Steve’s Barking; Another look at American Tariffs and how it may effect countries

 How hurt will the world economies be hurt by U.S Tariffs?  It might not be as much as people think.

 Let’s say that China or for that matter any country normally sells a hundred units of a product to the United States, and the United States businesses buys that unit at a hundred dollars and there by sells unit at a hundred and ten dollars, let’s say the new tax on that product is 50 percent and is passed along to the American consumer, if the American consumer needs that product they will buy it at the higher cost. If the product is essential and there is very little that the American consumer can do to replace the foreign manufacturer will still sell that product in America though not as much. 

 I was thinking that possibly the foreign manufacturer will only sell maybe 70% of what they would normally sell the product that still 70 units. A country such as China can give incentives to the local consumers to buy the product there by not hurting the manufacturers as much as one would think.

* Much of what is being taxed can not easily be replaced by American manufacturers. It’s just the cost that may lessen the amount of those goods being sold.

 ** The results of the tariffs will not be seen until late June, early July to test my theory.

*** There are several high end products that may be hit harder then the lower end products.