What's really fucked up is that these companies will be able to sue for more than they really paid. When you place an excize tax on a party it doesn't matter which side you place it on. Both the buyer and seller pay, and the proportion depends on the slope of the supply and demand curve. I don't know what those slopes are for each of these industries but lets pretend they are even.
So sellers (foreign companies) pay 50% of the tax, and buyers (American individuals and companies) pay the other 50% of the tax, while on paper it looks like the seller pays 100%. They actually pay less in reality than on paper because they can raise prices. Now the seller will sue for what they paid on paper. So in the end Americans will have paid 150%. Probably more because our price elasticity is higher than the sellers.
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And guess who will pay for this fuckup. Muricans have paid $134 Billion in high tariffs and will pay for tariff refunds. What fuckery. (https://edition.cnn.com/2026/02/20/economy/the-usd130-billion-question-who-will-get-a-tariff-refund)
That's really fucked up. 100% true.
What's really fucked up is that these companies will be able to sue for more than they really paid. When you place an excize tax on a party it doesn't matter which side you place it on. Both the buyer and seller pay, and the proportion depends on the slope of the supply and demand curve. I don't know what those slopes are for each of these industries but lets pretend they are even.
So sellers (foreign companies) pay 50% of the tax, and buyers (American individuals and companies) pay the other 50% of the tax, while on paper it looks like the seller pays 100%. They actually pay less in reality than on paper because they can raise prices. Now the seller will sue for what they paid on paper. So in the end Americans will have paid 150%. Probably more because our price elasticity is higher than the sellers.
Trump got his hand slapped.
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