What is a Tariff? How do Tariffs Work?

[@510tuber]

I don't know why it's so difficult for most people to simply explain how something works. It's always nice when you finally find a video that puts things in simple terms and doesn't speed through it but also doesn't stretch it out.

[@bings2867]

this is difficult for me honestly, who pays the tarrif?

[@Thor12233]

​@@bings2867 if you put tarrifs on china, americans companies will have to pay, which in turn makes americans pay

[@bings2867]

@@Thor12233 thank you i ended up figuring that out yesterday, really took me a bit to find that out.

[@brianmiller5074]

I love your explanation I goofed off in school and the way you put it makes perfect sense and very easy to understand. Thanks

[@IncredibleStan]

FINALLY!! A video that visually explained this in an easy way

[@jstrick31907]

You explained this in a professional and very clear manner.

[@nursyaura6910]

I’ve been trying to understand what is tariff because of social studies and this video was the best thing i’ve ever watched on youtube! THANK YOU!!

[@ponzu1759]

You made it so clear, thank you so much! I have an assignment due on International Trade tomorrow and this was the best explanation

[@judithmcdaniel7343]

Very nice presentation. Simple to understand the meaning of Tariffs.

[@rickybaker42]

We’re talking about value differences here. Both sides understand tariffs and capitalism. My take: if the Chinese price point is only possible due to their slave labor rates, I don’t think we should be validating Chinese factory employers not for altruistic human rights reasons, but because we would need to drop minimum wage to $1.52/hr to stay competitive (I also care about human rights so it’s a win win). Furthermore we cannot be allowing other countries to undercut American companies when that opportunity should be going to American competition. Lastly, we need to stop pretending that it’s not incredibly destabilizing to shop more and more of our reliance over to countries that are not our friends.

[@c5-36adhirajjadhav8]

It was so easy to understand. You explained it within 3 minute.

[@johnzarznia6814]

Solid presentation, you explained tariffs well

[@LearntoInvest]

As always John, I appreciate you sticking with me. I've got more videos coming out later this week.

[@johnzarznia6814]

I look forward to seeing them.

[@kikikiki8736]

OMG thank u so much for this. I didnt play attention in class and I didnt really understand what my teacher was saying so thank u. :)

[@woahtherr5371]

finally came across a video that taught me what I was seeking to learn. Thank you!!

[@alparslankorkmaz2964]

Nicely explained.

[@eyuwang]

Nice quick video that explains very clearly about what a tariff is to me

[@philam1973]

Where does the $5 come from? Or go to? Done at the port of entry? At the distributor? At the final retailer? I know it adds $5 to each unit at the end but where does it start and how imposed?

[@joborison9764]

The people importing the item from B pay the 5 to the government A. Then the price of the item from country B for the importer to buy is essentially $15 ($10 to country B+$5 to government A). In order for them to sell it for a profit they need to add their mark up to it so goods from country B wouldn’t be priced at $15 like the item from country A they would be priced at say $16. Then country A producers think well if people are still buying them at 16 I guess then we can charge that too. So the price of the goods you bought for $13 before tariffs came would initially increase due to the tariffs, and then have a secondary increase due to a lack of competitiveness that normally helps to drive prices downwards. So you used to pay $13 and now you pay 16 plus you just triggered a trade war so all your prices go up. And don’t forget the sales tax on top of those increases. Sale tax is a percentage so you pay more on a 16 dollar item than you did on the 13 dollar item.

[@babychubs4346]

How does this video only have 15 likes it explains it so well and was very helpful!

[@LearntoInvest]

Thanks, I really appreciate that! 😀

[@mariewright9969]

Hi can I use this video for internal training? Please reply to me within 7 days? Thank you

[@mr.umbrella3979]

This is such a great explanation!

[@jakehoffman9115]

Great, simplified explanation!

[@ruslansayfullin6194]

It was clear and easy to understand, thank you for the lesson.

[@icevariable9600]

Trump thinks this is the answer; but it’s not. It hurts American companies that import, since they have to pay the tariff, increasing the price to distributors and retailers and customers.

[@c-tfamilychronicles6517]

Then why did it work so well? There are ways to do it intelligently and strategically. The economy was already recovering from Covid in 2021 when he left office. Then everything turned to a shitstorm and inflation went up to 9%, a record high, in 2022. It amazes me that people don’t think the BUSINESSMAN knows how to make money.

[@kberken]

The truth is that trump refuses to learn that what he used to believe about tariffs is wrong. For whatever reason he thinks the exporter pays the tariff to the US government. And we get all the money and nothing else changes. But you can't convince him he's wrong! Vote Harris Walz! 💙💙

[@brucelee9658]

Then those companies would have to invest in domestic labor instead of foreign labor. That means more jobs for Americans. Buying imports is just giving money to other countries instead of Americans.

[@TheSilentWalkerz]

@@c-tfamilychronicles6517Nope, it actually caused a huge inflation problem for prices in 2016 to 2020. Stop listening to Fox News 😂

[@mongo_sk]

@@TheSilentWalkerz Inflation was actually not that out of hand and unemployment was at some of the best rates in decades, the inflation act that biden enacted literally dramatically rose inflation.

[@ntwynn]

Please share this to a Trump voter you know.

[@cincent5805]

Will be a good review for them. Show to a democrat if you care to share new knowledge with them.

[@TheSilentWalkerz]

It wouldn’t work because those morons don’t watch videos, they watch titles and argue with anyone without understanding the topic 😂 Many economist and Mitch McConnell said it was a bad idea to have tariffs

[@scottcharney1091]

@@TheSilentWalkerz Virtually all economists, in fact.

[@scottcharney1091]

@@cincent5805 Said Trumpists won't be paying attention, unfortunately.

[@wesleytietz4506]

Please inform democrats that Biden kept Trump's tariffs because so much money is pouring in. Also please tell Kamala Harris voters that if you take tariffs away that means country A (AKA USA) will lose jobs because of not having tarrifs.

[@phoenixblack1220]

Excellent explanation! Thank you.

[@jasonchu4400]

doode that was good it was throughly explain with visual graphics it’s 10x any classes or schooling bro

[@userezdog7564]

Then isn't a tariff the antithesis of a free market?

[@scottcharney1091]

Yes.

[@TheSilentWalkerz]

Which is ironic that so many republicans support it 😂

[@norfolkbulldogs8602]

Loving your channel. Thanks

[@bamufrmda0]

Good video

[@charlieharrison7234]

Thanks for giving me a clear understanding...i think I get it

[@LearntoInvest]

:) any questions... Fire them my way, I'm always happy to help :) thanks for the support

[@ASKstrive]

I'm here after country A "America" put tariffs on country B "China" this may have short term benefits for country A but long term effects also until country B is not your country.

[@LearntoInvest]

For sure, I'm not a big fan of tariffs. Since its Country A's responsibility to pay for the tariff, I believe that any benefits are small if at all.

[@ASKstrive]

@@LearntoInvest Trade war is real. There are gangs, mafia, involves, if Country C is weak unlike A & B, i am from Pakistan category 'C' but honest than A & B now, ruled by hell corrupts till the end of 2018, for last 8 months, Pakistan has been trying its best to meet the measures to tackle trade deficits, bent down economy, Pakistan provide corridor to China for one belt & road initiative started by China to meet the middle east & Europe in days rather than weeks. I think trade is better than bombings which country 'A' do. Problem is no one is loyal & trusted all are working for their interest that put World on real threat, i.e Climate, Water, Animals & Humans.

[@LimeLivesMatter]

Update on China's decrease in GDP (don't know what it is)

[@lailac8964]

Pls do what is job argument. Thank you

[@johnmckay2486]

He didn't mention how country b has slave labor and can produce things super cheap. Buy from country b supports slave labor child labor. Also country a has union and has t9 pay good wages which makes it hard to lower costs.

[@MrEchskech]

Who's here after listening to Trump's half-baked idea for saving America?

[@StevenMiller-cx6co]

So buy the 14$ widget made in your country? Vs the widget with an added slave labor tax,

[@UnwantedIrvine]

Thank you

[@Rebecca-zr3lu]

God, thank you for your wisdom and love and guidance over all costs and productions in Jesus name. Amen 🙏

[@Kraidismyspiritanimal]

And they're only IF country A does business directly with county B. For example, there is a traffic on Chinese steel, but it is imported by an American company. The company buys its steel from China directly but the American company ends up paying the tariff because it is the one doing the importing. So now it's affecting American companies instead of China

[@rickybaker42]

I don’t think you understood the video. If it’s more expensive to import steel than buy locally, American companies won’t import. This creates demand for local sources goods and floods the market with jobs as companies compete within America to earn our dollars.

[@Kraidismyspiritanimal]

@@rickybaker42 That's the idea, you're right on that,but you have to think big picture too. If a company A imports from China and Chinese imports get a tariff, company A can't just shut down and say welp we're done. They have contracts and orders to honor, and workers who can't just lose their job, so they're stuck with that contract and the new tariffs. Plus, if Chinese steel gets a tariff but not German steel (for example), now the demand for German steel goes up, eventually hurting the Chinese economy. The increase in American goods is the ultimate goal, but that takes time..the factories need to be built, people need to be trained, infrastructure needs to be developed, etc.

[@rickybaker42]

@@Kraidismyspiritanimal that’s true, it’s a problem if we don’t have steel factories of our own. I imagine steel is not the best example because we could source locally if we wanted to, but I’m sure there is some good that, should a tariff be applied, would create the issue you’re describing. I just don’t think Trump would impose tariffs willy nilly without looking downstream and making sure we couldn’t handle it

[@69pepe420]

funny how every country has tariffs on USA but we're told its a bad thing isn't it? one thing this video misses: tariffs are a bargaining chip for better trade deals and keeping good paying jobs

[@mariacleary5769]

What software tool was used to create a video like this?

[@LearntoInvest]

I used a software called videoscribe

[@mariacleary5769]

@@LearntoInvest Thanks!

[@MFEeee]

I don’t know how I feel about this. Prices are regulated by supply and demand. And sometimes government laws makes making things in America expensive. While at the same time other counties don’t go through the same stringent testing American products go through if it costs less

[@TheSpartan3669]

I think labor is where most of the production cost disparity stems from. Countries that pay workers $5 dollars a day are going to have products much cheaper than similar products made in the US based on that alone.

[@scottcharney1091]

If the domestic consumers don't like the quality of the imports, they won't buy them. If they do like the products and/or the prices, domestic producers have an incentive to innovate.

[@TirifokaGam-ki9vx]

WHAT IS A QOUATAS?? PLEASE HELP ME

[@JDWilliamsPD]

Bravo!

[@andyyhimself]

Better to have buyouts and correction overtime than war and crime👍

[@mr.atomictitan9938]

Basically if your an own of a company tariffs are good so you get less competition from other countries but for the common citizen this would be bad if someone wants to buy that import from the other country or don’t want to pay more taxes for a product that might be higher in quality than what their countries company is selling. Good for business bad for normal citizens

[@LAFC.]

Oooooh I get it now. So basically what you're saying is that I'm an idiot?

[@michaelscott993]

Someone send this video to Trump.

[@ShawsOwn]

Okay, but explain how you think this video somehow defeats his idea of tariffs on China.

[@theinquisitiveprince7095]

@@ShawsOwnit’s simple to explain. You’re correct, this video doesn’t defeat Trump’s idea. And Trump knows that. Trump is playing on the lack of knowledge of the American people just to get elected. Unlike most Americans I do research. Trump and his cronies know China has a loophole. China can ship those goods to Mexico and Thailand to go around tariffs. That’s what the American people don’t know and understand. The optics make Trump look good. But guess what? Those goods are still getting in doing damage to the US manufacturing sector.

[@pcdosgirl]

​@@ShawsOwnNobody wins a trade war, first off. The tariff costs will be put on the shoulders of the consumers, and that is an absolute guarantee. The importers are not going to pay the tariff hike. So we just stop buying certain things that we don't absolutely need. But some items are absolutely necessary, and those costs will go up. And we import ALOT from China, not just gadgets and doodads but critical products like farming equipment, medical supplies, a good portion of our technology, etc. There is no logical way to put a blanket tariff on imports from China that doesn't hurt US working families, individuals, small businesses and even large corporations that are still doing business in the US. In order to cut costs, big business will outsource manufacturing and production. It's just a bad idea all around. Are ANY economists in favor of setting these high tariffs on imports? I'd be surprised if any are. Small tariffs work, large tariffs create higher prices and can ultimately lead to trade wars.

[@dylahateen4194]

​@@pcdosgirl that's the point, stop sourcing our manufacturing to other countries, to stop companies from using other countries for cheap labor, so we're getting manufacturing jobs back to America so we can have good paying jobs again. Also we don't get "AbSoLUtElY nEcESSaRy" from China, farming equipment(that's John Deere, so America/mexico), medical equipment/supplies are mostly produced in America, and our technology mostly come from other Asian countries(Taiwan, Japan, and South Korea).

[@jimihandtricks4291]

What is a widget? How do widgets Work?

[@aarav_seth]

Nice

[@phyynanimals]

if you have money= good if you already hate the high prices of stuff= bad

[@mannsolo6294]

No decision ever made in business is for the consumers benefit...

[@adamrussell658]

Econ 101: Consumers pay.

[@johnsmith-dm2tq]

you forgot county c, now that all widgets are 16$ i can buy the nice French press widget instead of the Chinese one.

[@etiennevachon2813]

Trump says he didn't start any wars… Well, he did. Trade wars. Absolute buffoon.

[@matthewvarnam4302]

Do yall know what this Video did not Explain....... TRADE DEFICIT!!!!!

[@mrsoggyramen9596]

So you could have no job and can’t afford a widget, or have a job and pay a little bit more for a widget? I’d prefer the tariffs.

[@nikey3657]

Is this Jordan peterson.

[@Commonsense1980-s7x]

It's purpose is to BUY american goods over foreign goods. Who pays the cost of raising taxes on American companies?

[@chancheng2614]

It's bad I hate tarrifs

[@babyboysmash6615]

Thanks for the confusion I am not a ape by the way.

[@coveeclown9397]

who gets the money from the tarrif? country A sucks now..

[@northofmainstreet7281]

Lululemon

[@seabliss22]

They are good. Especially if country A uses quality materials and pays it workers a living wage. Meanwhile country B uses cheap materials and slave labor. Bring manufacturing back to the USA and give us back quality merchandise.

[@TheSpartan3669]

Then everything will cost 5-10x what it does now. If people wanted expensive quality products made domestically there would be a greater demand. What you want is to place a tax on all Americans to subsidize the jobs of a few American workers. That's a handout.

[@TheSilentWalkerz]

Domestically made doesn’t mean better quality.

[@scottcharney1091]

If the consumer prefers the imported item for whatever reason, they will buy it. Domestic manufacturers then have an incentive to improve their products.

[@garcand]

Country a=china Country b=rest of the world Trade= electronics and technology. Plug it into the equation.

[@mohdfarhan5255]

I thought country b=china since their product always the cheapest and decent quality

[@zukophantom5856]

@@mohdfarhan5255 it is b, pretty sure that’s what OP meant

[@bootyclappa2907]

So basically tariffs screw the majority of people because they can't buy it for as cheap as they were. Tariffs is just a small word for Corporate Greed... Wouldn't it make more sense if country A just bought country B's for $12 & sold them for $13 because that sounds more like a win win, instead of a win lose lose

[@ETRH6]

Completely laughable. The goal of economics isn’t just to produce things to consume at lowest possible prices (that’s corporate and Jewish greed). Even though that’s how it is now that shouldn’t be the goal. That’s how you get foreign capture of a country, low wages, and reliance on foreign workers to do higher skilled jobs for lower wages instead of having a domestic population doing so and making high wages and growing its domestic industrial capital capabilities to be self dependent.

[@jonest012002]

This sucks my mom is making me watch this and it so boring