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this post was submitted on 29 Apr 2025
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Which assertion did you check? I’m calling you out as a liar, the thing you said is not true. Feel free to correct me by linking the post you claim to have made!
Nope, different people. Idiot.
What false assertion? I said MAGA still don't understand they are the ones who will be paying the tariffs, and I'm right. Maybe try Truth Social? I'm sure you would get along with the people there.
My unsolicited advice? Don't feed the troll any more. Your summary on this post was very clear and understandable, and makes sense. The person you are arguing with is either trolling, being deliberately obtuse, or is just plain stupid. I'm assuming it's the first of those three options. But who knows.
Yep!
I don't disagree with you in principle. But in practice, at 145%, I don't see how this wouldn't turn into an extremely disruptive event for the importing company.
Let's say, for the sake of argument, that the profit margin on Chinese product A is 150%. Even if, in theory, the whole tariff can be supported by the company, that would be very unlikely to happen, as the YOY results would kill its numbers, leading to lower guidance, falling share prices etc. The more likely scenario is that at least a part of that will be passed on downstream and will eventually lead to higher prices for the consumer.
There are probably US importers out there that got used to making like bandits on cheap Chinese imports topped off with huge profit margins, but how big would those have to be for the company to be able to absorb the impact? 300%? 500%? And even if they're able, the temptation of passing some of the cost downstream is going to be there. After all, they have the perfect excuse.
As for the Chinese e-commerce giants (AliBaba, Temu etc.) , they don't even bother, the full tariff costs are applied to the purchase for every US order. So let's not include those.
Now, I can see you have an above average understanding of economy. Do you disagree with the above? I have been arguing your points in good faith, I hope you'll offer me the same courtesy.
Let's imagine that it does hurt corporate profits first. Will they survive? Probably the big ones, might be a bit harder for little ones. So the world keeps turning, right? But like you said the end customer will eat some of the costs, so we agree that prices will go up in the end.
Where's the upside? More money funneled into the government? Paid by the increased prices for the consumer, or some dips in corporate profits?
I'm not sure that's a win for the ~~consumer~~ normies.
OP's point is clearly that maga idiots think exporters (e.g., Chinese companies) pay for tariffs and will gladly do so, because they live in an alternate reality thanks to Fox news. You're mad that he isn't pointing out one aspect of actual reality.
What’s the mechanism that makes this sales tax only apply to corporate profits and not all the other costs that go into producing a good or service?