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miércoles, 13 de noviembre de 2024

Tariffs affect the economy no matter what the conman says

 Tariffs affect the economy no matter what the conman says.



By Germanico Vaca

It is rather sad and pathetic the level of stupidity in the United States of America. A lot of the MAGA ignorant somehow think that tariffs do not affect American made products. Beyond the fact that most things that are manufactured are dependent of foreign “resources” like rubber for tires, let me enlighten you

1. Global Supply Chains:

Most products, especially complex ones like cars, electronics, and even clothing, rely on global supply chains. This means that even though a car may be assembled in the U.S., it uses a lot of parts and materials that come from other countries. For example:

Microchips: A significant portion of automotive electronics (like infotainment systems and engine control modules) comes from places like Taiwan, South Korea, or China.

Brakes, Tires, and Batteries: Even if a car is assembled in the U.S., its tires and brakes may come from overseas. Lithium and materials for batteries come from other countries so those tariffs will affect the USA made stuff.

Steel and Aluminum: The metal used to construct the car frame and body often comes from other countries.

Tariffs affect these imported parts directly. When tariffs are applied, the cost of these parts goes up. The manufacturers that rely on these parts either have to absorb the cost or pass it onto the consumer in the form of higher prices.

2. Price Increases Across Industries:

If tariffs are imposed on foreign-made parts, U.S. manufacturers who depend on these parts will face higher production costs.

This means the price of finished products (like cars, electronics, etc.) will go up because companies are paying more for the materials or components they need. If we ad deportation there will no longer be cheap labor to even clean toilets and if you are paying $40 an hour to the guy who clean toilets, well the company will not swallow those prices, they will charge them to you.

Even if a car is assembled in the U.S., if the tires or semiconductors are imported and subject to tariffs, it will raise the overall cost of producing the car, which will be passed onto the consumer.

3. Consumer Impact:

Higher Prices: When companies face increased production costs due to tariffs, they pass those costs onto consumers. This leads to higher prices for everyday goods like cars, electronics, and home appliances.

Inflation: A rise in the cost of goods leads to inflation. This means that consumers will end up paying more for products, which reduces their purchasing power. Even if their wages stay the same, they’ll find that they can afford less.

4. Retaliation and Trade Wars:

Countries often retaliate against tariffs by imposing their own tariffs on goods from the country that started it. For example, the moment the conman charges larger tariffs to China, they retaliated by imposing massive tariffs on American farm products and then they made a deal with Russia to farm in Russia with Chinese labor, the entire market was loss ever since for American farmers who survive with subsidies that most Americans pay for them. By ignorant America just believe the conman and do not see facts. if the U.S. imposes tariffs on steel or cars from another country, that country might retaliate by imposing tariffs on American-made products, like agricultural goods. So if you believe tariffs do not affect American product buy yourself a new brain, you are a stupid asshole.

This retaliation can hurt domestic industries that depend on exports, leading to job losses and lower sales for U.S. businesses abroad. This creates a cycle of rising costs for everyone involved in international trade.

5. The Bigger Picture – Economic Efficiency:

Tariffs disrupt the economic efficiency of global trade. When countries specialize in what they’re best at producing, global trade becomes more efficient and cheaper for everyone. By imposing tariffs, a country is effectively saying, "We want to pay more for something we could get cheaper from another country." This reduces the overall efficiency of the economy and leads to higher costs for everyone.

6. The Misunderstanding:

Some people may believe that if something is made in America, it won’t be affected by tariffs. But the reality is that very few products are completely made from 100% domestic parts. Most manufacturing in the U.S. relies on a mix of domestic and imported components. When tariffs are placed on imported materials or parts, they still affect the price of the American-made product.

For example, if a U.S. automaker imports steel or microchips from another country and faces a tariff on these materials, the cost of producing the car will increase, even if the final assembly is done in the U.S. The car will cost more to produce, and that will likely get passed on to the consumer in the form of higher prices.

 

7. Real-Life Examples:

The Auto Industry: In 2018, the Trump administration-imposed tariffs on steel and aluminum imports, which caused the price of U.S.-made cars to rise. The cost of a single car increased by an average of $200–$400 per vehicle due to higher materials costs.

Electronics: The trade war with China in the last few years led to tariffs on many electronic goods. iPhones and other products that rely on components from China saw price increases, affecting both American consumers and U.S. companies. Now that China kicked the American companies out, the prices o everything will go much higher as soon as the diaper conman sits in the oval office.

How to Explain It Simply:

So, if you are part of the cult that adores a diaper user, let me explain that tariffs affect everyone by using an example like this:

Imagine that the U.S. produces cars, but it needs parts like microchips, tires, and steel from other countries. If the U.S. government puts a tariff on these parts, the cost of making a car goes up. So, even if the car is built in the U.S., the manufacturer has to pay more for the parts it needs. This increased cost is passed on to the consumer in the form of higher prices for the car.

This is why tariffs don’t just impact imported products; they also raise the cost of domestic goods that depend on imported parts. So, even products made in the U.S. could become more expensive.

 

Conclusion:

In short, tariffs increase the cost of everything that depends on global supply chains—this includes almost every product, even those made in the U.S. By raising the price of materials and parts, tariffs can lead to higher costs for businesses and consumers, as well as less competition and less efficient markets. Explaining this connection clearly can help people understand that tariffs aren't just about foreign-made products—they impact the entire economy.

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