Quote:
Originally Posted by edslunch
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.
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Your not going to lose market share if the infrastructure transporting your goods goes to a small region and they can’t replace your volumes. Their pipeline systems aren’t all infinitely connected. Refineries that source canadian oil will be servicing local regions. I’m betting some won’t have a choice.
Someone in the US is going to pay for the tariff. I doubt it can last a long time. Consumers will start squawking