Businesses already using tariffs to gouge the public. Here's a
simple example:
Tariffs are calculated based upon the price the importer
pays.
Pre-tariff:Importer pays $5.00 for a product. With
a 100% markup the retail price is $5.00 x2 = $10.00.
After a 10% tariff is enacted: Importer pays $5.00
+ $0.50 (10% tariff) = $5.50. With a 100% markup the retail cost
should be $5.00 x2 = $10.00 + the cost of the
tariff ($0.50) = $10.50.
Instead, businesses are apparently adding in the
10% tariff
before calculating their markup($5.00 +$0.50) x2 = $11.00, to come up with
the retail price. To me this is gouging.
yeah not surprised by that, using it as an excuse. We also saw
some of that when inflation was higher, it was proven some
companies that didn't experience increased costs on their end
raised prices citing inflation - then made record
profits.
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Businesses already using tariffs to
Posted by RichieD on 8th of May 2025 at 10:08 am
Businesses already using tariffs to gouge the public. Here's a simple example:
Tariffs are calculated based upon the price the importer pays.
Pre-tariff:Importer pays $5.00 for a product. With a 100% markup the retail price is $5.00 x2 = $10.00.
After a 10% tariff is enacted: Importer pays $5.00 + $0.50 (10% tariff) = $5.50. With a 100% markup the retail cost should be $5.00 x2 = $10.00 + the cost of the tariff ($0.50) = $10.50.
Instead, businesses are apparently adding in the 10% tariff before calculating their markup ($5.00 +$0.50) x2 = $11.00, to come up with the retail price. To me this is gouging.
So ...the corporations are benefiting
Posted by captmet on 8th of May 2025 at 11:20 am
So ...the corporations are benefiting and the consumer is getting screwed ? R we great again yet ?
yeah not surprised by that,
Posted by matt on 8th of May 2025 at 10:23 am
yeah not surprised by that, using it as an excuse. We also saw some of that when inflation was higher, it was proven some companies that didn't experience increased costs on their end raised prices citing inflation - then made record profits.