Kenneth Greifer posted a comment · May 13, 2019
The most depressing part of this story is that President Trump really believes that China is paying the tariffs to America's government. The American businesses that buy goods from China are paying the tariffs (taxes on imported goods) to America's government, then the American people pay higher prices for these goods. It is a tax that Trump likes a lot because he thinks China is paying it. In some cases, Chinese businesses have lowered their prices, so American businesses have paid the tariffs on cheaper items, so in a way China paid the tariffs indirectly, but not always. The big question is does Trump actually understand tariffs. He doesn't understand that the trade deficit is not sending America's wealth to China. He thinks we give $500 billion a year to China because we buy $500 billion worth of goods from them more than they buy from us, but he doesn't understand that our businesses sell those goods for a profit in America and make trillions of dollars off of China, so they actually make America richer by providing cheap goods for American businesses to sell. America's wealth has actually increased from the trade deficit, although they get more of the manufacturing jobs.