They said ‘for pleebs’ not business patriarchs. For ‘pleebs’ the answer is:
For each thing you want to buy, ask, ‘is this, and and every part that makes it, from my country or one of the ones we don’t have tariffs with?’ If no, price increase. If yes, no change or maybe a small price increase. (if tariffs push the international product’s cost higher than the domestic’s, the domestic producer may choose to expand their profit margin rather than maintain previous prices)
I think you’d be surprised at how many businesses don’t like any sort of income loss. So the consumer pays the full tariff every time. The lemonade is now $1.50
Let’s say you want to sell lemonade for $1 per cup. Due to tariffs you must now pay 50 cents to sell a cup of lemonade. So what do you do about that?
Do you:
A. Take the profit loss and accept that while you still charge $1 you now only make 50 cents per cup
B. Increase costs by 50 cents so your income per cup remains at $1.
They said ‘for pleebs’ not business patriarchs. For ‘pleebs’ the answer is:
For each thing you want to buy, ask, ‘is this, and and every part that makes it, from my country or one of the ones we don’t have tariffs with?’ If no, price increase. If yes, no change or maybe a small price increase. (if tariffs push the international product’s cost higher than the domestic’s, the domestic producer may choose to expand their profit margin rather than maintain previous prices)
The answer is in between depending on profit margin and market conditions…
If nobody buys your shit for 1.50… You will be forced to eat the profit margin
I think you’d be surprised at how many businesses don’t like any sort of income loss. So the consumer pays the full tariff every time. The lemonade is now $1.50
If demand is inelastic… Sure… Food rent gas
But people can easily either not buy or find a substitute for lemonade lol… That’s bow free markets generally work
Electronics can be used until they break!
Non tariff lemonade is $2 because it’s local and “organic”. And it’s not gross Commie lemonade.