Having to pay 1.25 instead of 1.00 for an avocado is not really a deathly threat to humanity.
Having to pay 1.25 instead of 1.00 for an avocado is not really a deathly threat to humanity.
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It not even that. Your example allows for a 25% increase at the retail level but that’s not how it works.
Tarrifs are levied on the importer. An Avocodo, using your example might cost the importer $.25 so the 25% is levied on that price and amountent to about $.06. This 6 cents will not easily be accepted by the wholesaler who buys from the importer and will in part be absorbed each of them. Let’s say the wholesaler agrees to pay half of the 6 cents making the cost to the wholesaler 50 cents plus the 3 cents tariff.
Next hr wholesaler tells the retailer the cost of Avocados has gone up 3 cents due to tariff increases. The taler says, “hell no, I won’t pay”. The wholesaler knows he can’t sit on the avocado forever so thy split the 3 cents. The retailer figures his markup at 150% on the increased cost to him of 51.5 cents instead of 50 cents. So his new retail price becomes about $1.27 instead of $1.25 and that is assuming he even bothers to raise his price considering the competition around him.
Many are frightened by the 25% number and are not familiar with the process of the assigning of tariffs to the product.
A shirt selling for 10 dollars and made in China may cost the importer about $1.50 landed in which case the 25% tariff amounts to just under 40 cents per shirt. Sure in huge lots this amounts to some money but on the retail level even IF passed along dollar for dollar the retail price is barely effected.
No, but maybe as the price goes up from there enough pissed-off consumers will start lobbying their congress-critters to get off their dead butts and actually solve the illegal immigration problem. Of course the enemedia are already spinning it the Romney way. Maybe if Mexico isn't as desirable as a cheap labor haven for American businesses they'll stay home and hire American workers.