@georgetakei@universeodon.com That's crazy, wait until he finds out it will cost him at least $130 if the importer decides to pass the entire tariff onto the consumer, though I don't think this will happen. That's just nuts thinking this way and not at least informing themselves of what the tariff really means. Here in Canada there are people who think that the exporters have to flip the bill and even some of the news outlets are saying this is going to cost companies money, not in the tariffs but in loss revenues perhaps but they don't explain that and therefore people even here assume that Canada has to pay the tariffs.
@StefanoL@mstdn.ca
Why would anyone whose business operations requires profit absorb the tariff cost long term and give up profit? You seem to express an odd view about how capitalist/corporation operate. CEOs have a legal duty to create profit to repay and enrich their investors/stockholders whose money they took. Capitalism is not charity, and does not operate on "feelings" or the mistaken view about how a defacto tax on goods in a tariff is paid.
@georgetakei@universeodon.com
@pattykimura@beige.party @georgetakei@universeodon.com Actually, many companies do absorb increases to save their customer base. They absorb part of the tariffs, exporters lower prices or importers absorb some profit. The 'feelings' comment, was related to some people on both sides of the border who still think it's Canadian companies who flip the bill for the tariffs, they don't, companies continue selling their products at whatever their going rate is, it's the importers that then have to pay the tariff to their own government, in this case the US, and then pass the increase on to their customers. The article I link to has some stats that say that many importers do absorb part of the tariffs to not lose customers. Also, in the article when Mr. Trump says that the US will make lots of money with the tariffs, yes it will, on the backs of their own people, who ultimately pay the tariffs. Either he hasn't grasped the real idea of a tariff or he's playing the US populace for fools. I gather it's probably the latter.
https://www.cbc.ca/news/world/donald-trump-tariffs-cost-consumers-businesses-us-1.7600966
@StefanoL@mstdn.ca
"Part" of the tariff is not 30%. I've run retails businesses, managed wholesale distributors, made budgets and signed multi-year contracts that require long-range forecasts. You are asserting parts of what you've read without ever addressing the monumental size of the tariff, far in excess of 1.6-2.4%. 2% is one thing, 30% is another. Businesses invented loss leaders for a reason but no one cuts their own throats only to keep customers, that's called bankruptcy.
I have no knowledge about how Canadian businesses will manage their costs of goods to sell in the US. Some US businesses stockpiled, so they have some wiggle to average pre- and post tariff inventory, but when the pre inventory runs out, you raise prices or cut costs, and for many that means cutting costs by cutting jobs.
The guy who insisted a 30% tariff means the exporter nation gives Americans a 30% discount on a $100 item is as delusional as those who say the importer will eat 30% on a $100 item. Out of the list of farmer to distributor to store, where would you take 30%?
@georgetakei@universeodon.com
@pattykimura@beige.party @georgetakei@universeodon.com But I do agree with you, no sane importer will absorb 30%, that's why I originally said that original person that George Takei was quoting doesn't realize that the tariffs will be passed on to consumers. Trump's reasoning I guess is that instead of importing stuff from other countries, they will produce things in the US. Yes, that could work but will take years to set up and in the meantime the US population will have to cough up the money for the tariffs. I'm really no analyst, I can only see what some of my US friends are telling me about prices going up for some goods and what some of my friends who deal almost exclusively with US customers that are seeing their sales greatly affected because the US companies don't necessarily want to buy Canadian goods now. I fear for my own job really, as the company I work for is in the same boat. 97% of our products go to the US.
Stefano
Duckbilled Plattypus.