Tariffs and Fentanyl??

[BowhunterB]

My company manufactures electrical devices in the US. We built 4 new plants last year. We have also expanded our plants in MX. Price is the same for a US based product or MX made product. But these tariffs will cause a price increase for all products no matter where they are made.

My 3 major competitors also have a similar foot print and therefore will will all raise prices.

While another competitor is out of Korea. They do not face these increases and will be able to sell a product at a much lower cost.

They get the jobs. We lose the jobs. Plants do not have work and layoffs come.

One of the main, if not the main point, of the tariffs is to increase the price of goods produced in other countries, to offset the cheap labor they have access to and to make it more attractive for us to buy American made products. Also, to make it more attractive for companies to move facilities to the US. In your scenario, the Korean competitor would likely face a tariff at some point to balance things out and increase the cost of their product.
In your scenario, why would the price be the same for all products no matter where they are made? Unless you are averaging the cost of tariffs on items made in MX over the cost of things made here?

[BrianL]

Stock market tanking today after new tariffs

[Greenheadless]

Stock market tanking today after new tariffs