I think you misunderstood me. A tariff is a tax CITIZENS pay. Whoever imports the products pays the tariff, for instance Walmart. Since Walmart isn’t going to pay the extra money out of the kindness of their heart. They pass it along to the consumer. In fact, they do worse than that, they raise the price MORE than the tariff and on products that aren’t even part of the tariff. The only possible way this could hurt the EU is if sales drop because their products have been made more expensive. But the truth is, it makes ALL products more expensive. It is therefore my OPINION that the tariffs won’t substantially impact EU exporters to the US because their products will effectively be the same price as comparable US goods. So no real deterrent to the consumer just to buy whichever product they want, which could be the one from the EU. Sales may indeed drop, because ALL of the sales drop due to massive inflation.
So if the EU retaliates, and I’m not saying they shouldn’t, the real losers will just be the citizens of BOTH the EU and the US. Hence my comment that the EU sees the US taxing it’s own citizens and concludes they should too should tax their own citizens.
If the US raises taxes on its citizens, we should raise taxes on ours!
And your suggestion of what the EU should do if the U.S. hits them with high tariffs is what?
I think you misunderstood me. A tariff is a tax CITIZENS pay. Whoever imports the products pays the tariff, for instance Walmart. Since Walmart isn’t going to pay the extra money out of the kindness of their heart. They pass it along to the consumer. In fact, they do worse than that, they raise the price MORE than the tariff and on products that aren’t even part of the tariff. The only possible way this could hurt the EU is if sales drop because their products have been made more expensive. But the truth is, it makes ALL products more expensive. It is therefore my OPINION that the tariffs won’t substantially impact EU exporters to the US because their products will effectively be the same price as comparable US goods. So no real deterrent to the consumer just to buy whichever product they want, which could be the one from the EU. Sales may indeed drop, because ALL of the sales drop due to massive inflation.
So if the EU retaliates, and I’m not saying they shouldn’t, the real losers will just be the citizens of BOTH the EU and the US. Hence my comment that the EU sees the US taxing it’s own citizens and concludes they should too should tax their own citizens.
Anyway, this is the way I see it.
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