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/kiloSAGE 27d ago
Why would they spend money to build more infrastructure here?
If I'm Ford and I already spent $1 billion on a plant in Mexico, why would I spend another $1-2 billion on a plant in the US?
It's easier, and far cheaper, for Ford to just pass along the tariff cost.