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cheema33yesterday at 5:09 PM1 replyview on HN

> down-votes can't stop China. Tariffs can though...

People like you and I pay tariffs. Not China. You realize that right? And how will that stop China? Tariffs mostly hurt American consumers and producers. Just ask farmers.


Replies

tracker1yesterday at 11:59 PM

First, cost != price. Pricing is in part based on competitive product availability. So if the cost of a product + tariff is greater than the cost of a competing product, there is pressure to reduce that cost. There's also pressure to produce elsewhere, such as domestically to avoid the tariff altogether.

This is a large part of why the tariffs have in fact not had the dramatic impact on all pricing that some have suggested would happen. It's been largely a negotiation tactic first, and second, many products have plenty of margin and competition to allow for pricing to remain relatively level even in the face of tariffs... so it absolutely can, in fact be a burden borne by Chinese manufacturers by lowering margins instead of US importers simply eating the cost of tariffs.