General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNot to seem cynical here, but
..if the price of imported goods were to rise 25% due to Trumps tariffs, couldnt US manufacturers of similar products raise their prices, say 20%, and still be competitively priced?
Not that they would do that, would they?
Macrophylla
(201 posts)The manufacturing equipment was all sold by American companies to foreign companies and shipped to where the cheap labor lives.
So after the actual manufacturing equipment and facilities are rebuilt...sure it could be done.
marble falls
(72,172 posts)... fucked US soybean farmers. We tariffed Chinese pork and China cancelled all soybean imports from the US. The pork tariff died a quick and unpublicized death.
Bettie
(19,787 posts)they'll price their stuff at two or three percent below the tariff goods.
Of course, the end cost of tariff goods will be more than 25%, it will be 40 or 50% since the store will be able to raise their margins as well. So, the non-tariff goods can raise theirs by 35% and still look like "a good deal.
Ocelot II
(130,850 posts)of the kinds of goods that we import. We don't make most of the electronic components that we import from China and couldn't do it for what it costs Chinese companies to make them. We can't grow enough wood for residential construction to make up for Canadian imports, and we can't grow the a lot of the produce we import from Mexico at all. The purpose of tariffs is to allow US manufacturers to compete with cheaper foreign imports, so most of the time they will be carefully targeted at a particular product that the US also produces. What Trump is trying to do is punish trading partners with blanket tariffs that are completely unrelated to what he wants to punish them for, and it's just galactically stupid.
Walleye
(45,095 posts)Magoo48
(6,723 posts)unless it directly effects my familys health. No fucking luxury shit. No non essential food. Not a fucking thing.
Just one of my ways of resisting.
Jacson6
(2,078 posts)Tbone421
(41 posts)Emile
(42,657 posts)Johnny2X2X
(24,320 posts)Many of these importers are running on tight budgerts, especially tier 1 auto suppliers. They actually incur more risk with 25% tariffs, so they will mark it up from there. So a 25% tariff might result in a 30% price increase.
But again, Wall Street doesn't think these tariffs are happenign yet, so let's not get ahead of ourselves.