The price on all imported goods should have gone up immediately after the Tantrum of the Opera imposed the tariffs. However, big retailers like Walmart have warehouses all over the country loaded with stock that did not have tariffs when they came into the country.
It took a while to deplete all of that cheaper stock. Anyone who shops regularly at Walmart got lulled into thinking the tariffs were paid by the other countries because 1) the prices did not go up right after President Piggy announced the new tariffs, and 2) Piggy kept insisting that American consumers do NOT pay the tariffs (they DO).
So, when the cheaper stock finally thinned out and the tariffed goods showed up on Walmart shelves, those consumers who had believed King Con got a shock.
As for your assumption that Walmart would ‘eat the tariffs for years’ wow, how naive can one person be? That is not how business works.
- You import a T.V. from China that costs your business, $150.
- You sell it for #175. You make a profit.
- Suddenly, the same T.V. from China costs $202 (a 35% tariff that you have to pay is included).
- Now you charge $230. You make roughly the same profit.
Increases in business costs are always passed along to the consumer.
What nutjob told you that Walmart would eat the tariffs for years? Let me guess- was it this guy?
Thought so!
Someone’s confused.
Y’all supposedly wanna encourage more domestic manufacturing, by way of these tariffs.
“Make American jobs”. Correct?
Ok. So. Two scenarios. Walmart does pass on tariff costs, or Walmart doesn’t.
If scenario #1. Walmart passes on the cost of the tariffs.
So goods from other countries begin to cost more. The “made in USA” product on the shelf beside the imported good, becomes more desirable to consumers.
The consumer chooses the American product, encouraged by the better relative price.
American jobs are made. Ain’t America great???
If scenario #2. Walmart eats the cost of tariffs.
Consumers continue to choose the imported brands, cause the price hasn’t changed.
Walmart loses some money. They’ll just cut employees wages or hours.
No American jobs are made.
The tariffs are a complete failure.
If consumers think tariffs won’t cause increased prices… they don’t understand tariffs.
If they don’t recognize, tariffs HAVE TO CAUSE INCREASED PRICES otherwise they are useless… they don’t understand tariffs.
Its straight forward.
Your purchasing decisions MUST be modified by the tariff… otherwise how will the tariffs result in more American jobs?
The consumer must be influenced. Affected.
That’s the whole point. Supposedly.
