I’m not so sure about that. With tarrifs of over 100%, manufacturers can add over a 100% to the cost of production and still come out ahead…
Alternatively they could move production, but that only makes sense to do if it’s cheaper than adding just enough electronics to make the items exempt from tarrifs
“with tariffs…manufacturers can add…come out ahead” - do you imply manufacturers are getting anything? This is not them who rsises the prices, they won’t see the money
That’s more or less my point.
They won’t come out ahead but at least they won’t have to raise the prices as much so they’ll be more completive compared to manufacturers that don’t include electronics
No. Even a large tariff on a 3$ piece of plastic that retails for 20-30 won’t be worth adding anything.
I’m not so sure about that. With tarrifs of over 100%, manufacturers can add over a 100% to the cost of production and still come out ahead… Alternatively they could move production, but that only makes sense to do if it’s cheaper than adding just enough electronics to make the items exempt from tarrifs
“with tariffs…manufacturers can add…come out ahead” - do you imply manufacturers are getting anything? This is not them who rsises the prices, they won’t see the money
if they reduce the tariff on their product and charge the same post tariff price they could make more profit even with higher manufacturing costs.
That’s more or less my point. They won’t come out ahead but at least they won’t have to raise the prices as much so they’ll be more completive compared to manufacturers that don’t include electronics