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2024-11-25 17:29:39 UTC

daveverse on Nostr: ## Tariffs don’t necessarily get passed on to consumersA tariff makes a product ...

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Tariffs don’t necessarily get passed on to consumersA 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.