COMMUNITY Tariffs: Supreme Court strikes down Trump’s sweeping tariffs

RandomOne said:
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Heard on CNBC that Warsh isn’t that interested in taking the position if Powell is fired. Trump thinks getting rid of Powell and putting in a sycophant will help, but in the short term markets will go crazy and in the long term the US economy will be even worse off.

You keep interest rates high to fight inflation, so Trump forcing lower rates will only exacerbate the inflation issues he’s creating.
 
The Lonious Monk said:
No it's not. There's truth to what he's saying, but he's painting it like fighting the corporation was the intent of the tariffs. That's absolutely not why Trump is doing this.
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Let me clarify, the good point was that the tariffs are being painted as a 1:1 increase in the consumer price instead of the product cost.

For industries where the margins are thin, it will be a close to 1:1 increase in consumer price. For those with large margins not so much.

Bet those companies with large margins will raise prices by the tariff percentage though and take additional margin. Most consumers have no idea what their margins are.
 
TheNightKing said:
Let me clarify, the good point was that the tariffs are being painted as a 1:1 increase in the consumer price instead of the product cost.
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If I'm understanding you correctly, you're saying that people are suggesting that 100% of the tariffs will be passed on to the consumers. You're right, that is how it's being painted. We've got good reason to believe these corporations will do that. The funny thing is that some of those companies could probably eat the tariffs while trying to put pressure on Trump to stop them. They'd take a hit, but probably still make a profit and wouldn't have gotten exposed like they are now.
 
The Lonious Monk said:
If I'm understanding you correctly, you're saying that people are suggesting that 100% of the tariffs will be passed on to the consumers. You're right, that is how it's being painted. We've got good reason to believe these corporations will do that. The funny thing is that some of those companies could probably eat the tariffs while trying to put pressure on Trump to stop them. They'd take a hit, but probably still make a profit and wouldn't have gotten exposed like they are now.
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Yes the news always says “you could see an increase in prices of [insert tariff %] on what you’re buying today.” And with that messaging companies can do exactly that because the consumer is already conditioned to accept it.

And you’re right, a lot of these corporations could eat it, especially if they’re sourcing from a low wage country and currently have large margins.

You have to also consider the corporations buying power because they could negotiate with their vendors to lower prices to offset the tariffs. Then still increase prices.
 
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