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>No, customers pay the tarriffs at the end of the day. This depends on the product and the type of demand. If it's inelastic, yes. if it's consumer focused, ye
by TrapLord_Rhodo 3y ago
>No, customers pay the tarriffs at the end of the day.
This depends on the product and the type of demand. If it's inelastic, yes. if it's consumer focused, yes. But most of the time that's not the case. Tarrifs on material exports ar b2b, where pricing agreements are common.
At the end of the day, tarrifs create downward pressure on companies profit margins. If you instead, gave incentives it would put upward pressure on the companies who created fucundity for the economy.