this post was submitted on 06 Apr 2025
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Explain Like I'm Five
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Even stuff that is purely American will go up.
Imagine I make shirts in the USA with no imported goods. My cost to make them is $10 and I sell them for $15. My primary competition is overseas shirt makers who have much lower costs and their final price in my market is $12, so consumers often flock to them as they are cheaper.
Well good news for me! Tarrifs have made foreign made goods more expensive for the end consumer, and now those competitors price their shirts at $20, making my shirts the cheaper option!
Except, I'm a good little capitalist, so to make as much profit as I can, I'm going to increase the cost of my shirts to $17, even though my cost to make them hasn't changed. I'm still the cheaper option, I can play to people's nationalism, and I'm still making more money than before!
Only the end consumer loses.
And that doesnt even factor in the fact that most made in America goods are made with materials imported from other countries. They are not going to eat that cost, they are going to pass it on to the next person until there is nobody left to pass it on to. The consumer.