An alternative to harmful tariffs
Contrary to what some supporters of President Donald Trump claim and the President himself asserts, tariffs are not paid by foreign governments, but by the American people. Importers pay taxes on each part or whole product imported into the country. They then raise the price of goods to recoup the American people’s cost. The increased cost is typically not 100%, at least at first. Many companies eat into their profits first. They slow hiring and increase layoffs. They avoid a full increase in prices passed on to consumers, but it comes at the cost of jobs or rates of return to ...