Just heard on Fox business 😂😂😂

[Watchfoxheadexplodes]

All major CFOs are now going over numbers to off set tarrifs.

😂😂😂😂😂😂

[unblock]

1. Lowering sales and net profit estimates, that is....

[Watchfoxheadexplodes]

2. I actually forgot punchline

"to lower prices"

[unblock]

7. there is a small effect, in the sense that every business in the chain will absorb a portion of the cost, but the bulk

of tariffs will be paid by consumers.

say something cost $100, but donnie slapped a $30 tariff on it. few, if any, businesses have margins that large, the can't fully absorb it even if they wanted to.

say the arrangement was the importer paid $100, they charged $125 to the distributor, who charged $160 to the retailer, who charged $200 to the consumer.

a best case scenario might be prices might change to $95, $115, $145, $180 respectively, ignoring the tariff.

but with the tariff (now $28.50 on the lower price of $95), it's actually $123.50, $143.50, $173.50, $208.50. So every business along the chain takes a hit and the end consumer still winds up seeing an $8.50 price increase.

in practice, most the numbers won't like this. most businesses aren't going to absorb $20 out of the $28.50 hit, more of it will be passed on to the consumer.

and as tariffs aren't listed on receipts, all anyone will really see is prices going up.

well, other than the CFOs, who will see sales and net revenue go down.

[louis-t]

12. I have this terrible feeling that this will force

downward pressure on wages.

[unblock]

14. That's the least of it.

Layoffs and bankruptcies are more my concern.

[Irish_Dem]

3. Raising prices so they lose no profit?

[a kennedy]

4. THIS EXACTLY.....

[unblock]

8. more precisely, they will raise prices enough to minimize the damage to net profit.

this means absorbing a (usually) small portion of the tax.

they have to find the new optimal point, increasing prices to the point where lower sales at the new price (higher for their customer, lower net for the business itself after tariffs) optimizes net profit.

[Irish_Dem]

9. In other words, they are looking for that sweet spot.

Taking into account the new variables, increased prices, lowered sales, lower net, etc.
They are going to lose as little as possible.

[unblock]

10. yup. and that "sweet" spot usually involves taking only a small portion of the hit.

it spreads around the pain to everyone involved, but no one ends up happy. except putin.

[Irish_Dem]

11. Exactly. Spread the pain around. Putin is thrilled.

Destroying American without firing a shot.
Causing pain, hardship, deaths.
He loves it.

[sop]

5. Figuring out just how much of the tariffs they can pass on in price increases to American consumers before

affecting either demand or profits.

[Omnipresent]

6. They wouldn't want to yell, "Fire!" In a crowded theater.

So they are saying instead “We need to offset ourselves from the flames and smoke”.
In this way, only we get burned!

[lanlady]

13. I've got a better idea

Why not get Mikey J on the phone and demand he get the House together to vote to overrule the tariffs? Or else no more big checkies to any GOP

[Watchfoxheadexplodes]

15. Stock market on uptick

Lmao that's the current 😂🙄