Sunday, October 6, 2019

Tariffs or not

Do import taxes (tariffs) make a difference. Of the 17.2 million cars and light trucks sold in the USA in 2018, 12 million were light trucks and of this number only 7,000 were made outside the USA. The reason is the 25% tax the US imposes on imported light trucks. In other words almost all foreign pick ups are made in the USA. In almost every other area the import taxes favor other countries and that is why Trump is pushing to eliminate all tariffs. Governments around the globe like tariffs because those tax dollars go directly to the governments who then use that money to give benefits to citizens in the hope of getting votes but that money comes from the citizens in the form of higher prices.

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