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Started By
Message
re: If countries are tariffing our companies now, arent our consumers here paying for it????
Posted on 4/4/25 at 8:45 pm to Riverside
Posted on 4/4/25 at 8:45 pm to Riverside
quote:
They may have no choice but to eat the loss here in order to retain market dominance.
This. I have worked internationally for decades and sold to MANY countries with various, taxes, tariffs, barriers. You start at the consumer price and back your way into a price, in some instances my wholesaler will eat part of the tariff and so will I so when its paid the price is still a good price point for the consumer.
This bullshite about the consumer eats it all is just that. Listen to Bessent on Tucker. The chinese tariff of 10%, they thought would have a cost to the consumer of 2%.....it ended up being less than 1% because the chinese companies ate it, TO MAINTAIN THEIR MARKET SHARE.
And to my original point, the US companies will take more price in the US to make up for the shortfall in other markets. Its why drug prices are so high in the US compared to other countries, for the same drug.
You have been paying for it for years, its just baked in.
0
Posted on 4/4/25 at 8:48 pm to cameronml
quote:
Companies price their products relative to competitors. If all of your competitors were forced to increase prices to maintain margins, you’d be stupid not to raise your price and reap the higher margin.
You are assuming all your competitors are foreign. Local companies will fight for that share. The exception would be oligarchies like steel, or weapons manufacturers.....which should have been dealt with 50 years ago.
Posted on 4/4/25 at 8:53 pm to TerryDawg03
quote:
This is why the tariffs are important. We can’t compete globally with exports if other countries are already doing what they’re mad at Trump for proposing.
This is another point constantly missed by the "free" trade crowd. They say that American companies can't be as efficient as foreign companies but refuse to acknowledge that American companies would be able to innovate more if they were allowed to sell in foreign markets without restrictions.
The policies of foreign countries stifle our companies, and the libertarian response is to just ship all the companies out. Instead of fixing the root cause, they want to exacerbate the problem. It's delusional.
Posted on 4/4/25 at 9:07 pm to frogtown
quote:
No. If countries are tariffing our exports their consumers are paying for it.
Maybe some of it.
Posted on 4/4/25 at 9:12 pm to trinidadtiger
The real question is why have we allowed American business to be screwed in these markets for so long? The power Trump is exercising now has been available to previous administrations as well. I’m just curious how much of our manufacturing power needs to be shipped over seas before we completely irradiate the middle class to satisfy our addiction for cheap junk.
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