Where does the tariff money actually go?

[jomar]

Trump seems to think he has the authority to tax foreign countries.

Yes, congress’s silence is deafening

 

[dmallord]

So I guess I don’t really have a full understanding of tariffs. What I’m reading says the importer pays the tariff tax. That is, when Walmart, Best Buy and other companies import products, they pay the tariffs to the government. I get the chilling of exports because of increased cost to the buyer.

So when trump says we’re making billions off the China tariff does he not know it’s the US companies paying the tariffs? Have I got the gist? Anyone care to chime in?

Yeah, you got it. Trump, not so much.

He doesn't care about the effects of his tariffs, just as long as his believers are willing to put up with some out-of-pocket expenses they wouldn't have to have paid for the sake of his self-aggrandizement.

Trump slaps a tariff on goods coming into the US, even things penguins have made, apparently, and are unjustly profiting from due to the penguins' unjust trade agreements with the US. The companies distributing said goods add the cost they pay for the import fees onto the citizens who buy the newly hiked-up goods. Those are the local Walmart customers and others. Walmart and others pay that tariff to the US government. That's how trump claims we are making billions on the tariff - it's a tax-like shurcharge Americans pay as a result of his pissing off every nation around the world including the penguins. The billions made come from OUR citizens, just to be crystal clear.

At the beginning of his inane concept of a plan, he said it would force overseas companies to bring their factories into the USA to manufacture their products here. The idea was that those companies would hire US workers, pay US taxes, and not raise the prices of those goods made in the USA to the locals. They wouldn't get tariffed if they did that. [Circular logic at best.]

Imagine, if you will, a US factory moving from China to Iowa. Hundreds of sewing machines are set up in a factory, and now the company must find hundreds of people who know how to sew and are willing to work making garments for Walmart to sell in America. Those factories will be more expensive to run than in China, and materials will still go to America [tariffed of course], so those sewers can work at higher wages because Trump says they will be good-paying jobs. In reality, those will be low-skilled jobs at best, perhaps equivalent to McDonald's employees. What was a $25.00 Walmart shirt is now $125.00 sitting on the rack. Americans will be back to having three outfits in their closets like in the 30s.

Now, the penguins, on the other hand, as far as I know, have the upper hand in the Art of the Deal as they don't need anything from the US [maybe refrigerators] but then Trump doesn't say if he has 'fixed' or made a deal with them to force them to the table to negotiate.

 

[Carnal_Flower]

trump says the US made billions on tariffs when he was 45. I googled, but got no info where tariff revenue goes, though maybe I didn’t google right and it went to soybean farmers under the trump china tariffs. Anyway, trump certainly isn’t the first prez to impose tariffs so where does it go? Maybe they could shore up social security. Haven’t heard of the revenue going to pay down the national debt. Anyone?

Same place all those savings from DOGE go.