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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

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).[/quote]

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).[/quote]

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