Glad you responded first because mine was just going to be
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The margins on low cost goods are low. They wouldn’t be low cost goods if they weren’t.
You may see businesses eat some, but they can’t eat 30+% tariffs. They just can’t.
And Walmart certainly can’t. Just look at their financials. They don’t have high margins.
And again, there are plenty of studies on this.
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It is not a theory and companies like Walmart have signaled they will do it.
Also, companies that may not be affected by a tariiff wil also raise their price to put it inline or just below a competing item to boost their margins. We saw that happen during covid, companies increased their prices even though they were not affected by supply chain issues, simply because they could. These are businesses and not charities.
@rtcoog you are spot on regarding margins, on the grocery side the margins may be in pennies but they count on volume to deliver to the bottom line. There is little to no room to eat an increase, they have to pass it on.
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Right no company of going to willingly take a huge hit to their bottom line for literally any reason. It’s just not what they are designed to do, I won’t get too far off topic as this would turn into a massive rant.
But asking companies/corporations to willingly give up margins, profit, etc. Is like asking lions to babysit gazelles and not eat them. It’s just not what they are designed to do.
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And there won’t be many of those. American companies use foreign parts all the time. You can’t get some of it in the US either.
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Now let’s do some math.
According to data online, Wal-Mart imports $49 billion of product a year just from China. At a 30% tariff rate that’s nearly $15 billion of “eating.” Wal-Mart’s net profit last year was $15.5 billion. And that’s just one country’s worth. Walmart is not eating tariffs, American consumers will pay that 15 billion.
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I won’t. We won’t buy it. If it disappears so what. I already don’t buy it
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Wow… reducing the options of others because it doesn’t affect you. Such great polity.
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And if enough people like you say I won’t buy it then trickles all the way down the line.and affects people who work at docks, trucking, warehouses, ect.
What do you think that does to the econony? Stagflation.
Tell me, what happened to the narrative that we were sold that the countries that export pay the tariffs? Can we finally accept that was a lie?
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I just clearly demonstrated that,somehow, Exporters will pay. Because we buyers won’t.
And the purpose, which many cannot recall, is to create American production.
What used to cost $100, imported from China, now costs $130. Enter the American product selling for $110. I might well decide to buy it.
And if the Chinese Importer decides to also sell for $110 he obtains only $80 after paying the $30 tariff. Probably doesn’t work for them.
Now I employ American workers instead of firing all the poor souls that someone cited. I didn’t fire anyone, I hired people.
The American workers I hired pay USA Income Taxes, FICA taxes, and Medicare taxes. The Chinese I fired pay ZERO American taxes.
Are we tired of winning?
That’s a long way of saying I don’t know how global supply chains work. If said American company imports any components then all those are tariffed which again will passed on to consumers, not even counting labor costs.
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Your post literally makes no sense. None of it.
A 30% tariff with out subsidies is not enough to spur onshoring production. Companies may move around where they produce but without long term assurances beyond the next four years a company will not invest millions here. They will do like Apple has said they will do and just move production to india to skirt tariffs.
Yeah honestly I feel like I went too soft last reply
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American manufacturers couldn’t cover all the demand coming online even if they were only 10% more (which is a made up number). It’s also ignoring that American manufacturers also use foreign parts/inputs/feedstock.
And some stuff isn’t made here at all. This stuff is WAY more complicated than some want it to be. Tariffs aren’t magic.
You can’t reset global supply chains overnight. It would take years.
And stuff will get more expensive under any scenario which is where this all started.
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Yep…it would take years to change global supply chains. Then there is training and paying for domestic labor. The same people demanding we onshore jobs also say a $15 dollar an hour minimum wage is impossible and unsustainable.
Americans will not buy a $3000 dollar american made iPhone when they can get one made overseas for $1500.
Someone put it to test and sold a chinese product for a cheaper price and onntheir website sold an american made product for just over $100 dollars more. Zero american made products were sold, even when they changed the configuration.
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Ramon van Meer, founder of Austin-based company Afina, conducted a test to see if consumers would pay more for a “Made in the USA” version of his company’s filtered shower head. He offered the same shower head, identical in design and quality, with the only difference being its origin (China or USA) and price ($129 for the Asian-made version and $239 for the American-made version). The test revealed that despite consumers expressing interest in supporting “Made in the USA” products, the cheaper, Asian-made option was overwhelmingly preferred.
- The results showed that while many customers added the cheaper, Asian-made version to their shopping carts, very few purchased the American-made version. In fact, more than 500 of the cheaper, Asian-made shower heads were sold, while zero of the American-made version were sold, according to Business Insider.
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No don’t you understand he’s clearly demonstrated that as a well off retiree we all just need to follow his lead. Then we all win!
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If the purpose is to create American Production, you put into place a 100% tariff
and there is nothing to negotiate with the foreign countries.
Since apparently you are negotiating, the part about creating American production
can’t be true.
You may be negotiating to try and open the foreign market to more good, but on ag
produce, the buyer has several options. On manufactured goods you have the high cost of US labor that will make US manufactured goods very pricey.
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