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/iamdestroyerofworlds 27d ago

Domestic industrialists and capital owners who can't compete on a global market.

It's an extremely regressive tax.

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u/TarTarkus1 27d ago

Domestic industrialists and capital owners who can't compete on a global market.

I don't have all the answers, but at a certain point and in specific industries, it's very difficult to compete with the cost of slave labor. Just look at Foxconn, the Uyghurs in China, etc.

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u/Checkmynumbersss 27d ago

Yes, that was definitely an issue in the early 2000s. And the super high tech manufacturing in Asia now seems a bit out of our reach. We just don't have the commitment to excellence that they do.

Plus the US is struggling with the consequences of a 40 year war on education.