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In order to "eat the price of the tarriffs", wouldn't they have to not hike up the consumer price, accepting reduced profits instead? That doesn't seem likely.
by marssaxman 2y ago
In order to "eat the price of the tarriffs", wouldn't they have to not hike up the consumer price, accepting reduced profits instead? That doesn't seem likely.
- allears 2y agoBusinesses not only have cost of goods sold, they have salaries, rents, taxes, and various other kinds of overhead. Very few businesses have enough profit margin to eat 25% tariffs.
- marssaxman 2y agoRight! The suggestion just doesn't make sense. Of course consumers will pay the tariffs in the form of increased prices.