Can someone explain tariffs?

Can someone explain tariffs?

Picture extremly related

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youtu.be/59YWFR8lCEc
mises.org/library/lincolns-tariff-war
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best infograph i have on it

>raise price to 120
>price plus tariff is now 144

mexican intellectuals

We will buy the 110$ banana from Comlombia. And mexican banana farmer will go out of bussiness. Then they will have to lower the price to 80, because their banana is going brown

>Charge 20% more
>Competitors don't
>US doesn't buy Mexico's overpriced bananas
>More banana farmers prosper in non-Mexico countries
>Less poor people fleeing other countries, Mexico also suffers

It's like you don't know where new businesses even come from: they come from an affordable demand.

>America spends 100 dollars and gets 100 dollars worth of bananas and 20 dollars
What is there to explain?

But you had a cheaper product before you imposed a tariff, now that they have to change their prices it will artifically increase from the previous price

Basically? Imagine someone else that Americaball likes more who sells bananas for 110 dollars, and insert them into that comic.

Most likely another Americaball.

That's basically why tariffs are a thing.

name one (!) example of advantageous protectionism in modern times, drumpftards

every economically isolated nation is poor

There is a reason why the mexican stuff is currently the cheapest, my economically illiterate friend, and it's called transportation.
Bananas from colombia have to go through more methods of transportation to get to the US, as do most foods that Mexico can't export.
Furthermore, Avocado and a couple of other fruits don't really grow the way they do in Mexico as in other countries due to the plant being a bitch about the weather, so the best sizes and quality are found in Mexico.
t. American Importer on buisness trip to Mexico.

>Americans realize Mexican bananas are too expensive
>start either importing from somewhere cheaper or start local production
>mexico gets BTFO

We have a cheaper product now too. We buy them for the same price from some other South American country, Mexico has NO monopolies when it comes to American imports. Mexico will pay their 20% tariff without raising prices much, or we buy less from Mexico and buy more from South American countries.

The damage to us is minimal and the damage to Mexico is catastrophic, selling to the US is the entire basis of their economy. They will pay for the wall.

Last I heard Japan had plenty of protectionism, and a relatively strong economy (though not as much now). However, not having to fund a military might have much more to do with that then anything else.

Japan also lost a good chunk of its industry, despite protectionism. It didn't help them in the least.

And yet we still buy them from Colombia in bulk even now, even before the tariff, and our prices are fine. The American repercussions to this are all in your head.

norway

Murrica wants out of NAFTA but do you guys even know how the WTO and the GATT agreements work???

It's not that easy,
>burgers pull out of NAFTA.
>burgers put on a tariff of 20% more to Mexican bananas
>According to the GATT agreements they are obliged to increase the tariff for every other banana exporter if they are members of the WTO (basically the whole world).
>rest of the world gets mad at the burgers for putting on excessive tariffs
>they stop selling bananas in the US
>murrican banana prices go through the roof
>niggers riot


Also >clean clean coal

What he mean by this??

tariffs aren't there to make money
tariffs exist to encourage buying local whenever possible, because the price for goods will be lower compared to goods

what is basic economics
if raising the price of a product was beneficial to the provider it would have happened already

We buy Mexican stuff because it is cheaper compared to other sources. With a tariff, Mexican products suddenly aren't cheaper than their competition. If they want to keep their competitive advantage (that is, being cheaper) they'll end up eating the tariff.

If they think they're going to pass it off on the consumer the consumer will go buy from someplace else.

We buy them in bulk from Colombia and other countries because Mexico can't make enough for the massive cosumption rates in the US.
The price of colombian goods IS more expencive, and the produce is less.
Suppose we impose a tariff higher for Mexico than everyone else (against WTO regulations, mind you). Then, if the Mexicans stop selling, you get shortages and the prices increase here, if they keep selling, then distribution companies are forced to increase their price to supermarkets because they still need to buy from Mexico to meet demand (or if they stop they need to sell more expencivly to keep making the same money with less product), and the end consumer that is looking at bananas in a supermarket can only see a flat inncrease in price.
Remember that you aren't buying those bananas, an import company is, and they control the prices that get to you.

thats not how bananas work retard

It makes domestic product more desirable.

>they will pay for the wall

Riiiight. Thats why Fatty Bankrutp stole my money to front the entire thing.

What's 20% of 120, dumbass?

this is so retarded.

Here's the thing:

Were fine without easy access to bananas and avocados - they're luxury items. If they completely disappear oh well.

If your economy is not selling those items, you're facing riots and revolution.

You will pay for the wall due to your shortsighted lack of border enforcement.

>in b4 muh ricardo
technological growth is path-dependent, like build orders in vidya

>Competitors don't
As soon as there is a reason to rise the price, the price will be raised.
>Businessmen will just agree to lose the tariff money
You could fund a church with that much faith

>what is the pacific rim

The money was already allocated while Obama was in office ya dingus.

Calvin Coolidge and Augusto Pinochet

This is what mestizo filth actually believe.

>20% of $120 isn't $20
>mfw the mexishits don't realise according to the actual sums, the subhuman banana farma walks away with $96 instead of $100.
>mfw subhuman creator of this shit meme can't into maths because he's likely uneducated mestizo filth himself.

Well, my job isn't on the line, I work for an importer, and we currently import most of our stuff from Mexico.
Now, I was just talking cash crop exportation, but the reality is that they move other things we don't really "need", yet thousands if not millions of jobs depend on this trade we currently have with Mexico.
Let's not forget they are our third greatest trading partner, even if China takes like 80% of our trade.
And one last thing, the average normie American you see on the streets doesn't give a shit about Mexico, they don't have this intense hatred in their hearts towards that country.
They would only see, "Hey, cars, cash crops, electronics, and shit got more expencive under Trump, also, my uncle lost his job! Nice job Trump".
And he kinda needs to increase his aprovals if he wants any political capital at all, really.

Mexico will fold so quick on this. If not for the US mexico would be more third world than africa.

stop

Haha this.
They are making less money and paying for the wall faster.

Trump won't even be able to implement it for a while, he needs to break NAFTA first, then exit the WTO for it to work, and both have a lot of support in congress.
If his healthcare reform was anything to show, he can't whip votes at all, just getting out of NAFTA could take 2 years.

youtu.be/59YWFR8lCEc

You're a retard if you think that's true. Tariffs make the price of goods from elsewhere more expensive than goods made in-country. Nobody buys from Mexico, and the food rots. Mexico's economy suffers from this.

What is price sensitivity?

>chitters insanely

if mexico's bananas are too expensive, usa will just buy them from other countries, grow them itself, or will just buy something else. it's bad for mexico in any case.
The guy who made the comic doesn't understand the basics of economics.

It means that Mexico is retarded, because it charged $ 100 for something that the buyers were willing to pay $120.

the final person who buys the banana is now paying more while the government is robbing them

delet

>Implying that the price increase won't affect sales/profit
>Implying that Mehicanos are getting more money when less people are buying their over priced food

Mexicans can't do math......
that maxe your tax higher...... by two dollars.

China. Fucking retard, look at their tariffs on foreign goods, you have to produce locally or you're cut off from their market.

Japan's GDP stagnates since 20 years, and the prohibitive cost of living made it freefall on the Gdp/capita (ppp) rankings.

>China
>Poor

Not even a market economy

>a wall will increase prices
>implying goods and produce produced in mexico isn't already being flown in
>or shipped in
>or being transported along existing roads
>implying a wall would in anyway affect legal products being shipped

why do retards believe this?

Tazing people who buy manga would have the same effect.

Americans should give it a try

that 20 dollars was American. in the cartoon the tax literally did nothing.

this is not an accurate representation of trade though, see

...

>Raise price to that of Mexico's under the tariff
>Lose advantage over Mexico
>Money that would flow to not-Mexico now starts flowing to Mexico

Goes over both tariffs and Lincoln

mises.org/library/lincolns-tariff-war

Your pic explains it very well.

China is fucking everyone over, what the fuck is wrong with you?

I believe the EU is also protectionist but that is a bit of a complex situation.

>Implying businessmen don't even know mexico bananas' prices
>Implying there are just Mexico and Us makets in the whole world

Jesus, invest in education burger

The EU isn't protectionist, we just refuse to buy your processed junk food with zero certification or labeling.

...yet you buy from China all the time

>Meat
>From China

user...

>Mexico's economy suffers from this.
We suffer on the whole as well because everything becomes more expensive.
Tariffs are retarded and only serve to protect shitty companies that can't compete in a specific market. This both leads to higher prices as I said but also leads to stagnation because why innovate when government is protecting you from those who'd you need to compete against. It also leads to retaliation tariffs which means less people buying American goods which means less Americanjobs and a significantlyless healthy economy and society.
You can make dumbass claims of "we do t need Dem bannnaners" but it is proven wrong by every dollar someone spends on these goods amounts of dollars a human mind can't actually conceptualize

>Luxury items

Do you realize how many products contain bananas or their derivatives? A lot. The same is true for avocados, though they're not used nearly as much.

The thing to remember about the economy is that it is a vast web where one change in what seems like a relatively isolated sector will have ripple effects that will spread to almost every sector of the economy.

Mexico benefits more from us than we do from them. The point is to have a tariff and make them pay up if they want us to take it down. They aren't in control here.

I also forgot the point that it is retarded that we should even produce these things that other places to more efficiently (thats what the lower price is representing) when these workers and businessmen could be investing their work and capital into fields that they would be significantly more productive in doing.

The eu is a bureaucrat hive where each (((individual))) has a god complex
#NOTMYISLAND

>Mexico benefits more from us than we do from them
This is an assertion user.
A false one at that. Large swaths of Mexicans and Central/south Americans immigrating to America is because NAFTA had ruined the agricultural markets throughoutSouth and Central America because it allows US companies to be subsidized while everyone South of the border isn't allowed to nor are they allowed to implement their own tariffs to offset the US companies being subsidized.

We do t need to replace NAFTA with anything we just need to kill NAFTA the tariffs added on top are retarded and counter productive and harmful to every American.

We also fought a revolution in part to leave a mercantilist system

Nah. Fuel is cheap and container ships just keep getting bigger and more efficient. Try again you smug fuck.

Food is understandable. I believe even the US has some restrictions on what food China can send us.
But we both import food from China whether you like it or not. I am unsure if EU buys meat from China but I doubt the US needs too much meat when we produce so much of it here.

This, Brazil can take over the entire exports of mexico easily, specially when it comes to food products like bananas.

I am 100% sure that Italy imports tomatoes, rice, peanuts, wheat and barley from China.
Sadly there is the misconception that Italy is a great agricultural powerhouse, while only a small part of the land is suitable for large scale cropping.
Because of this we are importing food from abroad since the unification of the kingdom.

Brazil>>>Mexico

If you weren't so violent and full of nogs you'd be my favorite Latin American country.

Free trade is great if your a tiny landlocked Euro country or a 3rd world shithole that can only produce bananas. Its a shit deal for countries that could and SHOULD be completely self sufficient

>america still only gives mexico 100$
>america gets 20$ in taxes
>america effectively pays 80$

I can't see Europe having much farmland. You guys have no space compared to the US. Some of our states are larger than many of your countries combined.

I do see quite a few Italian food imports in the US though, more than any other European country in fact. Not much in the way of produce though, mostly pasta, cheese, and other stereotypical Italian food.

Somebody wants to bring goods into the country they bought in another country. To cross the border, they need to give the government whatever they are asking, usually a percentage of what the goods are worth.

Mexican industry is so intertwined with Texan industry that Mexico in effect can drag Texas down with it if it were to choose to do so. Whats the current numbers of Texan businesses that rely on Mexico, again?

Basically, you can't just expect tariffs to go up on, say, bananas, and not expect other things to go up in price on the American side.

You can call Mexican tariffs the 'fuck texas' initiative.

Fuck Texas and fuck Lone Star Beer, tho.

*muffled cans.wav in the distance*

Yeah, luckily we invested in high end food production, raising the controls and competing on quality rather than quantity. If you buy italian made products you're guaranteed to buy top notch food.

The tariff will move buisiness away from mexico, hurting them. It is a bargaining tool to get their government to pay for the wall or face even greater loss of tax revenue

stupid and wrong. The core pieces of texas economy are oil, shipping, and services, not mexican goods

Tariffs are a good way to apply leverage on Mexico, but taxing the remittances is even bettes, as Enrique has no other choice to get hit from the tax.
Remittances are the biggest component of Mexican GDP too.

I'm not the smartest when it comes to trade but from what I've played in vidya where economies are a thing your pic is not how it works

>100$
>120$
Whatever Mexico raises the price to it's still going to get slapped with a 20% tariff tax thus raising the price which makes anyone willing to sell it even slightly under Mexico winning the bid

Tariffs are to protect domestic wages and sovereignty, dumbass. That cartoon only looks at pricing.

I agree, and I do not know why this hasn't been proposed, other than possibly being either too hard to track or too much of a legal minefield

Prices of consumer goods is not all that matters.

I heard that republicans wanted to rack up 2 billion dollars per year through remittances taxation and investing them in the wall project.
Probably they are already making simulations with different policy mixes and scenarios.

I buy your imports all the time as a /ck/ fag with a pasta addiction
There has actually been a deal at my local grocery store with a bunch more exotic Italian imports that I've been buying up. And as you said everything was insanely high quality. I can only image how good your food must be when it's not shipped to the other side of the planet.
Italy definitely has superior food compared to the rest of Europe. Keep sending us burgers fattening food.

taxing imports or exports to encourage the purchasing of domestic goods in the domestic markets over foreign

You make me blush.

...

tax revenue on the expense of the consumer

You can grow this shit in socal and Florida... Next

God... Please just delete this. I'm losing faith in the average American intelligence.