Rebel Capitalist News Foreigners ARE NOT Paying The Tariffs (Here's Who Is)
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Aug 18, 2025 Dive into the complexities of tariffs and discover how it's American importers who really pay the price, not foreign entities. The discussion touches on the intricate ties between tariffs and inflation, revealing insights drawn from historical data. Additionally, explore the implications of fluctuating oil prices on the global economy, suggesting that lower costs may signal economic weakness. The interplay of interest rates and treasury yields is also examined, highlighting significant effects on American companies.
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Import Prices Exclude Tariffs
- Import price indexes published by the BLS exclude tariff amounts, so flat import prices do not mean foreigners paid the tariffs.
- George Gammon concludes foreigners kept or raised prices, so they did not absorb U.S. tariff costs.
Data Shows Foreigners Didn't Absorb Tariffs
- Aggregate data show import prices are slightly higher this year, not lower, meaning foreign suppliers raised prices rather than absorbing tariffs.
- Therefore the tariffs' burden isn't on foreign producers in aggregate, Gammon says.
Caterpillar Shows Tariff Impact
- George cites Caterpillar's disclosure that tariffs will cost it about $1.5 billion this year as a real-world example.
- He uses this to illustrate U.S. firms are often absorbing tariff costs rather than foreign exporters.