3 charts that help explain how Trump’s tariffs would work

signalmankenneth

Verified User
If former President Donald Trump returns to the White House, tariffs will once again play a major role in his policy agenda.

Trump has repeatedly said he plans to impose an across-the-board tariff of either 10% or 20% on every import coming into the US, as well as a tariff upward of 60% on all Chinese imports, in a bid to encourage American manufacturing.

“Tariffs are the greatest thing ever invented,” Trump said last month at a town hall event in Michigan.

But as with many economic policies, there are trade-offs, and Trump doesn’t talk about the negative effect tariffs could have on US businesses and consumers. He’s also often falsely described how tariffs work.

Vice President Kamala Harris has referred to her opponent’s tariff policy as a “Trump Tax.” Several independent studies have found that the new tariffs, if implemented, would raise costs for the average middle-class family, with estimates ranging between $1,350 and $3,900 a year.:whoa:

Here are three charts to help explain the impact of tariffs:


How tariffs work​

To illustrate how tariffs affect American businesses and consumers, imagine this scenario involving a fictitious, foreign shoe manufacturer called Worldwide Shoes.

For years, Trump has inaccurately claimed that foreign countries pay the tariffs. But in reality, the tariff is paid by the US-based company that imports the good.

Study after study, including one from the federal government’s bipartisan US International Trade Commission, has found that Americans have borne almost the entire cost of Trump’s tariffs on Chinese products.

In total, Trump’s previous tariff actions put duties on about 14% of US imports – a relatively small share compared with the across-the-board tariff he has pledged to implement on 100% of imports if elected.


Trump's tariff proposals would be a significant increase from his earlier actions​

Former President Donald Trump imposed tariffs on about 14% of total imports when he was in the White House. His new proposals call for a blanket tariff on all imports.

https://www.cnn.com/2024/10/13/politics/donald-trump-tariffs/index.html

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If former President Donald Trump returns to the White House, tariffs will once again play a major role in his policy agenda.

Trump has repeatedly said he plans to impose an across-the-board tariff of either 10% or 20% on every import coming into the US, as well as a tariff upward of 60% on all Chinese imports, in a bid to encourage American manufacturing.

“Tariffs are the greatest thing ever invented,” Trump said last month at a town hall event in Michigan.

But as with many economic policies, there are trade-offs, and Trump doesn’t talk about the negative effect tariffs could have on US businesses and consumers. He’s also often falsely described how tariffs work.

Vice President Kamala Harris has referred to her opponent’s tariff policy as a “Trump Tax.” Several independent studies have found that the new tariffs, if implemented, would raise costs for the average middle-class family, with estimates ranging between $1,350 and $3,900 a year.:whoa:

Here are three charts to help explain the impact of tariffs:


How tariffs work​

To illustrate how tariffs affect American businesses and consumers, imagine this scenario involving a fictitious, foreign shoe manufacturer called Worldwide Shoes.

For years, Trump has inaccurately claimed that foreign countries pay the tariffs. But in reality, the tariff is paid by the US-based company that imports the good.

Study after study, including one from the federal government’s bipartisan US International Trade Commission, has found that Americans have borne almost the entire cost of Trump’s tariffs on Chinese products.

In total, Trump’s previous tariff actions put duties on about 14% of US imports – a relatively small share compared with the across-the-board tariff he has pledged to implement on 100% of imports if elected.


Trump's tariff proposals would be a significant increase from his earlier actions​

Former President Donald Trump imposed tariffs on about 14% of total imports when he was in the White House. His new proposals call for a blanket tariff on all imports.

https://www.cnn.com/2024/10/13/politics/donald-trump-tariffs/index.html

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View attachment 33523
View attachment 33524
Kamala wants to increase the corporate tax rate. Ford makes a car anf the government increases the taxes Ford pays the price Ford has to charge to break even goes up. Ford cars become more expensive. Fewer people can afford Ford cars. Ford has to lay off more workers. See how that works?
 
Kamala wants to increase the corporate tax rate. Ford makes a car anf the government increases the taxes Ford pays the price Ford has to charge to break even goes up. Ford cars become more expensive. Fewer people can afford Ford cars. Ford has to lay off more workers. See how that works?
BTW if the price of Mexian made produces go up and those things are then made in the US it is a good thing.
 
If former President Donald Trump returns to the White House, tariffs will once again play a major role in his policy agenda.

Trump has repeatedly said he plans to impose an across-the-board tariff of either 10% or 20% on every import coming into the US, as well as a tariff upward of 60% on all Chinese imports, in a bid to encourage American manufacturing.

“Tariffs are the greatest thing ever invented,” Trump said last month at a town hall event in Michigan.

But as with many economic policies, there are trade-offs, and Trump doesn’t talk about the negative effect tariffs could have on US businesses and consumers. He’s also often falsely described how tariffs work.

Vice President Kamala Harris has referred to her opponent’s tariff policy as a “Trump Tax.” Several independent studies have found that the new tariffs, if implemented, would raise costs for the average middle-class family, with estimates ranging between $1,350 and $3,900 a year.:whoa:

Here are three charts to help explain the impact of tariffs:


How tariffs work​

To illustrate how tariffs affect American businesses and consumers, imagine this scenario involving a fictitious, foreign shoe manufacturer called Worldwide Shoes.

For years, Trump has inaccurately claimed that foreign countries pay the tariffs. But in reality, the tariff is paid by the US-based company that imports the good.

Study after study, including one from the federal government’s bipartisan US International Trade Commission, has found that Americans have borne almost the entire cost of Trump’s tariffs on Chinese products.

In total, Trump’s previous tariff actions put duties on about 14% of US imports – a relatively small share compared with the across-the-board tariff he has pledged to implement on 100% of imports if elected.


Trump's tariff proposals would be a significant increase from his earlier actions​

Former President Donald Trump imposed tariffs on about 14% of total imports when he was in the White House. His new proposals call for a blanket tariff on all imports.

https://www.cnn.com/2024/10/13/politics/donald-trump-tariffs/index.html

View attachment 33519
View attachment 33523
View attachment 33524
:chuckle: :magagrin:
 
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