I'm an example of how President Trump's tariffs are actually a tax on us, the people.
We've been planning our kitchen renovation for six months. It's taken a while to get to the point of ordering and scheduling the contractor.
When I dropped into the cabinet store in June, the sales person said the cabinets had gone up 10 percent because of tariffs -- they order from a company who orders Chinese wood and hardware. He encouraged us to order by July 1 because the tariffs were supposed to go up to 25 percent. I thought he was trying to get me to buy before I was ready, so I didn't order the cabinets.
Today I was ready so I went to order the cabinets, and they were more than $1,000 higher than two months ago.
The president said China would pay the tariffs; what happened to that promise? The tariffs are really a tax on us.
What do I do? Go back tomorrow and buy the cabinets and give an extra $1,000 to the government, or wait a couple of months (maybe 18) and hope the president wins a trade war?
I may not be writing a check directly to the government, but the way I see it, China produces the wood and hardware for my cabinets and when the materials get to the U.S., the government says it's going to cost them 25 percent to import them. The government gets their $1,000 then. But China adds 25 percent to the price that they sell to the company in Kansas who passes on that increase. The business here in Paducah has to pay 25 percent more for the cabinets and voila! I end up paying 25 percent more. Not the Chinese, me. I call that a tax.
That hurts the Paducah business, the contracting business, the four Paducah guys on that work crew, the electrician, plumber, maybe others. It's a recipe for a recession if everyone stops buying stuff.
So President Trump, to keep people working, where in China do I send the bill for the extra money I will spend on my cabinets?