Quote:
Originally Posted by Engine09
The company I'm referring to was basically doing a stolen valour thing, in a way, or basically flat out lying. They claimed to be eating the tarrifs and posturing as doing a kindness to their customers, paying the tarrif for their customers but the profit margin is absolutely below 25% so that is a complete lie.
- sometimes tariffs only kick in at a certain volume. Like you can import 100k worth of goods but the tariff applies only on the last 25k if the first 75k is exempt.
I think that might be a part of it along with stock imported before Mar 2025. It's just so incredibly sleazy to be pretending they paid the tarrif when there is no way in hell that is true.
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Well, I don't know what company you're referring to, or the situation, but the tariffs and passing them along was going to be an issue from day one. I'm sure that I posted about this before, but here goes.
If a company imports an item and it retails for $100. The assumption by Joe Blow (who is likely financially illiterate and uninformed about tariffs) is that this item will now cost $110. That's an important figure.
In truth, the tariff is charged on the cost of the imported goods. Let's pretend the price of this item is $40, and a 10% tariff applies. So, the tariff here is $4. Most of the costs incurred by the consumer are paid after import. Things like trucking, warehousing, and, of course, the retailing of that item all add to the price.
Now, many companies are likely to be very competitive with consumers, offering prices of around $106. They're eating some tariff cost because the consumer thought that this was going to be $110, and "isn't that good of them!" In reality, the company passed it along and expanded its margins at the same time.