Although the tariffs are imposed by the Government for imports, the exporting country does not pay, but the importer, that is, US companies that bring products from abroad. And these companies move the additional cost to the final consumerraising prices. The injured in the citizen on foot. The American. And if Europe responds, you and I. Of course, the workers of the affected industries, too. Here we explain it to you.
And study of the Federal Reserve of New York together with Princeton University and Columbia University estimated that Trump’s commercial war cost US consumers $ 1,400 more per year in the form of higher prices and lower access to products.
Although the tariffs They may seem a measure to defend national production, in practice they harm common citizensthat pay more for the products they consume, have fewer options and can be affected by the loss of employment or investment in affected sectors. Donald Trump’s experience demonstrates that tariff protectionism ends up being a cost to the citizens of the country who applies it.
Bastiat said that Where the trade does not enter the bullets. Although not exactly, the idea is understood. Tariffs generate poverty, in the same way that free trade generates wealth.
If you are a great surgeon and in your spare time you have as a hobby the sweeping; You may sweep so well that you do better than those of the company that your hospital has hired. Do you think it would be good if you stopped operating a part of your day to sweep? Obviously not, even though you do better than those of the cleaning company. It is always better to trade, even if you are better in everything. But you are always relatively better in something. Do it and trades. Is what is known as Ricardo Association Law or relative comparative advantage. This becomes wealth and prosperity for all.
The height is to know how the Trump administration has «invented the» tariffs paid USA «. It is an aberration. In the video we explain it to you.
In addition, if you want to know how to invest to take advantage of the opportunities that are generated with these types of situations, Click here.