this post was submitted on 26 Jan 2026
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Leopards Ate My Face

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Was he actually thinking that those $450 were just gifted by the exporter?

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[–] michaelmrose@lemmy.world 1 points 1 day ago

Nobody has a massive margin to start with to pay for the tariffs. Not just margin on the goods but overall operating margin. Just comparing p:rice of imported goods to tariffs doesn't capture

  • Merchant increasing the cost of a broader basket of goods than is tariffed to soften the cost of paying the tariff
  • Shrinkflation as you mentioned
  • Not changing the price until they have worked through all supply including a larger than normal stock bought as a hedge against inevitably lowered or removed tariffs
  • choosing to maintain business at a temporary cost that cannot reasonably be borne forever

In the long run the oversimplification that a useful understanding. The idea that we can live off the largess of the foreigners instead of taxing income is a moronic idea that hasn't worked any of the other times its been tried. There is every reason for the long term stable price increase to be most of the cost of the tariff even if this isn't true in the short term in a chaotic environment.