…from a guy who’s had many years’ experience in the field:
“The tariffs are only in the cost of goods. They’re not on the retail price. So you put a tariff on the cost of the goods of 20%, it doesn’t mean the retail price goes up by 20%, not unless you can buy everything at a cost somewhere. Additionally, when they put tariffs on toys back in the first Trump administration, studies show 87% of the increase was borne by the Chinese manufacturers. China has a huge toy industry and they have everything to gain and nothing to lose by keeping the sale rather than have it moved to America, like a lot of it will do. Additionally, there are substitute products, you know, products that you can sell that are made in the U.S. instead of differences, promote those. And then, of course, there will be transfers, some sales to the U.S.”
“I think people are hysterical. It’s not nearly the magnitude of what they’re talking about.”
Yeah, of course. Internet economists, mostly relying on journalists’ “expertise” for their prognoses… what could possibly go wrong?
Listen to the guys with experience. Nine times out of ten, that experience will beat academic theory like an old carpet.