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PraiseBeToScience on scored.co
1 year ago6 points(+0/-0/+6Score on mirror)
That isn't how tariffs work. You pay the tariff on the dollar value of the product on import, not the retail value. And it's the importer who pays them.
A company sells a shoe for $150. A company is buying those shoes from Vietnam for $20. That's $130 of profit and other expenses.
A 50% tariff means they have to pay $10 tax on those shoes.
They *might* pass on that $10 tax. Or they might be making so much profit that they determine the $10 increase will result in a net loss in sales and just eat it. Most of these producers I'm going to bet will eat most of the cost. And I'm going to bet that most of them already have.
Why do you think Amazon backed off on 'showing the tariff cost'? Because customers would be able to do the math backwards and realize that Amazon is selling everything for 500% markup. They'd be able to more easily identify the truly worthless crap and bootleg products and those are the ones Amazon makes most of their money on.
>The point of tariffs is to promote internal industry, so a tariff should be put in place to make people buy domestic goods instead of foreign ones. But if everything is made in China because there is no internal industry, then tariffs are just a way for the government to get money from its citizens.
You know what it also is? A way to tighten the tap on consumerism. Something I'd think this forum would appreciate. So what if China shit gets more expensive? Maybe it would stop people from buying worthless shit they don't need.
A company sells a shoe for $150. A company is buying those shoes from Vietnam for $20. That's $130 of profit and other expenses.
A 50% tariff means they have to pay $10 tax on those shoes.
They *might* pass on that $10 tax. Or they might be making so much profit that they determine the $10 increase will result in a net loss in sales and just eat it. Most of these producers I'm going to bet will eat most of the cost. And I'm going to bet that most of them already have.
Why do you think Amazon backed off on 'showing the tariff cost'? Because customers would be able to do the math backwards and realize that Amazon is selling everything for 500% markup. They'd be able to more easily identify the truly worthless crap and bootleg products and those are the ones Amazon makes most of their money on.
>The point of tariffs is to promote internal industry, so a tariff should be put in place to make people buy domestic goods instead of foreign ones. But if everything is made in China because there is no internal industry, then tariffs are just a way for the government to get money from its citizens.
You know what it also is? A way to tighten the tap on consumerism. Something I'd think this forum would appreciate. So what if China shit gets more expensive? Maybe it would stop people from buying worthless shit they don't need.