What does eat the tariffs mean?

[Anonymous]

Anonymous wrote:Besides the limited "framework" with the UK (i.e., not really a deal) and agreement with China to mutually lower the tariffs raised during his idiot trade war (i.e., worse off than when we stareted), does he have anything?

He has the unending support of his brainless supporters and the media chaos. It’s all very convenient for him to be blowing up the press while ghouls like Vought eviscerate the government and the public safety net. By the time anyone looks beyond their personal balance sheet to see what the Heritage Foundation has done, it will be too late.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is an example: say Walmart buys a widget from China. The widget previously costs $10, but with tariffs, it now costs $25. Trump wants Walmart to still charge customers $10 for the widget and have Walmart’s bottom line bear the cost of the extra $15.

That's not how it works.

If Walmart sells a widget for $10 but they buy it from China for $2, the tariff is on the $2, not the $10. So if there were a 30% tariff applied, that would be 60 cents. So the idea is that a company like Walmart can either continue to charge the $10 for the product or raise the price to $10.60, BUT.......

....tariffs are paid by the country selling the goods. So in the example above, China can eat the 60 cents themselves, slightly raise the price to cover the tariff increase so they make the same amount of money, or only slightly increase it.

Tariffs are never 100% passed off to consumers. It can be passed a little, a lot, or none. There are too many variables, including the idea that consumers can choose to stop purchasing certain products (which is why a retailer, or China, may want to eat some or all of the tariff).

Evidence that Walmart is marking up goods by 500%? Their financial reporting suggests their mark up is 20-25% (and most of that mark up goes to overhead costs).

[Anonymous]

Anonymous wrote:Besides the limited "framework" with the UK (i.e., not really a deal) and agreement with China to mutually lower the tariffs raised during his idiot trade war (i.e., worse off than when we stareted), does he have anything?

He has billions in bribes paid to him by gulf state royals.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is an example: say Walmart buys a widget from China. The widget previously costs $10, but with tariffs, it now costs $25. Trump wants Walmart to still charge customers $10 for the widget and have Walmart’s bottom line bear the cost of the extra $15.

That's not how it works.

If Walmart sells a widget for $10 but they buy it from China for $2, the tariff is on the $2, not the $10. So if there were a 30% tariff applied, that would be 60 cents. So the idea is that a company like Walmart can either continue to charge the $10 for the product or raise the price to $10.60, BUT.......

....tariffs are paid by the country selling the goods. So in the example above, China can eat the 60 cents themselves, slightly raise the price to cover the tariff increase so they make the same amount of money, or only slightly increase it.

Tariffs are never 100% passed off to consumers. It can be passed a little, a lot, or none. There are too many variables, including the idea that consumers can choose to stop purchasing certain products (which is why a retailer, or China, may want to eat some or all of the tariff).

Tariffs are NOT paid by the country selling the goods! They are paid by the country buying the goods, no matter what Trump claims.

[Anonymous]

The above poster is correct. Tariffs are not paid by the country selling the goods, but are paid by the importer. In the above example, Walmart would pay the tariff on the goods it imports, and then pass it on to the consumer

[Anonymous]

Trump thought the billionaires who elected him would be willing to pay for tariffs out of their pocket instead of passing it on to consumers. Whoops!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here is an example: say Walmart buys a widget from China. The widget previously costs $10, but with tariffs, it now costs $25. Trump wants Walmart to still charge customers $10 for the widget and have Walmart’s bottom line bear the cost of the extra $15.

That's not how it works.

If Walmart sells a widget for $10 but they buy it from China for $2, the tariff is on the $2, not the $10. So if there were a 30% tariff applied, that would be 60 cents. So the idea is that a company like Walmart can either continue to charge the $10 for the product or raise the price to $10.60, BUT.......

....tariffs are paid by the country selling the goods. So in the example above, China can eat the 60 cents themselves, slightly raise the price to cover the tariff increase so they make the same amount of money, or only slightly increase it.

Tariffs are never 100% passed off to consumers. It can be passed a little, a lot, or none. There are too many variables, including the idea that consumers can choose to stop purchasing certain products (which is why a retailer, or China, may want to eat some or all of the tariff).

Tariffs are NOT paid by the country selling the goods! They are paid by the country buying the goods, no matter what Trump claims.

But that's what Trump said and his cult believed it. Remember his big beautiful chart of the "reciprocal" tariffs?

[Anonymous]

It means that Americans are going. To b paying tariffs and not eating.

[Anonymous]

Anonymous wrote:It means that Americans are going. To b paying tariffs and not eating.

Well Trump said that maybe little kids shouldn't be getting so many toys so I guess that could apply to eating as well.

MAGA families can share a single burger. MAGA morons will say that's a good thing so that can work on portion control.

[Anonymous]

People said the same about higher prices from minimum wage or oil.

Eat the costs.