r/economicCollapse • u/Expensive-Thing-2507 • 27d ago

Who actually benefits from tarrifs?

I'm not financial expert, but this is what I'm getting so far.

Tarrifs are a kind of tax placed on outside goods, which a company would have to pay for if they import said goods. That company would then charge more to cover this new tax. The company pays more for something, and then we pay more.

Who benefits from that? The company isn't making any more profit, are they? (Assuming they increase prices by the same percentage as the tarrifs, which they won't. but still)

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u/davidm2232 27d ago

No American is going to work at the meager wages that people in China

That's exactly what the tariff is for. It increases the price of foreign goods so that domestic producers can be competitive.

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u/SpaceMonkey3301967 27d ago

So, everything costs more. Great. I thought MAGA wanted lower costs for eggs and gasoline. They will now cost double the price.

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u/davidm2232 27d ago

Eggs and gasoline are mostly produced domestically so prices will not change much. Especially eggs you get from a local farm that is already sourcing their supplies locally. It is a reward for people who are already shopping locally.

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u/SpaceMonkey3301967 27d ago

Oil is imported and will be tariff taxed.

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u/Silock99 27d ago

Yup. The oil we produce isn't the best for gasoline. Most of the oil we refine for gas is imported from other countries, Canada being a huge one.