Duckbilled Plattypus.@pattykimura@beige.party
@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
Stefano@StefanoL@mstdn.ca
@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.