China is not paying!!!!

Regardless of what you think regarding the effectiveness of tariffs, I can tell you one thing for certain. Tariffs are not paid by the country that you impose the tariff on. This means when you impose a 25 percent tariff on goods made in China, the tariff (or tax) is imposed on the item when it reaches our ports of entry. This tax is paid by the American company who is importing the items, and usually that tax or price increase is passed on, in full or in part, to YOU - the consumer. It's a tax on YOU and ME!!!!!!

So when "Deceitful Donald" tells you that we are taking in so much money from the country of China as a result of these tariffs, big surprise, he is LYING!

The United States Constitution grants Congress the power to "regulate commerce with foreign nations, and among the several states." Over the last 90 years, since the passage of the Smoot-Hawley Tariff Act (1930), the congress has handed over more and more authority to the executive branch in this regard.

The Trade Expansion Act of 1962 and the Trade Act of 1974 are prime examples of Congress giving the executive branch more authority when it comes to reduce tariffs or negotiating trade treaties with foreign countries, which are then presented to Congress for up or down votes. 

The reality is that regardless of who authorizes tariffs, these taxes on goods is always a horrid idea. Whether it was the tariffs passed in the early 1800's by Thomas Jefferson, which crippled New England's shipping and trade economy, or the Smoot-Hawley Tariff's passed by Congress in 1930, which lead to a prolonged and deeper GREAT DEPRESSION, tariffs are always a failure, because there in nothing preventing other countries from imposing retaliatory tariffs on the United States. Tariffs do not protect U.S. industries, they just raise prices on goods for all consumers and business. 

TRUMP says "trade wars are easy to win." Spoken by someone who is completely ignorant of our history. NO ONE, I repeat, NO ONE wins in a trade war. 

The answer is not protecting old industry to make it great again, but the real answer is innovation and new industry so that the United States remains the world leader in new industry and technology. 

See the Cato Institute video on Smoot-Hawley

HBO VICE video on Trump's Tariffs and the real world impacts of these tariffs on real Americans!