Thanks for the analysis! When I read "These “tariff” costs will feed into the final products with all the worldwide consumers subsidising to close the US deficit gap. ", I was wondering how these distributorships typically look like. Is it possible for US based distributors to move part of their operations outside off the US to serve non-US consumers in order to partly avoid the Trump tariffs?
The US based distributors are already using operations outside the US to serve their overseas customers. My hypothesis is that due to the tariffs, the profit from the US side will decrease substantially and that will lead to increase prices for the rest of the world. This applies to anyone who wants to maintain a presence in the US market. They will need to as what Rudyard Kipling wrote “Robbing selected Peter to pay for collective Paul"
Thanks for the analysis! When I read "These “tariff” costs will feed into the final products with all the worldwide consumers subsidising to close the US deficit gap. ", I was wondering how these distributorships typically look like. Is it possible for US based distributors to move part of their operations outside off the US to serve non-US consumers in order to partly avoid the Trump tariffs?
The US based distributors are already using operations outside the US to serve their overseas customers. My hypothesis is that due to the tariffs, the profit from the US side will decrease substantially and that will lead to increase prices for the rest of the world. This applies to anyone who wants to maintain a presence in the US market. They will need to as what Rudyard Kipling wrote “Robbing selected Peter to pay for collective Paul"