How do tariffs work? | CNBC Explains
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- Опубліковано 8 лют 2025
- The U.S. imports more than $500 billion worth of goods from China, of which some goods are subject to a customs duty. CNBC's Uptin Saiidi explains how increased tariffs can impact an economy.
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“There are concepts of a plan”😂
I love that its not Biased. Its just explaining what a Tariff is, and how it works. Love it!
@Too Wun Just did! What a great video. Not a biased opinion in it, just raw explanation on an economic tariff with examples.
explain them just at the other end, what about America's end...? when you buy home made products you also have to pay tariffs for the American company as they increase prices to pay for those tariffs when they export, and then the get oversized prices benefit from other countries too and YOU get nothing in return, so any company in the world exporting product has is getting money from both ends, do you think they are protecting you?, do your own research, you'll be surprised all the things they lied to you.
Goes to China to film a TEN second clip.
That's what you called quality.
Can you make a video of this quality? I don't think so. Shut up then mate!
@@bsca1956 I guess you are right
and lied about tariffs like they all do - including the Trumps.
@@commercialartservicesartwo3133 lied? What's the false info? Some tariff explanations are not conflicting so much as differing in info/focus.
I love CNBC explains series a lot. Keep up Team...
its called propaganda. tariffs like taxes are a way to rip off peoples money.
@@TheWormzerjr it is called gangsters paradise protectionism of turfs and it's business.. yup.. ripping off people population of the in the name of sovereignty and jurisdiction.
I mean people of the world.. 😅
not explained all the way through, this story is more complex than a 10 minutes clip...
Fact is, tariffs don’t work. Not really. The money collected doesn’t really come from the foreign countries or corporations. They just pass the increased cost to the customers, domestic companies and people. So the tariffs are effectively a federal sales tax on foreign goods. Beyond that, domestic competitors have a huge incentive to raise their prices too, since their foreign competitors can’t lower theirs. So the only ones who benefit from the tariffs are domestic companies who just increase their profits with no need to compete and no danger of having foreign competition undercutting their prices. Tariffs are a lie.
I shouldnt have to pay for a farmer who has too much land and not enough people to sell to in america..maybe they should go back to corn seeds from the 60’s..
How is someone who has literally say that he doesn't pay taxes put a tax on it's people WTF make America grated again he says 😂
You are not thinking of it the right way. If you put a 10% tariff on foreign goods and lower taxes here 10% on goods. The consumer doesn't see a difference right away, the price doesn't change. What does change is the government is collecting more taxes from the foreign countries, while collecting less at home. This allows USA companies to compete with lower prices for the same product, because consumers are not being charged that extra 10%. It sparks local business as well as creating/supporting many jobs for Americans. Seems obvious which one would benefit Americans more.
@@JoeBlack14 But as they said in the video, a lot of American manufacturing still uses imported materials, meaning that their manufacturing costs would go up too and that even buying American-made products would be more expensive.
Also, you can't just "buy American-made". There are a lot of industries where American manufacturing just straight up isn't set up yet, or at least not to the point of being able to handle the entire population of the country. So you're going to have a lot of people who will still need to rely on imported goods, whether they like it or not.
Even if the end goal is to eventually be self-sustainable and not rely on imported goods so much, it's going to take a while to get there, and a lot of people are going to be paying more in the meantime.
So just buy USA goods..
Thank you,best clearest explanation on tariffs and I needed it explained.
Lies again? FAS FUS
Watching this in 2025 is such a de ja vu experience.
Yes but not exactly…!
American businesses pass the full cost of tariffs onto American consumers. Build manufacturing plants in the US.
I agree but China minium wage is 25 cents an hour.
Think USA can compete?
They have the choice of paying the tariff and passing the cost on to the consumer, or building plants in the US which will cost them more to produce the product and pass that cost on to the consumer.
@@adamrussell658 or we can buy from other suppliers. In every case, US consumers foot the bill. Meanwhile other countries retaliate and buy fewer products from the US. Americans lose jobs. Trump is a liar and a convicted felon. Caveat empor.
@adamrussell658 then why did that not happen when this video was first published?
@@wesblood3620 And manufacturing worker wages in this country would be $15/hour. Even with complete automation to eliminate the workers, the American made product would cost at least twice as much. Ready for 100% inflation? Americans would never be able to afford those products.
Explained in a very effective way.Loved it CNBC!!!
I love CNBC explains, I get excited whenever there is a new episode, thank you very much guys, keep it rolling
More of these Explains series!
am impressed with CNBC ..you give very good information about ..tech and many more keep it up..
Too Wun lol
it's both funny and sad to see how google searches for "what are tariffs" peaked AFTER the election. something something idiocracy something something documentary.
It peaked in blue areas. Same with "How do I change my vote?"
@@HuxAndersonit peaked in red states
All americans will pay the tarriffs. Business passes it along in higher prices. Get an education
Best channel so far, informative and educational
The country you impose the tariff on will suffer for a period of time in the form of lay off of workers, decrease of manufacturing, wage freeze and so on. The country imposing the tariff will suffer in the long run by a loss of trust, less product for consumers, higher item cost, and possibly lose most favoured nation status.
@aledwards6119 It works if you're industrializing, but I've never heard of one case of an advanced economy doing it. This is not going to end well, and my stocks are going down.
I'm trying to understand tariffs and international trade but this is all so complicated, there are so many variables.
waaahhh, this is awesome. You guys did a great job explaining the topic.
CNBC explains the news very well
I love your explanation it helps me to understand
Thanks for the explanation
Very educational. Really rate this series
This was from 6 yrs ago, and here we are again. Trump wanting to increase tariffs to 20%. History has taught us the horrible effects of high tariffs.
Correct, the great depression of the 1930's were caused by Tarriffs.
My uncle’s dog was killed by tariffs
If it's bad then why do countries retaliate against tarrifs when America enacts them. It's a negotiating tactic. China doesn't want tarrifs soooo they will negotiate so that doesn't happen.
It is an incorrect assumption to think that made in the us items will not also go up in price. What the market will bear is the pricing method. Tariffs will raise inflation and lead to recession. So sad that people are so ignorant and easily fooled.
Not if you produce in your own country
Made in the US doesn't mean made in the US. Most products with that label use retails made abroad.
@@pierren___Some of the goods that are made in the US use components from outside the US.
These will increase in price thanks to Dummy Trump.
@@pierren___
All american products cost more that chinese imports
This was really helpful and it all finally clicked. Thank you!
Very clear explanation.
That ways it explain wow everything just digested tq CNBC
Interesting show, good explanation. Future show on Africa and south Africa maybe ?
Very helpful series
I would like you to make a video on how the exchange rate is determined between countries...both fixed and floating
From what you just explained. And me being from the highest educated generation. I don't like trump . But it sounds like hes trying to make were American businesses. So that Americans are not working for foreign companies anymore. And being that the world's economies based on the US dollar. More American products mean A better aconomy in the long run. Which also means lawmakers will have less of a Advantage over the American people Meaning less laws. For suppose a free country We have the highest incarceration rate the most laws. New York and New Jersey have The strictest gun laws. And in turn have the highest rape and crime ratings. They pass new laws because prisons are so fool That unless you are a murderer Or caught with a weapon You get let go. There so many pedophiles and rapists that do 3 to 6 months in prison and are released because of some of these laws. Need too tax 711 Holiday Inn trader Joe's American apparel sunglasses hut General Electric's Burger king Ben and Jerry's Budweiser Hallmanns. All of which are not American based companies if little less than 2% Equals up to Over $30 billion Over $150 billion Goes overseas From American Pockets. We only export $60 Billion worth hmmmm Don't take a rocket scientist to figure out why Americans are struggling so much We need American companies
AQUELA COMPANHIA E VS DE IKEPEDIA ATEZAPS #
You left put the part where when all the watches cost more. American made companies increase the price to match is, just because they can make profit. Terrifs specifically in the USA causes all products to increase because it's a profit trap
The Americans, the end user/consumers will pay the tariffs. The government earns the tariffs. The importers/exporters passes this tariffs to consumers.
It was a great explanation👍
Very nice and informative video! Easy to understand while I work with tariffs at my university! Have a nice day!
04:24 Airbus is not a French company; it's an EU venture. Great video otherwise 👍
Sagar Rao France share are higher ,,they are co-owner with Germany and Dutch.
Michael Jackson still not a French company. For a channel like CNBC, you need to be accurate.
Sagar Rao airbus' headquarters is in France. Also final assembly done in France. Share trading is done in France, Germany and Netherlands. Saying owner is overview on top management position of company. So CNBC is not wrong. But less accurate.
Try to explain this to Donald he doesn't know what tariffs are just like he didn't know anything about NATO
Trump knows exactly what tariffs are it's a way to gather cash to pay for tax breaks for millionaires
Well explained
Nicely explained.
My friend says tariffs will bring back jobs to USA. I told him, you know the consumer price would increase right? He said "yeah that's the point, so consumers won't buy their products, so Trump can bring back jobs and teach these companies a lesson". Then I told him, Yes then the companies would lose profit and probably go bankrupt, lose even more jobs if they can't afford to move back in the USA and also compete with international market. Then he stayed *silent*
@@starter0951 if companies come back to USA, profits decrease and stock market would crash. In US, stock market = economy. Therefore, economy would crash as well.
Deplorables are not known for their intelligence.
Tariffs do not increase consumer prices. Where is the evidence that they do?
@@lukecacatian3245 Watch the video, or just use your favorite search engine to see what nearly all economists say.
@@lukecacatian3245, you may want to rewatch the video. It is explained fairly well.
The issue is far more complicated than this. CNBC is only focusing on the surface level criticism
Sus
2024, post US election .. yup. We need this video
व्यापार के द्वार खुले हैं?👍👍👍👍👍
Please explain - different events impact economies, like political figure dies, party wins elections, high interest rates of banks
The factual part of tariffs was great in this video! However it would have been great to refrain from interjecting personal point of view instead and stick to non-bias reporting.
Can you point out the subjective parts in the video?
What was so biased? Also, the word is "biased," not "bias." The latter is a noun.
Us company before tariff : cost 15$ shoe sell for 150$ barely making a profit.
Us company after tariiff: cost 18$ shoe has to sell at 250$ now to barely survive
Can you explain what is a govt bond or bond/debentures in laymans terms
Thanks bro
Everyone around me is going crazy about trump tariffs
and my ignorant az is over here thinking
What’s a tariff?
Your best thing is you never post any naunsense review!
well done
A tariff is just a BIG, additional SALES TAX!!!
Thank you this video was very informative and interesting to watch.
I love CNBC explain series!
I love this channel
They dint explain how increase in tarrifs can boost local industries/manufacturing and increase GDP.
It will cause overall decline in living standards, because you're getting rid of specialization and division of labor which is proven to be the key to effectiveness way back in 19th century.
No, they won't increase GDP, foreign companies working at your market also count towards GDP. By giving the monopoly (and tariffs is exactly that: a monopoly or a subsidy to domestic companies) to local companies we will see falling supply of those goods, which will cause something exactly opposite to a growth, called decline if all other factors are equal.
@@zigoter2185 True, but: *you're.
thank you CNBC
Can u do a video on how exchange rates valued are arrived...what drives them to fall or increase??
Superb video
Great video, learned a lot.
Can you make video on how the US election works
see...us plebs vote so that our state electors know how much we hate each candidate. our electors are then suppose to go to the electoral college (think galactic senate) and cast the real vote that actually decides who gets to be president because our founding fathers said, "we hate kings and we can't trust plebs." but this vote comes after they ritually slaughter 1,000 sheeps and bathe in their blood while engaging in banquets and orgies for 30 days. at any time, because they've had too much beer, wine, liquor or prostitutes, any elector can say, "screw you, i do what i want," but most are scared that by doing so, they join the dark side and will have to look out for jedi masters their whole life. however, that didn't dissuade 5 electors from abandoning Hilary Clinton and joining the dark side in this last election.
Please make a video on the Fourth Industrial Revolution. There’s already a video on CNBC International of the same, but it’s only 1-minute long.
i love your job ........ you keep travelling a lot !! my dream job !!
Great explanation and easy to understand, Thank you !
Prices go up, they don't come down.
Can someone sit President Trump down and make him watch this?
This video glosses over the requirement that US importers need to pay tariffs (import duties) prior to imported items being allowed to enter the country. And, often importers need to borrow to pay these duties, and are liable for interest. Thus the cost to the purchaser is increased, and payed by citizens, not producing nations.
*US taxpayers paying money to their government via tariffs,,,, SIMPLE. AFTER ALL REDUCTION IN TAXES FOR RICH. TARRIFS ARE LAST SORT OF RESORTS.*
We're in 2024. Did he acheive the reduction of the trade deficit by now? Im not American, so I wasnt following up..
Who is watching this in 2024 after trump announced 25% tarif on cananda
This means that Canadian goods will cost more for customers in the US.
I love this channel. This is the way all news should be. Until this piece, which seems very one-sided. Please educate us on the pros, cons, the facts and keep political opinion out.
We need more American made products made with American parts for more American jobs.
We have very low unemployment, so who would be doing these jobs?
Suggestion for next episode- How Nordic countries are able to afford welfare state?
small population and a robust economy is the answer
I think there was already a CNBC Explains on that topic.
Chitranshu Vashishth, focus of budget is not military, but people and their well fare.
And US spends lot more per capita than those countries, as its inefficient.
Sacchi focusing too much on welfare spoils the population and makes them ineffective and clips human creativity but that does not mean that welfare is not at all important , not everything has to be spoonfed , somethings are to be earned. Yea agreed that further increase in military budget is not needed but it is this huge budget that enables and promotes Innovation , invention and startups through the military that in return helps the general population . This internet , wireless communication , GPS and many medicines were meant for the military at first but now it benefits the citizens and makes their life easier .Productive Investment in the Military is the reason why the US leads in technology and space race
Sacchi
ok, i'm not trying to sound dick right now but you made absolutely no sense to me right now. Would you be able to repeat it but without skipping every other word? No but seriously tho, im interested in what you have to esay, i"m still blown away how this is straight a global conversation, talking to people from around the world!! What better way to discuss important issues that may even be uncomfortable to speak of at times, everyone still has a right to there opinion, no matter how sure one is that theres is the right one, should nonetheless be respectful
Well explained.. thank you 😊
Why does the air look so dirty in China did you notice that😂
Because they don't have the freedom to protest like the US. If they do, they dissappear
"Wait, so you're telling me that putting tariffs on China _doesn't_ mean that China is gonna is gonna pay for it? It's gonna be the American consumers???? 😨😨"
Buckle up everyone, the next 4 years in the US are gonna be wild!
Isn't buying locally made goods and reducing unnecessary shipping better for the planet? I kinda worry that a lot of manufacturers go to China to circumvent American environmental, health, and labor laws. So, encouraging people to buy locally made goods actually seems a bit more humane, healthier, and more environmentally friendly?
It isn't, because China can sell those at a lower price, because they work more efficiently, than domestic producers. So to import goods from China is less wasteful, than to make those in the USA.
I might be wrong, but I have a theory that the less something costs, the less overall energy it takes to produce. However you have to balance that with the cost of the extra pollution and workforce mistreatment some of these countries have.
@@zigoter2185 by work more efficiently, you mean pay the workers less and don't have to worry about dumping pollution in the air. then yes its more efficient.
@@dragonrider269 duh, okay and? Your point?
@@dragonrider269 duh, ok and? Your point
What a beautiful explanation,,,nice editing ,,, appreciative
As if it is shouldered by the businesses. These are inventoriable costs thus cost is forwarded to consumers.
yup. raise the corporate tax, it goes to the consumer. add a new regulation to stay in business, the consumer has to pay for it. do anything to a corporation and the consumer has to pay for it.
Well this was very factual and straightforward reporting at "The United States has the lowest tariffs in the world". Then it became an opinion piece. I really like the English guy please bring him back, very straightforward and factual and hides his bias well. Why don't you do a story on which presidents are to blame for keeping our Tariffs too low so we could over-inflate our economy? Or maybe how short-term shareholder gain is to blame for all of our outsourcing. Just the facts please.
Too low? No such thing. Tariffs are bad news.
I don’t understand why you put high tariffs on imported items to save some money and your people pay more to buy those goods instead !!!???
Well done
Trump loves to watch cable news so much. Can FOX and FRIENDS broadcast this so Trump could learn? I’m so fed up already with Judge Jeannie.
Love the simplification😍..kudos
these explains videos are good and short
Still have no idea who pays the extra money. Does the importer pay the extra $12 for a 12% tariff while the exporter receives the $100? Or does the importer pay $100 and the exporter pays the $12? In other words, who pays the duties to the Treasury?
I agree the video didn't clarify that .
@@martyn26.2 The importer pays the tariff
It's a tax but on a company rather than the the consumer. Chinese company wants to have a watch imported they pay the tariff. The company then increases the cost of goods accounting for the tariff.
@@millerrepin4452 That is only true if there is a Chinese company in America importing the goods. Normally American companies import those products from China and the American company pays the tariff. China does not pay the tariff.
Seems like money that should the manufacturer should be paying to the work force.
So.... the government taxes the manufacturer, the retailer AND the buyer for the same product? And the buyer is buying it with money that has already been taxed.
WTF?
Well made, clearly explained. GG
That concept only works if local business don’t increase their price to match the imported goods in order to make more profit. However, since it’s the USA that’s definitely what they will do
Thank u Prof
Tariffs = a National Sales Tax on American consumers.
Only 2 more years. Hang in there American friends
Michael Jordan
He will definitely run for the second term
he won't have a huge margin this time but he will win if and only if he gets the backing from corporates , working class population are less likely to vote for him
Anik Roy depends on the Dems candidate. But he doesn't have Facebook and the "Russians" in his corner this time around. Americans are no better off now and policies like these tariffs, children in cages etc are only going to make things worse.
Michael Jordan Dems have a higher chance of winning this time only if they have a candidate that has the balls to trump Trump . Dems have become a joke lately , they talk about Trump's Russia collusion ( which is partially true ) when Senator Dianne Feinstein office got inflitrated by the Chinese secret service the MSS . TBH American Democracy and freedom is under attack and both the parties got infiltrated by the Chinese and the Russians . Only a senate investigation , the FBI , the CIA and the intelligence community can save America in this cold war waged by the chinese and joined by the russians .
*6 if America is dumb enough to do it once they're dumb enough to do it twice
Tariff - Tax imposed on a coutry's imports from the rest of the world
History repeats itself.
Its 2024 and the tariffs did not help one bit ... shocker i know!.
the mainstream media don't explain the meaning and the long game of tariffs.
Let me explain it in more simple terms, a tariff makes the prices of goods go up, YOU the consumer, pay the tariff at the end, it aint affecting no one but consumers, because we arent going to stop buying chinese products any time soon.
Donny still has no idea how tariffs work! Even if he sees this a hundred times.
Can't fix stupid! You and I pay them!
Info that I can use when playing Victoria 2
What is hyperinflation,if European Nations tax themselves where is the profit......
And that’s why trump is trying to tax China on tarifs so they’ll eventually stop shipping their product to us which also means less money comes out of our pockets , more jobs are created in other words it doesn’t hurt the economy !
How exactly mutually beneficial trade makes money "come out of our pockets"?
How restriction of such trade will result in economic growth? Think about it. If USA has companies at manufacturing, which exist because of protectionism, that means that they wouldn't have existed otherwise. But there is a problem with that. Those companies are not as effective as Chinese are, which means that their goods cost more and have worse quality. Consumer suffers from that. If protectionism wasn't imposed, those resources would go into something that is actually more profitable and effective, meaning that consumers would have access to cheap Chinese goods + whatever those resources went into.
Nope
Tariffs do nothing other than to hurt the consumer
Deregulation is the answer not tariffs
DON'T YOU DARE increase the price of Japanese media and anime merch
So tariff = tax that mostly target poor people.
corporate tax = the tax that targets poor people that same as a tariff. it just makes people feel like it only affects the corporation.
All Americans need to know about tariffs is that it is a US Federal tax on Americans who import anything. As far as Canada goes, if Canada wants to stop this nonsense, all it needs to do is take EU up on joining it, and the US will be screwed.