NY Federal Reserve finds a 'significant share' of companies saying they raised prices on goods not affected by tariffs
NY Federal Reserve finds a ‘significant share’ of companies saying they raised prices on goods not affected by tariffs
Whipsaw tariffs have led businesses to time price increases with an unpredictable tariff environment, economists say.Sasha Rogelberg (Fortune)
tyler
in reply to cm0002 • • •No shit Sherlock. That’s how tariffs work. An example is steel, which my wife deals with. Let’s say the price of Chinese steel was $100 per foot before tariffs. Now it’s $200/ft. Well the Canadian supplier who was charging $200/ft before the tariffs isn’t gonna keep charging that. Their product is vastly better than the Chinese product. They’re gonna charge $250+. They are incentivized to raise prices since a large portion of the market’s prices have gone up.
Everyone that even bothered to think about it for a single millisecond knew this was gonna happen.
BakerBagel
in reply to tyler • • •tyler
in reply to BakerBagel • • •propitiouspanda likes this.
propitiouspanda
in reply to tyler • • •You're both correct.
Businesses know that customers know about tariffs. They know customers expect prices to go up because there is rhetoric to "justify" it. So that's what they do. They raise prices.
You also give some very good insight that I had not considered. As much as I try to fight back and reason about how we're being exploited, even I couldn't see how domestic businesses would use tariffs as an excuse to raise prices in the industries being "protected."
It's all a fucking racket, and there are people who spend 8+ hours a day for years to figure out how to fuck us further.