Reply to Can someone explain the Math to me behind this?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]They think people will blame Trump/tariffs while they walk away with a ton more profit, so they figure why not.[/quote]

And it worked.  Everyone is blaming trump tariffs as hoped.[/quote]

Well, because the tariffs are what are causing the price increases.

The problem with using tariffs is that it’s paid by the importer and it’s opaque and confusing.

If there was a national sales tax (which is what a tariff is), then the sales price wouldn’t change but everyone would understand they now have to pay say 10% of the value through the sales tax.

I also agree with a PP.  The importer probably assumes a 25% price rise will reduce demand 25%, but a 43% rise will only reduce demand say 35%.[/quote]

People don't realize that tariffs are on the import cost and not the price it is sold to the consumer. So an item being sold for $50 may well cost only $15 to import. A 25% tariff on that, assuming it is fully passed on to the customer should only amount to a 7.5% increase to the $50 sale price, but of course that doesn't prevent retailers from jacking up the price to well over that number. What's funny is that they will jack up prices on all items - tariffed or not - and blame 'trump tariffs' for it. We all saw this during covid. Companies will do very well in this environment. [/quote]

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