And when we have 30% tariffs on the other $45 of input widgets as well, what happens? This is just basic common sense that if you add ~30% to everything coming into the US that prices are going to rise. The only people lying are the ones telling you that tariffs won't translate to an increase in prices, but the biggest liar (or idiot) of all is the person saying that other countries pay tariffs.
I think that's the biggest liar. The biggest idiot is the person that believes anything the biggest liar says. (And yes, that can be a tie. )
Japan is buying time and trying to avoid being the first to introduce price shocks to US consumers, but these new tariffs around the world aren't even hitting until August 1st - that is unless Trump backs down again which I'm sure they see as a possibility. It's simply not realistic to expect all these companies around the world to absorb these costs long term. To think that will be the case is just naive. The only reason you're even trying to defend this is because of Trump. If it were Biden or another democrat you'd think the tariffs are idiotic. I'd call them idiotic regardless of whether it's a Republican or Democrat in office because that's what they are. Even if Trump does start finishing deals, despite completing zero by his self imposed deadline, in most cases we'll likely end up where we started or marginally better in a best case scenario. Either way that's at the long term expense of our relationships with our allies and trade partners who are going to start looking to make deals without the United States. After all, how can you rely on the US when Trump is even disparaging trade deals that he himself negotiated in his first term.
That can only last for so long. But even if it could, if the foreign company can completely absorb the cost of the tariff by reducing their price, then it defeats the purpose of the tariff. The purpose of the tariff is spur domestic manufacturing by making foreign goods cost more. If foreign goods don't cost more then it does nothing to create more American manufacturing jobs.
