NemeskiWe'll pass Trump tariffs back as higher prices for Americans: German firm
Lembot_0001Stop. Maybe I understand it all wrong?
I thought that those “tariffs” were just an additional tax to customers for buying foreign stuff. It has absolutely nothing to do with producer of that stuff. Just customers pay price, pay tax-tariffs and then government pocket tax-tariffs and pass-through the price to the manufacturer.
What he is talking about? He sounds like Captain Obvious.
If you’re an importer or manufacturer-importer, you can choose to take a lower profit margin or make a loss to maintain the same final price. If the market is dominated by domestic competitors, you might need to do this to maintain sales.
If there’s no significant domestic competitors, they’re too small to sway the market, or they’re also forced to raise prices due to tariffs on their supply chain, the price the market will bear goes up.