President Donald Trump, who has been officially in business since 1971, and after 48 years of experience of all sorts he has earned during his business, including 4 bankruptcies according to one methodology and 6 bankruptcies according to a stricter methodology, does not know who is the payer of tariffs .
Evidence of this is the whole series of his yesterday’s Tweets, where he is totally mistaken, explaining to the American public that the increased duty from 10% to 25% on Chinese goods “will pay China” and that “China will pay it directly to the US Treasury.”
This is completely false, deceptive information. Unfortunately, about 32 million illiterate adult Americans (every 7th adult American) will not read this encouraging but false message. However, tens of millions of uneducated Americans will believe this false information and will undoubtedly praise the president. These are the political points that count.
But what is the reality? Who pays customs tariffs on imported goods?
After all, every student of economic school, every business knows the correct answer: when the US imposes a Tariff, the US Company that imports the item will pay the tariff and be forced to raise it’s prices so in the end YOU WILL PAY THE TARIFFS.
US President’s ignorance is in the category of despair and public clownery. In his textbooks on business, there is no mention of this obviously significant cause of his 4 or 6 bankruptcies.