Donald Trump has announced 10% tariffs on all Chinese imports on day one of his presidency, a move loudly supported by any of his supporters who don’t know how tariffs work.
With widespread belief among the MAGA crowd that China will now be “paying” to send goods to the United States, consumers are in for a shock when they realise everything from China will just get a bit more expensive, because that’s how tariffs actually work.
Non-moron, and import exporter, Chuck Williams told us, “If the United States puts a 10% tariff on Chinese imports, then that tariff is paid by the company bringing in the goods from China – i.e. me – not by China. I can then choose to absorb that cost, or pass some or all of that extra cost on to the customer.
“Ultimately that tariff is paid by me, the American importing company, which means I can pass that cost on to you, the American consumer.
“Do you know who isn’t paying a single penny towards that extra tariff? China.
“It’s much like the fabled wall. If you think Mexico paid for it, then you’re likely to believe China will be paying the cost of this tariff.
“You would be completely wrong, of course, but it must be nice and comforting to think otherwise.”
