What's with all the tariff talk these days?

[pbmdel]

Am hearing a lot about tariffs, these days especially, and have always wondered what the real deal is about them...good or bad for us. If Perplexity.ai is right, I feel a lot more educated right now.

can tariffs ever be so high that consumer high prices will outweigh any industry protection benefits?

Answer

Yes, tariffs can indeed be set so high that the costs to consumers outweigh any potential benefits to protected industries. This phenomenon is well-documented in economic research and historical examples.

Consumer Cost vs. Industry Protection​

Price Increases
When tariffs are imposed, they often lead to higher prices for both imported and domestically produced goods. For instance, the 2018-2019 tariffs increased prices between 1.7% and 7.1% in the ten most affected sectors, including apparel, car parts, furniture, and computer equipment.

Household Impact
The financial burden on American households can be substantial. Estimates suggest that if President-elect Trump's proposed tariffs (60% on Chinese imports and 10-20% on other countries) were fully passed on to consumers, it could cost American households between $1,500 to $2,400 per capita annually..

Unintended Consequences​

Supply Chain Disruptions
High tariffs can adversely impact U.S. manufacturers who rely on foreign components and materials. For example, while tariffs on steel and aluminum led to greater domestic production of those metals, the resulting price hikes caused other manufacturers to reduce their overall output.

Job Losses
Contrary to the intended effect of protecting jobs, research shows that industries more exposed to tariff increases experienced greater declines in employment. The long-term impact of tariffs could potentially reduce employment by 142,000 full-time equivalent jobs.

Economic Impact​

GDP Reduction
Excessively high tariffs can have a negative impact on the overall economy. Estimates suggest that the Trump-Biden tariffs could reduce long-run GDP by 0.2 percent and the capital stock by 0.1 percent.

Inefficiencies
While tariffs can provide some protection to certain industries, they can also create inefficiencies for the industries they were designed to protect, as well as for their supply chain partners.

Historical Example​

The 2012 tire tariffs serve as a cautionary tale. While intended to protect the domestic tire industry, they resulted in Americans paying more for tires overall. The cost to consumers was estimated at $1.1 billion, which translated to an estimated 3,731 retail jobs lost.
In conclusion, while tariffs can offer short-term protection for specific industries, when set too high, they can lead to significant consumer costs, job losses in other sectors, and overall economic inefficiencies that outweigh the intended benefits. Policymakers must carefully consider these trade-offs when implementing tariff policies.

 

[progressive hunter]

Am hearing a lot about tariffs, these days especially, and have always wondered what the real deal is about them...good or bad for us. If Perplexity.ai is right, I feel a lot more educated right now.

can tariffs ever be so high that consumer high prices will outweigh any industry protection benefits?

Answer

Yes, tariffs can indeed be set so high that the costs to consumers outweigh any potential benefits to protected industries. This phenomenon is well-documented in economic research and historical examples.

Consumer Cost vs. Industry Protection​

Price Increases
When tariffs are imposed, they often lead to higher prices for both imported and domestically produced goods. For instance, the 2018-2019 tariffs increased prices between 1.7% and 7.1% in the ten most affected sectors, including apparel, car parts, furniture, and computer equipment.

Household Impact
The financial burden on American households can be substantial. Estimates suggest that if President-elect Trump's proposed tariffs (60% on Chinese imports and 10-20% on other countries) were fully passed on to consumers, it could cost American households between $1,500 to $2,400 per capita annually..

Unintended Consequences​

Supply Chain Disruptions
High tariffs can adversely impact U.S. manufacturers who rely on foreign components and materials. For example, while tariffs on steel and aluminum led to greater domestic production of those metals, the resulting price hikes caused other manufacturers to reduce their overall output.

Job Losses
Contrary to the intended effect of protecting jobs, research shows that industries more exposed to tariff increases experienced greater declines in employment. The long-term impact of tariffs could potentially reduce employment by 142,000 full-time equivalent jobs.

Economic Impact​

GDP Reduction
Excessively high tariffs can have a negative impact on the overall economy. Estimates suggest that the Trump-Biden tariffs could reduce long-run GDP by 0.2 percent and the capital stock by 0.1 percent.

Inefficiencies
While tariffs can provide some protection to certain industries, they can also create inefficiencies for the industries they were designed to protect, as well as for their supply chain partners.

Historical Example​

The 2012 tire tariffs serve as a cautionary tale. While intended to protect the domestic tire industry, they resulted in Americans paying more for tires overall. The cost to consumers was estimated at $1.1 billion, which translated to an estimated 3,731 retail jobs lost.
In conclusion, while tariffs can offer short-term protection for specific industries, when set too high, they can lead to significant consumer costs, job losses in other sectors, and overall economic inefficiencies that outweigh the intended benefits. Policymakers must carefully consider these trade-offs when implementing tariff policies.

if you dont know by now you will never understand,,

 

[pbmdel]

if you dont know by now you will never understand,,

I'm guessing you are among the very few who know anything about tariffs...congratulations!

 

[Maxdeath]

Actually up until 1909 when the 16 th amendment was passed the United States got along strictly with tariffs. In fact we even had a balanced budget and an excess of federal monies at one time. It was not until the 16 th amendment was passed that allowed the government to do income tax

 

[22lcidw]

Actually up until 1909 when the 16 th amendment was passed the United States got along strictly with tariffs. In fact we even had a balanced budget and an excess of federal monies at one time. It was not until the 16 th amendment was passed that allowed the government to do income tax

16th amendment, 17th amendment and the Federal Reserve Act.

 

[Maxdeath]

16th amendment, 17th amendment and the Federal Reserve Act.

Let’s don’t get the poor fella to confused. I tried to make it simple since he does not seem to understand tariffs

 

[task0778]

The problem with tariffs isn't just the higher prices (inflation) but also the retaliation. There's always a pushback that hurts somebody else that exports something. Too often IMHO tariffs are a political tool to gain support from one or more industries at the expense of other industries and consumers. I'm not sure if Trump realizes the extent of the consequences from raising tariffs.

 

[Thunk]

Tariffs can spiral out of control with a fucking yutz in the white house (like biden).

I forget the details but a country had a 100% tariff on a US company (I thunk it was harley davidson). Trump asked them to remove it...they laughed at him.

Trump put a 100% tariff on one of their companies (even & reciprocal)...they bumped their tariff up to 200%...Trump bumped our tariff to 3000% and applied it to all companies in that country. They relented and all tariffs were dropped on both sides (which was what Trump asked for in the first place).

It all played out in 3 days.

 

[progressive hunter]

The problem with tariffs isn't just the higher prices (inflation) but also the retaliation. There's always a pushback that hurts somebody else that exports something. Too often IMHO tariffs are a political tool to gain support from one or more industries at the expense of other industries and consumers. I'm not sure if Trump realizes the extent of the consequences from raising tariffs.

more reason to restore american manufacturing so we arent dependent on other countries,,

 

[task0778]

more reason to restore american manufacturing so we arent dependent on other countries,,

In too many cases American manufacturing is just too damn expensive, thanks to the high costs of labor in this country and poor management practices and too much government interference. If foreign made products are made too expensive via tariffs then there is no deterrent to higher priced US made stuff. Don't tell me it's better quality cuz in many cases it isn't. And inflation is going to bite us in the ass if Trump raises tariffs too much and the pushback from foreign countries becomes too costly.

 

[petro]

Biden loves the tariffs...

WashingtonCNN —
The Biden administration said Friday that it has finalized tariff hikes on certain Chinese-made products that the president first announced in May.

The tariff rate will go up to 100% on electric vehicles, to 50% on solar cells and to 25% on electrical vehicle batteries, critical minerals, steel, aluminum, face masks and ship-to-shore cranes beginning September 27, according to the US Trade Representative’s Office

Apparently the folks bitching about Trump missed it.

 

[LeroyDumonde]

During America's period of greatest economic growth we had 20% tariffs, 0% income tax, and a far smaller regulatory state.

 

[Dekster]

Am hearing a lot about tariffs, these days especially, and have always wondered what the real deal is about them...good or bad for us. If Perplexity.ai is right, I feel a lot more educated right now.

can tariffs ever be so high that consumer high prices will outweigh any industry protection benefits?

Answer

Yes, tariffs can indeed be set so high that the costs to consumers outweigh any potential benefits to protected industries. This phenomenon is well-documented in economic research and historical examples.

Consumer Cost vs. Industry Protection​

Price Increases
When tariffs are imposed, they often lead to higher prices for both imported and domestically produced goods. For instance, the 2018-2019 tariffs increased prices between 1.7% and 7.1% in the ten most affected sectors, including apparel, car parts, furniture, and computer equipment.

Household Impact
The financial burden on American households can be substantial. Estimates suggest that if President-elect Trump's proposed tariffs (60% on Chinese imports and 10-20% on other countries) were fully passed on to consumers, it could cost American households between $1,500 to $2,400 per capita annually..

Unintended Consequences​

Supply Chain Disruptions
High tariffs can adversely impact U.S. manufacturers who rely on foreign components and materials. For example, while tariffs on steel and aluminum led to greater domestic production of those metals, the resulting price hikes caused other manufacturers to reduce their overall output.

Job Losses
Contrary to the intended effect of protecting jobs, research shows that industries more exposed to tariff increases experienced greater declines in employment. The long-term impact of tariffs could potentially reduce employment by 142,000 full-time equivalent jobs.

Economic Impact​

GDP Reduction
Excessively high tariffs can have a negative impact on the overall economy. Estimates suggest that the Trump-Biden tariffs could reduce long-run GDP by 0.2 percent and the capital stock by 0.1 percent.

Inefficiencies
While tariffs can provide some protection to certain industries, they can also create inefficiencies for the industries they were designed to protect, as well as for their supply chain partners.

Historical Example​

The 2012 tire tariffs serve as a cautionary tale. While intended to protect the domestic tire industry, they resulted in Americans paying more for tires overall. The cost to consumers was estimated at $1.1 billion, which translated to an estimated 3,731 retail jobs lost.
In conclusion, while tariffs can offer short-term protection for specific industries, when set too high, they can lead to significant consumer costs, job losses in other sectors, and overall economic inefficiencies that outweigh the intended benefits. Policymakers must carefully consider these trade-offs when implementing tariff policies.

I support Trump's tariffs and I don't care about "cost to consumers". We are losing our industrial base to China and that is a national security issue.

 

[petro]

China is just filling our landfills with cheap plastic shit.
If prices went up, maybe Americans would quit buying stupid unnecessary shit.
Better for the environment.
Right libs?
Right?

 

[progressive hunter]

In too many cases American manufacturing is just too damn expensive, thanks to the high costs of labor in this country and poor management practices and too much government interference. If foreign made products are made too expensive via tariffs then there is no deterrent to higher priced US made stuff. Don't tell me it's better quality cuz in many cases it isn't. And inflation is going to bite us in the ass if Trump raises tariffs too much and the pushback from foreign countries becomes too costly.

IMO being dependent on hostile countries for essentials is far more concerning,,

 

[Maxdeath]

In too many cases American manufacturing is just too damn expensive, thanks to the high costs of labor in this country and poor management practices and too much government interference. If foreign made products are made too expensive via tariffs then there is no deterrent to higher priced US made stuff. Don't tell me it's better quality cuz in many cases it isn't. And inflation is going to bite us in the ass if Trump raises tariffs too much and the pushback from foreign countries becomes too costly.

A big part of higher costs here in the U.S. is environmental protection policies. In a number of foreign countries the regulations are not as strenuous. That along with lower wages and in some cases prison labor results in lower product cost.

 

[Lakhota]

 

[pbmdel]

The problem with tariffs isn't just the higher prices (inflation) but also the retaliation. There's always a pushback that hurts somebody else that exports something. Too often IMHO tariffs are a political tool to gain support from one or more industries at the expense of other industries and consumers. I'm not sure if Trump realizes the extent of the consequences from raising tariffs.

Me, too...just blind to stuff?

 

[pbmdel]

The problem with tariffs isn't just the higher prices (inflation) but also the retaliation. There's always a pushback that hurts somebody else that exports something. Too often IMHO tariffs are a political tool to gain support from one or more industries at the expense of other industries and consumers. I'm not sure if Trump realizes the extent of the consequences from raising tariffs.

Yes, or maybe he just doesn't care, unless it's something that adds to his fortunes, and his sycophants.

 

[Lakhota]