US consumers will pay 100% of all the tariffs.
Consumers
and businesses, but that's essentially right...
If no cheaper source can be found, then the price will go up by that much. The idea behind tariffs is to make it profitable to domestically manufacture or source the item from somewhere else, in which case the price shouldn't go up by an amount quite equal to the tariff.
American consumers now take it for granted that almost everything they buy, particularly electronics, that is cheap and affordable is made in China.
Before China, it was Korea, Japan, and even Singapore. We also see goods made in Malaysia, Indonesia, and increasingly Vietnam. Lots of our clothing is made in Bangladesh. In other words, the
real story is
globalization.
Anybody remember when an Apple Computer made in California cost $8000 in 1980? Or a Dell computer made in Texas cost $5000 in 1990 ?
Not exactly, but I do remember when PCs cost more (inflation adjusted). However the other big thing that happened, while you weren't paying attention in class, is
factory automation. This has been an even bigger source of US manufacturing job losses, but it doesn't get the same headlines as factories closing due to off-shoring.
It now takes far fewer workers to run a manufacturing line. That's mostly due to automation and it's a big reason for the reductions in labor costs.
But yeah the US government is desperately BROKE right now
No, they're not getting
that much revenue from tariffs!
there is a growing trade imbalance between US and China.
Actually, it's been generally declining since 2018. There was a blip in 2021-2022, but last year was way down to levels not seen since 2010!