[old curmudgeon]

You are exactly right.

This is a power play. Trump does not believe the tariffs will continue beyond the point China sets realistic prices.

Ask yourself how much steel or aluminum is in that $1,000 dishwasher or $80,000 pickup truck.

Why does a bare bones pickup cost $35 or $45,000 and the super model cost $80,000? Each has the same steel and aluminum by weight.

The cost of the steel by weight is probably only 10% of the total price.

The rest is labor. When you get to the bottom line, everything is labor. Even the cost of the steel is labor.

So a 25% increase in only 10% of the cost is only .025.

But it makes for a great excuse to raise prices by 10 or 15%.

[robroys woman]

The rest is labor. When you get to the bottom line, everything is labor. Even the cost of the steel is labor.

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You and I are on the same page. I’ve said for a few decades that the only things of value in the world are human effort and raw materials (real estate). Everything is produced from those two core sources and various multipliers applied.