EU and Mexico criticise Trump's proposed 30% tariff

Sycophants gonna sycophant. Again, that so called surplus was paid by we the people. MAGA fans not smart. 250 years ago MAGA would be bitching about all the tea dumped in Boston Harbor. SMDH

 

You really think American retailers and importers are just going to eat 30% price hikes and not pass them onto consumers… Walmart already said they will raise prices as needed …. Amazon talked about adding the tax right to your bill… both are common sense solutions that every business will end up doing.

Why Walmart decided to say it would raise prices — and risk Trump’s fury

 

In my post, I never said AMERICAN retailers are doing anything. Foreign companies are taking less profit and keeping prices the same to remain competitive. There are plenty of alternatives to buying foreign goods.

Simple economics. If Audi increases its prices, then someone will buy an American car instead. Heaven forbid if we make American companies more competitive!

So Audi keeps its prices the same and takes less profit. Foreign companies are taking the hit.

 

Do you have evidence that foreign companies are eating Trump’s 30% tax, or is that something you are just making up on the spot because you think it sounds good…. Post a link to support this…

 

Japanese automakers slash export prices to offset 25% tariffs

 

It doesnt really say they slashed prices 25%, it says the total value of cars exported fell by 25%, which could be a combination of exporting fewer cars in general, and especially fewer luxury cars. Plus, that says the tariffs don’t go into effect until August 1st so it seems a bit soon to be spiking the football… we will see…

 

Did you read the entire article? Again, this is not proof that foreign manufacturers have reduced prices to subsidize the impact of import tariffs, but it’s not a ridiculous thought and more will be known as time passes. It would not be unreasonable for a manufacturer would take a margin impact, especially if the think tariffs may not be a long-term matter (ie governments will negotiate a settlement with the US) and they want to maintain their market share in the US. Additionally, sustaining unit velocity at lower margins will allow them to cover their fixed overheads and avoid staff reductions.

 

He bought a side table from Mexico. Tariffs added a surprise $1,170 fee at delivery

Yup… sounds like manufacturers are eating the cost alright….

 

Well, first let me point out the obvious economic point here: if the foreign company is capable and willing to eat the entire cost of the tariff, then the American company gains no competitive advantage.

Second, let me make another obvious economic point: we aren't engaging in tariffs in one market. You are making American manufacturers find components in a potentially less competitive market. For example, their steel prices have increased by about 24%:

Producer Price Index by Commodity: Metals and Metal Products: Steel Mill Products

The US implemented a 25% increase in steel tariffs. Guess who is paying for them? American manufacturers. Now, they have a few things that they could do in response: move manufacturing out of the US to obtain cheaper materials and pay a tariff, charge their customers more for their product (making them less competitive), have their profit margins destroyed by input costs, or stop producing things with steel altogether.

 

Oops.

Inflation picks up again in June, rising at 2.7% annual rate

Big increases in furnishings, beverages (aluminum), coffee, fruit, and a variety of other tariff vulnerable categories.

BTW, this is in the face of falling demand...

 

So you prefer to have Biden in charge.

 

Yep, the world went through a period in which demand exploded and supply struggled to keep up. Then inflation, worldwide, started to fall. The Fed executed the soft landing that Republicans mocked as impossible and began to cut rates.

Now, there has been a dramatic shift, driven almost entirely by fiscal rather than monetary policy. Declining consumer spending, slowing investment, and increasing inflation is usually a not good combination. Maybe we shouldn't have tried to implement a random tax via tweet policy or decrease the low skill labor supply just as we were decreasing the dramatic labor shortage.

 

Putin: Meh, we don’t care. Theatrical, lmfao

 

Talk about a self-own. It's right there on the chart.

 

To claim there has been no inflation is simply not accurate. I know for a fact with one company there absolutely has been inflation (former subsidiary we just sold at the start of the year and I work with them on high level issues as part of the transition plan). There has been a 1:1 price increase in high rise commercial building materials due to the tariffs and it’s being paid by the building owners, not a company reduction of profits or other countries paying the tariffs.

This company makes custom built product so it didn’t have the ability load up on stock before any tariffs. However, we’ve seen that many other companies were able to in an attempt to get through as much of the tariff implementation as possible. So we’ll have to see once their stockpiles have depleted as to whether there is inflation as a result of the tariffs. On the whole there may or may not be, but it’s certainly too early to make that determination.

 

Hope they learned to buy American

 

Sure…. Americans love it when government tells them which end tables they are allowed to purchase…

 

Opps


A measure of wholesale prices showed no change in June, providing a conflicting sign over whether tariffs threaten to boost inflation in the coming months.

The producer price index was flat, according to seasonally adjusted numbers from the Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones had been looking for an increase of 0.2%.

Wholesale inflation measure was unchanged in June

 

Somebody didn't read the article.

So the expected increase was simply attached to May in that measure. Which makes sense, as PPI tends to front run CPI by a bit.

 

Somebody left out information

On a year-over-year basis, headline PPI was up 2.3%, compared to 2.7% in May.