The Truth About Trump's Tariff Idea

Tariffs are the latest take on Mexico will pay for the wall

In case you were not aware, Trump holds a Bachelor’s degree in Economics from the University of Pennsylvania.

Trump claims of late that he will implement tariffs and use what is collected to pay for a whole host of programs such as child care, health care, basically whatever Trump decides he needs to come up with to get elected.

For those of us that have forgotten Economics 101, a tariff is defined as:

“a tax that a country imposes on imported goods or services. Tariffs are a type of trade barrier that can affect the prices and availability of goods and services.”

Trump claims that the countries shipping their goods and services into the US pay the tariffs. That would be a firm NO!

Tariffs are assessed at the point of entry and are added to the cost of the goods and services and US citizens pay for the tariff. So, like the wall on the Mexico border that was NOT paid for by Mexico, so will these tariffs NOT be paid by the countries sending their goods and services into the US. WE ALL get screwed by the tariffs and WE END UP PAYING for his programs, NOT the countries getting tariffed.

Trump should know this but I guess he hopes that everyone else will just go along with the program because tariffs are not understood by the average citizen.

But, of course, it gets worse.

If you are in a country where Trump has imposed tariffs on your goods and services making them too pricey to send to the US. Why would you continue to do business with the US?

Trump seems to believe that countries will continue to send their goods and services to the US because … well … they just will continue. Seriously! He actually seems to believe this.

No! Those countries will just stop dealing with the US and shift to other countries. So, Trump’s supposed source of funding will just dry up.

In the end, just like the wall that Mexico was paying for, tariffs are another idea that we will all pay for as well.

And that my friends is Trump-onomics 101.