Dem
47
GOP
53
Donald Trump's model of tariffs works something like this: A container with 100,000 $10 T-shirts from China shows up in Los Angeles, so the customs officer sends a bill for $1,450,000 to Walmart. Presto! T-shirts get more expensive, so an American factory magically appears in Iowa and starts selling cheaper T-shirts.
As it turns out, there is a bit more to it. The business manager at a small craft beer company, BabyCat Brewery, wrote a letter to The Washington Post explaining how the tariffs will make (craft) beer more expensive. Their beer is shipped in aluminum cans and there is a 25% tariff on aluminum, which means their cans will get more expensive. They will have to raise their prices correspondingly. In addition, they import grains and hops from Germany and glassware, paper, and other products from all over the world. All of the tariffs will have to be reflected in their price. Will their higher prices create more jobs in American beer factories? Probably not, since they are already an American beer factory. All they will do is add to inflation.
Another letter came from a small business in Virginia that makes custom window coverings. All the fabrics used in the coverings come from abroad because no U.S. company makes them. The tapes, trims, tiebacks, and other decorations mostly come from abroad. The drapery hardware and blinds use aluminum and steel, most of which is imported. The only curtain rod manufacturer in the U.S. uses ball bearings from Germany. All this means that she has to charge more for her products. The author of the letter ended with: "I am frustrated with the business 'genius' of our president. I have relatives who voted for him who send me messages suggesting that the tariffs other countries levied on the U.S. are going to come down, so all will be well. We did not have a tariff problem in my field. Other countries' tariffs were not affecting our bottom line. We have a tariff problem now, and it's all homegrown."
There were other letters as well, all pointing out that many small businesses in the U.S. are going to have serious problems due to the tariffs and some of them will not make it. (V)