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Explain it to me (sans facts).
(lemmy.world)
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this post was submitted on 09 Apr 2025
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The catch is that the ones who don't understand always, ALWAYS think it's the other country that pays the tariff. Every time.
The dumb thing is that it doesn't matter who pays the tariff, it still will get passed to the consumer. Consider a scenario where the government starts taxing Amazon $100 per order no matter what's in it. If you buy a $10 item on Amazon, how are they going to pay the $100 tax on that? Amazon will just add a $100 tax fee to your order because they can't keep running a business if that cost isn't baked into the final price. It doesn't matter who actually delivers money to the government, the tax gets paid by all parties involved.
FYI, sales tax is already done this way. Sales tax is collected from businesses, not customers, but customers still pay sales tax because that's just how economics works.
Right, you and I get that, my point is that the people who are confused why their tariff-impacted goods cost more don't get that. They think the other country pays it, full stop.
I specifically chose a fee that was higher than the actual cost so dumbasses wouldn't nitpick about greed and profits and yet you still somehow did it, so I'll take the bait- please explain to me how a business can operate selling an item at $10 when they have $100 in guaranteed costs? Do you understand that this means they lose at least $90 on every transaction at that price? I get that companies are greedy and skim more off the top but this is pure idiocy to make this argument in this hypothetical.
Even if that’s true the price would still increase. The exporting country would just charge extra to make up the difference. It’s not like they would just absorb the extra cost by pure goodwill for the oh so poor American people.
Well, that's exactly what Trump said would happen, so why would they think otherwise?