Why Trumps Tariffs Wont Cost Consumers

-Source-Real Clear Politics- Past administrations have called out China for violating the internationally agreed-upon rules of trade for decades. After countless high-level talks admonitions and appeals China did nothing to change its cheating ways. President Trump has dispensed with the talk and taken action slapping tariffs on billions of dollars of goods China exports to the United States at artificially low prices. Naysayers predicted the presidents tariffs would tank the stock market and drag down the economy. But the Dow is posting record gains unemployment is at a 49-year low and the economy remains strong. The forecasters are at a loss to explain why reality isnt conforming to what they learned in school. A Wall Street economist tells Reuters Its like we have nothing to fear but we should." Critics also contend that President Trumps tariffs will inevitably lead to higher prices for consumers. Weve heard this before. They said aluminum tariffs would spike the cost of a six-pack. But soda and beer prices have remained flat. Now Walmart has joined the chorus. But we have no more reason to believe officials there than other boys who cried wolf. To understand why lets review how tariffs work and how specifically the presidents tariffs work. First the basics: Tariffs arent imposed on the final retail price the way a sales tax is. They are also not imposed on the wholesale price. They are not even imposed on what the importer pays at the dock when the goods enter the U.S. The duties are imposed on an even lower price than that and thats a scandal in itself.