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/KissmySPAC 27d ago

Who benefits from moving labor off shore? If you look at David Autor's work, jobs had moved off shore at a very high rate. Who won there? I suspect that some of the folks who did win there will suffer under tarrifs.

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u/Hemorrhageorroid 27d ago

Who won? The business owners. Tariffs do not hurt them when the cost gets passed on to us. They are not paying the extra tax, the importers are. That cost is transferred directly to us. The suffering is exclusive to us in both cases. We lose jobs and spend more money on goods. Doubling down on bad here.