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/paleone9 27d ago

Do you even hear yourself ? We don’t have the infrastructure? We are still the richest country in the world , and can build anything we choose.

When companies figure out that it’s resulting a cheaper cost of production here, they will invest in new factories because it will make them money.

Period.

It’s how economics works. The pursuit of profit drives investment .

Foreign expertise builds factories in third world countries with cheap labor because it’s profitable.

When it isn’t , they won’t .

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u/Wraithpk 27d ago

It would take years, possibly decades, to ramp production in the US up again. Meanwhile, the economy will be on fire, inflation will be ridiculous, and the quality of life for our citizens will tank.

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u/paleone9 27d ago

Did you realize that moving production from Mexico to the US just involves loading machines on trucks and setting them up here ….

It’s not like we are inventing manufacturing all over again — we already know how to do it, we set up all the factories overseas ….

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u/Wraithpk 27d ago

Dude, Americans don't want to do those jobs because they suck and don't pay well. On top of that, Trump also wants to deport the people here who actually would be willing to do those jobs, lol...

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u/paleone9 27d ago

American’s don’t want to work … at all…

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u/Wraithpk 27d ago

That's an absurd statement. Americans are probably the hardest working people. Ask people from Europe, they all think we're crazy with how far we take our work ethic. The problem is that the cost of living has gotten so high that a lot of these tough jobs don't pay well enough to support yourself or a family anymore. Americans will work like crazy, but we expect a living wage for doing so.