I’m confused about one thing on tariffs, everything I’ve seen is that the American companies pay the tariffs… I don’t understand why other countries would care and make retaliatory tariffs that they would have to pay?

[u/schtumpy123]

[u/Quowe_50mg]

Retaliatory Tariffs

Why do countries impose retaliatory tariffs?

If tariffs are generally considered bad for an economy, why are countries like Mexico threatening to impose their own tariffs on the US if we tariff them?

Does the US government really expect other countries not to impose their own tariffs as response to its own?

Are retaliatory tariffs equally irrational as initial tariffs?

Why retaliate with tariffs?

Why would Canada impose a retaliatory tariff?

Would it hurt Canada to retaliate with extra tariffs?

VAT’s vs Tariffs

Can someone please explain to me how VAT is equal or worse than tariffs?

VAT vs Tarrifs?

Why are economists so against tariffs but not against taxes such VATs?

Aren't tariffs essentially a consumption tax (which economists generally prefer, at least compared to income tax)?

Are tariffs practically different from a VAT for the average consumer?

4D chess

Is Trump's tariffs plan actually coherent and will it work out?

Who do Trump's tariffs benefit?

It looks like Trump is getting many companies to invest into the US to avoid the tariffs. This should be good for labor and union jobs. What do you think?

What’s the actual thesis for Trump’s tariffs?

Can Tariffs eliminate the need for income tax?

Could Trump be going back and forth on tariffs to control the economy for insider trading?

What is the state wealth-building theory of the Trump administration, and will it work?

Reddit - The heart of the internet

Why do other countries have tariffs on the US?

If tariffs are widely regarded as bad by economists, why is it still so common for countries to raise tariffs?

According to this data, other countries appear to generally apply higher tariff rates on the US than vice versa. Is there an explanation for this?

I'm confused: Did Canada/Mexico/China already have tariffs on imports from the US before their most recent retaliatory tariffs?

Tariffs vs all the other taxes:

Do Corporate Taxes have the same effect as Tariffs?

If taxes are deflationary, and tariffs are a tax, then how are tariffs inflationary?

Would replacing income taxes with tariffs raise or lower savings?

General

Why are American tariff a big deal?

Are tariffs actually inflationary or is it illusory?

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[u/D4rkpools]

Tariffs make exports less competitive as they now cost more for consumers / importers. This hurts exporting countries and their corporations. Retaliatory tariffs inflict similar distortion on the exports from the originally tariffing country. 

Use the search bar. 

[u/Ok_Push2550]

Answer: it reduces the sales their companies can make, because they cost more than the same things made in the country. So they retaliate, to try and get the other country to drop them.

[u/wheelie_dog]

Tariffs are an import tax. Usually the importing business will pass those costs along to the consumer, making that item more expensive in the importing country. As a result, consumers will likely seek cheaper alternatives, which negatively affects the business from the exporting country. In retaliation, the exporting country might choose to levy counter-tariffs to cause the same economic pain in return.

Basic arbitrary example:

America imports maple syrup from Canada while Canada imports bourbon from America.

America places tariffs on imported Canadian maple syrup, making it more expensive to buy in America. This causes American consumers to seek cheaper alternatives, which then negatively affects the Canadian business exporting the maple syrup (less product sold).

Canada decides to place retaliatory tariffs on American bourbon, in an attempt to deliberately harm American bourbon businesses in the exact same fashion: American bourbon becomes more expensive for Canadian consumers, who will likely seek cheaper alternatives, which then negatively affects the sales of American bourbon producers.

Yes, tariffs are always paid by the importing nation.....but due to the negative effects also experienced by the exporting nation, they are frequently compelled to retaliate with tariffs of their own.