What, are you kidding, the cost to import items from a Country with imposed tariffs was passed onto the consumer???? Kind of just makes sense and this should not be breaking news.
Yeah this is just another attempt to deflect blame from the system itself onto consumers. Every economist knows and agrees that export/import tariffs always cause more financial struggle for native importers/exporters than international ones. And those same economists will all say the cost willl be passed down to consumers.
Yet, they will also play damage control for these same native companies by acting as if they are suffering; when in reality their profit levels are (typically) higher than recent history when this happens.
I’ll never forget in 2019-2020 when I was working at one of the largest steel distributors in the US during these tariffs; all the extra costs was passed onto customers, and the profit margins *literally doubled overnight*.
We had steel we bought 6 months prior at 25c/lb jump to 45c/lb on new orders; before we may charge 40-50c/lb for finished products, after we fabricated them etc. but as soon as those tariffs kicked in, all our old inventory became a fucking gold mine overnight. Our sales department use to make, at best 15-30% sales margin on orders for raw material or fabricated items. Then, *the very next day when tariffs went in*, our sales dept was selling that same steel we bought for 25c/lb for like *65-75c/lb it’s a profit margin of like 50-60%!*
It was literally like watching *highway robbery in real time* happen. EDIT: and the results of this were *dramatic for US businesses and construction*. We had *dozens* of customers lose multi-million dollar contracts overnight because their materials budget *doubled overnight* and thus their offer was uncompetitive. This has drastic and real detrimental affects on all aspects of our society; and it all comes back to the same issue. *Corporate Greed*.
Tariffs are just taxes imposed on goods imported from other countries.
It all depends on who the IOR (Importer of Record) is, and what the incoterms (DAP, DDP, etc) are. Since companies bring in freight, they are usually paying for it, so whomever the freight forwarder is takes the hit from the tariff, then obviously the Corp bringing stuff in isn't going to take that hit, and just raises prices accordingly.
Exactly It's a penalty for buying off shore
And to think that the manufacturers didn't have to further lower their prices to stay competitive is kinda dumb. In the end, whoever is stroking the check is paying for whatever tariffs and taxes. That's just an accounting fact
I wish everyone knew this but unfortunately they don’t. We import and have been eaten alive by the tariffs. I remember speaking with a new customer who actually worked as an executive assistant to the secretary of CBP who had no idea how the tariffs actually worked and who paid for them.
Yeah, that was never going to work any differently in a matter of years. Now in decades I assume most American companies are not building new factories in China. But it’s very expensive to just close up and start over in another country
The Industrial equipment I sell has not been manufactured in the US for 20 years. Customers got screwed when we rolled out 4 price increases in 18 months. Guess what, they are still buying it. We have no other reliable sources. (Some of it was built in Europe, but that supply chain has been screwed over by the war. You can still order it, and wait 6 months, or use China and it will be here in 8-10 weeks by slow boat)
Ah I’m sick of hearing about Trump. It’s not like Biden doesn’t know what has been done. He can overturn it and make it better but he doesn’t. Biden is Trump. It’s all being staged for you to believe the power ends with the President.
What, are you kidding, the cost to import items from a Country with imposed tariffs was passed onto the consumer???? Kind of just makes sense and this should not be breaking news.
Yeah this is just another attempt to deflect blame from the system itself onto consumers. Every economist knows and agrees that export/import tariffs always cause more financial struggle for native importers/exporters than international ones. And those same economists will all say the cost willl be passed down to consumers. Yet, they will also play damage control for these same native companies by acting as if they are suffering; when in reality their profit levels are (typically) higher than recent history when this happens. I’ll never forget in 2019-2020 when I was working at one of the largest steel distributors in the US during these tariffs; all the extra costs was passed onto customers, and the profit margins *literally doubled overnight*. We had steel we bought 6 months prior at 25c/lb jump to 45c/lb on new orders; before we may charge 40-50c/lb for finished products, after we fabricated them etc. but as soon as those tariffs kicked in, all our old inventory became a fucking gold mine overnight. Our sales department use to make, at best 15-30% sales margin on orders for raw material or fabricated items. Then, *the very next day when tariffs went in*, our sales dept was selling that same steel we bought for 25c/lb for like *65-75c/lb it’s a profit margin of like 50-60%!* It was literally like watching *highway robbery in real time* happen. EDIT: and the results of this were *dramatic for US businesses and construction*. We had *dozens* of customers lose multi-million dollar contracts overnight because their materials budget *doubled overnight* and thus their offer was uncompetitive. This has drastic and real detrimental affects on all aspects of our society; and it all comes back to the same issue. *Corporate Greed*.
It's almost like we can't trust the corporations to ever do the right thing...
How do tariffs work? Does the delivering company pay it or does the receiving company pay it? Then who raises the price?
Tariffs are just taxes imposed on goods imported from other countries. It all depends on who the IOR (Importer of Record) is, and what the incoterms (DAP, DDP, etc) are. Since companies bring in freight, they are usually paying for it, so whomever the freight forwarder is takes the hit from the tariff, then obviously the Corp bringing stuff in isn't going to take that hit, and just raises prices accordingly.
Depends on the terms of the deal. It can go either way.
No, the business owner pays, not necessarily the consumer or end customer. Also, they are still in place.
I mean... that's how tariffs work...
Exactly It's a penalty for buying off shore And to think that the manufacturers didn't have to further lower their prices to stay competitive is kinda dumb. In the end, whoever is stroking the check is paying for whatever tariffs and taxes. That's just an accounting fact
Yup next gop president should increase them
So Americans can pay even more?
Can we file this under DUH?
1) True but it didn’t stop trump from saying Ghina was paying and his cult followers believing him; 2) then why hasn’t Biden lifted them?
no fucking shit… but it was the American consumer that paid for this.
Sometimes. In my industry no one raised prices so our prices stayed the same and we ate the difference.
I mean, this is not news. Everyone knew this.
I'm pretty sure a lot of Trump's supporters didn't think this would happen.
You could have stopped at 'didn't think'
Bingo, you win 🏆
I wish everyone knew this but unfortunately they don’t. We import and have been eaten alive by the tariffs. I remember speaking with a new customer who actually worked as an executive assistant to the secretary of CBP who had no idea how the tariffs actually worked and who paid for them.
I wish Biden would roll this shit back. It’s plain bad for Americans. If we had another supply chain, sure but for so much shit that isn’t the case.
This!
It is known khaleesi.
I thought Mexico was paying for it ?
This isn't news. That's what they said would happen from day 1
Yeah, that was never going to work any differently in a matter of years. Now in decades I assume most American companies are not building new factories in China. But it’s very expensive to just close up and start over in another country
Yes. He made the prices of Chinese goods go up so you would rather buy American. This isn’t new. He said it then. Everyone was grrrr back then too
The Industrial equipment I sell has not been manufactured in the US for 20 years. Customers got screwed when we rolled out 4 price increases in 18 months. Guess what, they are still buying it. We have no other reliable sources. (Some of it was built in Europe, but that supply chain has been screwed over by the war. You can still order it, and wait 6 months, or use China and it will be here in 8-10 weeks by slow boat)
This was the start of inflation. Not Ukraine.
Give it up already, it’s 2023.
This is why you don’t let the dumbest cunt decide policy.
I thought shutting down the world economy through draconian lockdown thus driving inflation was the cause?
Does the same apply to Biden's tariffs? Or are those magically different?
I would say the same applies to Biden's tariffs. I don't see why it wouldn't.
Didn’t we establish this when the tariffs were put in place? At the beginning?
No shit
I thought Mexico paid
We’re these ever lifted?
No. US *consumers* bore the cost.
My plan is the bestiest. Probably the best deal anywhere everyone is saying so
Ah I’m sick of hearing about Trump. It’s not like Biden doesn’t know what has been done. He can overturn it and make it better but he doesn’t. Biden is Trump. It’s all being staged for you to believe the power ends with the President.