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I disagree with your blanket assumption that consumers always pay for tariffs. In my experience working for a major garment importer, we kept retail prices the

I disagree with your blanket assumption that consumers always pay for tariffs. In my experience working for a major garment importer, we kept retail prices the same even after tariffs were added. Why? Because competition from local brands forced us to absorb the cost ourselves. Sure, that's not how every industry works, but saying consumers always pay is an oversimplification. It really depends on the industry, pricing power, and competitive pressure.

wat10000 1y ago
Whether tariffs are paid by the consumer is a bit pointless. The incontrovertible fact is that tariffs are paid by someone in the importing country, whether the importing business or their customer or a middleman or some combination. These dingbats are out there thinking that these tariffs will be paid by China or Canada or whatever.
- geysersam 1y ago
  But that's not true, why would it be? Tariffs are paid by someone in the supply chain. It's not obvious that the payer is in the importing country.
  - wat10000 1y ago
    They are paid by the importer. It’s possible those costs will be passed along with higher prices, but you can’t really pass costs back.
    - robertlagrant 1y ago
      Of course you can. Competition means exporters can lower their prices to help mitigate the tariffs in order to beat their competitors.
      - wat10000 1y ago
        They can do that without tariffs too.
        SirMaster 1y ago
        But why would they if they don't have a competition on price without a tariff?
        wat10000 1y ago
        Why wouldn’t they have competition?
        geysersam 1y ago
        Even if you assume perfect competition costs like tariffs can be passed back to producers. Imagine a demand and a supply curve. From the perspective of a producer outside the country the tariff effectively shifts the demand curve, but doesn't affect supply. That's going to lead to a lower price at equilibrium. Of course, from the perspective of the consumer it's the opposite situation, the supply curve shifts which leads to a higher price at equilibrium. Both happen simultaneously, who pays most of the tariff depends on the elasticity of the supply and the demand
  - djfobbz 1y ago
    "Tariffs are paid by someone in the supply chain" is the most accurate way to put it because it reflects how things really work in practice. Sure, the importer is the one who physically pays the tariff at the border, but that cost doesn't always stay with them. Depending on the situation, that expense can be shared, passed on, or absorbed by others involved in the trade. For example, if there's a 35% tariff on a $100 item, the importer technically owes $135. But the exporter might lower their price, maybe selling it for $70 instead to help offset the tariff and keep the business deal going. In that case, the exporter is basically covering part of the cost. On the flip side, the importer might just raise the final price and make the customer pay more...or better yet, assume the cost due to intense local competition. So even though the importer pays the duty upfront, who actually feels the cost depends on how the parties involved respond. That's why it makes more sense to say someone in the supply chain pays. It's not always the same person every time.

wat10000 1y ago

Whether tariffs are paid by the consumer is a bit pointless. The incontrovertible fact is that tariffs are paid by someone in the importing country, whether the importing business or their customer or a middleman or some combination. These dingbats are out there thinking that these tariffs will be paid by China or Canada or whatever.

geysersam 1y ago
But that's not true, why would it be? Tariffs are paid by someone in the supply chain. It's not obvious that the payer is in the importing country.
- wat10000 1y ago
  They are paid by the importer. It’s possible those costs will be passed along with higher prices, but you can’t really pass costs back.
  - robertlagrant 1y ago
    Of course you can. Competition means exporters can lower their prices to help mitigate the tariffs in order to beat their competitors.
    - wat10000 1y ago
      They can do that without tariffs too.
      - SirMaster 1y ago
        But why would they if they don't have a competition on price without a tariff?
        wat10000 1y ago
        Why wouldn’t they have competition?
        geysersam 1y ago
        Even if you assume perfect competition costs like tariffs can be passed back to producers. Imagine a demand and a supply curve. From the perspective of a producer outside the country the tariff effectively shifts the demand curve, but doesn't affect supply. That's going to lead to a lower price at equilibrium. Of course, from the perspective of the consumer it's the opposite situation, the supply curve shifts which leads to a higher price at equilibrium. Both happen simultaneously, who pays most of the tariff depends on the elasticity of the supply and the demand
- djfobbz 1y ago
  "Tariffs are paid by someone in the supply chain" is the most accurate way to put it because it reflects how things really work in practice. Sure, the importer is the one who physically pays the tariff at the border, but that cost doesn't always stay with them. Depending on the situation, that expense can be shared, passed on, or absorbed by others involved in the trade. For example, if there's a 35% tariff on a $100 item, the importer technically owes $135. But the exporter might lower their price, maybe selling it for $70 instead to help offset the tariff and keep the business deal going. In that case, the exporter is basically covering part of the cost. On the flip side, the importer might just raise the final price and make the customer pay more...or better yet, assume the cost due to intense local competition. So even though the importer pays the duty upfront, who actually feels the cost depends on how the parties involved respond. That's why it makes more sense to say someone in the supply chain pays. It's not always the same person every time.