Trade Wars and Tariffs

[FLVOL_79]

The joke is how some leftist think they are experts on everything and Trump knows nothing about anything.

Dude. Its nots just leftists who don't like Trump and think he is a moron. I'm a perfect example of that. The only thing Trump is an expert in that I can tell so far is the following:
1. Using spray tan and not giving AF.
2. Terrible hair.
3. Not knowing how to tie a tie (which is mind boggling to me).
4. Leveraging his wealth to get some decent trim.
5. Willingness to use the US military to whip the sh!t out of people.
6. Being worse at golf than I am.

 

[jmacvols1]

Dude. Its nots just leftists who don't like Trump and think he is a moron. I'm a perfect example of that. The only thing Trump is an expert in that I can tell so far is the following:
1. Using spray tan and not giving AF.
2. Terrible hair.
3. Not knowing how to tie a tie (which is mind boggling to me).
4. Leveraging his wealth to get some decent trim.
5. Willingness to use the US military to whip the sh!t out of people.
6. Being worse at golf than I am.

there it is....not a single valid worthwhile argument in your list.

 

[FLVOL_79]

there it is....not a single valid worthwhile argument in your list.

Yeah..because I'm not arguing. Stating my opinion (and facts).

You might need to talk to someone about your TDS.

 

[BeardedVol]

The joke is how some leftist think they are experts on everything and Trump knows nothing about anything.

I'm curious, what subject(s) do you believe Trump to be an "expert" in?

 

[jmacvols1]

hipwreckedcrew
@shipwreckedcrew
·
47m


"At some point this might change, but the fact that the tariffs that Trump has put in place have not contributed to meaningful price increases at the consumer level -- that would be revealed by increasing inflation -- shows the enormity of the mark-up on imported goods that has been paid by US consumers for decades.

There is no obligation for the foreign manufacturer, exporter, or importer to sell goods into the U.S. market at a "fair" price in relationship to the cost of those goods. They are entitled to sell their products at whatever price "the market will bear."

The ability and willingness of those three levels of wholesalers to absorb the costs of the tarrifs without significantly increase the price of those goods to the US consumers tells you how much they have been making on the backs of the US consumer for the simple reason that the US consumer has the financial ability to pay a higher price than any other economy in the world.

Now some of that profit margin is being drained away for the US Treasury. When that margin becomes smaller than the wholesalers can accept, they will either raise prices or reduce supply. THAT is where market equilibrium between supply and cost will be found."




GROK agrees:

The Markup Cushion: Evidence of Overpricing on Imported Goods

Your point about foreign manufacturers, exporters, and U.S. importers/wholesalers capturing outsized margins due to U.S. consumers' purchasing power is spot-on and backed by trade data. The U.S. market's affluence (median household income ~$75K vs. ~$13K in China) allows "what the market will bear" pricing, creating layers of profit that tariffs can erode without immediate retail hikes.

• Typical markups on imports: For consumer goods (e.g., apparel, electronics, home goods), retail prices often reflect 100–300% markups over landed cost (FOB factory price + shipping/duties).
  
  A $20 imported item might retail for $50–$100 after importer (20–50% gross margin), wholesaler (10–20%), and retailer (30–50%) cuts—leaving room to absorb a 10–25% tariff hit (~$2–5) without repricing.
  
  Luxury or branded imports can hit 500% markups.
  
  
  
• Tariffs exposed this: During 2018–2019, Chinese exporters held prices steady (no meaningful cuts), forcing U.S. importers to absorb via margin compression—estimated at 5–10% of profits for affected firms.
  
  
  This implies pre-tariff margins were plump enough to handle it, as you note. Broader studies peg average importer/wholesaler gross margins at 20–50%, with net profits 5–20% after overhead—far above manufacturing costs in low-wage countries.
  
  
  
• Historical context: Decades of globalization amplified this. U.S. import prices have risen slower than domestic goods (thanks to offshoring), but retail markups on imports grew 10–15% from 2000–2018, per BLS data—profiting intermediaries at consumers' expense.
  
  
  Tariffs acted as a "stress test," revealing how much was gouge vs. necessity.

 

[jmacvols1]

I'm curious, what subject(s) do you believe Trump to be an "expert" in?

I was speaking about "experts" on VN.

 

[FLVOL_79]

hipwreckedcrew
@shipwreckedcrew
·
47m


"At some point this might change, but the fact that the tariffs that Trump has put in place have not contributed to meaningful price increases at the consumer level -- that would be revealed by increasing inflation -- shows the enormity of the mark-up on imported goods that has been paid by US consumers for decades.

There is no obligation for the foreign manufacturer, exporter, or importer to sell goods into the U.S. market at a "fair" price in relationship to the cost of those goods. They are entitled to sell their products at whatever price "the market will bear."

The ability and willingness of those three levels of wholesalers to absorb the costs of the tarrifs without significantly increase the price of those goods to the US consumers tells you how much they have been making on the backs of the US consumer for the simple reason that the US consumer has the financial ability to pay a higher price than any other economy in the world.

Now some of that profit margin is being drained away for the US Treasury. When that margin becomes smaller than the wholesalers can accept, they will either raise prices or reduce supply. THAT is where market equilibrium between supply and cost will be found."




GROK agrees:

The Markup Cushion: Evidence of Overpricing on Imported Goods

Your point about foreign manufacturers, exporters, and U.S. importers/wholesalers capturing outsized margins due to U.S. consumers' purchasing power is spot-on and backed by trade data. The U.S. market's affluence (median household income ~$75K vs. ~$13K in China) allows "what the market will bear" pricing, creating layers of profit that tariffs can erode without immediate retail hikes.

• Typical markups on imports: For consumer goods (e.g., apparel, electronics, home goods), retail prices often reflect 100–300% markups over landed cost (FOB factory price + shipping/duties).
  
  A $20 imported item might retail for $50–$100 after importer (20–50% gross margin), wholesaler (10–20%), and retailer (30–50%) cuts—leaving room to absorb a 10–25% tariff hit (~$2–5) without repricing.
  
  Luxury or branded imports can hit 500% markups.
  
  
  
• Tariffs exposed this: During 2018–2019, Chinese exporters held prices steady (no meaningful cuts), forcing U.S. importers to absorb via margin compression—estimated at 5–10% of profits for affected firms.
  
  
  This implies pre-tariff margins were plump enough to handle it, as you note. Broader studies peg average importer/wholesaler gross margins at 20–50%, with net profits 5–20% after overhead—far above manufacturing costs in low-wage countries.
  
  
  
• Historical context: Decades of globalization amplified this. U.S. import prices have risen slower than domestic goods (thanks to offshoring), but retail markups on imports grew 10–15% from 2000–2018, per BLS data—profiting intermediaries at consumers' expense.
  
  
  Tariffs acted as a "stress test," revealing how much was gouge vs. necessity.

Whoever wrote this, and GROK (Trump supported AI...), must only shop at dollar general and/or walmart.

 

[MontyPython]

A $20 imported item might retail for $50–$100 after importer (20–50% gross margin), wholesaler (10–20%), and retailer (30–50%) cuts—leaving room to absorb a 10–25% tariff hit (~$2–5) without repricing.

Luxury or branded imports can hit 500% markups.

Tariffs exposed this: During 2018–2019, Chinese exporters held prices steady (no meaningful cuts), forcing U.S. importers to absorb via margin compression—estimated at 5–10% of profits for affected firms.

Dude, either you can't read or you simply can't comprehend simple economics.

In your first example, who takes a reduction in profits? The importer, wholesaler and retailer. These are all AMERICAN entities, doofus.

In your second example, it states that U.S. importers were forced to reduce their margins (profits). Again, these are AMERICAN importers.

So who is taking a hit with tariffs? We are.

Next on Trump's economic agenda: Coal fired electrical plants supplied by Amish mule riders with buggy whips.

 

[jmacvols1]

Dude, either you can't read or you simply can't comprehend simple economics.

In your first example, who takes a reduction in profits? The importer, wholesaler and retailer. These are all AMERICAN entities, doofus.

In your second example, it states that U.S. importers were forced to reduce their margins (profits). Again, these are AMERICAN importers.

So who is taking a hit with tariffs? We are.

Next on Trump's economic agenda: Coal fired electrical plants supplied by Amish mule riders with buggy whips.

he was taking about US CONSUMERS not taking the hit from tariffs...

"....tariffs that Trump has put in place have not contributed to meaningful price increases at the consumer level"

Conusmers having been hit with high markups from wholesalers (foreign manufacturers, exporters, importers) for decades and the tariffs are showing that fact...

"The ability and willingness of those three levels of wholesalers (foreign manufacturers, exporters, importers) to absorb the costs of the tariffs without significantly increase the price of those goods to the US consumers tells you how much they (these three wholesalers) have been making on the backs of the US consumer (in high markups) for the simple reason that the US consumer has the financial ability to pay a higher price than any other economy in the world."

the wholesalers (foreign manufacturers, exporters, importers) are the ones taking the hit in their high markups, NOT THE US CONSUMERS. So we the consumers are not taking the hit from the tariffs.

GROK pointed out: : "Tariffs acted as a "stress test," revealing how much was gouge vs. necessity."
How many people will care that these wholesalers (foreign manufacturers, exporters, importers) who have been "gouging" US consumers with high markups for decades are taking the hit in their markups?

 

[BernardKingGOAT]

So China is buying Argentina's surplus soybeans because they aren't buying ours because of tariffs. In the mean time, we are going to bail out Argentina. Freaking circus with Donald in the big top

 

[MontyPython]

he was taking about US CONSUMERS not taking the hit from tariffs...

"....tariffs that Trump has put in place have not contributed to meaningful price increases at the consumer level"

Conusmers having been hit with high markups from wholesalers (foreign manufacturers, exporters, importers) for decades and the tariffs are showing that fact...

"The ability and willingness of those three levels of wholesalers (foreign manufacturers, exporters, importers) to absorb the costs of the tariffs without significantly increase the price of those goods to the US consumers tells you how much they (these three wholesalers) have been making on the backs of the US consumer (in high markups) for the simple reason that the US consumer has the financial ability to pay a higher price than any other economy in the world."

the wholesalers (foreign manufacturers, exporters, importers) are the ones taking the hit in their high markups, NOT THE US CONSUMERS. So we the consumers are not taking the hit from the tariffs.

GROK pointed out: : "Tariffs acted as a "stress test," revealing how much was gouge vs. necessity."
How many people will care that these wholesalers (foreign manufacturers, exporters, importers) who have been "gouging" US consumers with high markups for decades are taking the hit in their markups?

Just stop. You literally are just making **** up, dude.

Your future in serving as a Trump MAGA parrot is looking good though.

Is there any empirical evidence of widespread lowering of prices of goods by foreign manufacturers and exporters to the united states in response to the new tariffs imposed by the united states?

No, there is no empirical evidence of *widespread* lowering of prices by foreign manufacturers and exporters to the US in response to the new 2025 tariffs. While some sector-specific instances of price reductions (suggesting partial tariff absorption by exporters) have been observed, broader analyses of trade data indicate that foreign exporters have largely maintained or even increased their pre-tariff prices. Instead, the primary responses have been reductions in export volumes to the US, trade diversion to other markets, and retaliatory measures or subsidies by affected countries. The tariff burden has mostly fallen on US importers, businesses, and consumers through higher costs.

### Key Evidence from Recent Studies and Data
Recent empirical research on the 2025 tariffs (imposed starting in early 2025, building on prior trade policies) draws from sources like US Bureau of Labor Statistics import price indices, Federal Reserve Economic Data (FRED), and firm-level trade records. Here's a breakdown:

- **Overall Pass-Through and Limited Absorption**:
- Analyses show that foreign exporters have absorbed almost none of the tariff costs on average, with US domestic firms bearing about 60% through compressed profit margins and the remainder passed to consumers (around 40% by mid-2025). Import prices (excluding tariffs) have been stable or slightly rising year-to-date in 2025, returning only to mid-2024 levels after an initial uptick—insufficient to indicate meaningful absorption.
- Dollar-denominated import prices rose about 5% above pre-tariff trends by August 2025 for affected goods, with US importers absorbing the bulk of costs rather than seeing offsets from exporter price cuts.

- **Sector-Specific Examples of Price Lowering**:
- **Chinese Exports (Electronics, Apparel, Fabricated Metals)**: Import prices from China fell in these categories through mid-2025, with economists attributing discounts to surplus capacity and fears of losing US market share amid 25-60% tariffs. For instance, computer/electronics prices dropped notably per FRED data, though this offsets only a fraction of the tariff hikes.
- **European Alcohol (Beer, Wine, Liquor)**: Prices fell nearly 11% from December 2024 to July 2025 despite a new 10% tariff, linked to exporters' concerns over competition from US producers. This suggests targeted absorption to maintain volumes.
- These cases are isolated, not indicative of broad trends, and align with historical patterns from 2018-2019 tariffs where absorption was heterogeneous (e.g., steel exporters from the EU, South Korea, and Japan cut prices by ~50% to bear half the tariff cost, but most other sectors saw full pass-through).

- **Alternative Exporter Responses**:
- Exporters have diverted ~15% of affected trade flows away from the US (e.g., from China to Vietnam/South Korea), reducing US import volumes without price concessions.
- Retaliatory tariffs from partners like China and Canada, plus subsidies (e.g., China's boosts to electronics/textiles exports to non-US markets), have offset some losses but increased global distortions without widespread US-focused price cuts.

In summary, while targeted price reductions occur in competitive sectors to preserve market access, the evidence points to tariffs functioning more as a tax on US entities than a tool forcing broad foreign concessions.

 

[jmacvols1]

Just stop. You literally are just making **** up, dude.

Your future in serving as a Trump MAGA parrot is looking good though.

Is there any empirical evidence of widespread lowering of prices of goods by foreign manufacturers and exporters to the united states in response to the new tariffs imposed by the united states?

No, there is no empirical evidence of *widespread* lowering of prices by foreign manufacturers and exporters to the US in response to the new 2025 tariffs. While some sector-specific instances of price reductions (suggesting partial tariff absorption by exporters) have been observed, broader analyses of trade data indicate that foreign exporters have largely maintained or even increased their pre-tariff prices. Instead, the primary responses have been reductions in export volumes to the US, trade diversion to other markets, and retaliatory measures or subsidies by affected countries. The tariff burden has mostly fallen on US importers, businesses, and consumers through higher costs.

### Key Evidence from Recent Studies and Data
Recent empirical research on the 2025 tariffs (imposed starting in early 2025, building on prior trade policies) draws from sources like US Bureau of Labor Statistics import price indices, Federal Reserve Economic Data (FRED), and firm-level trade records. Here's a breakdown:

- **Overall Pass-Through and Limited Absorption**:
- Analyses show that foreign exporters have absorbed almost none of the tariff costs on average, with US domestic firms bearing about 60% through compressed profit margins and the remainder passed to consumers (around 40% by mid-2025). Import prices (excluding tariffs) have been stable or slightly rising year-to-date in 2025, returning only to mid-2024 levels after an initial uptick—insufficient to indicate meaningful absorption.
- Dollar-denominated import prices rose about 5% above pre-tariff trends by August 2025 for affected goods, with US importers absorbing the bulk of costs rather than seeing offsets from exporter price cuts.

- **Sector-Specific Examples of Price Lowering**:
- **Chinese Exports (Electronics, Apparel, Fabricated Metals)**: Import prices from China fell in these categories through mid-2025, with economists attributing discounts to surplus capacity and fears of losing US market share amid 25-60% tariffs. For instance, computer/electronics prices dropped notably per FRED data, though this offsets only a fraction of the tariff hikes.
- **European Alcohol (Beer, Wine, Liquor)**: Prices fell nearly 11% from December 2024 to July 2025 despite a new 10% tariff, linked to exporters' concerns over competition from US producers. This suggests targeted absorption to maintain volumes.
- These cases are isolated, not indicative of broad trends, and align with historical patterns from 2018-2019 tariffs where absorption was heterogeneous (e.g., steel exporters from the EU, South Korea, and Japan cut prices by ~50% to bear half the tariff cost, but most other sectors saw full pass-through).

- **Alternative Exporter Responses**:
- Exporters have diverted ~15% of affected trade flows away from the US (e.g., from China to Vietnam/South Korea), reducing US import volumes without price concessions.
- Retaliatory tariffs from partners like China and Canada, plus subsidies (e.g., China's boosts to electronics/textiles exports to non-US markets), have offset some losses but increased global distortions without widespread US-focused price cuts.

In summary, while targeted price reductions occur in competitive sectors to preserve market access, the evidence points to tariffs functioning more as a tax on US entities than a tool forcing broad foreign concessions.

if tariffs are being passed on to consumers it would show up in the CPI which it is not. So someone other than the consumer is taking the bigger hit from tariffs.....

2% inflation - where's the big hit from tariffs on consumers????


GROK:
'....the fact that the tariffs that Trump has put in place have not contributed to meaningful price increases at the consumer level -- that would be revealed by increasing inflation (yet inflation just 2%) shows the enormity of the mark-up on imported goods that has been paid by US consumers for decades." "...tariffs did exert upward pressure on prices, but absorption by intermediaries and broader economic dynamics muted the overall inflationary signal."

Why no inflation explosion?
Importers and wholesalers ate ~50–75% of the initial hit by compressing margins."
In short, the "enormity of the markup" did provide a buffer—tariffs revealed fat in the chain—but it wasn't enough to prevent any consumer hit, just to keep it from dominating headlines."

 

[MontyPython]

if tariffs are being passed on to consumers it would show up in the CPI which it is not. So someone other than the consumer is taking the bigger hit from tariffs.....

2% inflation - where's the big hit from tariffs on consumers????


GROK:
'....the fact that the tariffs that Trump has put in place have not contributed to meaningful price increases at the consumer level -- that would be revealed by increasing inflation (yet inflation just 2%) shows the enormity of the mark-up on imported goods that has been paid by US consumers for decades." "...tariffs did exert upward pressure on prices, but absorption by intermediaries and broader economic dynamics muted the overall inflationary signal."

Why no inflation explosion?
Importers and wholesalers ate ~50–75% of the initial hit by compressing margins."
In short, the "enormity of the markup" did provide a buffer—tariffs revealed fat in the chain—but it wasn't enough to prevent any consumer hit, just to keep it from dominating headlines."

Dude. It takes time to pass through.

Trust me. It’s coming. I’m not rooting for it, just telling you it will happen.

And also, why are you excited that American importers are getting squeezed? You do understand that these are your neighbors, your fellow American citizens, right? If they have lower profits, our economy weakens.