daveverse on Nostr: Tariffs don’t necessarily get passed on to consumers A tariff makes a product more ...
Tariffs don’t necessarily get passed on to consumers
A tariff makes a product more expensive to make, not necessarily more expensive to buy. A manufacturer who was already making a large per-unit profit might choose to accept less instead of losing market share.
Only if a vendor feels safe in their share of market will they automatically raise prices for their customers.
Sometimes companies even sell products at a loss if they want to make it diseconomic for smaller competitors with less ability to lose money.
A tariff makes a product more expensive to make, not necessarily more expensive to buy. A manufacturer who was already making a large per-unit profit might choose to accept less instead of losing market share.
Only if a vendor feels safe in their share of market will they automatically raise prices for their customers.
Sometimes companies even sell products at a loss if they want to make it diseconomic for smaller competitors with less ability to lose money.