Will Trump’s tariffs result in prices going up even more in the US

in Economics7 days ago

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According to Wikipedia A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods.

Will Trump’s tariffs result in prices going up even more in the US the answer is yes, as you are aware Tariffs don't care if you comprehend or don't.

For example a $10.00 product comparison let's assume the item is an imported item. If the item is tariff-free and estimates a 50% markup for profit, transportation, and business expenditures at every level.
The price will be $15.00 with the Absence of tariff which means $10 is paid by the importer, and sold at $15 to the wholesaler.

The wholesaler then sells to the distributor for $25.00 after paying $15.00.
The distributor sells to the retailer for $33.00 after paying $25.00.
You purchase it from the retailer for $31.25. With a 25% tax

Now let's see the price of the goods with Tariff added

The Importer pays $10.00, adds 25% tariff which makes his cost $12.50. and let's say additional 50% for transportation, profit and others then He sells it to Wholesaler for $18.75

Wholesaler pays $18.75 and sells it to Distributor for $28.75.

Distributor pays $28.75 and sells it to the retailers for $3.6.75

Retailer pays $36.75 and sells it to you for around $46

$31.25 without tariff, $46 with Tariff.

You can adjust the number of supply chain levels and 50% margins, but that won't alter the outcome.
And this also applies to any item this may affect

Retail prices for items will surge sharply as a result of Tariff.