this post was submitted on 09 Feb 2025
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I have a friend who runs a plant to make stamped steel parts for the auto industry, based in Canada. He's so ready to increase the prices to offset the tariffs for US customers. The customers already invested big bucks for the tool development and they can't just source the parts somewhere else. They'll have no other choice than paying the tariff price increase. If Trump supporters think that the tariff can magically move productions local...well, I'm being presumptuous by assuming Trump supporters think.
He does not have to “offset the tariffs”. Tariffs are a tax paid by the ones doing the importing. Americans will pay the tariffs.
He just has to resist lowering his prices to help his customers out. This can be hard sometimes but, right now, it should be pretty easy to point the finger at Trump and say there is nothing you can do.
His customers will pay more. He will make the same as before ( assuming demand does not drop ).
You're right. I guess there will be a lot of knee jerk reactions to the tariffs as well.