US American importers pay the tariffs to the US American state.
The effect on EU entities is secondary in nature: The US American importers will either buy less from the EU entities and substitute the rest from other countries or they will try to buy the same more cheaply because they can’t keep up their previous value chain when the tariffs are included. Thereby demand for products from the EU will fall, hurting EU based exporters and more indirectly everyone up the chain from there.
It will also hurt the US American importers and more indirectly everyone down the chain from there.
Trump ignores the latter effect, and thinks the money raised for the US American state is more significant than it is. He also lies about the first step, but I think he knows how it really is, sometimes he lets it slip that he actually knows how tariffs work.
So basically they’re paying us 30% more for our products? Sure, why not.
No. They are paying 30% tax to the USA, for anything imported from the EU.
Not that it makes a difference, but I’m boycotting everything I can from the USA.
No more taking at Esso or Jet. No more Prince rolls. No more Coca-Cola. Cancelled Netflix.
That‘s not how tariffs work. This is basically a EU-tax that american importers need to pay.
American consumers pay it to the importer, who pays it to the US government, who funnel directly into the pockets of Trump’s cronies.
The EU might sell a little less over it, but it probably means that a lot of “To: USA” labels are getting swapped out for “To: China”…
It functions like this:
US American importers pay the tariffs to the US American state.
The effect on EU entities is secondary in nature: The US American importers will either buy less from the EU entities and substitute the rest from other countries or they will try to buy the same more cheaply because they can’t keep up their previous value chain when the tariffs are included. Thereby demand for products from the EU will fall, hurting EU based exporters and more indirectly everyone up the chain from there.
It will also hurt the US American importers and more indirectly everyone down the chain from there.
Trump ignores the latter effect, and thinks the money raised for the US American state is more significant than it is. He also lies about the first step, but I think he knows how it really is, sometimes he lets it slip that he actually knows how tariffs work.