Nope.
Walmart notices its inventory of 45” Samsung flat screen hdtvs is higher than expected, as the price has increased by 20% due to tariffs and to break even they have to sell at no less than a 15% markup. Walmart revises its order from Samsung for their next shipment. Samsung sees that its American order has gone down by 15 percent and reduces its order for controller chips which are made in Singapore.
These controller chips use microchips made in Mexico from boron mined in southern Arizona. Now 10 percent of the boron miners of Tempe are out of work because of a price increase on Korean TVs and they can’t even watch Netflix because their TV is broken and they can’t afford a new one.
the world economy is interconnected, even more than it was in 1929. Tariffs are a great way to blow that up.
I own an online shop on Australia. Most of my customers are in Australia but I do have some overseas including the US. But I’m not longer exporting to the US because of Trump’s tariffs. It’s not just an extra 10%!
The tariff applied to each product depends on where it was made and I get them from all over so tariff varies from 0 to 30% OR $100 – WHICHEVER IS HIGHER! plus there’s an $80 admin fee to the American company set up to collect tariffs.
So to the US customer who wanted to buy a $20 product from me last week I had to say sorry, there’s a tarrif of $180 on that, and that without me adding an admin fee for the hour of paperwork I would have to do. That doesn’t even include postage costs!
As a small business owner, I find it just flat out hilarious how many people have NO concept about how business works.
I think that many such people are Far Right Extremists parroting Orange Daddy’s fantasy spiel.
No, small businesses are not going to absorb tariffs. Many of them aren’t going to absorb ANY or the costs and I also don’t believe that corporate is going to, either.
The consumer is going to pay the tariffs, prices are going to rise, and we are most likely headed for a recession at least.
Yes, consumers can refuse to pay. They simply won’t get the product. That is such a simple concept I wonder why the question is asked.
You thought some Fairy was going to wave a wand and they would get products for cheap just because they want them so much?
Let’s say I make ‘Quivering Widgets’, which are selling all over the world – but the biggest market is in the USA. If I sell them to another company for (US)$100, I can buy new raw materials, pay for my plant and workers – and make the profit needed for my retirement.
If a US company, ‘MartWal’ let’s say, buys from me for $100, their costs and profit meant they sold a Quivering Widget at $125 – before the IOTUS (Idiot of the US) added his tariffs. To keep their existing profit margin, MartWal now needs to sell a Quivering Widget at $150. Their sales of the product drop as US consumers won’t pay the new price.
Not my direct problem!
I’ve sold my Quivering Widgets for $100 – MartWal has to pay the tariff, not me.
When Martwal reduces – or cancels – future orders, I’ll need to ‘retrench’, possibly, or up my marketing outside the USA so I sell more to other countries.
The world doesn’t exist just to supply the USA and I’m not going to risk my retirement and the continued jobs of my employees by selling at $87.50 (a net loss to me), just so MartWal can still sell at $125.
Dem’s da breaks, MAGAts.
