3 ms·

You think businesses as a rule can all survive a 15 to 100% surcharge on their products without running into liquidity issues?

• bluGill 8mo ago
  Those are a sunk cost at this point though. The business likely is better off having sold and got the money now - vs risking they will never get a refund.
• gruez 8mo ago
  The stocks of major retailers haven't cratered, so maybe? You're going to have to present some figures rather than just asking rhetorical questions.
  • jacquesm 8mo ago
    You have to present figures when you're arguing the hard-to-prove side of something not when it's plain obvious that business are not in a position to deal with such shocks in the market without having to reach for capital. This is not normal. Typical operating margins of business is anywhere from 5 to 20% with outliers in the digital domain but that's not the part that we are talking about here. Anyway, you want figures, well, here are some figures: https://marketrealist.com/why-did-700-bu/ https://marketrealist.com/why-did-700-bu/ I'm sure there are other sources, better ones, worse ones but they all tell roughly the same story: willy nilly tarrifs have a negative effect on one's ability to operate a business. Businesses like predictable, stable climates to operate in.
    • NetMageSCW 8mo ago
      There’s a long way from businesses like predictable stable climates (and that ship has long sailed) and business won’t survive. There’s no reason to believe the latter is true.
      • jacquesm 8mo ago
        At a guess you are not operating a business that adds value to real goods subject to overnight surprise tariffs then.