(02-03-2025, 10:08 AM)americus 2.0 Wrote: Can someone explain to me in general terms how this tariff thing works and how it's going to help the US? This is something I don't have any knowledge or understanding of this in our current economic climate and searching the interwebs just adds confusion. 

I'm just trying to understand how this will help us in the long term but not before we feel the pinch of higher prices added to inflation. 

Thanks!

In the short-term, they may raise prices but there are some plans for that.

Tariffs will raise the prices of goods that are not produced in the US.
Companies that want to sell goods to US consumers, will move manufacturing to the US.
Tariffs won't be placed on materials that the US doesn't have.

Tariffs work in the long run as it moves jobs back to the US. Those jobs are higher paying, stable manufacturing jobs. Those jobs do increase the cost of goods sold. There are less costs involved in shipping the goods and better quality is delivered so less overhead is needed for waste and warranty/repairs.

How does this help you when prices go up? Everyone's taxes go down. Tariffs will replace the taxes, so at worse you have a net $0 effect. The areas that have new manufacturing jobs, will see immediate improvement, more local revenue, state, and federal money now coming in. Also a part of this, removing all the illegals will drive prices down for everything. Government removes tons of money needed for them, housing costs, services, etc. Now those manufacturing jobs don't need to pay $40 and hour to just get bye. That in turn lowers the cost of the goods being produced.

Short-term there will be issues but Trump is pushing tax free stuff. Then I think there will be moves to pause taxes all together for a period of time. Then Trump removes the IRS.

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