The worst part is that when the tariffs are lifted, we’ll thank them for lowering the prices by buying more of their shit. We’ll be grateful for the opportunity to pay even more into their profit margins.
Prices won’t go down, companies will pocket the difference
Oh, they’ll go down… But it won’t be nearly as much as it went up to cover the tariff.
What I’m thinking is, let’s say a widget is $100, tariffs go in at, say 5%. So it should cost $105, but the price increases to $110. People cry bloody murder, but ultimately they “need” the widget so they buy it. Tariffs go away, yay, the price is dropped, it’s now $107.99
In practice, that’s not what happens generally. A widget is $100, the 5% tariff brings it up to $105 and company bumps the price to $110. People need the widget so they buy it at $110. Tariff goes away, but company knows that people will pay at least $110 for the widget, so they try bumping the price to $115. Maybe it doesn’t sell, so they “discount” it back to $110 and people will happily buy it thinking they’re getting a deal, while the company is pocketing that extra $10.
Prices won’t go down, companies will pocket the difference
Oh, they’ll go down… But it won’t be nearly as much as it went up to cover the tariff.
What I’m thinking is, let’s say a widget is $100, tariffs go in at, say 5%. So it should cost $105, but the price increases to $110. People cry bloody murder, but ultimately they “need” the widget so they buy it. Tariffs go away, yay, the price is dropped, it’s now $107.99
that’s what I’m thinking.
Also it’s all the Democrats fault.
In practice, that’s not what happens generally. A widget is $100, the 5% tariff brings it up to $105 and company bumps the price to $110. People need the widget so they buy it at $110. Tariff goes away, but company knows that people will pay at least $110 for the widget, so they try bumping the price to $115. Maybe it doesn’t sell, so they “discount” it back to $110 and people will happily buy it thinking they’re getting a deal, while the company is pocketing that extra $10.