Image via Twitter
Trump is on a tariff tear again. It's as if he doesn't understand a single thing about tariffs. Oh, that's right, he doesn't. American businesses are worried that tariffs applied to Chinese products will raise prices in the US to the point where US consumers balk at buying new things and keep that old phone for another year.
Why is this? It's so simple that even Trump should understand. China doesn't pay the tariffs. We do. The point of tariffs is to price foreign goods higher so that people are more likely to buy domestic. This doesn't work for a society that consumes far more than it produces. There's another, larger reason why the US will never win a tariff war with China. China is willing to let the individual suffer for the good of the country. Trump is making this easy for China. They can go to their people and tell them that the reason things are expensive is because the US wants a trade war. It's not China's fault, no siree.
Political discussion welcome.
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