Donald Trump declared himself a ‘tariff man,’ but misstated how tariffs actually work on Tuesday.
President Donald Trump may call himself a « tariff man, » but economists say he largely misstated how tariffs work on Tuesday.
The president fired off a series of tweets aimed at China on Tuesday, threatening more tariffs on the country if the two economic powers can’t reach a « real » trade deal and seeming to double down on his belief that the foreign nation ultimately foots the bill for those fees.
Remember, Trump tweeted, « … I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN,” he wrote in a tweet.
The facts: Tariffs are a fee charged by the U. S. when a good is brought into the U. S. They’re designed to make foreign made goods more expensive — thus boosting domestic producers — but that expense, charged to the importer, is typically passed down to American consumers.
« The people who are purchasing foreign goods are paying tariffs, » said Columbia Business School professor Amit Khandelwal, who teaches on international trade.
If you went to an electronics store right now and bought a foreign-made, big screen television hit by tariffs, the sale price will likely include a sizeable price hike thanks to the U.
