Why doesn’t the media understand that China is paying for the tariffs because China devalues their currency?
If China devalues their currency, then their exports are cheaper and the price is absorbed by China
Not all of the cost is passed onto American consumers but the media says that Americans pay for the tariffs
- Larry CLv 79 months agoFavourite answer
The PRC does not allow its currency to be traded by the world, and does make it cheap so they can export, trying to destroy industry in all the western world, and then make it so the west can not defend itself. They do this with stolen technology from the west they pay no royalties on, and why Mr. Trump must win the trade war at all costs.
- jimmyLv 79 months ago
Incorrect. The US importers of the Chinese goods are paying for the tariffs. With the Yuan devalued, the US importers can still import Chinese goods at a decent price and sell them at a decent price to the US consumer. On the other side of the coin with Chinese tariffs on US goods, things such as soybeans are more expensive for Chinese importers, so they are looking at Brazil and Argentina to import them. The US farmer loses.
- davidmi711Lv 79 months ago
"If China devalues their currency..." And if frogs had wings they won't bump their butts when they jump. China has not and has no reason to.
"Not all of the cost is passed onto American consumers..." All of the cost of the tariff is passed on to the importer as tariffs are charged on imports. The cost they pass along is paid by the American consumer. The cost they do not reduces their profit.
- it is iLv 59 months ago
If china devalues their currency, American products are more expensive so they don't buy them at all. The price isn't abosorbed by China at all- they just don't buy as much foreign made products.
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- Anonymous9 months ago
It is hard to determine the exact cost but there will be high import tariffs if the price of a product is not what it should be. The price is adjusted to make sure the domestic consumer would be able to purchase it at the same rate if it were brought in from overseas