re: Question about Percentage-based markups and tariffs.

quote:

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My question is if the hard dollar amount is passed on, or if companies will add tariff amount to the price they pay for goods and then markup from there

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That’s very much an “it depends” answer. If a company is in a very competitive market with lots of substitute options for consumers, they’ll have to figure out a way to be as price competitive as possible. If it’s highly specialized, they can probably get away with passing most or all of the cost on, whether that’s a direct pass through or adding a markup on top of that cost. It all depends on their market and price/revenue strategies.