Imagine that you’re in the market for a new car.
You’ve narrowed it down to two models, a Ford that costs $35,000 and a BMW that costs $40,000. You’re weighing whether it’s better to save $5k by going with the Ford, or to spend a bit more to get the extra features and prestige of the BMW.
Donald Trump wins re-election and immediately puts a 20 percent tariff on all foreign-made goods. The BMW now costs $48,000 due to an $8,000 dollar tariff.
That may be a deal breaker. If the BMW is now out of your price range, you’ll buy the Ford.
On the other hand, if you really want a BMW, you might be willing to pay more to get it, even after the price hike.
But here’s the important point. BMW is not going to pay the extra $8,000. The German government is not going to pay the extra $8,000. The European Union is not going to pay the extra 8k.
YOU are you going to pay it! That 8 grand comes out of YOUR wallet.
It’s not magic money that suddenly appears to help our country. It’s a tax that the government has imposed on YOU, the American consumer.
Consider also retaliation. Europe may fight back by putting a 20 percent tariff on American goods. That means fewer sales, which could lead to layoffs and economic hardship in the US.
Tariffs are a bad idea, a terrible idea, a horrible idea. Tariffs punish consumers and harm the economy.
Vote wisely.
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