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A comment on Best Buy and Target CEOs say prices are about to go up because of tariffs. Parent comment

Re:Best Buy and Target CEOs say prices are about to go up be... by crazygringo on Tuesday March 04, 2025 @10:06PM (#43262149)
It is extremely rare for manufacturers to absorb the tariffs.

Profit margins in most industries simply aren't high enough to cover it. A business can't absorb 20-25% tariffs if its profit margin is only 5%.

And manufacturing is particularly known for its low profit margins.

So no. I mean, in theory you are technically correct. But the way elasticity works in practice is that the buyer is who pays the tariffs in virtually all circumstances.

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Re:Best Buy and Target CEOs say prices are about to go up be... by throwaway48476 on Tuesday March 04, 2025 @10:14PM (#43262211)
This is the case of low elasticity of the supply curve.
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Re:Best Buy and Target CEOs say prices are about to go up be... by crazygringo on Tuesday March 04, 2025 @10:25PM (#43262290)
Yes, that's what I meant with my last sentence.
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