What is a Tariff?

Dictionary: Data from Oxford Languages

Look it up: tar·iff[ˈterəf]

noun:

1.  a tax or duty to be paid on a particular class of imports or exports;

verb:

2.  fix the price of (something) according to a tariff: "these services are tariffed by volume".

What is the purpose of a tariff?

The purpose of a tariff is generally to protect domestic production and jobs, though economists say other domestic sectors and customers ultimately pay for tariffs.   The purpose of a tariff, which a government imposes to raise the cost of a particular import, is to limit or reduce the amount of that good imported into the country. Making an import more expensive can improve the economics of producing that product domestically.

Who Pays a tariff? 

 U.S. importers pay the bill for tariffs on goods imported into the U.S.... A 10% tariff on a bike with a wholesale cost of $60 would add $6 to Walmart's cost of importing that bike.  Walmart could pay $3 of the $6 cost and pass half of it on to customers, whose price would rise by $3. In that case, Walmart profit shrinks and customers are left with a thinner wallet. 

CHINA DOES NOT PAY THE CONSUMER PORTION OF THE TARIFF. It is, in fact, additional money out of the pocket of the American consumer. 

Why, then, do the majority of voters in this country who elected Donald Trump to the presidency yet again believe that he will lower prices and make things more affordable when he has repeatedly, emphatically, gleefully stated that he will place a 20% tariff on all imports into our country?

This, I believe, is the disconnect: the red state voters actually needed to be spoon fed the meaning of a tariff. I think the Harris campaign ran on the assumption that when she said Trump would impose a 20% " sales tax",  all voting persons would understand that she was talking about the tariff, but clearly they did not. 

As for the inexplicable Latino Trump voter turnout, many for whom English is not their first language, probably they did not understood the meaning of tariff. Whatever. By the time prospective Trump-appointed "Border Czar" Tom Homan returns to Trump's legion to begin deporting them it won't matter anyway. 

As for those folks in the red states (and around the rest of the country) for whom English is their first language, perhaps their education was lacking? Not good history lessons in the schooling? Too much cutting classes? Who cares - eff off? DK? Okey dokey. Well, now y'all have the definition - please see above - and you're welcome.

Make no mistake: Trump's administration will be a financial shit storm of epic proportions. Sadly, those of us who voted against him will be the least surprised; it's his constituents, his followers and true believers who will ultimately suffer the most. 

In the meantime, here is a short list of actions we can start to take:

1. Use GOODS UNITE US (https://www.goodsuniteus.com/) and download the app for a comprehensive list of everything from Airlines to Wine that falls under either the democratic or republican contributing parties. 

2. Join a local INDIVISIBLE group (https://indivisible.org/) to see how you can help fight Project 2025, among other upcoming issues.

3. Start growing your own produce. You can do it in flower pots. Food prices are going up and if - as Trump promises - hundreds of thousands of immigrants are deported, who does he think will harvest the crops? Seriously - who's going to pick the damn strawberries? Grow your own; it'll be cheaper and you'll know who will harvest them. 

4. Start detoxing from Amazon. Jeff Bezos will be in bed with Trump faster than you can say "Washington Post" (see previous blog post https://happypiggybank.com/happy-piggyblog/f/i-cancelled-amazon-to-vote-for-freedom). There will be a 20% tariff on everything you buy on Amazon anyway. 

5. Buy American. Or, if you must buy imports, try to buy them pre-owned/refurbished.

6. Watch this blog for more information and tax tips in the time of Trump.