What Are the Costs of Trade Tariffs for U.S. Consumers?

what is the most likely reason that nations raised tariffs on imports during the great depression? This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you What Are the Costs of Trade Tariffs for U.S. Consumers?. Following along are instructions in the video below:

” s a little hard to really understand exactly what the president saying. But he s s sort of right. The us consumer hasn t really been hit that hard yet that about to change the way they structured the tariffs. The first round of tariffs and remember this is not just china this is everything from solar panels to washing machines to steel and aluminum they structured it to hit businesses and not consumers.

Which is what you do in a sort of public relations sense. When you re starting something like this..


But now the only things left largely our consumer products. So the idea of the 325 billion going to 25 tariffs would hit things like cell phones that s the natural example. But the question is how much does the consumer pay not just that they will pay because a lot of this gets absorbed in margins. The president i have no idea what he s talking about when he says four points.

Nothing. But basically you know the importer pays..


The price of the tariffs now where china could get hurt is if it forces assembly manufacturing out of china or forces chinese companies to lower their prices to keep market share. But it allows these consumer goods. It would take a long time to move the product chains out of china or they re just not going to go in so far as this does affect the cost of consumer goods in this country who s gonna pay it is it gonna go straight to the consumer can the producer back here the market market or the retailer here absorb some of that you know the new york fed just did a study on this and they found estimating the effects of the tariffs are very difficult because we don t know that answer to that question some companies absorb the increase. Some companies pass it along to consumers.

But maybe not the whole amount so it s hard to estimate. They came up with an answer of it raises consumer and producer prices by what we ve seen so far has raised it by about three tenths of a percentage point..


Bloomberg intelligence in did a study that showed what would happen to margins and profits. If we got the full enchilada of tariffs and then if we just get where we are right now the current level versus. The announced tariffs the discrepancy is huge on gross profit margins for 2019. How do you deal with that has an investor well.

I think you have to take a cautious stance on it you know our view is that one of the bits of the story that hasn t really permeated into the market yet is it already there was a lot of negative pressure on margins. So we believe that you know looking at what we had at the end of last..


Year we were already talking about a three point shift in us. Margins and us earnings for 2019 being down. 5. So if you add on top of that at area factor as well then you re talking potentially about moving towards almost double digit losses for eps growth over an 18 month period for example and and that consumer hit is particularly important you ve got forty two billion dollars of tariffs on consumer goods already if we go into that tech space.

Remember that one of the key things holding down core pce in the last few years has been the declining technology prices so if that starts to change you re gonna see some upward pressure there that s gonna worry the fed and it s also going to hit real personal disposable incomes so unless savings come down as michael tells you that s going to feed straight through into the week of consuming growth and also potentially into housing demand as well ” ..

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