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US-China Deal - Just a 90 Day Pause - Are We Being Misled About Tariffs?
This video from "Rethinking the Dollar" points out the "non-deal" being sold as a deal wherein a 90 day pause results in about a 50% tariff still in place for 90 days. What most people don't know is that a tariff is paid by the purchaser of the imported product. If company (A) has a long-term contract for their patio furniture to be manufactured by company (B) in China, the new tariff is not covered in the contract unless both parties agree to restructure the contract so that both accept a portion of the new cost. Otherwise, company (A) must pay the full duty at the dock before he can receive his product. Trump is expecting that company (A) will sever the contract with company (B) and either invest in a factory of his own or find a factory to contract with in the US. If you have ever operated a business you know the extent of time and money these last two options will CONSUME. Bankruptcy would be the less costly choice.
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