@@Thor12233 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
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!
You explained this in a professional and very clear manner.
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!!
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. :)
It was so easy to understand.
You explained it within 3 minute.
How does this video only have 15 likes it explains it so well and was very helpful!
Thanks, I really appreciate that! 😀
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.
Nice quick video that explains very clearly about what a tariff is to me
finally came across a video that taught me what I was seeking to learn. Thank you!!
Nicely explained.
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...
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.
This is such a great explanation!
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.
It was clear and easy to understand, thank you for the lesson.
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)
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
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.
Great, simplified explanation!
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
Excellent explanation! Thank you.
doode that was good it was throughly explain with visual graphics it’s 10x any classes or schooling bro
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
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.
You’re better at explaining than most college professors
Loving your channel. Thanks
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
Hi can I use this video for internal training? Please reply to me within 7 days? Thank you
Another big problem is, country A would increase price to $18 unnecessarily too on top of no innovation
if you have money= good
if you already hate the high prices of stuff= bad
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
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
No decision ever made in business is for the consumers benefit...
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.
No matter what spin is put on it!
Consumers always lose in trade wars!
Pls do what is job argument. Thank you
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
+ 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.
If the usa can put tariffs in everyone, what say other countries would do the same to the USA
Thank you
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 software tool was used to create a video like this?
I used a software called videoscribe
@@LearntoInvest Thanks!
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 🙄..
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.
Bravo!
Good video
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
Better to have buyouts and correction overtime than war and crime👍
Oooooh I get it now. So basically what you're saying is that I'm an idiot?
So buy the 14$ widget made in your country? Vs the widget with an added slave labor tax,
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 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 🙄😂
Nice
Either way it ends up costing consumers billions of dollars, so it's bad
WHAT IS A QOUATAS?? PLEASE HELP ME
It all just looks like one wants to be richer than the other. At the end of the day, the people never gain anything from these tactics imo
What is a widget? How do widgets Work?
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.
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... 😂
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!
you forgot county c, now that all widgets are 16$ i can buy the nice French press widget instead of the Chinese one.
Econ 101: Consumers pay.
Do yall know what this Video did not Explain....... TRADE DEFICIT!!!!!
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.
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
Donald went to Wharton but still doesn’t know what a tariff is.
It's purpose is to BUY american goods over foreign goods.
Who pays the cost of raising taxes on American companies?
I imagine this video got a very.... "random" spike in views recently
maga！
Thanks for the confusion I am not a ape by the way.
I understand that the goal is to generate more revenue, but threatening a 25% tariff on Canada - who just so happens to export A LOT of products and resources may not be the best idea.
75% of all Canadian exports are to the US, where only 17% of US exports are crossing the border into Canada.
He wants to tax us?
Sounds like a great idea, IF Canadian politicians had the balls to do as he does.
25% tariff on 75% imported goods…
I still don't get it okay i got it now 😊
Someone send this video to Trump.
Okay, but explain how you think this video somehow defeats his idea of tariffs on China.
@@ShawsOwnit’s simple to explain. You’re correct, this video doesn’t defeat Trump’s idea. And Trump knows that. Trump is playing on the lack of knowledge of the American people just to get elected. Unlike most Americans I do research. Trump and his cronies know China has a loophole. China can ship those goods to Mexico and Thailand to go around tariffs. That’s what the American people don’t know and understand. The optics make Trump look good. But guess what? Those goods are still getting in doing damage to the US manufacturing sector.
@@ShawsOwnNobody wins a trade war, first off. The tariff costs will be put on the shoulders of the consumers, and that is an absolute guarantee. The importers are not going to pay the tariff hike. So we just stop buying certain things that we don't absolutely need. But some items are absolutely necessary, and those costs will go up. And we import ALOT from China, not just gadgets and doodads but critical products like farming equipment, medical supplies, a good portion of our technology, etc. There is no logical way to put a blanket tariff on imports from China that doesn't hurt US working families, individuals, small businesses and even large corporations that are still doing business in the US. In order to cut costs, big business will outsource manufacturing and production.
It's just a bad idea all around. Are ANY economists in favor of setting these high tariffs on imports? I'd be surprised if any are. Small tariffs work, large tariffs create higher prices and can ultimately lead to trade wars.
@@pcdosgirl that's the point, stop sourcing our manufacturing to other countries, to stop companies from using other countries for cheap labor, so we're getting manufacturing jobs back to America so we can have good paying jobs again. Also we don't get "AbSoLUtElY nEcESSaRy" from China, farming equipment(that's John Deere, so America/mexico), medical equipment/supplies are mostly produced in America, and our technology mostly come from other Asian countries(Taiwan, Japan, and South Korea).
@@pcdosgirl Yeah his isolationist stance is pure populism. His voters don't seem to see the implications. My guess is he will not do a third of what he says if he get elected because it would send inflation flying
Now play with the American widget for and hour then play with the Chinese widget and hope it lasts an hour....You decide...
who gets the money from the tarrif? country A sucks now..
It's bad I hate tarrifs
Is this Jordan peterson.
Lululemon
This video is for the uneducated.
Trump believes that imposing tariffs will encourage manufacturers from country B to set up business in the US creating foreign investment and jobs and threfore avoid having tariffs imposed on their products. What Trump dosen't say is that the US government will offer/ pay subsidies or tax breaks in order for them to set up business in the US.
Trump? The guy that bankrupted several businesses including a casino? What he believes is irrelevant.
They are good. Especially if country A uses quality materials and pays it workers a living wage. Meanwhile country B uses cheap materials and slave labor. Bring manufacturing back to the USA and give us back quality merchandise.
Then everything will cost 5-10x what it does now. If people wanted expensive quality products made domestically there would be a greater demand. What you want is to place a tax on all Americans to subsidize the jobs of a few American workers. That's a handout.
Domestically made doesn’t mean better quality.
If the consumer prefers the imported item for whatever reason, they will buy it. Domestic manufacturers then have an incentive to improve their products.
Country a=china
Country b=rest of the world
Trade= electronics and technology.
Plug it into the equation.
I thought country b=china since their product always the cheapest and decent quality
@@mohdfarhan5255 it is b, pretty sure that’s what OP meant
So in other words this is good for U.S because if other countries try to tariff us we can impose that with the greatest military in the world
Even when we do it to our greatest Allies… Goodluck
So you could have no job and can’t afford a widget, or have a job and pay a little bit more for a widget? I’d prefer the tariffs.
So basically tariffs screw the majority of people because they can't buy it for as cheap as they were. Tariffs is just a small word for Corporate Greed... Wouldn't it make more sense if country A just bought country B's for $12 & sold them for $13 because that sounds more like a win win, instead of a win lose lose
Completely laughable. The goal of economics isn’t just to produce things to consume at lowest possible prices (that’s corporate and Jewish greed). Even though that’s how it is now that shouldn’t be the goal. That’s how you get foreign capture of a country, low wages, and reliance on foreign workers to do higher skilled jobs for lower wages instead of having a domestic population doing so and making high wages and growing its domestic industrial capital capabilities to be self dependent.
@@L.T.Nelson I wonder if this is why Japan wanted to buy Nippon Steel in Pennsylvania?🤔
Trump will use tariff to bring inflation down, that will be an interesting video to watch
From what I'm gathering just that a Tarrif will be used as a tool to negitiate better deals. Because ultimately a tarrif will hurt the working, and middle class. So instead of US Sending trillions of dollars to foreign countries. He may even use the Tarrifs to get those countries to plant factories in the US for a tax cut. But we can only wait to see
Or the businesses just close shop in China and move to another country where work is cheap and the tarrifs are less. I can't forsee many, if any, business bringing back manufacturering to the US because of our minimum wage. The whole reason manufacturering left the US is because the fat cats at the top found a way to pay workers less and themselves more. However, I'm no prophet so we shall see 😮💨
Just don't buy widgets as a consumer and find an alternative
😂 In the real world, life ain't that simple.
So basicaly when Trump is going to do this, prices will go up but so will employment. Is this correct? That's abit of a double edged sword idk
I see
Companies will just export their work to other countries instead of China to get around it. Nobody will be producing in America even with these tariffs.
@@Swiftie-ef2ip Yup, a shoe manufacturer has already started their plan to send the work to Cambodia and Vietnam. I guess they were already working on moving away from China (probably due to his last administration lmao)
If your country is having everything imported from other countries, then what is your country..?? Is it really a superpower..? Or is it depending on other countries for its very own survival ? If you look at the example in the video with
country A, being America,
and B, being, China..
You should say, how could China produce items so much cheaper than the USA.? The answer is that America overtaxed all of its biggest manufacturing companies, and forced them into the arms of China and other countries, where they pay low taxes, and 75% less on payroll because those countries are perfectly fine with slave labor.. I'm not going to argue whether slave labor is real or not, because we all know it is, so please don't be silly.
But that is how China produces products so much cheaper than the USA.. because all of our American manufacturing companies, are no longer American companies.
So what steps should America take to regain its position as world leader..?
1. Put tariffs on any company who attempts to compete with American companies.
2. Lower taxes for all major manufacturing companies, and make it easy for them to run their business in America, and that will also employ millions of people.
3. Expose slave labor, and shame any country who allows it by coming to a mutual agreement with other countries, that nobody will buy products from countries who allow slave labor.
Your companies will be glad to come home, Americans would be employed by those returning companies, we wouldn't have to buy from manufacturers who live across Oceans, and there would be no trade war. The only countries who lose in trade wars, are small countries who depend on others for their very own survival..
That doesn't sound like America would lose, it sounds like China would lose.. and maybe that is why China, Russia, Ukraine, Israel, Hamas, and Al-Qaeda, all called for peace with America within 72 hours of Donald Trump becoming
President Elect. Not to mention the European union deciding to buy natural gas from the USA after Trump was elected, so it seems as if these other countries know very well what the outcome of a tariff war with America would look like..
And they don't want anything to do with it, so they have decided to play ball the right way thanks to
Donald Trump following step 1, and using tariffs.
I just see this as a consequence of capitalism. Businesses will do what they can do avoid taxes, production costs, etc. Government can try to regulate the game but never beat it.
This sucks my mom is making me watch this and it so boring
It's standing up for your country fools and not being taken advantage of!!
Send this to dumb trump 😮😮😮😮😮😮😮😮😮😮😮