3 ms·
They buy cheap. A lot of what is cheap is from abroad. Also, cheap domestically produced goods use foreign materials or parts. If the steel price goes up, every
by watwut 2y ago
They buy cheap. A lot of what is cheap is from abroad. Also, cheap domestically produced goods use foreign materials or parts. If the steel price goes up, everything from the steel goes up too. The tariffs are supposed to offset tax breaks for rich people. In their current form, they are basically tax on consumers.
Mexico has old tariffs in place, they did not got an out. They do not have new tariffs put on them on top of previous tariffs. Even domestic foods can go up when fertilizers used to grow them are more expensive. Or when transportation is more expensive.
China did not just "eat the tariff". First, tariff is paid by domestic consumer, foreign company is not paying that. Second, China announced retaliatory tariffs.