The additional sad thing is, when one set of tariffs were declared invalid, refunds went to the businesses that submitted the tariff payment. This became a windfall profit for the importer, who might have even shared a portion with the wholesaler or retailer. The final customer won't see any of that refund.
Good article, Fred. What is not mentioned is the fact that once the price of an article goes up, it very seldom goes down again, regardless whether or not the tariff is removed. Also, if American producers/manufacturers see that an article will still be bought at the higher price, they put their own prices up. Greed is greed, especially when the buying public does not realize that their own government is stealing their money and denying that they are doing so. I hope that many Americans read your writings. Your description of how the process works is clear and correct. Liz
The additional sad thing is, when one set of tariffs were declared invalid, refunds went to the businesses that submitted the tariff payment. This became a windfall profit for the importer, who might have even shared a portion with the wholesaler or retailer. The final customer won't see any of that refund.
Exactly, Jim.
The importer gets the refund because they paid the tariff at the border.
By then, much of the cost has already been passed down the supply chain and built into the prices consumers paid.
The customer rarely sees a refund, even though they helped absorb the higher cost.
That's one more reason tariffs are so easy to misunderstand.
Your graphic is spot on.
Good article, Fred. What is not mentioned is the fact that once the price of an article goes up, it very seldom goes down again, regardless whether or not the tariff is removed. Also, if American producers/manufacturers see that an article will still be bought at the higher price, they put their own prices up. Greed is greed, especially when the buying public does not realize that their own government is stealing their money and denying that they are doing so. I hope that many Americans read your writings. Your description of how the process works is clear and correct. Liz
I hope Americans read it too.
Thank you, Liz.
You make an important point.
Prices have a habit of ratcheting upward and rarely returning to where they started, even after the original reason disappears.
And when competitors see consumers accepting higher prices, many follow along.
My goal with this article was simply to help people follow the money and understand who ultimately pays the bill.
It amazes me how many Americans do not realise this. On Quora they are always questioning it
Thanks, Penny.
That's exactly why I wrote it.
If people have been told for years that foreign countries pay the tariffs, it's understandable they're confused.
Sometimes all it takes is following the money step by step for the light bulb to come on.
So wish the average American could read this- all of them, especially the Maga voters