Everyone needs a lesson in how tarrifs work. Tarrifs are a tax on thing that US companies buy. They are intended to make foreign products more expensive to protect domestic producers. So, the American company pays the tariff. They then pass that tariff on to their customer, either another company or an American consumer. Then, the country that the tariff had been applied to applies offsetting tarrifs on American goods.
When the product that the tariff is applied to can’t be produced in the US, think advanced microchips or Canadian softwood lumber, Americans pay more but still have to buy the foreign product. With the softwood lumber tarrifs the cost of building a home with Canadian softwood lumber went up by tens of thousands of dollars and Canadian companies laughed all the way to the bank. American consumers paid more and Canadian companies made record profits because the US can’t produce enough softwood lumber to meet its needs.
So, the price to American companies and consumers goes up and the cost of American goods overseas goes up. Americans pay the tarrifs and American companies sell less goods overseas.
America loses.
But think of all the failing business that will be super cheap to aquire! /s
Oh I have no doubt that the Blackrocks and Birkshire Hathaway’s of the nation are absolutely throbbing at the prospect. Literally diamonds. Those dusty old corpses won’t need their hourly viagra until 2030.
Lol the stock market went up by like 15% since he won or something like that. The big banks and holdings groups are wayyy up, same for tesla which just broke 1 trillion.
As it always does. In case you missed it all those things were hitting records all the way through Biden’s 4 years.
It’s a giant casino. And the only time real people feel it is when it crashes and suddenly shit costs way more than it did last week. It doesn’t matter to anyone worth less than 8 or 9 figures.
Yes. I was agreeing with you in the first place.
What I love… what I really love… is that this happened during the administration of Trump’s favorite president (other than himself), Andrew Jackson:
Hadn’t heard of this one, thanks. Americans are pros at not learning from history.
I thought this part was particularly funny/familiar:
It was a bill designed to fail in Congress because it was seen by free trade supporters as hurting both industry and farming, but it passed anyway.
Edit: That article lead me to this one, which gave me a good chuckle. How quaint: https://en.wikipedia.org/wiki/Petticoat_affair
these women, dubbed the “Petticoats”, socially ostracized Secretary of War John Eaton and his wife, Peggy Eaton, over disapproval of the circumstances surrounding the Eatons’ marriage and what they deemed her failure to meet the “moral standards of a Cabinet Wife”.
After further reading about Peggy Eaton’s childhood, kind of a bummer. Also, John Eaton pulled a King David/Bethsheba on her first husband, quite literally… That’s wild.
Once Timberlake told Eaton of his financial troubles, Eaton unsuccessfully attempted to have the Senate pass legislation that would authorize payment of the debts Timberlake had accrued during his Naval service. Eventually, Eaton paid Timberlake’s debts and procured him a lucrative posting to the U.S. Navy’s Mediterranean Squadron; many rumormongers asserted that Eaton aided Timberlake as a means to remove him from Washington, in order for Eaton to socialize with Peggy.
What a shithead. Literally sent him to fight pirates so he could bang the dude’s wife hahah
So in your example, I guess the tariffs don’t apply to Canada? Because the proceeds of tariffs go to the government of the country charging them.
I’m not sure what you’re asking. If you’re referring to softwood lumber the profits of Canadian lumber companies were at record levels because the US needs Canadian softwood lumber with or without tarrifs. The tarrifs didn’t affect sales at all so with the increased demand despite the tarrifs Canadian companies didn’t suffer at all. US consumers spent more and the money went to the US government which presumably gave some of the money to uncompetitive US softwood lumber companies to subsides their unprofitable operations. It’s a tax on US consumers.
Canadian softwood lumber companies pay a stumpage fee to sustainably harvest softwood on public land. US softwood lumber companies pay much higher prices to harvest lumber mostly on private land. It’s all about extracting the highest profit for the most wealthy people. Canada has a better system and the US is salty about it. The US has lost at the WTO every time but refuses to accept the result so it ignores its treaty obligations and just forges ahead with the illegal tarrifs which hurt US consumers.
Good. I hope he does it. Don’t let any of his yes-men or cronies tell him what a horrible idea it is. Let the whole fucking country burn.
Democrats, calling for deportations: Look at this disgusting tankie
This post is about tariffs.
… what
The joke is twofold:
- Some people, mostly authoritarian communists, claim that the ‘tankie’ is being used to describe anybody too far left.
- Democrats are by now very right on immigration.
Democrats will stop calling for deportation when they see what kind of bottom line putting people in labor camps brings.
TIL, lots of Trumps voters don’t even know how tariffs work and thought the foreign companies are the one who paid those instead of the domestic buyers themselves.
Even if, did they think prices would just stay the same? Tariffs only work if production is moved back home, which for many industries won’t happen, which means costs will be passed on to consumers.
Also, the costs would still be passed on to consumers even if the production was moved back home, because it will cost more in general. And gotta keep those profit margins up.
Doesn’t matter who the tax is levied against. All costs will be passed on to the buyer. They should be familiar with this idea. It’s the Republican’s key talking point against business taxes.
Rich get richer, poor people suffer. Americans are so f dumb i cant take it
Isn’t this exactly what Trump said Harris was gonna do and that he was gonna not do?
Vincent
yooooo name twinsies!
So we’re going to put tariffs on things where there aren’t even domestically-sourced options? WTF?
That’s the point of tariffs…to give domestic supply a shot.
It’s stupid and short-sighted in a modern economy. It’s not worth it for any manufacturer to shut down existing mega factories and build new ones here. They won’t find enough people to do the jobs (especially if we deport/denaturalize a ton of people) and the costs and re-investments are huge.
Plus the only places that are left to build giant factories are distant from population centers. And I doubt there will be mass transit into them. So more pollution from personal transportation. And more pollution from local factories. Ripping the EPA to shreds will help with that, and that’s a part of agenda 47.
And you just know the ones that choose to come and build here are gonna get really nice tax breaks to do so, so there won’t be any real return for the community for a long time, if ever.
The end result is either they pass the costs into consumers, or they cut costs by laying off their expensive state-side employees and moving their positions abroad. American middle-class loses bigly either way.
The natural destination of the US is a giant for-profit prison that leases convicts to businesses.
Plus the only places that are left to build giant factories are distant from population centers.
You’re forgetting about eminent domain. Clearly, giant factory on American soil is a public good, even if it’s privately owned. Hence, the government will seize the homes and give the land to the corp. The prices of the houses will fall first, because who wants to buy a house that’s going to get bulldozed, reducing the compensation the government has to pay to the homeowners, potentially causing them to be upside down on their mortgages. This will leave them with nothing, or potentially even debt, when their homes get sized.
deleted by creator
Domestic supply of what ?
That’s exactly the problem. We don’t, and in many places can’t, make things here.
A lot has to do with access to resources. China is dominating in electronics in part because they essentially (but not really) colonized most the world that has good silicon.
But moving manufacturing around the world, to a place where literally everything is more expensive, is an costly endeavor that simply won’t be worth it for most businesses.
- Not true at all. Vile lies spread by the Democrats.
- Okay, maybe it is true, but it’s actually a good thing.
- Okay, maybe the results are catastrophic, but it’s actually the Democrats’ fault. The solution is higher tariffs.
Isn’t thwre a single one RISC-V capable production line in the US? Imagine if Apple starts their own chip production.
There’s a reason TSMC does most of the world’s chip fabrication.
It’s complex and extremely expensive. Standing up a fab, in America no less, capable of handling Apple’s demand would be an astronomically expensive feat. Apple would never do this while TSMC is still an option. Even after the tariffs it would still probably be cheaper to use TSMC.
TSMC is for bleeding edge chip. 10nm and above are produced everywhere. Mostly 28nm, since it is the cheapest. It won’t be easy to build 5nm fabs but I bet still doable.
Also let’s be honest, unless the tariff is applied to everyone it’s gonna be cheaper to use another country as a middleman to trade with with China.
There are throngs of people already at work to find out how to gouge consumers by blaming tariffs without actually paying any.
Apple would probably produce ARM chips. They wouldn’t want to change architecture again so soon.
Should I buy a new phone now instead of waiting until next October?
Theoretically Samsung and Taiwanese phones won’t be hit bad.
Pixel is Chinese right?
If I’m not mistaken it depends on the precise model. Cause they contract manufacturing out to more than one place.
So much for building that new desktop.
You’ve got a couple months…
Might have the time, but not the money.
Removed by mod
Everyone’s gonna start coming to Canada to buy electronics like they do medicine
Trump’s not going to need to apply tarifs.
Biden has both Russia and China on the back foot with failing economies, and significant social unrest. Both are desperate to make a deal with Trump. Trump only succeeds in negotiation when he can bully his adversary.
If Biden had the faculties, he could have whipped both countries and probably avoided this mess.
Holy cope
Actually, I am really removed from the US domestic situation, and only impacted by the US foreign policy situation.
I’m just trying to point out that he can use his threats to get what he wants, which is the only tactic that he actually knows how to do. Unless he got smarter since his last tern.
The US has been losing its global grip. Especially since the genocide in Gaza the entire global south has fled to align with China.
In the past the US had power to sanction countries such as Afghanistan to their doom. Now those countries have the option to align with China and Russia. The era of western dominance is not growing. It is weakening.
Trump whipped Mexico really well into paying for that wall.
Trump just talks a bunch of shit lol. That’s actually why he won. Because he promised everything to everyone. He doesn’t have any real plans other than those related to genitals and immigrants. He never backs it up with any evidence either
Trump negotiated really well with Foxconn too. Remember that 10 billion factory they were gonna build thanks to Trump?
In fact, I’m actually willing to bet petrol prices and power prices will increase too. Because suddenly, batteries and solar have less competition and even if manufacturered in US, they can raise their prices
It’s just really dumb 😂
Trump talks shit, and he’s weak at taking action. That is my point. Here he can likely get away with talking shit, and his opponents will cave.
The wall was bs, but he did get nafta renegotiated by bullying.
He’s got a good chance at coming out of RU and CN negotiations looking good, despite not doing anything.
He’s nothing but a bully, which might actually work here. If it does, then the authoritarians shithawks are going to look really good.
It will at least be extremely funny to watch all the right wing gamer bro chuds freak the fuck out when an immediate consequence of their actions will be that gaming pc components instantly inflate 50% in price.
Glad I already got my Steam Deck, fuck.
I really really hope that they will enact their economic agenda before their racist agenda. When they denaturalize and deport citizens, half of us will be cheering (unfortunately). When the price of electronics/ cars increases it distributes harm to all.
Fuck, I’ve been putting off getting a new laptop, but hell this is probably going to influence that decision.
Probably should get on it and buy it now ahead of day 1
Bold of you to assune they won’t just blame Dems because it isn’t like reality matters.
20 years into the trump dynasty dictatorship, they will still be saying “thanks Biden” to every financial inconvenience.
They still blame Obama
I just said they would freak out.
Who they end up blaming is between them and their god emperor, I guess.
God Emperor*. I had to correct you or it would go against my Trump Score ™.
Fuck the dems, too. Less people voted this election, than the last election. People didn’t bother to go vote that should have.
If you think that’s funny just wait for all the construction bros to discover that Milwaukee is now a Chinese company and their M18 HD12 batteries suddenly cost >500 a pop
And automotive guys figuring out a good chunk of their replacement parts are European.
Oh, that too. Most of these compact SUVs are built foreign because that’s where they generate the most revenue. Imagine hitting a pheasant in your Chevy, a pheasant of all things, and getting a 10k insurance estimate because it cracked your made-in-Mexico integrated LED headlamp assembly and split your bumper cover
but but… Orange men said it was good for the economy, now I have to pay 2000 Dollars for a 5090? Why aren’t they coming to America and produce here!?
Good luck spending 3000$+ on RTX 5090 graphics brick
Maybe we will finally get some optimised games.
Ahhaha, good joke.
No the future is everything is more expensive and worse quality.
Only without the cool tech :(
With the way gaming has been going, wtf are you people even upgrading for?
CHIPS Act? Never heard of it.
Oh, the thing Trump called “so bad” on Joe Rogan a couple weeks ago? He said that tariffs are his preferred strategy to force companies to build in the US. Maybe that was just rhetoric and you can’t trust it, but he did say it.
As it stands, CHIPS isn’t going anywhere, so at least Americans won’t be totally fucked.
I know these things take time, but it’s really hard not to be skeptical of CHIPS amounting to much. It reminds me too much of all the grant money given to telecom companies like AT&T and Verizon - supposed to be for improving infrastructure and implementing 5G, but they just pocketed the money as profit.
For what it’s worth, I agree with you. Most telecom infrastructure funding has been historically pocketed. There is a chance it does work, though.
If not, maybe the tariffs will help in the short term by minimizing profit from overseas supply chains and incentivize American manufacturing, causing a positive effect on the sector in concert with CHIPS (but I doubt it).
actually I didn’t.
Its a pretty strategically and economically impactful piece of legislation pushed by, and then signed into law, by Biden, in 2022.
It basically sets up a bunch of tax incentives and funds to go toward building out domestic computer hardware research and manufacturing.
Its the kind of thing that would lay the foundation for the US building a lot more of its own computer hardware, instead of importing it.
So when the Trump tariff apocalypse hits… assuming the CHIPS Act does not get repealed, it will be the only saving grace in terms of possibly lowering computer hardware costs.
Trump and Republicans are likely to try and take credit for this, if domestic chip fabs start coming online before 2028, pretending it is something they came up with.
It’s a small price to pay to keep pronouns away from our games.
I don’t think that goes far enough. We need to keep all nouns out!
ㅤ
Grammar is too woke
yep! and by then it’s too late. they’ve already shot themselves in the foot, they just haven’t felt the pain yet.
edit - and honestly, if we were actually producing all this stuff locally and competitively, I would be OK with these chinese tariffs since it would encourage buying USA-made. The problem is that we arent, and probably won’t be for a while. we’d all suffer in the meantime.
This post is my reminder that I should probably upgrade my graphics card this December, rather than waiting for any other time.
I guess there will be many people thinking that, driving up demand->increasing prices before any tariffs even exist.
For years, us, Canadians went to USA for shopping. Next year with the exchange rate at the highest for US$, and Canada without tariff, a shit load of americans will come to Canada to buy their electronics and stuff.
They’ll still have to pay the tariff when crossing the border back to the USA, unless they want to risk smuggling it.
I .Ean that’s how it was for Canadians, it’s not like we had an actual work around there either. People just don’t bother to declare stuff when crossing.
A Canadian I used to know told me their family would have some cheaper items in the back seat that they’d declare and hide the more expensive stuff. Apparently it did work.
That was my shoplifting tactic when I was a kid.
Well not the backseat part, I hid chocolates in my bike helmet and always bought something like a drink.
All the idiots that didn’t buy anything got caught instantly.
REGULATIONS
Returning to the U.S.
Less than 48 hours in Canada:
$200 USD worth of goods per person, tax and duty freeAny purchase of alcohol or tobacco products may be subject to duties and taxes
48+ hours in Canada:
$800 USD worth of goods per person, tax and duty freePurchases may include 1 litre of alcohol, 200 cigarettes (1 carton), and 100 cigarsFamily members can combine their tax and duty allowances
So our 19 year olds who need abortions, what stops them from going there getting care and then having a drink a smoke and coming home after. Except the prospect of not wanting to come back?
The fact our healthcare system is woefully overburdened already?
She can, but I guess she’ll have to pay for it/go to private.
