With wholesale prices typically doubling at retail prices, multiply the retail prices of Chinese-made products by 2.2x. Inflation is gonna go absolutely crazy, domestic producers will get to raise their profits/prices, and the average American gets a massive effective purchasing power decrease / pay cut. I'll be hedging with significant gold for the next 4 years.
No, it's worse. Value-added resellers (VARs) and distributors will not pass on tariffs directly. Most retailers double wholesale prices from distributors.. the increases will be an effective price of ~100% once megacorps' pre-staged stocks are depleted. Prices on random things will then spike to where demand will fall through the floor on everything except where there is inelastic demand on essentials. Layoffs and stagflation are just the beginning. And it takes 2-3 years to setup new manufacturing lines and the vertical parts of the supply chain have major upstream unavailability problems without comparable or price-effective options compared to CN.
Yeah, the pervasiveness of those misleading phrases grinds my gears.
Ultimately, US government agents are threatening to seize goods from inside US territory and hold them until some US person/company pays them US dollars. It's tax on US people who bring something into the US.
Does it have some effect on the foreign seller? Sure. But it's not a tax on them... Not unless the US military paratroopers are descending to thumb through their wallet.
With wholesale prices typically doubling at retail prices, multiply the retail prices of Chinese-made products by 2.2x. Inflation is gonna go absolutely crazy, domestic producers will get to raise their profits/prices, and the average American gets a massive effective purchasing power decrease / pay cut. I'll be hedging with significant gold for the next 4 years.
This will unleash a golden era of local manufacturing and industry! This is the way!
Better worded as, "US consumers will face a 54% tariff on any goods from China."
No, it's worse. Value-added resellers (VARs) and distributors will not pass on tariffs directly. Most retailers double wholesale prices from distributors.. the increases will be an effective price of ~100% once megacorps' pre-staged stocks are depleted. Prices on random things will then spike to where demand will fall through the floor on everything except where there is inelastic demand on essentials. Layoffs and stagflation are just the beginning. And it takes 2-3 years to setup new manufacturing lines and the vertical parts of the supply chain have major upstream unavailability problems without comparable or price-effective options compared to CN.
Yeah, the pervasiveness of those misleading phrases grinds my gears.
Ultimately, US government agents are threatening to seize goods from inside US territory and hold them until some US person/company pays them US dollars. It's tax on US people who bring something into the US.
Does it have some effect on the foreign seller? Sure. But it's not a tax on them... Not unless the US military paratroopers are descending to thumb through their wallet.