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Six months into tariffs, businesses have no idea how to price anything

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Re: Six months into tariffs, businesses have no idea how to price anything

#461

Earlier quoted context omitted.

rental prices are driven by P/E redirecting funds to the purchase of housing stock, which they then use to jack up the rent. Fuedalism is returning by stealth.

If there’s demand for 5 million units and supply of 6 million prices will go down as 1 million units will be empty If there’s demand for 5 million units and supply of 4 million, prices will go up and 1 million will move out of the city

You conveniently left out the part where many large corporate landlords collude by using software like RealPage to enable widescale price fixing.

Re: Six months into tariffs, businesses have no idea how to price anything

#462

Earlier quoted context omitted.

> where I quoted: "-0.2% Average Annual Inflation 1774-1912" You quoted VE . They misquoted MW . If VE is adding error bars to MW ’s data, they—one—should not. But if they do, they should show how they manipulated the data. There is no legitimate source showing negative annual inflation between 1774 and 1912; your source’s own sole citation disagrees with its claim. > 0.1% and -0.2% are realistically well within the…

You're hanging your hat on a minute difference and ignoring the elephant on the graph.

I’m saying the data the graph cites says something different from what the graph says it does. The graph is lying about what its source says.

Re: Six months into tariffs, businesses have no idea how to price anything

#463

Earlier quoted context omitted.

So what you want is extortion, not trade. It's a worldwide version of the mafia.

Maybe we should just lay down and let the world do whatever they want. I would hate to be accused of negotiating from a position of power.

The entire post-WWII world order was deliberately designed by clever Americans who knew how to use the situation to its full advantage. Enshrining the USD as the world's reserve currency, a network of military bases around the world to protect trade lanes, a combination of propaganda and economic incentive to bring the best and brightest to work in the US, while deliberately transforming the economy from a manufacturing economy to a service and finance economy, always putting itself in a position to be able to extract rent from everyone else.

The last vestiges of this world order was the TPP. The US negotiated a trade deal that would cement its top position in the Pacific region, while curbing China's growing economy and influence.

And then Trump axed it, because he didn't understand it.

China understood perfectly what an opportunity that was for them, and they have been quietly become less and less reliant on trade with the US since.

The current US regime is now hell-bent on dismantling the remaining alliances, relationships, and trade agreements that actually kept the US on top, the ones that actually kept the US powerful.

...while baselessly claiming that the existing world order was somehow "unfair" or "a bad deal", and that whatever the hell they're doing now is restoring some kind of lost power. They clearly have no clue what the source of America's power really is.

And here you are repeating their talking points.

What do you mean, exactly, when you're saying that the US shouldn't "let the world do whatever they want" ? What specific trade policies do you think are unfavourable to the US?

Re: Six months into tariffs, businesses have no idea how to price anything

#464

Earlier quoted context omitted.

I’m curious whether it’s more the tariffs, or the uncertainty. No one knows what will happen on a day-to-day basis: the chaotic (and illegal) decision-making leaves everyone wondering what’s next.

It is more the volatility for sure. Tarrifs have existed forever and business has always coped with them.

They didn't change monthly.

Re: Six months into tariffs, businesses have no idea how to price anything

#465

In NYC, for the first 6 months of 2025, 994 new private sector jobs were created [1]. During the same period last year, there were 66,000 new jobs created. Higher cost of doing business from tariffs has frozen hiring. With a frozen job market, there’s less revenue coming in. NYC is a leading indicator for the rest of the country. [1] https://www.nytimes.com/2025/08/13/nyregion/nyc-jobs.html

I’m curious whether it’s more the tariffs, or the uncertainty. No one knows what will happen on a day-to-day basis: the chaotic (and illegal) decision-making leaves everyone wondering what’s next.

I live in such country, local currency volatile, laws are changing. There is no long term planning, projects should span 1-2 years and if they bring income, then you are lucky. In long term the situation is no good

Re: Six months into tariffs, businesses have no idea how to price anything

#466
post #99

Earlier quoted context omitted.

Sure, a cogent policy would be ideal. But you can’t let perfect be the enemy of the good. America was getting their lunch eaten well before Trump. At least the tariff policy is an attempt at rectifying the situation.

Lunch eaten by whom? Who was eating the world's richest country's lunch? The only lunch eating going on is the American rich eating the poors', something that's only accelerated under Trump. The tariffs are a tax that is most disproportionate on the poor. And they are in no way, shape or form actually intelligently designed to help them. It's just stupid madness.

It's actually pretty amazing that the current regime has managed to get people to believe that the current world order, where the US has been sitting on top for decades and managed to extract the largest piece of the growing world trade cake, somehow means that the US is being taken advantage of.

There's more than one commenter in this post that talks about "other countries walking all over the US", or claiming that capitalist free trade allowing American consumers to purchase ridiculous amounts of stuff is somehow a scam?

It's as infuriating as it is mindboggling how people can fall for it. It's completely baseless.

Re: Six months into tariffs, businesses have no idea how to price anything

#467
I don't understand why there isn't a market or company that develop already to move all items to low tariff area before sending to US.

I know that manufacturing things here in Europe, there already used to be round trip by airplane and co to try to lower VAT paid on purchases to the maximum.

Re: Six months into tariffs, businesses have no idea how to price anything

#468

I don't understand why there isn't a market or company that develop already to move all items to low tariff area before sending to US. I know that manufacturing things here in Europe, there already used to be round trip by airplane and co to try to lower VAT paid on purchases to the maximum.

Because it is not allowed and it does not count. It is the origin country that counts, even if you ship via another 3rd party country.

Re: Six months into tariffs, businesses have no idea how to price anything

#469

Earlier quoted context omitted.

I’m curious whether it’s more the tariffs, or the uncertainty. No one knows what will happen on a day-to-day basis: the chaotic (and illegal) decision-making leaves everyone wondering what’s next.

It is more the volatility for sure. Tarrifs have existed forever and business has always coped with them.

You can't write a business plans/proposals and get loans/management approval on these kinds of tariffs.

Imagine trying to get a loan from a bank to make a USA manufacturing plant, pointing to the 150% Chinese tariff. A week later the tariff is 25%. Does your math still work? Probably not. Will that bank continue the loan? Nope. Will the bank even entertain a similar proposal from someone else right now? Nope.

If you want to grow USA manufacturing you need to subsidize it, or give private industry confidence it's not going to lose them money. If you can't do that, your relying on charity / non-profit / philanthropy... And I don't see many of those in manufacturing.

Re: Six months into tariffs, businesses have no idea how to price anything

#470

FWIW, we’ve been affected by the tariffs (10% for now; we import mainly from Vietnam and Thailand at this point). Did our second price increase a few weeks ago. We’ll probably test out how much the market will bear because operating in this market really demands a risk premium. So far it’s not as crazy as the pandemic supply chain crisis, but it’s close. The most insane ending to all of this that I can imagine is tha…

> The most insane ending to all of this that I can imagine The most insane ending is that tarrifs are reverted but most of the price hike will stay for good.

Market forces will prevail.
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