Re:Trump announces EU trade deal with 15% tariffs
by lewisleclerc on Sunday July 27, 2025 @04:09PM
(#44704276)
I could be wrong but once tariffs are set to higher rates, it's extremely difficult to lower them by subsequent leaders
Re:Trump announces EU trade deal with 15% tariffs
by jfengel on Tuesday July 29, 2025 @01:06PM
(#44725825)
People will definitely cheer when you lower prices. Businesses will push back, but that's also difficult since "we want to keep prices high" isn't a good lock. They have other ways to apply pressure, but it's (roughly speaking) a level playing field.
It's only possible to have tariffs now because people don't grasp the consequences. When prices go up, the tariffs will be less popular.
Re:Trump announces EU trade deal with 15% tariffs
by breadwinner on Sunday July 27, 2025 @04:29PM
(#44704413)
This will lead to inflation. Once prices increase, the prices won't come down, so the inflation will be permanent.
US manufacturers will get used to decreased competition, which will lead to poor quality and decreased innovation.
Smuggling will increase, particularly from Canada. Instead of going to the Apple store to buy your next phone you will agree to meet a stranger in a dark alley and pay cash to buy a smuggled iPhone.
The tariffs will be felt by poorer Americans while the rich will barely notice.
Re:Trump announces EU trade deal with 15% tariffs
by mensetmanusman on Sunday July 27, 2025 @06:00PM
(#44705114)
If the government taxes goods by an additional 1%, is that 1% inflation?
Re:Trump announces EU trade deal with 15% tariffs
by tnt128 on Sunday July 27, 2025 @07:22PM
(#44705614)
No. Tax is on the cost. If the good sells for $100 and cost $10. Then 10% additional tax increase the cost to $11. If the vendor decides to keep the same profit, then the price goes up by $1, which is 1%
Re:Trump announces EU trade deal with 15% tariffs
by breadwinner on Sunday July 27, 2025 @06:15PM
(#44705219)
If the price goes up then yes.
What are the long-term goals behind the US strategy of permanently increasing tariffs?