1 day Ago
Let’s talk about tariffs. It can be complicated, but let’s make it simple. Country One plans on selling its goods in the United States for $100.
The U.S. charges a 10% tariff, so Country One pays the U.
S. $10 for every item that comes into port. Here’s what happens next.
Country one now sells its goods in the U.S., not for $100, but for $110.
Americans indirectly pay the money that ends up in the government coffers. Normally, we would call that a tax – taking money from citizens and giving it to the government. But in this case, it is an indirect tax.
Putting tariffs on consumer goods passes this cost on to the consumer. Reputable economists say that Donald Trump’s tariff plan on consumer goods will cost every American $4,000 per year. If you shop at Walmart, understand that as of last year, 60% to 80% of Walmart’s goods were made in China.
Trump is suggesting a 60% tariff on Chinese goods, so many of Walmart’s prices will go up 60%. That $100 item will cost you $160. It’s your call.
Dorothy Tecklenburg Amity.
