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In reply to the discussion: Trump Says U.S. Will Purchase Crops to Offset China Losses [View all]onenote
(45,726 posts)The tariffs that Trump is imposing on imported Chinese goods will raise the cost that US consumers pay for those goods in one of two ways. Either US companies that purchase those goods (for resale in the US market) will pay more them and pass that additional cost to consumers or US companies will find alternative sources for those goods, presumably paying more than they were paying before the tariffs were imposed.
On the flip side, the tariffs that China imposes on US agricultural goods will hurt farmers to the extent that China finds other sources for those goods -- which may be easier for them than it will be for US purchasers to find alternatives to the tariffed Chinese goods.
If US purchasers reduce their purchase of Chinese goods (and instead find other sources), there isn't going to be this big pile of money to pay to farmers to offset their losses. And to the extent that there is a pile of money, it's not coming from the Chinese, it's coming from the US companies (and their consumers) who ultimately pay the tariff.
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