Dead Wrong® with Johan Norberg - Who Pays for Tariffs?

Published: Jul 30, 2019 Duration: 00:01:51 Category: Entertainment

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Trade wars are a winning strategy, because no matter what happens, China is paying us billions in tariffs! The Treasury is collecting tremendous amounts of money, and that’s great for our country. Dead wrong. Tariffs are taxes on imports. They are not paid by the Chinese government, they are not paid by the Chinese exporter, they’re paid by the U.S. importers straight to the U.S. Customs and Border Protection within ten days of the product clearing customs. Anything that the U.S. Treasury gets, it takes from U.S. companies and consumers. An evaluation of Trump’s 2018 steel tariffs shows that it raised prices of steel products by almost 9%, so U.S. steel users had to pay $5.6 billion dollars extra because of higher prices. And the washing machine tariff raised the price of the average product by $86. Domestic producers also raised the price because now, they didn’t face that much competition, so they could take whatever they wanted. It did protect some 1,800 jobs, but at a cost to the consumers of $1.5 billion dollars a year, that's an incredible $815,000 per job. So Donald Trump could instead just buy each of those workers two Rolls Royces a year, as an incentive to get a job in a more competitive business. Or if he wants to protect the home appliance industry, he could buy each of those workers more than 1,000 washing machines a year. Wait! Don't forget to subscribe to our channel here. And watch these other videos. And check back next Wednesday for a new Dead Wrong from Free To Choose Network.

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