Yes. We will pay for the tariffs.
American companies will pay for the tariffs, and then we the consumers who buy their products will pay for the tariffs via price increases.
This is money that we will invest. It is a tax. It is the government causing us to spend more money.
It is not a usual tax in the sense of money paid to the IRS. But it is an economic cost that we will pay in order to support a government policy.
The cost is paid to enact a certain outcome. The outcome is less importing of goods, and more of those goods being provided by sources within our borders. It will cost money to make this change. That cost will be paid by us.
We are being forced to pay money to enact a policy. That’s how it’s essentially a tax.
Except this policy is basically:
- More stuff that American consumers consume, will come from American companies
- There will be more manufacturing capability to meet this demand
- There will be more demand for American labor, improving the lives of American workers
- We will be more militarily capable due to being able to build more things in-house
That is a set of changes being targeted by this policy. We will pay for this policy by paying higher prices. The intention, the hope, is that the policy will pay for itself in terms of the third bullet point: more manufacturing in America means more jobs for Americans. More demand for American stuff means better bargaining position for American workers, means more income.
In the short term it’ll suck. Just like any other heavy tax can suck in the short term, before the benefits can manifest and make it worth it.