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Joined 1 year ago
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Cake day: April 13th, 2024

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  • It functions like this:

    US American importers pay the tariffs to the US American state.

    The effect on EU entities is secondary in nature: The US American importers will either buy less from the EU entities and substitute the rest from other countries or they will try to buy the same more cheaply because they can’t keep up their previous value chain when the tariffs are included. Thereby demand for products from the EU will fall, hurting EU based exporters and more indirectly everyone up the chain from there.

    It will also hurt the US American importers and more indirectly everyone down the chain from there.

    Trump ignores the latter effect, and thinks the money raised for the US American state is more significant than it is. He also lies about the first step, but I think he knows how it really is, sometimes he lets it slip that he actually knows how tariffs work.