Boy this is getting old. Why does Trump keep claiming that tariffs are good and that China is paying for them? Read this article to understand how Tariffs 101 works. China does not pay a cent, the only way they face harm is a decrease in exports. Walmart and other big box, low cost retailers are making noises about raising prices. Even Dollar General and other stores in that niche, Dollar Tree, Family Dollar, etc know that price hikes are inevitable as the tariffs take hold.

I mentioned that Tariffs only downside is that someone trading partner, more accurately, the manufacturers and consumers of that country decide to find other sources to buy the product.

On Friday Trump announced a $16 billion bail out to farmers, primarily Soy Bean and corn producers. Why? The answer is simple, China doesn’t like the price hike and has taken its business elsewhere, Canada is a major winner.
Even if the tariffs were lifted today, the US farmer would still be ‘screwed’. China went shopping almost 2 years ago, US farmers still have 50% of last years crop in storage, Trump gave the $12 Billion in relief. So here we are, Trump has spent $28 Billion giving free money to farmers, farmers that were doing just fine until he started a trade war with China. Who is paying the $28 Billion? The US taxpayer of course. So now we are effectively not only being taxed for things we buy, but taxed for selling things as well.

Clearly this will have no effect on his supporters, regardless of how outrageous he is his fan base 30% of voters will continue to support him. I am sure most even believe that China is paying $billions to the US treasury, they could not be further from the truth.

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