r/politics • u/sweatycat New York • 1d ago

California to Negotiate Trade With Other Countries to Bypass Trump Tariffs

https://www.newsweek.com/california-newsom-trade-trump-tariffs-2055414
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u/Wild_Harvest 1d ago

So wait, if I'm understanding correctly, then California is not negotiating to bypass Trump's tariffs but is willing to subsidize the tariffs and keep costs down, and in exchange the country will put in exemptions to products shipped to them from California but not, say, Nevada?

That could be a good way to both bypass the tariff, and prop up California's economy as the dominant force in the US. I could see New York doing something similar, too.

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u/FlyingSagittarius 1d ago edited 1d ago

Tarriffs go to the federal government, though, not the state.  That procedure would basically just be the state paying the tarriff instead of the exporting country importing company.

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u/xsmasher 1d ago

The exporting country doesn't pay the tariff, the importer does; so this would be helping importers in California, shipping companies in California, and other businesses in California.

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u/thottieBree 1d ago

How does this help importers in California?

edit I get it, actually. I doubt the State could afford to pay, though

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u/xTheMaster99x Florida 1d ago

Importers are the ones that pay the tariffs, not the country of origin. Subsidizing duties for the importers will obviously be very helpful to them.