Heiner Herkenhoff, managing director of the German Bankers Association
“There is no point in striking back hastily with additional measures,” Herkenhoff said
Hmmm, no
can’t let trump behave like a toddler in tantrum, some firm feedback is needed
Thats what Putin said to Zelensky
Tariffs equal a tax that governments charge on imports. This tax is paid by local/domestic importers, not foreign exporters. The government collects this “tax”.
If the government said let’s increase taxs the public would be furious at the grocery line. But saying, “let’s tarrif foreign countries” seems to imply that locals won’t be paying these taxes.
To retaliate countries should instead tack on a surcharge to exported goods to the US. This cost would then be past onto American importers in a increased cost of goods.
The surcharge to exported goods can be collected by your local government and used as a stimulus for the local economy.
Tack on a export surcharge to the US, this stacks on top of the US import tariffs their government charges their local importers. The US locals now need to pay their tarrif and the surcharge which increased the price of the goods they imported two fold.
So that lowers the margins and volumes of domestic exporters that export to the US even further. Meanwhile American exporters who sell domestically get to keep their margins and volumes.
