r/politics 🤖 Bot 1d ago

Discussion Discussion Thread: US Senate Debates and Considers the Republican Budget Resolution on April 4th, 2025

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u/sirbissel 1d ago

Or say there's the Chinese washing machine for $600, and the American one is for $750, tariffs hit, the Chinese machine is pushed up to $900 - so the American one decides they can slightly undercut the Chinese model but make a better profit and start selling them for $850.

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u/say_no_to_shrugs 1d ago

Except the American company can’t raise the price and make a higher profit, because these tariffs aren’t on just on manufactured goods like a normal tariff, they’re also on the commodities and sub manufactured parts, so the price of everything goes up, and the consumer pays nearly as much of a tariff on the American washer.

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u/sirbissel 1d ago

In truth, yes, but I was just making a simple illustration of why even things 100% manufactured here are likely to go up in price due to the tariffs on their competitors.

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u/share_my_filthywife 1d ago

I don’t see enough people talking about this, do folks really believe that if the cost of a European car rises by a few thousand dollars, the US made ones will stay the same price?

If you do, I’ve got a bridge to sell you!

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u/scoobysnackoutback 1d ago

40-50% of the parts used to manufacture American made cars are made outside of the US. By the way, 1 in 8 jobs are connected to the auto business.

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u/Ferelar New Jersey 23h ago

And even if we still only look at imported goods, a 50% tariff doesn't mean ONLY a 50% raise in price. There are a lot of pieces of the supply chain, and each little middle man tends to upcharge- often based on the value of the good. So if your tariff increases the price of the good at the import point, that percentage is borne through each of the middlemen who take their slightly higher cut each. So a 50% tariff could end up causing a 60% price hike or more very, very easily- even before we factor in the price gouging that could be done.

And then there's a whole 'nother angle aside from things getting pricier.... tariffs will cause a lot of companies to just stop exporting to the US because it's no longer economically viable. So you might not end up paying more for your favorite brand... because you might no longer SEE your favorite brand.