Ray, let me set you straight on a few issues you have brought up.I'm glad to hear that you understand that the cost of the Trump tariffs will not be borne by the Chinese or the Mexicans but American business and their customers. Businesses will pass along the costs to customers if the market will bear it. Sometimes it will and sometimes it won't.Nobody could believe he could f up everything so badly Talk to farmers See how they're doing home builders ,the auto business ,replacement parts vegtablesYeah fn it up not giving a chance for companies to plan ahead the ah doesn't know what he's doing tomorrow Business in case you didn't know can't run that way Now this mexican tariff if it goes thru will screw millions in the states It's like I've said ,the moron will fight to the last drop of YOUR blood
Right, because Hussein always gave companies chances to plan ahead.
Trump has been talking about the possibilities of tariffs for well over a year now. What company missed out on that news?
As a leftist, I guess you believe that when additional costs strike the manufacturer, they just dig deeper in their pockets.
It doesn't work that way and never has. When your auto mechanic, farmer, or remodeler are hit with higher costs to do the job, they pass those costs onto their customers. It's the same kind of crap we are putting up with in the transportation industry. We are shackled with all these environmental costs now. Sure, we pay them up front, but we have to increase our delivery rates. In turn, our customers manufacture goods you and I buy in the store every single time we shop. We consumers pay for those costs.
Just ask your dentist or veterinarian about what Commie Care did to their businesses. The tax on every medical item was levied, and they had to increase their prices for your filling or to get your dog better to recoup those losses.
I have a friend who works in an electronic assembly plant. Practically all the company's parts and assemblies come from China. Two weeks ago their import representative in China contacted all their suppliers. Not one was willing to adjust their price to cover any portion of the tariffs the company has to pay it. The result is the company is going to eat almost 90% of the cost, over a million dollar of Trump tariffs over the next 3 months with prices increase picking up the remainder. The assembly plant will be closed as of the 1st of the year with assembly being transferred to Indonesia. Care to explain how this helps America?
I think you need more honest friends.
The plant will simply pass those costs to their consumers. If not, (and hopefully) they will consider buying their parts from a US company that would help America.
However if that did happen, then other companies would be doing the same. But as a businessman, I think Trump is well aware of that possibility. In which case, it's likely Trump would increase tariffs on those imported goods from Indonesia as well.
A company will only pass added costs on to consumers if the market will allow it. For example, if am selling wigits and the parts are manufactured in China and I have to pay an addition 25% in tariffs on the parts, I will attempt to pass those cost on to to my customers provided they will pay it. If the competition is manufacturing in say Indonesia or a number of other countries and they are paying little or nothing in tariffs, I can't expect my customers to pay the 25% so I have to settle for little or nothing in price increases and have to eat all or a part of the tariffs. This is exactly what American businesses are doing.
For most manufactures and most retailers switching to US manufactured goods is not an option. How many computer memory manufactures are there in the US? Exactly one, and that company makes only one of the 5 major types of memory. There are no computer monitors made in the US, and no TV sets. All computer processors are made abroad. There is not a single lcd flat panel screen manufactured in the US. This situation exist in most industries. For retailers and manufactures, Trump's tariffs are not bringing manufacturing back to the US. It is just forcing US companies and consumers to pay more for the same goods.
If US companies knew that tariffs were permanent, then there would be some investment in building US factories to meet demand. However, the nature of tariffs is that they are always subject to change. So who would be foolish enough to build manufacturing plants in the US to profit from import tariffs when those tariffs might be removed at anytime.
The bottom line is that over the long term tariffs benefit no one except the governments that collect them.
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