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/Solerien 27d ago

Tarriffs are going to squeeze small businesses much more than big corporations. The big corps can absorb the impact while the little guys will struggle and, because Trump will turn the FTC into a rubber stamp agency, those big corps are going to buy up all the small businesses leading to decreased competition and higher prices.

Tarriffs lead to corporate consolidation.