How Tariffs Effect You

David LeonardUncategorized

Higher costs

The tariffs now placed on China’s imported steel products have a direct effect on pinballers.

When the US places tariffs in imported steel and products, the importer raises the price of these products to cover the costs. The importer (you) will in turn pay a higher price at the market when you buy the products, like pinballs.

Since American companies have prices higher than the gaming market will bear for the simple steel ball, most business have gone offshore to procure them. Now that they cost more, the American companies will in turn raise their prices to match the increase on the products that were imported and thus, the only winner is the American manufacturer but only temporarily.

Because the overseas price is still cheaper, any gain that US makers enjoyed will eventually fall back to the overseas competitors. The tariff cycle repeats and prices rise again…inflation. Now you have the circumstances that FDR created and that took a war, with all it’s manufacturing demand to pull us out of the Great Depression

Tariffs don’t work. They are like people throwing rocks in glass houses. Nobody ends up with windows and everyone has cut feet.