I wish we had big Don in charge over here !

[noseall]

Sounds like he's learning fast to me if he wants the EU to pay the same tariffs as America pays.

Not a prayer the EU will be bothered by Trump and his self-harming tariffs.

 

[aveatry]

As I understood it the theory behind tariffs is to make it more expensive for US consumers to buy the cheap imports so that US factories can then step in and make the goods cheaper than the imports and the US will then be buying US and boost the economy.

 

[denso13]

can then step in and make the goods cheaper than the imports

Cheaper than China? Will American workers work for next to nothing?

 

[aveatry]

Cheaper than China?

That is what I have just explained how I thought it is suppose to work.
This is my take on how tarrifs are supposed to work.
We can make cilit bang for £5 but china can make it as an import for £3 - so we put tarrifs on it to make it cost £5.50 so now ours is cheaper and people will but that and not the import.

 

[denso13]

We can make cilit bang for £5 but china can make it as an import for £3 - so we put tarrifs on it to make it cost £5.50 so now ours is cheaper and people will but that and not the import.

Then costs for consumers go up by £2 for a £3 item. That's rampant inflation on a South American dictatorship's level.

 

[Notch7]

That is what I have just explained how I thought it is suppose to work.
This is my take on how tarrifs are supposed to work.
We can make cilit bang for £5 but china can make it as an import for £3 - so we put tarrifs on it to make it cost £5.50 so now ours is cheaper and people will but that and not the import.

in your example, Americans will then see Cillit bang increase significantly in price

how does that align with Trump lowering prices

 

[aveatry]

Yeh costs will go up for consumers like that. But maybe wages and employment will increase as its now all made in the US factories which will see an increase in sales.

 

[denso13]

Yeh costs will go up for consumers like that.

But Trump promised lower costs, he has a basic misunderstanding of what he is proposing.

 

[Notch7]

Yeh costs will go up for consumers like that. But maybe wages and employment will increase as its now all made in the US factories which will see an increase in sales.

China factory Labour cost $5.50 per hour
America factory cost $27.00 per hour

There’s zero chance economies of scale from increased sales are going to make that difference.

 

[transam]

doubt trump gives stuff what Denmark thinks

Is it not Denmark that are ripping us off over Lurpack ???

 

[transam]

Apparently UK industry is paying 4 times more for leccy than US industry

 

[carmanmemoranda]

That is what I have just explained how I thought it is suppose to work.
This is my take on how tarrifs are supposed to work.
We can make cilit bang for £5 but china can make it as an import for £3 - so we put tarrifs on it to make it cost £5.50 so now ours is cheaper and people will but that and not the import.

Yes. That is the theory.

But in the meantime your customers don't buy it because it's too dear.

Switching trade from China back to the west will take years, it's not an overnight thing.

It's probably better to start with "the next new thing" rather than just trying to compete against cheap imports

 

[carmanmemoranda]

Yeh costs will go up for consumers like that. But maybe wages and employment will increase as its now all made in the US factories which will see an increase in sales.

So instead of buying it for $2 you think they will buy the made in USA version for $30 ?

 

[aveatry]

So instead of buying it for $2 you think they will buy the made in USA version for $30 ?

Everything has to be combative with you doesn’t it. You seem to think I support the tarrifs

 

[carmanmemoranda]

Everything has to be combative with you doesn’t it. You seem to think I support the tarrifs

I'm trying to show how the tariffs work.

It doesn't matter what Trump says about tariffs, they can't work overnight to move trade from country to country. It would take years (50 plus maybe)

It's not being combative it's just recognizing reality not BS