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Comment by aborsy | Hacker News Reader

Basically, the plan was generally 10-15% baseline tariff across the board for all countries, and higher rates for sectors such as steel and aluminum.

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This will lead to inflation. Once prices increase, the prices won't come down, so the inflation will be permanent.

US manufacturers will get used to decreased competition, which will lead to poor quality and decreased innovation.

Smuggling will increase, particularly from Canada. Instead of going to the Apple store to buy your next phone you will agree to meet a stranger in a dark alley and pay cash to buy a smuggled iPhone.

The tariffs will be felt by poorer Americans while the rich will barely notice.

Probsbly better to once a year go to Latin America or Asia for holiday and do all shopping there and any clinic appointments

If the government taxes goods by an additional 1%, is that 1% inflation?

No. Tax is on the cost. If the good sells for $100 and cost $10. Then 10% additional tax increase the cost to $11. If the vendor decides to keep the same profit, then the price goes up by $1, which is 1%

If the price goes up then yes.

I could be wrong but once tariffs are set to higher rates, it's extremely difficult to lower them by subsequent leaders

People will definitely cheer when you lower prices. Businesses will push back, but that's also difficult since "we want to keep prices high" isn't a good lock. They have other ways to apply pressure, but it's (roughly speaking) a level playing field.

It's only possible to have tariffs now because people don't grasp the consequences. When prices go up, the tariffs will be less popular.

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