There's 'overwhelming evidence' tariffs have raised consumer prices, says Bank of America
The analysts wrote in a note on Friday that consumers have covered about 50% to 70% of the cost of tariffs to date.
How did they figure that one out? Did they Open their eyes to see the most obvious fucking thing ever?
There actually was something in the article that surprised me:
The analysts also said consumers have paid for about 50% to 70% of the total tariff cost to date.
I was shocked it wasn't 100% to 120%. The fact that any businesses are shouldering even a portion of the tariffs is incredible. I fully expected them to go "Oh tariff is 50%? Better charge the consumer 60% just so we get our cut."
I wonder if it is by item or by dollar value. I imagine smaller businesses are often more likely to shoulder the burder of the tariff than larger, because they are more reliant on customer satisfaction. I'm talking out of my ass, though
We don't care about overwhelming evidence in this administration.
Evidence is "treason"
Shocking: making things more expensive doesn’t lower the prices!
Hm, but what if we just haven’t tarrifed hard enough yet?
We just aren't importing enough bootstraps
"You can't hear pictures"
Sho nit
The fact there is even a discussion around it is wild to me. Of course tariffs would raise consumer prices. That's how they work
MAGATs: Bank of America is WOKE now!!! People go to Wells Fargo!
Trump will take his sharpie and change their name to Bank of Mexico, then start an investigation into BoM’s history of funding Antifa.
...yes, that is the purpose of tariffs. Raising prices on imported goods until they become so expensive that local goods are competitive. This automatically increases consumer prices. It causes a huge shock upon introduction and over time it (in theory anyway) should promote domestic production by undercutting foreign competition.
They must be writing this hoping maga reads it because this is already known to everyone else.
If MAGA could read, they'd be very upset
If MAGA could read, they'd
be very upsetapplaud this as yet another win for the Trump administration
Up is down in MAGA world
They already read an article written by ChatGPT that told them the opposite.
Hey Bank of America, GO FUCK YOURSELF.
Tariffs have been a disaster for sure.
"zzzzzzz...FaKe NeWzzzzzzzzzzzzzzzz"
--maga
Fake news. The grocery stores pay me to take their food. Technically, I just work there and steal. But same thing.
Someone finally checked their bank account?
Yep, this is true. Wasn’t the point to make off-shore manufacturing more expensive to incentivize manufacturing jobs domestically? Have you heard of any new manufacturing plants being built domestically?
No? I wonder why. Almost like the people who could make those investments are not because they’re not affected by that price change. Like we’ll need a specific intervention that doesn’t affect everyone when a small portion made the decisions to off-shore manufacturing.
Wasn’t the point to make off-shore manufacturing more expensive to incentivize manufacturing jobs domestically?
Depends on your ideological camp. There's an anti-trade camp that thinks insourcing the entire US economy makes us more independent and improves our labor participation rate. There's also an anti-income tax camp that thinks the tariffs can replace the IRS. They're kind-of in tension, as more domestic industry would mean lower tariff revenues, while higher tariffs (to replace the income tax) would discourage the trade it is intended to tax.
Have you heard of any new manufacturing plants being built domestically?
Would these plants exist without the tariffs? Probably. Trump's only been in office for ten months and new manufacturing plants take years to plan and build. But if we see a permanent GOP majority (or a Dem base that just chases the GOP's tail, like centrist Dems have historically done since Reagan), then tariffs will become entrenched and domestic manufacturing will have a real incentive relative to overseas imports.
But its still a juggling act between cost of labor/access to materials abroad and cost of production at home. What we've seen a lot of in the states is assembly plants - particularly in the automotive sector - where foreign car companies ship in parts at a low price and turn them into "Made In America" vehicles that sell at a high price.
We could see a lot more of that in the future.
Well duh. How could it not? Isn't the idea to make foreign sourced goods more expensive for consumers, so competing domestic goods (if any) get sold instead at "their* higher prices? The only plus for anyone is that the extra $$ paid in tarriffs go into the Trump slush fund for ballrooms, bathrooms and direct payoff to himself. Yay.
Are they including the scamflation and shrinkflation in that 50-70%?
I mean, where companies have just raised costs, gone for cheaper ingredients, and messed with sizes, simply because they can?
No shit. That's what tariffs are supposed to do...
Journalism finds new ways to not state the obvious.
No shit.
Thanks for keeping the prices in RoW stable
But they still support them...
