This is the video to watch if you don't understand tariffs

Get this guy on the campaign trail

I hope @mcuban is listening.

The United States government generated almost all its' revenue via tariffs until the early 1900's.

Lots of mistakes: first Ford has a lot of factories in EU selling for local markets and people don’t buy big Ford trucks imported from USA because of gas cost and smaller streets, parking etc There is no demand…..not because there are tariffs

This is what Trump means with tariffs, the left is crazy talking about how tariff is going to increase good prices, but what they fail to understand is that it is a bargain chip, if they put tariffs on something it's meant to be put there so that the consumer is encouraged to buy American products instead, not to buy the product with 100% tariff.

I'm in EU. Whenever there's a product or service I would like to get from US, I have to consider the 20% added tax, so I look for EU options first. I don't like it and Americans are getting screwed too.

The EU and Japan impose only a 10% tariff on American cars Many of the Korean, German, and Japanese cars sold in America are made in the Sunbelt American cars don’t sell abroad because they suck because high tariff and non tariff barriers (regulations) keep real competition out They are complacent, they don’t innovate, they keep prices high. Unions dictate production First Chrysler and Jeep next ford and GM will be owned by foreign multinationals because they can’t even compete with foreign brands made in the USA in the US market

This is not how it works. Tariffs just like taxes are income for the government budget. We have troubles collecting taxes from corporations and passing new tax laws is hard and lengthy, so tariffs seem at first as an obvious solution. Many American companies moved manufacturing and suppliers abroad. They avoid paying taxes by moving money abroad as payments for imported goods. Simply put our import is already very expensive. And here is why: Say Starbucks claims to buy coffee at $5 a pound in Latin America and selling it in US at almost break even. In reality they establish a purchasing affiliate abroad that buys coffee locally for $2 and pockets $3 tax free. The tariffs in this example will “tax” Starbucks on all imported coffee making it impossible to hide profits from taxation. Seems great? Not really, tariffs will create 3 problems: 1. Inflation. In the example above Starbucks will just raise prices by the amount of tariffs, 2. Many importers, like Apple move money abroad as royalty and licensing payments, which is impossible to put tariffs on, 3. Tariffs will create enormous corruption in government, deciding who gets them and who is exempt. The third is the main reason why Trump wants tariffs- to be the sole ruler of who gets the tariffs and who will have to bribe to get a “free pass”.

He says we can't sell a Ford in Europe. Ford sold 1.1 million cars in Europe in 2020, before the pandemic hit. He says Europe has a 100% tariff on cars. It's 10%. And we have a 25% tariff on European pickup trucks btw. I stopped listening at that point.

@LeeSmithDC One of Trumps to greatest strengths is his ability to negotiate ala “The Art of the Deal” this explanation makes total sense.