this post was submitted on 26 Aug 2025
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Oh no not tariffs, we won't be able to afford... wait, hang on, we don't pay them do we? Carry on.
Right, except the tariff gets baked into the price your importer pays to bring the product into the US. So while you don't cut a check to the US Treasury, your buyer does, and that either makes your product less competitive or forces you to eat the cost in your margins. But yeah, "carry on".
So far foreign companies don't appear to be eating the cost. So the impact to their competitiveness seems to not be high enough to force them. It's likely to stay that way.
It's important to understand that if you place tariffs on all imports of a certain good, you also incentivize domestic manufacturers to increase their prices to just below those of the taxed imports, at least as long as domestic supply is lower than domestic demand (so they can expect to sell all they have anyway).
Except if the product was available commercially in the United States they wouldn't have been importing it in the first place, and they're not going to step up factories in, how long has he been in power, 6 months, it only feels like forever.
If tariffs worked a senior president would have implemented the more subtly.