Tariffs is the MOST burdensome of government regulations. It basically says American companies can’t have a global supply chain of their own choosing, which by definition is the most efficient because they willingly chose to set it up that way.
No one wants tariffs. They are merely a tool to get fairer trade. Other countries have far more tariffs on the US than we have on them. They have no incentive to remove them unless we’re willing to play the game. Some short-term pain is worth it if in the long run we get fairer trade. Talking has gotten us nowhere, so it’s time to break out the hammer. The other countries will suffer more and faster. It wouldn’t be necessary if other countries wanted free trade.
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During the 2016 campaign when Trump said he would eliminate the entire federal debt in eight years and it would be “easy” to do, I laughed my butt off. No one could possibly be dumb enough to believe that, could they?
That would require a $1.25 trillion surplus every year for eight years. But as I and virtually everyone else with a brain predicted, he’s massively increased it with ill-advised tax cuts for the rich.
The federal deficit hit $895 billion in the first 11 months of fiscal 2018, an increase of $222 billion, or 32 percent, over the same period the previous year, according to the Congressional Budget Office (CBO).
The nonpartisan CBO reported that the central drivers of the increasing deficit were the Republican tax law and the bipartisan agreement to increase spending. As a result, revenue only rose 1 percent, failing to keep up with a 7 percent surge in spending, it added.
Revenue from individual and payroll taxes was up some $105 billion, or 4 percent, while corporate taxes fell $71 billion, or 30 percent.
Gosh, if only someone had predicted that before they passed the bill. Like, oh I don’t know, everyone? This is exactly what the CBO said would happen and Republicans pretended they were wrong. They knew better.
They knew it would case a huge increase in the deficit, they just didn’t care. They only care about the deficit when a Democrat is in the White House. And they know they can sell that highly dishonest nonsense to their followers very easily.
They’ll just blame it on “entitlements,” which apparently doesn’t include rich people who feel entitled to have their taxes cut.
https://www.investors.com/politics/editorials/obama-trump-booming-economy/
The economy will go crazy if there’s a good trade deal with China.
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counting on it, holding tight with two hands.
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The IF is very big, neither China nor Trump will agree.
Many companies, say like Nike getting $3/shoe to $6/shoe and selling $40 to $150 range. For China, they know how cheap the cost is. They won’t yield too much to Trump/USA.
For Trump applying tariff gets an issue to be high-lighted (politics side) and getting manufacturing jobs (in the long run) and additional duty revenue (asap tariff in place) that will reduce deficit gap. In many ways, it is positive for him.
It is ultimately the consumers or manufacturing industry (if there is reduction in orders) to absorb losses.
Did I ask for this outcome?
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So it’s either American consumers or shareholders of American companies paying? MAGA!
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American consumers, by all means increase in cost.
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American companies or 3) China manufacturers.
If American companies continue to buy from China manufacturers, they need to pay duty (very less max 2%-5% appx) and will not get tax benefit. In this case , American companies take the bite.
If they find a local producer and local making, as long as cheaper than Cost+Duty+loss of tax benefit more than local cost, the pass the issue to China manufacturers.
Just for example: Apple may be importing 200000 parts from China, they may run some analysis, take the highest cost items, find a local maker or make themselves. This kind of work may continue every year to reduce 1000 high cost items they import.
Or simply move the manufacturing to Korea or other countries until Trump like people gets into some tariffs.
All businesses act very clever way to maximize their profit, that is the key idea Trump is hitting with (as he is business man).
I do not whether you ask for it or not, but voted for it (Trump !). 
Global supply chains take years to build. Apple can’t magically move assembly to other countries over night. At least short term in a year or two they will have no choice but to stick with China.
American companies chose to source from China because it’s the most efficient economically. Nobody pointed a gun at their heads. If they have to move elsewhere that means costs will be higher. So again consumers and shareholders will have to pay.
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Not only for apple, it is the same for every company, not easy to move.
Consumers needs to pay to USA government that will reduce deficit financing. Simply, US will earn 125 Bln as duty (from consumers) ! 
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Yea it’s a tax on consumers, much like sales tax and so it will hurt poor people the most.
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Maybe this is what @Jil alluded to:
Trump has floated the idea of slapping a third round of tariffs on $267 billion in goods on China.
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Using this example, companies would be in trouble if $3->$3.60 when selling is in range of $40-$150?
It wont make a dent in consumer spending or corporate profits. You will see.
Yuan will depreciate to make up the gap. But it will start a cycle where US companies will start preparing for more domestic sourcing. better employment->More consumer spending->Better taxes->more investment->better employment-> cycle continues
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AFAIK, many blogs suggested impact is in the range of 1% - 2% across 400 corporations in USA.
Macy’s closing Union Square store in SFO…If consumer reduces buying, The max dent will be at low profit margin retailers, (or loss making companies) who are already suffering by internet competition.
Tariff and Rate hike (One more is due next week and another 3 before Dec 2019 as per FOMC/FED) will impact the locals to some extent.
Bloomberg: Alibaba’s Ma Warns U.S.-China Trade War Could Last 20 Years
Billionaire Jack Ma sent out a grave warning regarding the trade war between the U.S. and China: It’s going to last longer and have a bigger impact than most people think.
China’s richest man said the dispute could last 20 years and persist beyond the presidency of Donald Trump, as the world’s two strongest economic powers battle for global supremacy. China needs to strengthen its economy to deal with the conflict and shift trade relations from the U.S. to regions like Southeast Asia and Africa, the chairman of Alibaba Group Holding Ltd. said during a speech at the company’s investor day conference in Hangzhou.
“Short term, business communities in China, U.S., Europe will all be in trouble,” Ma said, pacing a stage in an open white dress shirt and punctuating his remarks with forceful jabs. “This thing will last long. If you want a short-term solution, there is no solution.”
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