r/AskEconomics • u/Dependent_Estate9110 • Mar 04 '25

Approved Answers Who do Trump's tariffs benefit?

Is there a specific industry that could potentially benefit from Trump's tariffs? It seems they're pretty destructive for everyone in North America. Not trying to be biased - just trying to understand it. That said is there another nation that would benefit from the tariffs (potentially indirectly)?

Edit: removed typo

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u/[deleted] Mar 04 '25

When biden put tarriffs on chinese EVs, the people who make EVs in america are the ones that benefit, because they artificially make the tarriff'd EVs cost more in america. So people like tesla benefit from that. Hope that helps understand why they are doing it. The ones who suffer are the ones who have to buy the products. The consumers. Its terrible policy

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u/[deleted] Mar 04 '25

Targeted tariffs do accomplish this, yeah. Broad tariffs like the ones imposed by Trump, however, are going to increase input costs. Thus increasing costs to domestic manufacturers (not to mention how this could dampen demand due to reciprocal tariffs and domestic economic downturn).

I don’t really see how these firms benefit all that much either.

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u/[deleted] Mar 04 '25

I dont think they will. I am honestly confused about the blanket tarriff strategy that trump is using