I am reasnalby certain it does not.
I am reasonably certain that is just production cost plus shipping to the US harbor.
My point is not: Gasp! apple makes a ton of profit.
My point is: Many many things are like Iphones and refrigerated Pepsi. The cost-at-harbor is just a tiny portion of the price you pay at the cash register.
Tariffs are not a sales tax. Since tariffs apply to cost-at-harbor (a smallportion of totla price) they would do very very little to inflate total price.
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Fun Fact
McDonald’s spends less than 20-cents for each $1.79 soda it sells you, (an 800% mark-up) and of that 20-cents, the biggest part is the plastic cup.
I rarely eat any fast food…and never McD’s. Sodas are huge profit margins…I never buy a soda in a restaurant…helps that I am not a big fan of any of the sodas.
tariffs are paid at the port, by the seller, not the buyer. Any cost associated with tariffs will be paid at the ports. The cost of distribution will not change unless transportation costs go either up or down. The cost of warehousing will not change. The cost of delivery to the back door will not change except if the cost of energy foes up or down. The cost of shelving the product will not change and the cost of selling the product will not change.
When you figure an operation like Walmart, and you figure a 300% markup from the port to the shelf, but less than a 10% markup from the back door to the shelf, 290% of the markup is distribution costs which come AFTER the tariff has been paid.
I haven’t read the whole thread in detail, so maybe this was already covered:
Inflation is caused by too much money chasing too few goods/services. If you cause an increase in prices in one area and do not have an increase in money to compensate for it, then less money gets spent elsewhere. That’s not a formula for inflation.
Yes, certain things (and maybe a large number of things) will be more expensive. It’s on me to allocate my spending accordingly. Either I buy fewer of the more expensive things, or I buy fewer of other things. My spending is the same. It has to be. I don’t get to print more money for myself. But the government can, and THAT is where the inflationary danger occurs.
[Paul] later added: “I will be vocal in saying that I think tariffs are bad and that international trade actually saves every consumer about $7,000 a year. So everybody in our country is $7,000 richer because of international trade.”
“It’s part of one of the booms of post-war and post-industrial revolution. This amazing international trade has made us richer and we need to talk about the statistics and facts concerning the benefits of trade,” he concluded.
This would push up prices for US-assembled cars by an average of $2,100, according to Wells Fargo.
Ebrard estimated the price of pickup trucks from the top three US car manufacturers — 88% of which are imported from Mexico — would rise by an average of $3,000, describing the move as a “shot in the foot.”
Better buy or get your stuff fixed before the inauguration.
Well for one thing it is completely voluntary. (They can buy an american made vehicle)
Income taxes are not voluntary.
Property taxes are not voluntary.
Neither are FICA taxes, capital gains taxes, corporate taxes, gas taxes nor any of those other taxes libbies seem to love.
But this one? 100% voluntary. totally avoidable. Paying it is a choice.
A lot of partisans are complete frauds on the issue of inflation. Rising prices are unacceptable when the opposition is in charge, but when your team’s policies cause it, it’s “voluntary,” it’s not a big deal, people shouldn’t buy crap they don’t need anyway. Voters will be displeased if car prices rise nearly 10 percent.
$2k on an $80k vehicle?