🚨 TARIFFS AFFECT THE LITTLE GUY — EXEMPTIONS BENEFIT THE POWERFUL 🚨

The rationale for implementing tariffs is usually well-known:

"Reinforcing domestic production and securing the workforce are the primary goals of the policy."

However, the actual consequences reveal a different narrative.

🧾 Who Bears the Costs?

When broad tariffs are enacted, the burden extends beyond foreign suppliers. It trickles down and affects:

• Smaller manufacturers obtaining components
• Independent vendors bringing in products
• Farmers experiencing increased costs for equipment and inputs
• Regular consumers facing elevated prices

These groups lack extensive legal resources or insider connections.
They aren’t able to negotiate specific exemptions.
They simply absorb the financial burden.

🏢 The Inside Track: Exemptions for the Influential

Meanwhile, large companies—especially those with connections to politicians—often discover ways to bypass the regulations:

• Specific product exclusions
• Brief halts in tariffs
• Unique classifications
• Loopholes in regulations

Tariffs don't vanish.
They are enforced selectively.

This results in a distinct separation:

Group A: Major companies with lobbyists, legal departments, and access to policymakers
Group B: Smaller and mid-sized enterprises that lack influence

⚖️ The Discrepancy Between Policy Aims and Actual Outcomes

Tariffs are promoted as mechanisms to enhance domestic productivity. In reality, they frequently:

• Raise expenses for smaller local producers
• Bolster the market power of major players
• Shift the competitive landscape towards size rather than innovation
• Favor political connections over market efficiency

Rather than establishing equilibrium, the system commonly perpetuates existing power dynamics.

🏗️ Why Big Companies Handle Challenges Better

Large enterprises can:

• Swiftly adjust supply chains
• Withstand immediate financial fluctuations
• Modify international pricing
• Influence regulations before their finalization

Smaller firms lack this adaptability.
They work with narrower profit margins—and have fewer opportunities for recovery.

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