'It’s very straightforward': Acer plans to raise the price of its PCs in the US by 10% in reaction to Trump's tech tariffs
Basic economics strikes again.
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Is there any chance that companies are using the tariffs as an excuse to raise prices when they wanted to anyway? Like a lot of these companies have more money than God already. They could eat the extra cost and be fine. Seems like they’re just being greedy to me.
Of course some could, but if everyone is impacted then why would they eat the cost? Also they can add a few percentages and blame it on tarrif.
Like how the messaging from covid immediately shifted once the media started using the "i" word.
"We understand the blocked canal, shuttered factories, and overall stagnant supply chain is a problem but we will work together in this crisis"
To
"Sorry inflation. Record profits? No inflation"
It's absolutely the case here. It's the retailers buying from them that have to pay the tariffs, not the manufacturer. So they're not increasing costs to make up for the tariffs, they're just increasing costs that retailers will have to pay ON TOP OF the extra they're already having to pay for the tariffs.
Its like a company trying to justify increasing the cost of their goods just because the sales tax on their goods went up. The company's profits are unchanged by the tax increase, it's just the consumer who's getting screwed twice.
The importer has to pay the tariffs.
Which in most cases is the brand-name company, incorporated in the US. Usually, the manufacturer is a separate foreign supplier.
The retailer usually receives the goods from a domestic distribution center.
So yeah, most laptop brands are paying the tariffs themselves.