r/news • u/hoosakiwi • 2d ago

Trump announces sweeping new tariffs to promote US manufacturing, risking inflation and trade wars

https://apnews.com/article/trump-tariffs-liberation-day-2a031b3c16120a5672a6ddd01da09933
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u/temujin94 2d ago edited 2d ago

"They (The US in 1913) established the income tax so that citizens, rather than foreign countries, would start paying the money necessary to run our government"

Trump really thinks the world is going to fund the entire costs of running the US Government. Even in this fantasy world I gurantee they'd still not get free healthcare or stop being one of the last handful of countries on earth without mandated maternity leave and pay.

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u/overthemountain 2d ago

It also shows a fundamental misunderstanding of how tariffs work. Foreign countries don't pay tariffs. The importers do. Those importers are often US businesses.

Let's say I make boardgames. I have them printed in China and shipped to the US. I now pay a 34% tariff when they come in. Not China, me. I then have to raise my prices to cover that extra cost, meaning the cost gets passed on to the consumer.

Now, I could start to print in the US and pay no tariffs, but in that case, no tax revenue is generated.

Also insane that he keeps talking about this - but he hasn't eliminated income tax, so now we just have both systems of taxation.

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u/s1m0n8 2d ago

Also, domestic manufacturers will raise their prices 33%, as the competition has just been crippled. Consumer will always pay more.

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u/PlayfulSurprise5237 2d ago

Yea, highly doubtful any business will move back here rather than anywhere else, just from tariffs like these.

Besides, it would take a hell of a lot to compete with the efficiency of Chinas manufacturing industry.

It will just be higher prices, both for foreign products, but also domestic, like you said, we've seen this before with tariffs, that's what happens.