I am confused how increased tarrifs could help the US economy.
A tarrif is an Import Tax - the importer pays taxes to the US gov't on goods imported.
This means:
* Imports are more expensive
* Production Costs goes up
* Raise prices to remain profitable
* Customer pays more
A tarrif is an Import Tax - the importer pays taxes to the US gov't on goods imported.
This means:
* Imports are more expensive
* Production Costs goes up
* Raise prices to remain profitable
* Customer pays more
Comments
Am I missing something?
What happens usually in reality is a) there is no replacement in local, b) local industry see the opportunity and increase its price and get more profit.