how do tariffs on exports work. The R’s are saying increased tariffs won’t cause manufacturers/distributors to pass the costs onto consumers here in the US. I was wondering if American manufacturers follow that same model. Are goods exported to foreign countries outside the US subject to tariffs, and are those tariffs absorbed, or passed onto foreign consumers?
In: Economics
I worked for a small “outdoor gear” firm when the first Trump tariffs were put in place. Overnight, our cost of goods increased 12%-15% depending on the item.
At first, it squeezed our margins. We made less profit for every item we sold. After 6mo or so, it became clear that the tariff was not going away, so we increased the retail price relative to our margin, such that our profits returned to pre tariff %’s.
So yeah, if it’s made in china and its subject to a tariff, it’s going to get more expensive…
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