When your $599 iPad is loaded off the freight ship in the harbour, the receiving company pays 34% ($203.66) to the gubment for the privilege of importing things from China.

Now Apple will have to sell that same iPad for $802.66 (plus sales tax) to cover the tariff.

In theory Apple could start producing iPads in the US instead to avoid the tariff. But US workers want a living wage, paid overtime, health care and PTO, so there's no chance of being cost effective. Also, most materials are still imported, so they'll have tariffs, too.

It might make sense to put tariffs on foreign cars to stimulate a domestic auto industry. It might keep a lot of workers at their job, and any dollar they earn will be taxed both as income and again when they spend it.

All-round tariffs like we saw this week just hurt most of the involved parties.

So, how does this affect the involved parties?

Things get more expensive for US consumers. They can't afford to buy as much stuff.
The US gubment gets extra money.
Other countries don't sell as much stuff to the US.

How this affects international relations, and if countries retaliate with tariffs remain to be seen. Anywho, the US is no longer considered a reliable trading partner.

[–] theparadox@lemmy.world 3 points 20 hours ago* (last edited 20 hours ago)

Don't forget my favorite part: Greedflation.

Your iPad now costs $900 because they can blame the price increase on tariffs and inflation. Every other company does it so now more "inflation" and you iPad will be $1,000 next year.

You try to buy a 100% US made tablet (what tariffs are supposed to be used for) but the US company that actually manufacturer goods in the US jacks up their prices too because they can blame inflation and their completion is even more expensive now.

American consumers are about to get fleeced hard and inflation is going to explode while the wealthiest folks slurp up even more of the wealth.