Steve Rattner breaks down who REALLY pays Trump’s tariffs
THERE. LET’S BRING IN FORMER TREASURY OFFICIAL. >> AND MORNING. >> JOE ECONOMIC ANALYST STEVE RATNER. STEVE, GOOD MORNING. >> WE’LL TALK. BIG PICTURE. >> ABOUT THE TARIFFS. >> BUT LET’S PUT ON. >> YOUR CAR. >> CZAR HAT. >> AND THE OBAMA ADMINISTRATION FIRST. CLEARLY SOMETHING HAS TO GIVE. IF YOU HAVE A 25% TARIFF. >> YOU’RE AN. >> AMERICAN AUTO MANUFACTURER. WE SAW THAT SOME OF THE COMPANIES SAYING THEY’LL LOSE BETWEEN TWO AND A HALF AND $5 BILLION. BUT WHEN DO CONSUMERS START TO FEEL THIS. >> YOU KNOW. >> THE IRONY. >> OF THIS OF COURSE. >> IS THAT. >> A GOOD PART OF WHY TRUMP WAS IN FAVOR OF TARIFFS IS. >> LEGITIMACY FOR. >> TARIFFS, WAS. >> TO HELP THE AUTO INDUSTRY. >> AND TO BRING CAR MANUFACTURING. BACK HERE. AND I SUSPECT SOME. >> VIEWERS, ANYWAY. >> SCRATCH THEIR HEADS DURING THIS PROCESS WHEN THE AUTO COMPANIES KEPT SAYING, YOU KNOW, WE DON’T WANT THESE TARIFFS, WE DON’T WANT THESE TARIFFS. WHY DO THEY NOT WANT THESE TARIFFS. BECAUSE THEY ACTUALLY IMPORT A LOT OF THEIR CARS. GM AND CHRYSLER FROM MEXICO AND FROM OTHER PLACES WHERE MANUFACTURING IS LESS EXPENSIVE. SO NOW YOU HAVE THE TARIFFS. AND WHAT IS WHAT IS HAPPENING SO FAR IS THE COMPANIES ARE ABSORBING MOST OF IT. SO CONTRARY TO WHAT TRUMP SAYS, THAT THE MEXICANS ARE GOING TO PAY THE TARIFFS OR THE CANADIANS ARE GOING TO. >> PAY THE TARIFFS. >> RIGHT NOW, IT’S BEEN THE CAR COMPANIES THAT ARE PAYING THE TARIFFS AND IT’S CUTTING. AS YOUR CORRESPONDENT. JUST SAID, VERY SUBSTANTIALLY INTO THEIR PROFITS. SO THAT’S THE IRONY OF ALL THIS, THAT IT’S ACTUALLY BEING PAID BY THE VERY PEOPLE THAT TRUMP IS TRYING TO HELP, WHICH. >> IS WHAT THEY SAID ALL ALONG. AND NOW. >> HERE WE. >> ARE. >> AND IT’S HAPPENING. LET’S GO BACK TO THE JAPANESE TRADE DEAL ANNOUNCED YESTERDAY 15% TARIFFS. HE SAYS THAT JAPAN’S GOING TO INVEST HUNDREDS OF BILLIONS OF DOLLARS TO GREAT PROFIT OF THE UNITED STATES. HELP US SIFT THROUGH. WHAT’S REAL IN THAT DEAL AND WHAT’S. >> SORT OF FANTASY ABOUT IT. >> LET ME, BY. >> THE WAY, I DIDN’T ANSWER ALL. YOUR QUESTION IN TERMS OF AMERICAN CONSUMERS. THE COMPANIES ARE SAYING THAT PRETTY SOON THEY’RE GOING TO HAVE TO START RAISING PRICES. THEY CAN’T KEEP ABSORBING IT. BUT BACK TO YOUR OTHER OTHER QUESTION. >> SO LOOK, IT’S FIRST. >> OF ALL, IT’S CLASSIC TRUMP SORT OF NEGOTIATING STYLE. YOU THREATEN SOMETHING. HI. THIS ISN’T AS HIGH AS SOME OF THE THINGS HE’S THREATENED, BUT 24%. THEN YOU DO A DEAL AT A LOWER PERCENTAGE AND EVERYBODY SAYS, OH THAT’S GREAT. HE YOU KNOW, HE BACKED OFF A BIT AND WE GOT SOMETHING. MORE REASONABLE. >> BUT THE. >> 500 OR 550 BILLION, I’VE SEEN DIFFERENT NUMBERS OF INVESTMENT IN THE US. I DON’T UNDERSTAND THAT AT ALL. MAYBE THERE’LL BE SOME INVESTMENT. BUT THE IDEA THAT WE AMERICA, ARE SOMEHOW GOING TO GET 90% OF THE PROFITS IS A CONCEPT IN BUSINESS I HAVE NEVER HEARD. >> AND SO. WHO KNOWS WHAT HE’S TALKING ABOUT. >> BUT, BUT BUT THE JAPANESE ARE CERTAINLY HAPPY. THE STOCK MARKET WAS UP 3.5% OVERNIGHT. TOYOTA STOCK. WAS WAY UP OVERNIGHT. >> THIS DOES. >> HELP THEM. AND WE’VE BEEN FIGHTING THIS FIGHT AS YOU KNOW, BECAUSE TRUMP HIMSELF WAS INVOLVED THAT FOR 40 YEARS OVER JAPANESE CAR IMPORTS. AND NOW IT’S LANDED IN A PLACE THAT BOTH SIDES SEEM TO BE ABLE TO DEAL WITH. >> SO, STEVE, LET’S TAKE A STEP BACK. >> WE DIDN’T GET THE 90. >> TRADE DEALS IN 90 DAYS THAT THE. ADMINISTRATION PROMISED, BUT AFTER SOME DELAY, WE’RE GETTING SOME PROGRESS NOW. JAPAN? YES. ALSO, HE MET WITH THE LEADER OF THE PHILIPPINES. >> YESTERDAY. >> ANNOUNCED THE DEAL COMING THERE AS WELL. RECENTLY SAID THERE’S ONE FROM VIETNAM. >> ALTHOUGH THE VIETNAMESE GOVERNMENT HASN’T SIGNED OFF ON APPARENTLY. >> ALL OF IT. >> JUST GIVE US YOUR. >> BIG PICTURE. TAKE RIGHT NOW OF THE PROGRESS THAT THE ADMINISTRATION IS OR IS NOT. >> MAKING ON. >> THESE DEALS, AND WHAT SORT OF IMPACT WILL THAT HAVE FOR THE CONSUMERS HERE? >> IT’S A. >> LITTLE HARD TO KNOW. EXACTLY WHAT PROGRESS, BECAUSE HE ANNOUNCED HIS DEALS. AND THEN LIKE THE VIETNAMESE DEAL, IT TURNS OUT THERE REALLY ISN’T. >> A COMPLETE DEAL DONE. >> NORMALLY, IT TAKES A YEAR OR TWO TO NEGOTIATE ANY SINGLE TRADE DEAL. THEY CAN SOMETIMES RUN HUNDREDS OF PAGES OF DOCUMENTS OVER EVERY LITTLE, EVERY LITTLE PIECE OF IT. HE’S HE’S FACED WITH A SELF-IMPOSED DEADLINE THAT WILL BE INTERESTING TO SEE HOW HE WRIGGLES AROUND, WHICH IS THAT ALL THESE TARIFFS THAT HAVE BEEN SUSPENDED HAVE TO GO INTO EFFECT ON AUGUST 1ST. IF THESE OTHER REST OF THESE 90 DEALS AREN’T MADE, AND THEY’RE OBVIOUSLY NOT GOING TO BE MADE IN A WEEK, SO WE’RE GOING TO HAVE TO SEE WHAT HE DOES ABOUT THAT. SO FAR, THE IMPACT ON CONSUMERS HAS BEEN FAIRLY MUTED. ONE HAS TO SAY THE COMPANIES HAVE BEEN ALL THESE COMPANIES, NOT JUST AUTO COMPANIES, HAVE BEEN ABSORBING A LOT OF THESE COSTS. MOST OF THE TARIFFS HAVE BEEN SUSPENDED. NOW WHILE WE GO THROUGH THIS PROCESS. AND SO ONCE AUGUST 1ST HITS, IF HE ACTUALLY DOES WHAT. HE SAYS HE’S GOING TO DO, WHICH OF COURSE YOU NEVER KNOW IF THAT’S WHAT’S GOING TO HAPPEN. YOU COULD START TO SEE PRICES GO. >> UP. >> REASONABLY MEANINGFULLY. >> SO STEVE, ON. >> THAT. >> POINT, SAY THERE’S. >> A SHIP OUT THERE SOMEWHERE. >> CARRYING A BUNCH OF TOYOTAS FROM. JAPAN TO. >> THE UNITED STATES TO LONG BEACH, CALIFORNIA. >> AUGUST 1ST. >> ROLLS AROUND 15% TARIFF, DOWN. FROM 25% TO 15%. THAT KICKS IN. WHAT’S THAT GOING. >> TO. >> COST THE AMERICAN CONSUMER? BECAUSE THE CAR. >> COMPANIES HAS INDICATED. >> AS YOU INDICATED, THEY’RE NOT GOING TO COVER IT FOR VERY LONG. WHAT’S GOING TO HAPPEN TO. >> THE AMERICAN. CONSUMER IN PURCHASING. >> THE CAR? >> YOU’RE GOING. >> TO SEE PRICES GO UP. I MEAN, IF YOU TAKE A VERY ROUGH RULE OF THUMB ABOUT PRODUCTS IN GENERAL, PROBABLY SOMETHING LIKE HALF THE COST OF RETAIL COSTS OF A PRODUCT. IS THE COST OF ACTUALLY THE PRODUCT COMING INTO OUR COUNTRY. THE REST IS SALES AND DISTRIBUTION AND ALL THE OTHER THINGS THAT GO ON. SO IF THERE’S A 15% TARIFF, YOU COULD IMAGINE PRICES GOING UP 7.5%. BUT REMEMBER, ONE OF THE POINTS OF TARIFFS IS THAT THEY GO UP NOT JUST ON WHAT’S BEING IMPORTED. THEY ALSO GO UP ON DOMESTIC GOODS, THE SAME GOODS, BECAUSE ONCE THE IMPORTED PRICE GOES UP 7.5% OR 15% OR WHATEVER, IT GOES UP A DOMESTIC MANUFACTURER. AND THIS IS REALLY THE POINT OF TARIFFS OR ONE OF THE POINTS DOMESTIC MANUFACTURERS SAY, WELL, I DON’T NEED TO PRICE MY GOODS AT 7.5% LESS THAN TOYOTA. SO I’M GOING TO RAISE MY PRICES 7.5%. AND PRICES GO UP FOR EVERY EVERYBODY WHO MAKES THAT PARTICULAR GOOD. AND THIS IS, YOU KNOW, WHAT WE’VE BEEN ARGUING ABOUT NOW FOR A COUPLE OF YEARS, WHO’S REALLY PAYING THESE TARIFFS. AND YOUR CORRESPONDENT, WITH ALL DUE RESPECT, TALKED ABOUT THE COUNTRIES PAYING THE TARIFFS. THE EXPORTING COUNTRIES WE’RE PAYING THEY DON’T PAY THE TARIFFS. WE’RE PAYING THE TARIFFS, WHETHER IT’S OUR COMPANIES AND LOWER PROFITS OR OUR CONSUMERS. THIS IS COMING OUT OF THE POCKETS FOR THE MOST PART, AT THE END OF THE DAY OF
President Trump says his new trade deal with Japan will generate massive U.S. profits and lower tariffs, but Morning Joe’s economist analyst Steve Rattner says American consumers will end up footing the bill. “This is coming out of the pockets of Americans.” He also breaks down why Trump’s pressure tactics may backfire — and how automakers are already absorbing costs that could soon hit buyers directly.
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#Trump #Tariffs #Economy
48 Comments
If I see the Trump Propaganda Clown jumping up and down and lying to the public….. I feel very bad for America – you are doomed – Recession and inflation is rising. Evil perfect storm.
Then GM and Ford can look for other suppliers, but the foreign cars makers are going to pay tariffs to bring their vehicles and parts in as well. Ultimately the buyers will pay a portion of it, but the manufacturers, dealers, and transporters will as well. If they try to pass it all they will lose sales, they compete with each other. If they have the more cost effective machines for sale they will pay less, the producers that provide less attractive deal will pay more.
MSNBC keeps desperately hoping for inflation that isn’t showing up. Maybe next month, guys.
I’m Canadian and I’ll now by a Toyota not American
We do
Still believe in free lunch?
Have Americans become so stupid that they need the facts about tariffs explained to them like toddlers. Tariffs are taxes on goods coming into the country. We will all pay. Whether directly or indirectly through lost jobs. What is really shocking is that its the republican ( maga't) party that is enthusiastically pushing for the largest tax increase in US history.
And people will keep denying the truth as long their "leader" keeps insisting on this lie.
It's bananas to me that we're still talking about this. Every American should be well aware of who pays tariffs by now. YOU DO. They should also be aware that these "deals" are ludicrous. The world isn't negotiating with the US. It is largely bypassing the US and using this time to strengthen many other LOGICAL trading relationships.
This doesn't end well for Americans and it is shocking they aren't moving forward with impeaching Trump immediately.
Factor in 50% tariffs on steel, aluminum and copper, all significant inputs for auto manufacturing
90% of profits will be to US from Japanese investment, will most likely mean 90% of the investment will be re-invested to US market. The majority of the investment by Japanese companies usually stays in US, instead of going back to Japan. So this has been so.
0:21 – That was a lie. Don't you get it yet? Rump is not interested in "bringing manufacturing back" or anything else to do with industry. All he wants to do is to fleece the American people for as much as he can, and then retire to Russia. Once you finally realize that, all this "confusion" you report on will make sense.
Trump using his best godfather voice states. "Daddy needs a new golf cart. So all countries will pay a vig. 15 to 1 million I mean 1 billion percent"
Trump is broke, he smells like old garage and has no real friends after Epstein was killed.
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Khi quay lại thì nền kinh tế sụp đổ lấy gì mà sống nữa
Trẻ con người lớn người già không còn gì để mà sinh sống nữa bệnh tật lại phát sinh ra lấy gì mà chống chot nhé
Hãy ngừng tay súng đạn bom mìn để xây dựng một nền kinh tế chung cho toàn cầu này nhé cảm ơn
tRumps tariff deals with countries, we are learning- includes paying amounts into tRumps' PERSONAL "slush fund"…its why he loves tariff deals- ripping off Americans, plus extras from countries- to fill his own pockets! I am suspicious its why he's avoiding meeting with Australian Prime Minister Albanese…because Albanese publicly stated Australia will not conduct under the table deals.
Honestly, a lot of folks don’t realize that Trump’s tariffs aren’t just hurting big corporations. They eventually hit us regular people too. I used to think it was just a “business issue” until I noticed my grocery bill slowly going up. It all adds up more than you’d think.
Whether it is 90 or 0 trade deals America is already the loser.
Cars shouldn’t even be a topic in the tariff conversation. The real problem is all these small inexpensive items. Things people purchase every couple of weeks. Though they may not be high dollar items they are certainly going to add to peoples cost of living. Soaps and detergents, Ziploc bags, wax paper, etc.. there are so many items that we use that are imported. I have nothing against targeted tariffs. It becomes a big issue when you apply blanket tariffs to Third World countries that produce a bulk of what we use every day.
And anybody with a half a brain can figure out just how high these tariffs will need to go to produce all this stuff domestically again. His administration keeps talking about bringing American jobs back. But isn’t this the same administration that keeps bragging about how low unemployment is?
Do Americans even want these jobs? If they come back, they will be all automated anyway. And there is no way you are going to see the prices drop back down to pre-tariff levels. I certainly want what’s best for my country, but if manufacturing in Third World countries is relocated to the US, I can’t help but feel for the people in those countries. I mean they are working for a couple of dollars a day. And before we really started offshore this manufacturing, these people were dying of starvation.
This is nothing more than a federal sales tax.
Steve Rattner broke it down perfectly. It's time more voters understood who’s really footing the bill.
Every trump tariff’s will only raise prices to the American consumers…
Making you and I the losers on these deals!
Every car insurance will be raising there insurance premiums to you,. You may see it within a year because of trumps tariffs..many car parts are imported! And with higher tariffs added..
It is all a house of cards based on lies. The US importers pays the tariffs. Tariffs are a type of customs tax.
To add insult to injury, the fact that these tariffs are enacted through Executive Order, without Congressional approval, make the whole process a form of "Taxation Without Representation" on the say-so of a single individual.These can be seen as acts of a tyrant.
Because of Trump’s greedy tariffs, which are essentially a tax on the American people, China responded by lowering some of its tariffs on U.S. exports. This move mostly helped BIG American corporations that sell to China, while average American consumers still faced higher prices at home due to Trump’s tariffs. Meanwhile, these tariffs raised trillions in federal revenue that helped fund tax cuts primarily benefiting the ultra-rich. In the end, these tariffs just ended up taxing working people and helping big businesses, making life harder for low-income families.
What's also shocking are 10s of million people who still believe his BS!
Trump = Chaos. When you elect a Clown you get a Circus. Boycott USA – boycott American products. Under the fascist Donald Trump the USA is not a safe country for tourists!
Car companies are absorbing the cost of tariffs because they can't raise prices, Prices on cars are already too high and sales are down. At the end of the day, it is consumers.
Only two main points to know about tariffs:
1) The consumer of imported goods pays the tariff;
2) The money from tariffs goes to the federal government.
Still waiting for one of these people to be right. They've all been wrong about everything
They needs spread sheet with old tariff tax and new taxes with Trump ideas and American people can understand it clearly because people might not understand what the news media is reporting. They are the problem with poorly educated.
Every deal that comes in is significantly better than prior to Trump. He is bringing in over 834 million a day in tariff revenues. 27 billion last month. CPI is not rising. The fact is American consumers are not paying. Manufacturers foriegners are eating it. These liberal sites are left wing propoganda. They lie thats their thing.
Steve Rattner must be wrong:
1. The tariffs are paid for by Santa Claus.
2. Since the Trump administration can make trees grow in seconds, it is also capable of drafting contracts comprising several hundred pages within days.
Conclusion: no cause for concern!
P.S. Every country now knows that since the Trump administration took office, contracts with the US are not worth the paper they are written on, and every US promise has a maximum half-life of 24 hours. We have really taken a big step forward!
6 month that nonsense is running and half the country is still saying : Taco is a Genius, eggs cost 2500% less, healthcare is now free and mexico is building the wall for free, omg trump is an evidence god exist and is on earth ………
Greetings from switzerland guys and good luck for the 3-10 next years
Trump celebrates higher taxes on ordinary Americans 🤣🤣🤣
Typical Trump over-promise and under-deliver
No bring those jobs back to America 🇺🇸, these cars keep getting more more expensive and they made in Mexico and Canada and they still get more expensive
The dummies brain dead people that put him in will pay more for everything
I wonder if US consumers will finally wake up and get really angry about Trump's tariffs ripping them off? You don't have to be an economist to understand that these tariffs are a HUGE tax on consumers. A 25% tax is likely the largest ever tax increase in US history. Americans need to get really angry and demand Congress take away Trump's power to put tariffs on anything. No POTUS should be able to go around Congress to tax the people, and that is exactly what Trump is doing.
Auto makers left the US because of the high wage costs and taxes. Making autos in the US will make them unaffordable for most Americans and Canadians. More Canadians are buying Japanese and German cars these days.
The United States is no longer a capitalist country; it is replacing trade with extortion and tariffs. If a country doesn't pay its tariffs, it will destroy its economy. In the past, you had to pay protection tariffs to Al Capone. Otherwise, Al Capone would burn your business.
Trumpanomics is reducing the US currency to the value of printed paper, the peso is firming in comparison. The pillaging of the US economy by the overly rich, and the compliance of lawmakers and courts in the process, has delivered a society steadily becoming at war with itself. The US doesn't need to worry about threats from China or anyone else. It has far more significant issues to resolve at home. It is possible that Trump genuinely believes he is doing the right thing. Sadly, when a belief system takes hold, all the evidence based argument is futile and usually pushes the situation to even further peril. The wait and see solution is fine if time is not imperative, it certainly looks that time is becoming critical. All the players in Trumpanomics do seem, to not comprehend the disarray they are creating. Wh en the US people eventually have the opportunity to reshape their leadership it will be interesting to see how much the electorate has learnt.
In an ideal world, the tariffs will impact consumers more and more in 2026. Perhaps even MAGA voters will vote against Trump and the GOP
GREAT JOB, GM AND STELLANTIS VEHICLES ARE JUNK ANYWAYS.
Tarrif = Import Tax paid by US importers. Nothing more.
So on August 1st – tariffs are set to go into effect again. Or ……… they may be delayed two weeks again……..
Who will pay for the tariffs?……It’s like the Mexicans paying for the wall.
Alberta loves trump and Alberta separating from Canada
Meanwhile record revenues coming in from Tariffs and stock market continuing to reach new highs. Only a matter of time before the so called experts stop talking about tariffs since it will be clear all the positives clearly out weigh any negative. Once gain just more TDS rage from MS"DNC"!