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this post was submitted on 17 Mar 2025
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Leopards Ate My Face
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Even if it were a tax paid by foreign companies, what difference does it make? They would just increase the prices the goods are sold at.
So, lets say, a smartphone that is priced at $1000:
With the 20% tariff in place:
If the Chinese conpanies pay the $200 per device, they just sell each phone at $1200 to the US importer.
If the US importers pay the $200 per device, similarily, they would tack on the $200 (on top of the usual markups), making it $1200 per phone.
There is zero difference, the end consumer always foots the bill.
This is so simple to understand, how are people this stupid
Not necessarily: the company can choose to absorb part or all the tariff, since the demand would drop at the higher price anyway, and they might make more overall profit at a lower margin per item. But generally yes, most of the cost will be passed on to the consumer and prices will increase on average.
Example:
found the economics student