US President Donald Trump has threatened China with a 104 per cent tariff, if Beijing doesn’t drop its 34 per cent tariff on US goods.
President Trump announced the plan on social media, as stock markets across the world continued to plummet.
What’s next?
Beijing has not yet commented on the president’s threat.
Something I don’t often see discussed in these comment sections is how many companies have group purchasing agreements and contracts that supersede the price increases of tariffs.
For example, I work for a Healthcare company who is a part of a group of organizations that have an external company negotiate contracts on their behalf, flexing their power as a group to get better deals.
Goods imported still get taxed, but the prices are supposed to stay the same, but if things get to the point where operational costs completely outweigh breaking contracts, you might see things just… Stop.
The prices are the same.
You understand that a tariff isn’t a price increase, right; that you pay the vendor the same amount? The American importer, though, also pays the gov the assigned tariff.
So you’d pay the supplier, and then you’d pay the gov.
Yeah, but we all understand that. So I’m thinking things are really just gonna … Stop.