Today 12:14 pm
Bad takes from people on both sides.
Tax incidence (burden) falls on the side that is more inelastic.
If consumers desperately want Apple products (which they do, you would be hard pressed to find a more fanatical herd), and Trump passes a tariff on Apple products made outside the USA, the consumer would bear the majority of the burden.
For something like GE appliances vs Samsung or Whirlpool appliances, I assume consumers have more elasticity / are brand agnostic, so it either ends up being a wash (both sides share the tax burden) or the company that manufactures overseas will have to absorb the majority of higher costs.
There is no “tariffs good” or “tariffs bad.”
@Cannonpointer
Tax incidence (burden) falls on the side that is more inelastic.
If consumers desperately want Apple products (which they do, you would be hard pressed to find a more fanatical herd), and Trump passes a tariff on Apple products made outside the USA, the consumer would bear the majority of the burden.
For something like GE appliances vs Samsung or Whirlpool appliances, I assume consumers have more elasticity / are brand agnostic, so it either ends up being a wash (both sides share the tax burden) or the company that manufactures overseas will have to absorb the majority of higher costs.
There is no “tariffs good” or “tariffs bad.”
@Cannonpointer