• Public

  • Public
  • Network
  • Groups
  • Featured
  • Popular
  • People

Let's say silk costs $8 to make, and the Import Company charges me $18 for it. They make $10. I sell it to you for $22, and that's how I pay the rent! (Yeah, our markups are really low!) Now, if there is suddenly a 200% tariff on silk coming in, then the importer (NOT THE COUNTRY OF ORIGIN) will have to pay $8 for the silk + ($8 X 2 = $16 tax) = $24 for that same silk. Now they have to sell it to me for $34 instead of $18 to make their overhead. And then I have to sell it to you for $38 instead of $22. The thing is, tariffs can be a fine idea if there is already an industry to support it. For example, if you want everyone to buy a Chevy instead of a Toyota, then you put a tariff on Toyotas so they're more expensive than Chevies.