How The 25% Tariff Hurts American Consumers

Don’t believe the Republican lies.

Photo by The New York Public Library on Unsplash

Sorry Americans. The 25% tariff which is actually a tax, is NOT paid by Canada. If any Republican is claiming that to be the case, they are lying!

Here is a tariff scenario:

• United States: Imposes a 25% tariff on imported goods from Canada.
• Canada: Exports goods to United States
• Product (for example): Machinery valued at $10,000 per unit.

Before the Tariff:

United States Company imports One Unit from a manufacturer in Canada at a cost of $10,000. No additional charges beyond the product cost are applied.

Total Cost to the US Importer: $10,000

After a 25% Tariff Imposition:

United States now imposes a 25% tariff or tax on the import value of goods from Canada.

1. Cost of Machinery by US Importer: $10,000
2. Tariff (25% of $10,000): $2,500

Total Cost to Importer in the United States: $10,000 + $2,500 = $12,500

Implications:

1. For Canadian Exporters: Higher costs for the US importer created by he US government tariff will make the Canadian made unit…