Tariffs Catch-All

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Trump’s Tariffs Are Being Picked Up by Corporate America​

Neither consumers nor foreign countries are assuming much of the tariff burden. At least not yet.​


🎁 —> https://www.wsj.com/economy/trade/t...d?st=4Lg9gZ&reflink=desktopwebshare_permalink

“… [Tariffs] are typically paid by importers when goods reach U.S. ports. So there is little mystery about who makes that first payment. It is often a manufacturer, a logistics or customs broker, or in some cases a retailer itself that ordered the shipment.

But economists and others have been watching for signs of who will ultimately bear the cost. Would it be foreign suppliers, by cutting prices on the front end, or consumers, by paying higher prices at the checkout stand? Or would the U.S. businesses that sit in between shoulder the burden?

It is becoming increasingly clear that U.S. businesses, from General Motors and Nike to the local florist, are absorbing much of the costs for now. In a competitive market, a company that hikes prices could lose market share to a rival that keeps its prices steady. Many are reluctant to raise prices until they absolutely must, and until they know the ever-changing tariffs are sticking around. In some cases companies have said they plan to raise prices in the months to come.

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nycfan said:

Trump’s Tariffs Are Being Picked Up by Corporate America​

Neither consumers nor foreign countries are assuming much of the tariff burden. At least not yet.​


🎁 —> https://www.wsj.com/economy/trade/t...d?st=4Lg9gZ&reflink=desktopwebshare_permalink

“… [Tariffs] are typically paid by importers when goods reach U.S. ports. So there is little mystery about who makes that first payment. It is often a manufacturer, a logistics or customs broker, or in some cases a retailer itself that ordered the shipment.

But economists and others have been watching for signs of who will ultimately bear the cost. Would it be foreign suppliers, by cutting prices on the front end, or consumers, by paying higher prices at the checkout stand? Or would the U.S. businesses that sit in between shoulder the burden?

It is becoming increasingly clear that U.S. businesses, from General Motors and Nike to the local florist, are absorbing much of the costs for now. In a competitive market, a company that hikes prices could lose market share to a rival that keeps its prices steady. Many are reluctant to raise prices until they absolutely must, and until they know the ever-changing tariffs are sticking around. In some cases companies have said they plan to raise prices in the months to come.

IMG_8110.jpeg
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“… The import price index, which tracks what importers pay for many foreign-produced goods before tariffs are levied, has held steady in recent months, in what some economists call a sign foreign suppliers aren’t broadly slashing their prices to offset costs for their U.S. customers.

Goldman Sachs conducted what it called a more granular analysis of import prices and concluded that foreign companies, particularly those in China, appear to be absorbing around 20% of tariff costs through price cuts.

… Many large companies have been hesitant to link price increases directly to tariffs lest they draw Trump’s ire. Days after Walmart said some prices would rise in May, Trump posted online that Walmart and China should “eat the tariffs,” not raise prices. When several other large retailers reported earnings the following week, including Home Depot and Target, they emphasized their efforts to resist price increases.…”
 
nycfan said:
“… The import price index, which tracks what importers pay for many foreign-produced goods before tariffs are levied, has held steady in recent months, in what some economists call a sign foreign suppliers aren’t broadly slashing their prices to offset costs for their U.S. customers.

Goldman Sachs conducted what it called a more granular analysis of import prices and concluded that foreign companies, particularly those in China, appear to be absorbing around 20% of tariff costs through price cuts.

… Many large companies have been hesitant to link price increases directly to tariffs lest they draw Trump’s ire. Days after Walmart said some prices would rise in May, Trump posted online that Walmart and China should “eat the tariffs,” not raise prices. When several other large retailers reported earnings the following week, including Home Depot and Target, they emphasized their efforts to resist price increases.…”
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Yet.
 
lawtig02 said:
Yet.
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Yeah, I was just about to respond to nyc’s first retweet, then the second one explained the game. Folks are concerned about pissing off the mob boss. Unfortunately, this will result in corps laying off working and middle class people, as we’ve seen from several large corps already.

Eventually, there won’t be additional people to fire and the prices will go up, in a time when jobless claims are rising and discretionary income is falling.
 
“Trump posted online that Walmart and China should “eat the tariffs,” not raise prices.”

Why would Walmart need to “eat the tariffs?” Trump assured us that countries exporting to the US would pay those tariffs. Trump makes it seem like Canada ships $1 million worth of aluminum ore to a US customer while at the same time writing a check to the US Treasury for $300,000. Who is going to tell him that’s not how it works?
 
superrific said:
Under Biden: billions of investment into cutting-edge technology in semiconductors, medical research, and green energy, leading to high paying jobs and setting us up for a prosperous future.

Under Trump: Now we can sell rice to Japan.
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Ghosts That Seems Fair GIF by CBS

Although, I would also add we're now selling what's probably our most valuable corporate asset, which is Nvidia's current gen chips, to China. That may work out. I see the case for it. But HOLY GOD, that's a 180 degree reversal from EVERYTHING Trump and the GOP were saying about China not just in the campaign, but for the last 20+ years.
 
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