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Can anyone explain tariffs to me?
Because here was me thinking that tariffs were essentially a tax on imports to increase their price such that the incentive to buy that particular item would be mitigated and thus domestic manufacturers of the same item could have a chance to produce at the tariffed price (likely lower so people buy domestic instead of import).
But I must be mistaken, because certain...individuals...seem to think all these countries are going to pay these tariffs instead of the citizens purchasing these products. Am I wrong?
I get how the tariff would allow domestic production a chance (albeit it the population is still then paying more than they otherwise would have to for that product, there is also job creation...not sure it evens out, but maybe)...but the obvious reaction will be for the other country to slap tariffs on imports in reciprocation. Which would then cause less sales, job losses, etc...which may or may not be offset by the creation of new jobs on the tariffed industries. Even if it was net neutral in terms of jobs, the ultimate end is the consumer pays more - correct?
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