Comment by kergonath

If demand is elastic, then the seller has to lower prices (and their margin), otherwise people don’t buy their stuff (because they can do without). In this situation, the seller eats the tariffs, That’s the case for nice-to-have things like luxury goods and entertainment. If the seller cannot do that, e.g. because their margins become negative, they will just stop doing business (in the US or entirely).

The other end of the spectrum is stuff people cannot do without, in which case the seller has no incentive to lower their margins because their customers don’t have a choice. Then, tariffs are entirely paid by the buyer.

In reality, everything is in between and accurately estimating how much everyone will be paying is very difficult. What we can predict with certainty is that prices can only go up, and that some businesses will fold because they cannot absorb the loss.