The White House said the higher tariff is as a result of Chinese retaliation.
  • Frozengyro@lemmy.world
    0·
    4 days ago

    It does make a difference. Let’s say a thing you need about once a month to run your business was 10 dollars from China. You can get a similar product in the US, but it’s 30 dollars. At 80%, it’s still cheaper to get from China, 18 bucks. At 245%, it’s now 24.50 to buy from China. Still cheaper than buying from the US, but now way more expensive.

    I know these are made up numbers, but it isn’t that unusual for US made items to be 3-10x the price of making it in ‘cheap labor’ countries. Also, this assumes there is a comparative replacement made in the US. But many machine parts have no analog or are proprietary, you must buy it from China or end that part of your business.

    • buddascrayon@lemmy.world
      0·
      4 days ago

      Your point is fairly good but you need to recheck your math. At 145% a $10 product will be $24.50. At 245% it’s gonna be $34.50. And that doesn’t even take into account additional federal, state, and local taxes.