[COUNTrecount]

Hope this helps.

The owner of ten motels needs to buy an alarm clock for each room, and has been paying $15.00 each.

He finds some coming from China that are priced at $12.00 each and places an order from China.

There is now a tariff put on those alarm clocks but the buyer will no pay more than $12.00 each, so China incorporates the tariff and keeps the price at $12.00, making less of a profit.

The buyer sees no price increase and the seller (China)pays the tariff. As tariffs increase China pays more until it can’t make the sale because it would lose money.

China loses, we win.

[PatriotFever]

Brilliant! Thanks.

[Drago]

If China keeps the price at $12 in your example they are not paying for the tariffs. Tariffs are imposed at the point of entry to the U.S. and are paid by the importer (U.S.)...the only way China would “pay” is if they reduced the price of the product by the same % as the tariff.

[RunningPOW]

This is not accurate, and you should not explain it this way. Under this example, China would be paying, but only through a loss in profits. No money would be paid to the US in that example. The US Treasury, however, is ACTUALLY receiving money from China for the sale of each item that has a tariff. I’m not sure how it occurs, but China must be making a payment to the US treasury when it exports the item because the US Treasury is receiving BILLIONS of dollars from them.

[Irish Eyes]

Thanks for that example.

[mikeIII]

Your narrative is based on the premise that the Chinese are not able negotiate a higher price from the motel owner for the clocks. Given the $15 competition, as all business negotiations tend to work, the motel owner may settle for $13.50.

Nonetheless, these tariffs are a good thing. What we have now can't and shouldn't go on.