this post was submitted on 06 Apr 2025
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Explain Like I'm Five

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What exactly are tariffs and how do they work? (lazysoci.al)
submitted 1 day ago by CheeseToastie@lazysoci.al to c/explainlikeimfive@lemmy.world
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I have 0 maths or economy skills, so I do need it explained like I'm 5. They're in the news a lot atm but I just don't understand them

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[–] nokturne213@sopuli.xyz 4 points 1 day ago* (last edited 1 day ago) (1 children)

Since the comment I replied to was deleted I willreply here.

The big thing to realize is trump and his cult seem to think the exporter (country of origin) pays the tariff to the importing country’s government. Where it actually is paid by the person who imports the item passing the tariff to their government.

If you are in the US and buy a 24% tariffed item from another country you are responsible to pay your government that 24%.

Now imagine you manufacture cars here in the states, but of you 1000 need components to build that car 825 of them are imported. You have to pay for each of those taxes tariffs, increasing the cost of something manufactured here.

[–] nokturne213@sopuli.xyz 3 points 1 day ago

Think of tariff as to mean an import tax, much like sales tax.