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Put aside the politics It’s a terrible metric to show because it’s not like they are buying these things in single pieces - they get the products in bulk from
by firesteelrain 2y ago
Put aside the politics
It’s a terrible metric to show because it’s not like they are buying these things in single pieces - they get the products in bulk from Chinese suppliers presumably at a discount. I am not sure of the point of including this - it is sort of like when you go to a restaurant and they add some stupid service charge on your bill as a protest against something like paying their workers more because wage went up
- kasey_junk 2y agoYou don’t get discounts on tariffs for bulk buying.
- timr 2y agoHuge buyers can and do negotiate discounts to place the burden on the seller. If you're buying 1 item, the tariff is your problem. If you're buying 99% of the company's output, the tariff is their problem.
- kasey_junk 2y agoAnd yet they still charge the same sales tax %.
- timr 2y agoSales taxes are calculated on the gross, not the COGS, so it's not the same. It's also different by locality. But yes, the same principle applies: huge retailers negotiate for better margin. Any tax on the retailer can be theoretically negotiated back to the seller.
- nickff 2y agoI think the parent is trying to say that the tariffs are levied based on the importer's cost, not on their price, so its impact could be smaller on goods with higher retail markup.