Opportunity to increase profits even more?

[SL6827]

Will everything go up in price with the tariffs, even things that are not imported? Could retailers use this as an excuse to increase profits on certain things not impacted by tariffs?

 

[comicguy]

Unfortunately yes, some retailers will use it as a reason to raise prices!

 

[Hubalorian]

Capitalism! Charge what people will pay!

 

[LilyWDW]

100%. Anyone who doesn't think companies will take advantage of their competition raising prices has their heads in the sand.

Also, not much won't be impacted by tariffs. Even things "made in America" likely have parts or supplies that come from elsewhere. That is part of a global economy.

 

[robinb]

Yes. Remember when prices on just about everything went up during Covid and didn't come down after the supply chain was back?
Remember when companies made massive profits? That will happen with tariffs too.

 

[Smugpugmug]

Welcome to Capitalism, baby!

 

[Lumpy1106]

In theory, we would not see a benefit from tariffs until the local demand goes up and US companies start hiring and paying higher wages.
BUT...
This is why the other countries are so upset. They do not want that to happen as it will reduce demand on their side and they'll have to start reducing staff and closing factories.
SO...
What the POTUS intends is for the other countries to negotiate with the US and reduce the tariffs on US products on their side. The two countries come to a mutual agreement, a balance is reached and everything goes back to normal.
IN THE MEAN TIME...
Yes, prices on everything will likely go up. Hopefully the states don't do anything dumb like sue the POTUS and incur further costs. Oh wait...
Meanwhile, in Californina...

 

[Lumpy1106]

Yes. Remember when prices on just about everything went up during Covid and didn't come down after the DEMAND was back TO NORMAL?
Remember when companies made massive profits? That will happen with tariffs too.

FIFY. We were never short of toilet paper. People were needlessly hoarding it. DW and I were just lamenting about the case of single-ply we were left with. We knew the pandemic was over when the box ran out and we could go back to blessed two-ply again. What a dumb time in history that was.

 

[tvguy]

Not certain because prices have been rising for a year and that has generated a lot of pushback from consumers. Target reports foot traffic down 7.9%, Walmart down too.
Who is doing well, DISCOUNT stores like Dollar General, Dollar Tree, BJs, Costco and Sams Club.
@Hubalorian kind of nailed. Under Capitalism, charge what customers will pay, but the reality is, customers are NOT paying those prices, so retailers are going to have to CUT prices if they want to move merchandise.
I am sitting here eating my $1.97 a box Great Value Corn Flakes because the eggs I really want for breakfast are too expensive. Eggs have been the focus of price hikes because of the bird flu. They are DOWN to $6.34 a dozen this week, from $9. Happy Easter.

 

[reddog21]

we would not see a benefit from tariffs until the local demand goes up and US companies start hiring and paying higher wages

There's is no benefit.

 

[Lumpy1106]

There's is no benefit.

You have to wonder why other countries are doing it to the US then, right?

 

[reddog21]

You have to wonder why other countries are doing it to the US then, right?

Your going to hit me with a x% tariff so I'm just supposed to be like "ok thanks"? There no benefit for either side

 

[Lumpy1106]

Your going to hit me with a x% tariff so I'm just supposed to be like "ok thanks"? There no benefit for either side

OK, then why are they doing it?
Other countries are already doing this to US goods ICYDK.

 

[georgina]

this thread needs to be moved to the controversial topics forum.

 

[eandt]

this thread needs to be moved to the controversial topics forum.

Every thread seems to be ‘controversial’ to many here … also dogs are by far the best pets known to mankind

 

[Dakota731]

Theirs is no benefit.

I find benefits in increased government revenue, protection for domestic industries, and the potential to address unfair trade practices. They can also incentivize domestic production and potentially reduce a trade deficit.

 

[easyas123]

also dogs are by far the best pets known to mankind

 

[Anthony1971]

Best example I can think of: we bought eggs 2 weeks ago for 2.99 a Dozen yes the limit was 1 and it was at the very large supermarket we shop at. Week after not on sale yes they are higher but nowhere near the 6-10 the once were.
Few are going to pay a high price from X when Y is selling the same for a lot less making X lower its prices or they will not sell any - being eggs due expire X will have a total loss.
Sales are down and have been down for months to almost if not a year on what is considered non-essential if a retailer raised prices they simply will simply sell even less.
If one understands wholesale a commercial invoice is far different then a wholesale meaning a tariff just does not raise prices any where near the same %. Most name HIGH end name brand shoes that retail for around 200 at your favorite department stores made in China cost before the new tariff with the old % about 20 boxed labeled (bar coded with retail store name) LANDED that is all customs duties and shipping plus the wholesale price. Even with a 125% tariff on the commercial VALUE alone they will still cost under 30 giving the retailer plenty of room to make a profit. They will run a 45% instead of 50% super Saturday sale......
And yes I do know for a fact what those designer department store shoes cost to import...... The main line made in Italy is a different story and cost well over 1K retail but this not where designers make their huge profits.

 

[reddog21]

dogs are by far the best pets known to mankind

agree, cat people are weird!!

 

[Lumpy1106]

agree, cat people are weird!!

I own a cat and a dog,
Therefore...
I personally must be moved to the controversial topics thread.