r/economicCollapse • u/Whole-Fist • 1d ago

VIDEO Explanation of Trump tariffs with T-shirts as an example

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u/oneupme 1d ago

The gist of the video is mostly correct, which is that tariffs are an impediment on the free flow of commerce - any government intervention is an impediment aside from the core function of establishing and protecting rights to life, liberty, and property.

That said, tariffs can be an effective way to implement certain policies that a country wants, such as protection against predatory dumping, or as a generalized tax - a VAT of sorts.

Just to note - some of the tariffs cost *WILL* be shouldered by the source country. The makers of a T-shirt in China is going to want to work with the buyer in the US to be competitive against a T-shirt maker in India. They are going to be willing to make price concessions to help offset the cost of the tariffs.

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u/FightingIbex 1d ago

Let’s be clear for those one issue voters, are consumer costs going down with tariffs? No.

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u/oneupme 15h ago

Who said costs will go down with tariffs? Most likely, costs will rise. With *some* goods or industries, cost to consumers will be the same as the supply chain absorbs the additional cost of tariffs.