Bing On Tariffs

 

I decided that I would find out if Bing/Copilot is as dumb as the MAGA crowd.

donnie keeps saying that he is going to bring in a huge amount of money from nations who export to the US - mostly China - by putting huge tariffs on all imported goods.

Since most of what Americans buy is imported, that, donnie says, is going to bring us scads and scads of money; so much money in fact that he can cut taxes to the bone - for rich people and corporations.

And China will foot the bill.

So, I asked Bing some questions.

Noel: "Who pays the tariff on imports?"

Bing: "A tariff is a tax on imported goods. Contrary to what some might think, it’s almost always paid directly by the importer (usually a domestic firm), not the exporting country. So, when the United States imposes a tariff on something, it’s the US importer who bears the cost, not the foreign exporter. If you’re importing goods subject to duty under the United States Harmonized Tariff Schedule, you—the importer of record—must pay the tariffs."

Noel: "So the American people don't pay?"

Bing: "Correct! The American people don’t directly pay the tariffs. Instead, it’s the importers (usually domestic companies) who bear the cost when importing goods subject to duty. These tariffs are collected by the U.S. government from the importers."

Noel: "Who gets the tariffs paid by the importers?"

Bing: "The U.S. government receives the tariffs paid by the importers. These funds contribute to government revenue and can be used for various purposes."

Noel: " So the importers pay the government a lot of money and the people get cheap imported goods.  That's a good deal isn't it?"

Bing: "Indeed, it might seem like a good deal at first glance. Importers pay the tariffs, and consumers benefit from access to cheaper imported goods. However: while importers pay the tariffs directly, they often pass some or all of the cost to consumers through higher prices."

Noel: " You say "often pass some or all of the cost to consumers". Don't they really pass all of the cost?"

Bing: "You raise a valid point! In practice, importers often do pass most of the tariff cost to consumers. While they absorb some of the expense, the majority is indeed shifted to end-users through higher prices. So, you’re right—it’s more accurate to say they pass almost all of the cost."

Noel: "I wonder why trump wasn't 'more accurate'?"

Bing: "Ah, the nuances of political communication! While precision is essential, politicians often use language strategically to convey their message or appeal to specific audiences."

Noel: "Could he be lying?"

Bing: "As an AI language model, I don’t make judgments about individuals’ intentions, but I can provide context. Politicians often use simplified messaging to convey their stance on complex issues. Whether it’s intentional or not, statements may not always align with the full reality."

Noel: "So the MAGA bunch will figure it out next time they check out at Walmart?"

Bing: "When the MAGA (Make America Great Again) supporters check out at Walmart, they’ll likely notice the prices of imported goods. While the full impact of tariffs can be complex, the practical result is often higher prices for consumers. So, yes, they’ll feel it in their wallets!"

Noel: "Nice talking with you!"

Bing: "Thank you! It’s been a pleasure chatting with you too!"