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Best Buy and Target CEOs say prices are about to go up because of tariffs

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Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#61

Post by mlinhares »

trhway wrote: post #36

other thing which may happen is that businesses would start to behave like the ones in say Russia and the likes - utilizing long opaque subsidiaries and shell corp chains, some being just a paperwork, to "manage" the tariffs . The double Dutch would look like a child play. Once such [quasi]corruption starts it would be pretty hard to wean companies off it if/when things get back normal.

Nah, you just pay the powers that be to exclude you from the tariffs, Apple has been excluded from the current ones. So only those that are not friends with the kleptocracy are really at risk.

As for the rest of the population, it's the usual FAFO, not much to do.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#62

Post by jameslk »

captainkrtek wrote: post #23

Sure miss the days where there wasn’t headline generating chaos from the White House resulting in market volatility. Make Government Boring Again.

This could be an interesting topic, but inevitably these posts devolve into politics and it’s always about the same thing. Yet this is the type of comment at the top. Why bother leaving a comment like this?

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#63

Post by HKH2 »

SSchick wrote: post #4
Sabinus wrote: post #3

Any bets on how this will be justified by Trump voters? I'm thinking at first it'll be 'playing hardball negotiating tactic' and when it looks like the tariffs are here to stay 'paying more is patriotic'.

Plenty of videos around, default rethoric is to 'give them time, they said it would hurt at first' which sounds awfully close what people in abusive relationships would say now that I think about it.

It also sounds like delayed gratification.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#64

Post by crazygringo »

throwaway48476 wrote: post #33
throwaway657656 wrote: post #9

Earlier quoted context omitted.

"These are external taxes paid by the exporting countries. Beautiful tariffs will allow the US to eliminate the IRS and replace it with an ERS". Basically no point in even having a conversation about it. The same way you don't discuss evolution with someone who thinks the universe is 6000 years old.

Who pays the tariff depends on the relative elasticity of supply and demand.

It is extremely rare for manufacturers to absorb the tariffs.

Profit margins in most industries simply aren't high enough to cover it. A business can't absorb 20-25% tariffs if its profit margin is only 5%.

And manufacturing is particularly known for its low profit margins.

So no. I mean, in theory you are technically correct. But the way elasticity works in practice is that the buyer is who pays the tariffs in virtually all circumstances.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#65

Post by WillPostForFood »

warkdarrior wrote: post #40
codazoda wrote: post #35

Earlier quoted context omitted.

I haven’t paid attention to the politics here much, but isn’t driving up the price the point? If you charge Canada a 25% tariff then products sold in the U.S. and shipped from Canada should cost U.S. consumers about 25% more. That, in turn, makes U.S. products look more attractive. A U.S. business pays taxes at the federal and state levels. A U.S. business also hires U.S. employees, who pay taxes as well and spend in…

That is the theory. But there is no incentive for US manufacturers to compete on price. If the product from China costs $100 (including the tariff), the same product from US will be $99.99. Selling it any cheaper would be stupid.

That would only be conceivable if there was a single domestic manufacturer. You don't need a foreign product to keep prices honest in a competitive domestic market.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#66

Post by klipt »

bluGill wrote: post #54
johnnyanmac wrote: post #26

Earlier quoted context omitted.

well, going to r/conservative, top answer in a tarriff thread: >To influence companies to produce their goods domestically instead of internationally. What is so hard to understand about this? So they are stuck in Just World Land. another top comment linked this: https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-pr... So they more or less buy into "The extraordinary threat posed by illegal aliens and drugs, i…

What ever happened to the free market consevatives? The ones who were proud to work with Clinton to pass NAFTA in the first place.

Heck Trump himself negotiated USMCA his last term and is now apparently reneging on his own agreement?

"A Trump never keeps his word"

"A Trump never pays his debts"

I don't know if it's dementia or if Putin has compromising info on him, but he seems intent on speed running the tearing apart of the west.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#67

Post by mitthrowaway2 »

codazoda wrote: post #35
Sabinus wrote: post #3

Any bets on how this will be justified by Trump voters? I'm thinking at first it'll be 'playing hardball negotiating tactic' and when it looks like the tariffs are here to stay 'paying more is patriotic'.

I haven’t paid attention to the politics here much, but isn’t driving up the price the point? If you charge Canada a 25% tariff then products sold in the U.S. and shipped from Canada should cost U.S. consumers about 25% more. That, in turn, makes U.S. products look more attractive. A U.S. business pays taxes at the federal and state levels. A U.S. business also hires U.S. employees, who pay taxes as well and spend in…

Yes, but with Trump you have to wonder if the tariffs will be reversed in three weeks when he has a change of mood. So it may not drive long-term investment in factories and supply chains, just a short term advantage for companies that already have local product.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#68

Post by tombert »

zoklet-enjoyer wrote: post #59
aninteger wrote: post #25

I guess it's time to print out those "I did this!" stickers of Trump and put them next to the price tags.

Haha yep, I designed one when he announced the tariffs the first time but never got around to printing them.

Would you mind sharing the design?

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#69

Post by acdha »

zeroonetwothree wrote: post #31
captainkrtek wrote: post #23

Sure miss the days where there wasn’t headline generating chaos from the White House resulting in market volatility. Make Government Boring Again.

What year was that? 1999?

I know it’s been a long 43 days, but the average American didn’t see daily news updates affecting their life before January 20th.

Re: Best Buy and Target CEOs say prices are about to go up because of tariffs

#70

Post by a2tech »

toomuchtodo wrote: post #60
davidw wrote: post #52

Earlier quoted context omitted.

How would you actually go about doing that? Like if the US economy implodes because enough of this malarkey breaks it, what/where is safe? In terms of your personal wealth/residence, I mean. The only thing I can kind of think of is maybe some land or housing in Europe or New Zealand or somewhere kind of out of the way; perhaps something that you can rent out. Might not make you a ton of money, but it would hopefully…

We own a modest flat in Spain. I’ve moved a year’s worth of living expenses to EUR. I can have my family out of the country in 72 hours. Total cost was under $300k USD. The best time to have a plan is before you need it. If you wait until you need it, you’re too late. (n=1, ymmv)

Who did you use to make the international purchase? I have a friend that used the lady from house hunters international but she’s French focused and that’s not for us
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