Tariffs, how they actually work

[Mac-7]

Tariffs do increase prices. Why aren’t people buying American? Because the prices are higher. The world does better when we’re interconnected vs everyone going it alone. Targeted tariffs may have a purpose, but blanket tariffs stifle trade.

Professionals in America make much more than professionals in 3rd world countries

And they charge consumers more for their services

What if we flooded America with lawyers who are willing to work cheaper than American lawyers in order to lower prices?

 

[Mac-7]

It varies from product to product

Producers often reduce the price of their imported goods snd retailers can and often do eat some of the tariffs

ultimately it does raise prices to consumers

But it also encourages more US production

Hellokitty gets it

Nuthin' Fancy doesent

 

[Mac1958]

I will say that over the summer companies ate most of the tariff because the supply chain takes time to unwind. Recently we’ve started passing on a portion of it. By November we’ll have most of the pricing adjusted and the consumer will be eating nearly 100% of the increase. For spring everything will be in place.

For clarity I have about 60% of my materials written as purchase orders out through March of next year for best cost. The rest I’ll pay more and react to demand more closely in.

American companies can do a few things to mitigate their tariff costs, and so far they're doing a good job.

They can take a lower margin, they can try to add to efficiencies, they can drop less profitable lines and not order those goods, they can try to renegotiate certain contracts, and they can decrease spending like CapEx and hiring.

There's only so many moving parts, but they're doing what they can.

 

[Nuthin' Fancy]

Trying to explain economics to a tRumpling is a waste of effort, I'm afraid.

And their dear leader.

Jim Jones in his wildest dreams couldn't have come up with a more ignorant and gullible cult.

 

[leftwinger]

Many items can not be bought that is made in America. If you are going to buy a television you are going to pay the tariff increase.

People have a difficult time making ends meet. In some cases you can spend more for American made but you are still paying more.

Trump said he would bring down prices.

Eat it up Stain. What you Stain want.

 

[konradv]

Professionals in America make much more than professionals in 3rd world countries

And they charge consumers more for their services

What if we flooded America with lawyers who are willing to work cheaper than American lawyers in order to lower prices?

Sounds good. Trump is already using bargain basement lawyers and getting cases thrown out. Saves money for everyone.

 

[task0778]

The truth is that tariffs are paid by the importing businesses that contracted with foreign businesses to buy their stuff and sell it here to US consumers. The importing companies try to absorb the cost of the tariff as best they can, but mostly they increase the price of the imported goods to US consumers. So, tariffs are in large part paid for by US companies and consumers. To deny that is to deny reality.

 

[leftwinger]

Democrats lie that tariffs are a tax on Americans. Not true.

Most of the tariffs are paid by the importers, not the consumers, and as you say, if you buy American there is no tariff.

Correct. First option is to pay the tariff and not raise the price of the item sold. If they want to sell in this market they may have to cut their profit margin.

 

[leftwinger]

Multiple choice question! When the goods arrive, who pays the tariff fees?

A. The exporting company (Chinese, Korean, whatever)
B. The importing company (American employer)
C. Elvis (Currently dead)

There's just one correct answer! Take your guess!

The Importing company can demand a lower price coming in to cover the tariff cost. If not? They don't import the item you don't need to buy anyways Cheese Stain.//

 

[leftwinger]

What do you do for a living? Not business I assume.

I can order a steel shelf unit from China for $89 cost including a 10% tariff. If the tariff goes up to 25% the steel shelf costs $109. If it goes up to 50% it will cost $129.

The same shelf costs $220 to make in the US.

How is the price of goods not being increased?

You could demand it for less from China. Or you can find American shelving you dumb OX. Or, If it is important enough and money to be made....someone in America would do it for you.

 

[Mac-7]

Sounds good. Trump is already using bargain basement lawyers and getting cases thrown out. Saves money for everyone.

I only picked lawyers as an example

It can be teachers, doctors, nurses, members of congress, ect

 

[leftwinger]

American companies can do a few things to mitigate their tariff costs, and so far they're doing a good job.

They can take a lower margin, they can try to add to efficiencies, they can drop less profitable lines and not order those goods, they can try to renegotiate certain contracts, and they can decrease spending like CapEx and hiring.

There's only so many moving parts, but they're doing what they can.

Now the rotten Cheese is coming into more a realistic position vs. his TDS Stain positions.//

 

[task0778]

Democrats lie that tariffs are a tax on Americans. Not true.

Most of the tariffs are paid by the importers, not the consumers, and as you say, if you buy American there is no tariff.

The whole point of raising tariffs on imported stuff is to raise the prices to equal or exceed the price of domestic stuff, how does anyone not get that? Which hopefully results in US companies reshoring their operations and jobs back here. So, tariffs are indeed paid for by American companies and consumers.

Some US importers will find ways to absorb the higher tariff cost, but ultimately it will fall on consumers. Otherwise, what's the point if American stuff isn't competitively priced relative to the imported stuff?

 

[Mac-7]

The whole point of raising tariffs on imported stuff is to raise the prices to equal or exceed the price of domestic stuff, how does anyone not get that? Which hopefully results in US companies reshoring their operations and jobs back here. So, tariffs are indeed paid for by American companies and consumers.

Some US importers will find ways to absorb the higher tariff cost, but ultimately it will fall on consumers. Otherwise, what's the point if American stuff isn't competitively priced relative to the imported stuff?

Libs just want cheap goods even if it impoverishes 80% of Americans

 

[leftwinger]

They used to have Wafer Fabs all over Silicon Valley. Now? Few small ENG houses or R&D secret FABS for big companies. Most started going offshore long long ago. Due to CA environmental restrictions and cost of course. Bad lackadaisical 70s' White Management killed the golden goose dumping chemicals into the ground water did not help.

Much better now. Many re-opened in TX ORE (Micron in Boise) and scattered around elsewhere. But I am pretty sure Asia still dominates the Wafer industry. Can't build Semiconductors w/o a wafer fab. $100B to get one started? not sure anymore. Can't build a car or TV w/o Semiconductors............and many other items.

 

[citygator]

Correct. First option is to pay the tariff and not raise the price of the item sold. If they want to sell in this market they may have to cut their profit margin.

In the real world price elasticity is a thing. The math tells you that you will be more profitable raising your price and selling less than to eat the cost. That’ s how we decide in the real world.

 

[Winston]

The truth is that tariffs are paid by the importing businesses that contracted with foreign businesses to buy their stuff and sell it here to US consumers. The importing companies try to absorb the cost of the tariff as best they can, but mostly they increase the price of the imported goods to US consumers. So, tariffs are in large part paid for by US companies and consumers. To deny that is to deny reality.

Yes, tariffs are paid by the importing business, at the port of entry. And yes, those importing companies try and absorb those costs, but not in curbing their margins, hell no, that ain't going to happen. They try to lower costs in other areas. Walmart just beats up her suppliers. But even Walmart has warned prices are going to increase due to the tariffs.

It is already showing up, especially within the supply chain itself. And we got hit with another round at the end of the week going into effect in October. Some of those are going to hurt. I mean this ain't the freaking 1930's, and even then, that whole tariff thing didn't turn out so damn "beautiful". But like it or not, we live in a global supply chain. The very components of many manufacturing industries, are imported.

Trump's tariffs have sent companies, in multiple industries, spanning through all the major categories, into a too scared to move position. No hiring, maybe conservative expansions into domestic production but that will depend on American sourced production materials which have a couple of years before they could possibly ramp up. Trump has paralyzed the business community.

 

[task0778]

Libs just want cheap goods even if it impoverishes 80% of Americans

This is wrong. Firstly, I don't give a shit what libs want. What they want is to oppose anything and everything Trump is doing, purely for political purposes. Remember, 30 years ago it was the democrats who wanted tariffs.

Second, it is patently ridiculous that cheap goods will impoverish 80% of Americans or anyone else for that matter. If a person can buy something with the same or nearly the same quality for a lower price, then their standard of living is higher. And don't try to tell me the quality of foreign products is markedly lower cuz it isn't.

 

[Mac-7]

This is wrong. Firstly, I don't give a shit what libs want. What they want is to oppose anything and everything Trump is doing, purely for political purposes. Remember, 30 years ago it was the democrats who wanted tariffs.

Second, it is patently ridiculous that cheap goods will impoverish 80% of Americans or anyone else for that matter. If a person can buy something with the same or nearly the same quality for a lower price, then their standard of living is higher. And don't try to tell me the quality of foreign products is markedly lower cuz it isn't.

Where will Americans get the money to buy the cheap goods from china?

Are all going to sell insurance to each other or be dog groomers?

 

[The Sage of Main Street]

Tariffs do increase prices. Why aren’t people buying American? Because the prices are higher. The world does better when we’re interconnected vs everyone going it alone. Targeted tariffs may have a purpose, but blanket tariffs stifle trade.

White Collar Hates Blue Collar

It's better to have the money circulating within America than having it leach out to Third World sweatshops.