It's an old attitude from "classical" economics, that tariffs are always passed on to the customer. But if you analyze that situation, it turns out it can only be true if there is no profit margin at all, and all costs must be recovered by the sale price, or if the profit margin is inflexible because it is so thin. If the profit margin is large, as it seems to be with many trade items, then it becomes a trade-off: pass the tariff onto the customer in order to maintain profit margin, but have a reduced market share---or eat some or all of the tariff, resulting in a reduced profit margin, but maintain market share.
Fresh Thyme just raised the price of my organic Guatemalan coffee beans by $5/lb. Businesses in my area aren’t eating any of the tariffs…everything is continuing to increase. Not a fan of tariffs at the moment.
It will be quite a while before I can consider buying a newer Jaguar again. The possible upside to this may be the contraction of the market in addition to the atrocious new design style being promoted. I think I can predict that no former Jaguar owner would be interested in buying something that looks (at best) like a bar of soap. That much market contraction may compel Jaguar to reconsider its nouveau approach and return to its traditions.
This is far from over. If Trump succeeds in establishing External Revenue as the funding engine for government and abolishes Internal Revenue, our incomes will increase. If he manages to get us off fiat money into gold/silver-backed currency, our dollar will increase in value relative to foreign currency, bringing exchange prices down.
Unless you want an EV Jaguar you are running out of time. They are transitioning to ALL EVs starting this year. They will sell their current inventory while they fully ramp up to EVs but that won't take a long time.
That's what they say. It may not take a long time for their offerings to not sell well. I cant imagine what market research led them into this barren ground.
Meanwhile, they are continuing Land Rover as a gas-guzzling option, with engines over 600 hp. I can easily see myself in a Range Rover Velar if there are no more honest Jaguars.
I’m a car connoisseur. That along with my degree in business makes me appreciate your response even more than I would minus those factors. I know if all plays out, this is how it will logically work and I can move on. We can afford the increase on the coffee, it’s just annoying to be seemingly absorbing all/most for this business (and I do very minimal shopping there to start). With the same occurring on the various groceries, it’s a mounting effort to stay on budget and keep savings growing. Thanks for the understanding response…I appreciate it.
I am more dismal about Biden's inflation and bad stock market. The "new normal" always seems more expensive. And I live in the state of Washington, whose benighted governor and foolish legislature are taxing gasoline to the price level of Canadian whiskey. (Well, it seems that way.)
There's also the fact that many governments subsidize their large exporters, as a way of buying votes. If their exports decrease, unemployment increases, so their tax base and their own political support plummet, all while the liabilities on their social safety net skyrocket. They're in a bad negotiating position to start with.
It's an old attitude from "classical" economics, that tariffs are always passed on to the customer. But if you analyze that situation, it turns out it can only be true if there is no profit margin at all, and all costs must be recovered by the sale price, or if the profit margin is inflexible because it is so thin. If the profit margin is large, as it seems to be with many trade items, then it becomes a trade-off: pass the tariff onto the customer in order to maintain profit margin, but have a reduced market share---or eat some or all of the tariff, resulting in a reduced profit margin, but maintain market share.
Fresh Thyme just raised the price of my organic Guatemalan coffee beans by $5/lb. Businesses in my area aren’t eating any of the tariffs…everything is continuing to increase. Not a fan of tariffs at the moment.
It will be quite a while before I can consider buying a newer Jaguar again. The possible upside to this may be the contraction of the market in addition to the atrocious new design style being promoted. I think I can predict that no former Jaguar owner would be interested in buying something that looks (at best) like a bar of soap. That much market contraction may compel Jaguar to reconsider its nouveau approach and return to its traditions.
This is far from over. If Trump succeeds in establishing External Revenue as the funding engine for government and abolishes Internal Revenue, our incomes will increase. If he manages to get us off fiat money into gold/silver-backed currency, our dollar will increase in value relative to foreign currency, bringing exchange prices down.
Unless you want an EV Jaguar you are running out of time. They are transitioning to ALL EVs starting this year. They will sell their current inventory while they fully ramp up to EVs but that won't take a long time.
I just responded to KSR, and could not include a boost for hope on the designs of all our favorite styles of older model cars. It is sad indeed.
That's what they say. It may not take a long time for their offerings to not sell well. I cant imagine what market research led them into this barren ground.
Meanwhile, they are continuing Land Rover as a gas-guzzling option, with engines over 600 hp. I can easily see myself in a Range Rover Velar if there are no more honest Jaguars.
I’m a car connoisseur. That along with my degree in business makes me appreciate your response even more than I would minus those factors. I know if all plays out, this is how it will logically work and I can move on. We can afford the increase on the coffee, it’s just annoying to be seemingly absorbing all/most for this business (and I do very minimal shopping there to start). With the same occurring on the various groceries, it’s a mounting effort to stay on budget and keep savings growing. Thanks for the understanding response…I appreciate it.
I am more dismal about Biden's inflation and bad stock market. The "new normal" always seems more expensive. And I live in the state of Washington, whose benighted governor and foolish legislature are taxing gasoline to the price level of Canadian whiskey. (Well, it seems that way.)
There's also the fact that many governments subsidize their large exporters, as a way of buying votes. If their exports decrease, unemployment increases, so their tax base and their own political support plummet, all while the liabilities on their social safety net skyrocket. They're in a bad negotiating position to start with.