| I'm not sure for what reason you are being down-voted, but I disagree with your comment on China. Tarrifs on imported goods are specifically designed to make the cost of goods locally higher. If a foreign product costs $100 landed, and a locally produced one $120,then adding 20% to the foreign one makes them both the higher price. This is good news for those in local manufacturing, less-good news for the consumer. Ultimately a tariff is paid by the consumer[1], and received by the local govt, it is thus really just a consumption tax of sorts, although one that is self imposed by the consumer. The alternative is to "not pay the tax" but instead spend the same money supporting local industry. The US has had a policy over the last 6 years of adding new tariffs. (if they've been revoked in the last 2, I'm not aware.) This drives up local prices, which is a factor in (not the sole cause of) inflation. [1] politically this was spun as "China pays the tariff" but this is obviously untrue. There is no incentive for them to do so, and even if they did, it would negate the point of the tariff in the first place, which is to raise local prices to make local businesses more compeditive. |