That’s a bit of a gross oversimplification. Overseas or foreign product? Sure tariffs apply 100%.
But what if the modified corn gloop is processed with a machine from Germany? And quality inspected with a sampling device from Canada? And the cameras used to inspect the packaging come from Japan? And the computers to power the logistics operations come from Taiwan, Korea and China?
Sure the corn gloop isnt taxed via tariff, but every single part of its manufacturing just got 20-120% more expensive (and supply chains got that much less predictable). Most businesses would go under if they tried to eat that cost.
The answer? Sweeping tariffs mean sweeping price increases. The list of which prices won’t go up will be infinitely smaller.
Yeah, this is also true. Global supply chains are unfathomably large.
And really, Walmart aren’t really doing a lot themselves. All those Walmart branded products are made by a third party, just like the regular branded stuff.
If the amount goes up on Walmart’s supplier invoice, the amount goes up on the shelf. High volumes and thin margins means there’s no wiggle room to “eat” anything.
Their only two options are to stop stocking a product, or to pay and charge more.
If the stuff comes from a place where tariffs have been applied, the price should go up.
If it’s modified corn gloop from Kentucky, the price should not go up.
So which prices are going up?
That’s a bit of a gross oversimplification. Overseas or foreign product? Sure tariffs apply 100%.
But what if the modified corn gloop is processed with a machine from Germany? And quality inspected with a sampling device from Canada? And the cameras used to inspect the packaging come from Japan? And the computers to power the logistics operations come from Taiwan, Korea and China?
Sure the corn gloop isnt taxed via tariff, but every single part of its manufacturing just got 20-120% more expensive (and supply chains got that much less predictable). Most businesses would go under if they tried to eat that cost.
The answer? Sweeping tariffs mean sweeping price increases. The list of which prices won’t go up will be infinitely smaller.
Yeah, this is also true. Global supply chains are unfathomably large.
And really, Walmart aren’t really doing a lot themselves. All those Walmart branded products are made by a third party, just like the regular branded stuff.
If the amount goes up on Walmart’s supplier invoice, the amount goes up on the shelf. High volumes and thin margins means there’s no wiggle room to “eat” anything.
Their only two options are to stop stocking a product, or to pay and charge more.