Quote:
Originally Posted by Whynotnow
It’s really irrelevant who pays, the provider of the good isn’t going to just magically take a 25 percent haircut and it’s not possible to spool up domestic production over night. So provider will recoup their costs from the only person possible, the consumer.
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I think it does make a difference. If I'm selling something for $100 and a 25% tariff gets applied then I'm still getting $100 per unit but losing market share, meanwhile the US customer is paying more but creating internal push back against the tariff.
If on the other hand I'm told I have to pay the 25% then I'm only getting $75 per unit and the US customer feels no pain. If I want to get back to $100 I need to raise my price to $133 in order to absorb the 25% tariff, and the US customer feels more pain than in the other case, so i lose even more business.