In Reply to: Tariffs have a way of causing inflation too nt posted by Ralph on February 12, 2025 at 12:48:12:
A tariff is a tax borne by the people in the country charging the tariff. If your supplier/import pays a 25% tariff and passes it on to you, are you going to eat it and shrink your margin? The idea is for the importer to find another source of supply. In that case, no tariff revenue is collected. The goal would be to bring back certain manufacturing processes here, but that takes time and money and with interest rates rising to fight inflation due in part to tariffs, that may be very difficult to get financed and paid for unless the government spends more money to subsidize construction projects. It's a slippery slope. We could be headed for depression. Tax cuts are going to add about $4 trillion to the deficit. Debt ceiling raised by $4 trillion (proposed budget). I am going to be fine because I am sitting on a pile or money. Most people aren't that lucky. If you are on a fixed income, you may be taking a haircut and then see purchasing power further compromised by inflation. Inflation is a killer for fixed income.
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Follow Ups
- RE: Tariffs have a way of causing inflation too nt - GEO 16:12:54 02/12/25 (8)
- RE: Tariffs have a way of causing inflation too nt - tube wrangler 02:00:45 04/04/25 (1)
- Plenty of high-tax nations in the civilized world that have been doing just fine for quite some time. nt. - MWE 07:39:18 04/25/25 (0)
- Part of the inflation comes from production pressure on existing suppliers. - Ralph 10:55:58 02/13/25 (5)
- RE: Part of the inflation comes from production pressure on existing suppliers. - tube wrangler 00:41:55 05/29/25 (0)
- RE: Part of the inflation comes from production pressure on existing suppliers. - GEO 13:01:18 02/13/25 (3)
- RE: Part of the inflation comes from production pressure on existing suppliers. - Lew 12:30:11 02/15/25 (2)
- RE: Part of the inflation comes from production pressure on existing suppliers. - Tre' 16:10:34 02/15/25 (1)
- RE: Part of the inflation comes from production pressure on existing suppliers. - PakProtector 05:23:08 02/17/25 (0)