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.
