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Comment by mkoubaa

7 days ago

I would happily pay 38% extra for high quality Tunisian olive oil, it is already super undervalued because it's reputation is lower than it should be.

It's gotten so bad that Tunisian olives are shipped to Italy, pressed into oil, and labelled as Italian Olive oil.

8 comments

mkoubaa

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xxX6hacke9rXxx  7 days ago

Except none of that 38% extra in price is going to the farmers. It's a tax not extra profit for the producer. Crazy how many people still do not know how tariffs work.

  • jimmydorry  7 days ago

    You may want to re-read GP's comment because they did not indicate whether they cared if the 38% went to the government or the farmer. Reading their comment as written, they simply said they would happily pay the tariff to continue enjoying Tunisian olive oil. It's "crazy" of you to imply they don't understand how a tariff works when you're the one mis-reading what they wrote.

    • xxX6hacke9rXxx  7 days ago

      I did not misread. He used `undervalued` which implies that there is a difference between quality of the product and its price. Slapping on 38% tax to Tunisian olive will undermine this value proposition without improving the producer or the consumers product experience. If anything the relative price (due to the repetitively high tariffs on Tunisia vs Italy) will ruin the value to price ratio that attracts GP to the Tunisian olive oil.

      Moreover, his use of the word 'happily' suggests he is not aware of the negative consequences for both the Tunisian exporter, who may have to lower prices or even reduce product quality standards to compete with the now relatively similar-priced Italian olive oil, and the American consumer, who ends up paying more without any improvement in value.

      Why would someone be happy with a price increase if it is not helping the producers of the good (which his comment implies he is sympathetic to) or adding any value?

      2 replies →

xxs  7 days ago

If anything those Tunisian folks would have to reduce the price to compete. The tariffs go straight to the US coffers at the customs, nothing to do with the farmers.