Let's look at the cash flow and financing for a business that is overwhelmingly an importer. They have working capital of $1,000,000 dollars and let's assume an average or median tariff of 25% percent.
Now they need $1,250,000 in working capital.
Multiply the $250,000 by 7% financing interest = $17,500
Add the $250,000 and $17,500 = $267,500
This business will probably increase their price by 26.75% rather than the 25%.
What is the action plan to accumulate a $250,000 pot of cash so they don't have to pay the 7% forever?
Pay less dividends to investors and give less raises to employees for 26.75 months?
A price increase of 26.75% on some expenses will prevent me from buying the collectables you are selling on eBay. I will be paying 25% more, now, that will benefit workers in an iPhone factory who will start their new jobs 2.5+ years in the future.
These tariffs are communism because they are redistributing income.
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Consider the commercial aircraft manufacturing industry dominated by Boeing and Airbus.
Every customer outside of the USA will stop buying Boeing because of tariffs or boycotts. Boeing will downsize or go out of business. Also figure in 25 years of lost replacement part business for the useful lifespans of the planes.
It will be the Golden Age of Prosperity for Airbus as they will secure all aircraft business outside of the USA.
