>>512572906It looks like you are just going to waffle back and forth on this point like a kike.
Anyways, respond to this:
So say they were selling 1000 units at 8 dollars profit before, making 8000 profit.
If they pass 100% of the tariff off, perhaps they only sell 500 units for 4000 profit.
If they lower the price 2 dollars to 8, the cost to a consumer is now 16 dollars (vs 25 domestic) at 6 dollars profit
perhaps they sell 700 units, making 4200.
By lowering the cost, they increase their profit over passing Theo whole tariff off.
This exchange can happen multiple times in the supply chain. This importer may eat a little, the distributor may eat a little, the wholesaler may eat a little, the retailer may eat a little.
Because, this it’s important, their goal is not the highest sale price, or profit per unit, it is total profit. If moving more units at a cheaper price increases profits, they will do that.
There are some confounders in foolish greed and stupid consumers, for example Walmart raising the price on goods substantially, even if they were made in America or had no tariffs, or the tariffs were significantly smaller than the price increase.
But if people won’t buy them, they will adapt.