>>21996398Tariffs aren't that big of a boogey man for *US consumers*.
Suppose tariffs, in general, were to go up to 100%. Why do people assume a 100% tariff means a 100% rise in price? Absolutely retarded.
10% tariff example, from customer down to manufacturer:
Customer walks into bricksUSA to purchase 1 brick.
bricksUSA sells 1 brick to customer for $100
bricksUSA had purchased 1 brick from bricksCHINA for $10 + ($10 * %10) tariff = $11
bricksCHINA had manufactured 1 brick for $1
thus:
bricksUSA profits $100 - ($10 + ($10 * %10)) = $89
bricksCHINA profits $10 - $1 = $9
100% tariff example, from customer down to manufacturer:
Customer walks into bricksUSA to purchase 1 brick
bricksUSA sells 1 brick to customer for $100
bricksUSA had purchased 1 brick from bricksCHINA for $10 + ($10 * %100) = $20
bricksCHINA had manufactured 1 brick for $1
thus:
bricksUSA profits $100 - ($10 + ($10 * %100)) = $80
bricksCHINA profits $10 - $1 = $9
but:
if bricksUSA wants to maintain its original profits, it would have to sell 1 brick for $109 for a profit of $89. And $109 is not double the price as assumed from a 100% tariff.
bricksUSA also has an option to switch to a country that doesn't face 100% tariffs.
